<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



NAIROBI, Aug 6 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.



<h2 class="wp-block-heading" id="h-events">EVENTS:</h2>



*Kenya&#8217;s central bank is due to announce its latest benchmark lending rate decision.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Japanese stocks jumped at the open on Tuesday, underpinning a recovery across battered Asian share markets and even triggering circuit breakers in some, after central bank officials said all the right things to soothe investor nerves.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices rebounded by more than 1% on Tuesday, paring previous session&#8217;s losses, on supply concerns amid an escalating Middle East conflict, stronger U.S. services sector data and a cut in production at Libya&#8217;s Sharara oilfield.



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



South African stocks and the rand tanked on Monday as global investor sentiment soured towards riskier assets due to growing fears over a possible recession in the United States.



<h2 class="wp-block-heading" id="h-nigeria-politics">NIGERIA POLITICS</h2>



Protests in Nigeria over the soaring cost of living ebbed on Monday, with only a few hundred people turning out in major cities following a deadly crackdown by security forces since the demonstrations began last week.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



Kenya&#8217;s shilling firmed slightly in early trade on Monday and it was expected to strengthen further, fuelled by dollar inflows from the tea sector, traders said



<h2 class="wp-block-heading" id="h-kenya-private-sector-activity">KENYA PRIVATE SECTOR ACTIVITY</h2>



Kenya&#8217;s private sector activity dropped in July, undermined by the effects of public protests against the government which hurt confidence in the economy and disrupted some business activity, a survey showed on Monday.



<h2 class="wp-block-heading" id="h-uganda-politics">UGANDA POLITICS</h2>



Police arrested 14 Ugandan opposition officials and supporters on Monday as they marched through their capital towards the Kenyan embassy to protest against Nairobi&#8217;s decision to detain and deport a group of their colleagues, local media said.



<h2 class="wp-block-heading" id="h-ivory-coast-cocoa">IVORY COAST COCOA</h2>



Cocoa arrivals at ports in top grower Ivory Coast had reached 1.668 million metric tons by August 4 since the start of the season on Oct. 1, down 26.8% from the same period last season, exporters estimated on Monday.



<h2 class="wp-block-heading" id="h-democratic-republic-of-congo-mining">DEMOCRATIC REPUBLIC OF CONGO MINING</h2>



China&#8217;s CMOC and other miners have applied for copper from Democratic Republic of Congo (DRC) to be registered for delivery against London Metal Exchange (LME) contracts, four sources with knowledge of the matter said.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Aug 6

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline-820x462.jpeg" alt="" class="wp-image-515647" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view of storage tanks and pipelines at the Shell Carson Distribution Complex, a distribution hub for petroleum products, in Carson, California, on March 11, 2022. Bing Guan | Reuters</figcaption></figure>



U.S. crude oil futures fell to a six-month low on Monday as equity markets sold off on fears the economy might be teetering on the brink of a recession.



West Texas Intermediate is now up roughly 2% for the year while Brent is now down marginally for 2024, after trading higher for months on geopolitical risk in the Middle East and forecasts that the oil market would tighten in the third quarter.



U.S. crude oil closed below $73 per barrel, the lowest settlement since Feb. 5.



“In times of crises all assets correlate,” Matt Smith, lead oil analyst for the Americas at Kpler, said of oil following equity markets lower. But geopolitical tensions in the Middle East and OPEC’s ongoing production cuts are providing a floor for crude prices, Smith said.



Here are Monday’s closing energy prices:



<ul class="wp-block-list">
<li>West Texas Intermediate&nbsp;September contract: $72.94 per barrel, down 58 cents, or 0.79%. Year to date, U.S. crude oil is up 1.8%.</li>



<li>Brent&nbsp;October contract: $76.30 per barrel, down 51 cents, or 0.66%. Year to date, the global benchmark has fallen about 1%.</li>



<li>RBOB Gasoline&nbsp;September contract:&nbsp;$2.33 per gallon, up more than 1 cent, or 0.69%. Year to date, gasoline is up 10.99%.</li>



<li>Natural Gas&nbsp;September contract: $1.94 per thousand cubic feet, down more than 2 cents, or 1.27%. Year to date, gas is down 22.75%.</li>
</ul>



The sell-off comes after U.S. job growth disappointed in July, with the unemployment rate rising to 4.3%, the highest level since October 2021. The U.S. manufacturing sector also contracted in July for the fourth consecutive month.



The weak economic data in the U.S. comes as lackluster demand in China had already been spooking traders.



“Already before we had the jobs report, already before the manufacturing data, we were concerned about weaker imports into China, weaker refinery utilization rates in China,” Helima Croft, head of global commodity strategy at RBC Capital Markets, said on CNBC’s “Squawk Box” on Monday.



<h2 class="wp-block-heading" id="h-opec-plans-face-challenges">OPEC plans face challenges</h2>



OPEC+ is also expected to start increasing production in October, though the group indicated last week that this decision “could be paused or reversed, depending on prevailing market conditions.” Croft said OPEC+ is now unlikely to start ramping up production.



“If the trend continues, I just can’t imagine OPEC would go forward with increasing output into this market. The question is, would they go the opposite way given the conditions we’re seeing,” Croft said, suggesting the oil producers could cut production again.



Bob Yawger, executive director of energy futures at Mizuho Securities, said OPEC+ seems interested in moving forward with the production increase based on last week’s statement, but they may not be able to afford to do so at this point. Rolling oil bank onto the market at current prices would “tank” the market, Yawger said.



<h2 class="wp-block-heading" id="h-geopolitical-risk"><a></a>Geopolitical risk</h2>



Geopolitical risk remains present with Israel preparing for an attack from Iran after the assassination of Hamas leader Ismail Haniyeh in Tehran last week.



“That exchange of fire in April between Iran and Israel was relatively contained, did not lead to any market disruptions,” Croft said. “But the question is now are we looking at something more coordinated with Hezbollah, Iran, Hamas.”



Bob McNally, president of Rapidan Energy, warned that tensions in the Middle East are “climbing the escalation ladder.” If Iran strikes Israel and kills civilians, the Netanyahu government will hit back much harder, he said.



“Israel is in a not in an eye for an eye mode,” McNally said. “They’re in three eyes for one eye mode.

107387062-17103533112022-03-12t000514z_565864485_rc2c0t9vvjxf_rtrmadp_0_ukraine-crisis-usa-gasoline

U.S. crude oil falls to six-month low as market sells off on recession fears

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1152" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;South African stocks and the rand tanked on Monday as global investor sentiment soured towards riskier assets due to growing fears over a possible recession in the United States.



At 1206 GMT, the rand traded at 18.5825 against the dollar, about 1.7% weaker than its previous close and near a two-month low. The rand had lost more than 2% against the greenback in earlier trade.



On Johannesburg Stock Exchange, the Top-40 index was down about 2.3%, mirroring a sell-off on global stock markets.



Markets have been hit by Friday&#8217;s weak U.S. July payrolls report, which showed the unemployment rate had risen to 4.3%, stoking concerns the world&#8217;s biggest economy may be heading for a recession.



&#8220;The ongoing equity market correction provides a glimpse of the kind of volatility that can be expected through the months ahead &#8230; (but) it will eventually trigger more aggressive rate cuts in the world&#8217;s top economies,&#8221; said Danny Greeff, co-head of Africa at ETM Analytics.



Traders are pricing in a near 100% chance that the Federal Reserve will cut interest rates by a full 50 basis points in September to rescue growth, compared with an 11.5% chance a week earlier, according to the CME FedWatch tool.



Rate cuts in the world&#8217;s biggest economies should lead to corrections in overvalued major currencies, Greeff added.



&#8220;The rand is thus still expected to strengthen through the coming quarters, but it will be far from smooth sailing,&#8221; he said.



Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. economic data and monetary policy in addition to local factors.



South Africa&#8217;s benchmark 2030 government bond was also weaker, as the yield gained 9.5 basis points to 9.345%.



(Reporting by Tannur Anders;Editing by Bhargav Acharya and Helen Popper)

South African Economy As Inflation Rate Rises For First Time In 2017

South African rand, stocks sink as US recession fears hit riskier assets

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-820x549.jpg" alt="" class="wp-image-515415" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/MURSHEI52JNC5NUC4K6WRTYQGU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A customer uses an ATM outside a branch of South Africa&#8217;s First National Bank (FNB) at a mall in Soweto, South Africa, December 13, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;South African banks report their half-year earnings from Tuesday, with the focus on whether credit impairments have peaked and on the interest rate outlook, with rates expected to fall in September for the first time since July 2020.



Monetary policy has remained tight in Africa&#8217;s most industrialised economy with the Central Bank holding rates at 8.25% since May 2023 after a hiking cycle from late 2021.



Economists polled by Reuters predict a 25-basis-point cut in September followed by another in November.



However, the lag between the first rate cut and improved performance, such as sustained loan growth, will likely mean a limited impact on the banks&#8217; 2024 earnings, Charles Russell, head of financial research at SBG Securities said in a note.



It will be &#8220;more material in 2025 and beyond, especially when combined with likely incremental politically-driven reform.&#8221;



Keamogetse Konopi, equity research analyst at Citi said we would need to see a slowdown in inflation and more than 75 basis points of rate cuts for banks to feel the impact and for consumer pressures to ease.



This &#8220;would lead to lower defaults and better affordability for households but this is likely to only result in a gradual pick up in banks&#8217; appetite for extending credit to households,&#8221; Konopi added.



<h2 class="wp-block-heading" id="h-retail-growth">RETAIL GROWTH</h2>



Radebe Sipamla, senior investment analyst at Mergence Investment Managers said credit growth will likely come from corporate lending with retail loan growth likely to remain tepid.



Most banks are expecting growth in net interest income, although some, like Nedbank are expecting to report slower growth of below mid-single digits.



Inflationary pressures, high interest rates and regular power blackouts are taking a toll on the banks&#8217; most sensitive retail and small business customers, leading to defaults.



Some like Standard Bank are grappling with sovereign defaults.



To weather the storm, banks have boosted their provisions for credit losses and have been conservative in lending out money.



Banks&#8217; credit losses have increased after a series of interest rate hikes, with the majority of banks&#8217; credit loss ratios &#8211; a measure of bad loans as a percentage of total loans &#8211; above the top of their target ranges.



Although impairments are higher than anticipated in certain portfolios for some banks including FirstRand, Absa Group and Standard Bank, overall credit performance for others is trending better into the second half.



In addition to also scrutinising the impact of currency weakness on banks&#8217; Africa operations, investors &#8220;will also get an idea of the quantum of the provision that FirstRand will be setting aside for the UK&#8217;s Financial Conduct Authority investigation into the country&#8217;s vehicle finance market,&#8221; Sipamla said.



(Reporting by Nqobile Dludla; Editing by Sharon Singleton)

A customer uses an ATM, in Soweto

South African banks’ earnings in spotlight ahead of first rate cuts

Why Monthly Home Payments Are Skyrocketing Right Now

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="511" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-820x511.jpg" alt="" class="wp-image-515376" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-820x511.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-768x479.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-1536x958.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/JKREOAPTKNJGHK4TSAYLUIJ7NA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Displaced Congolese people are reflected on a puddle, at the Muchacha primary school, where they live after recently fleeing from their Shasha village following clashes between M23 rebels and the Armed Forces of the Democratic Republic of the Congo (FARDC) in Sake, the Democratic Republic of Congo February 6, 2024. REUTERS/Arlette Bashizi/File Photo</figcaption></figure>



KAMPALA, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;Nearly 100 police officers from the Democratic Republic of Congo fled to neighbouring Uganda over the weekend as fighting between M23 rebels and the military in Congo&#8217;s east intensified, a Ugandan military spokesperson said on Monday.



The officers arrived via the Ishasha border crossing in Kanungu district in southwestern Uganda, Major Kiconco Tabaro, a regional spokesperson for the Uganda People&#8217;s Defence Forces, said.



The 98 officers arrived with 43 guns and ammunition and were subsequently disarmed.



&#8220;They were fleeing fighting by M23 and other militias and the Congo military, there&#8217;s a lot of violence there and then there&#8217;s also hunger,&#8221; Tabaro said.



Over the past four days at least 2,500 more Congolese refugees have arrived in Uganda fleeing the raging violence across the border, he said.



&#8220;The main push factor is the intensifying violence and insecurity,&#8221; Tabaro said, adding that pregnant women, breastfeeding mothers and young children were among the refugees.



The M23 has been waging a fresh insurgency in Congo&#8217;s militia-plagued east since 2022. A United Nations report seen by Reuters last month said the Ugandan army has provided support to the Tutsi-led rebel group, a charge Uganda denies.



The U.N. has long accused Uganda&#8217;s neighbour Rwanda of backing the M23, which has repeatedly seized large parts of mineral-rich eastern Congo, allegations Rwanda denied.



Efforts by Congo&#8217;s military to push back the rebels have intensified over the past year with the use of drones and aircraft, although the rebels have still expanded territory under their control.



In June, the M23 seized the town of Kanyabayonga, whose location on high ground makes it a coveted gateway to other parts of eastern Congo&#8217;s North Kivu province.



Fighting in North Kivu has driven more than 1.7 million people from their homes, taking the total number of Congolese displaced by multiple conflicts to a record 7.2 million, according to U.N. estimates.



(Reporting by Elias Biryabarema; Editing by George Obulutsa and Ros Russell)

Thousands more flee rebel advance in eastern Congo

Congolese police officers flee to Uganda as fighting intensifies

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1403" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-scaled.jpg" alt="" class="wp-image-489318" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/77VC4ZKBPBPJFFYBYJIHNWEQ6I-1-1536x1052.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers push trolleys as they shop at a Pick n Pay store at the Trade Route Mall, in Lenasia outside Johannesburg, South Africa, February 8, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Pick n Pay&nbsp;PIKJ.J&nbsp;has raised 4 billion rand ($217 million) through a rights offer that was 106% oversubscribed, it said on Monday as the country&#8217;s third biggest grocery group looks to reduce its debt.



Pick n Pay, which has 2,279 stores across South Africa and seven countries across Africa said in a statement that 98.7% of shareholders exercised their rights and the group received 4.3 billion rand worth in excess applications.



Only 1.3% of excess rights offer shares were allocated to make up the 100% total subscription.



As the rights offer was fully subscribed after taking into account the excess applications, the joint underwriters were not required to subscribe for any rights offer shares, the company added.



&#8220;The successful conclusion of the rights offer demonstrates the market&#8217;s strong confidence in our iconic brand and in our turnaround strategy,&#8221; Chief Executive Sean Summers said.



&#8220;It marks a crucial first step in our recapitalisation plan, positioning the group well to fund long-term sustainable growth.&#8221;



The proceeds of the rights offer will be used to pay down debt, stabilise the retailer&#8217;s balance sheet and invest in Pick n Pay&#8217;s turnaround strategy, which includes closing or converting over 100 loss-making Pick n Pay supermarket stores.



Summers is tasked with reviving, through a turnaround and two-step recapitalisation plan, a retail business that has been losing market share to bigger rivals Shoprite SHPJ.J and others for more than a decade.



A deterioration in the performance of the group&#8217;s core Pick n Pay supermarket business resulted in a substantial trading loss in the Pick n Pay division of 1.5 billion rand and an overall loss at group level of 3.2 billion rand in the 52 weeks ended Feb. 25.



At the same time its net debt escalated to 6.1 billion rand in the year.



($1 = 18.4525 rand)



(Reporting by Nqobile Dludla; Editing by Emelia Sithole-Matarise)

FILE PHOTO: Pick n Pay sales grow but warns on extra costs from power cuts

South African grocer Pick n Pay’s rights offer oversubscribed

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-820x547.jpg" alt="" class="wp-image-506008" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ugandan shilling and US dollars in the draw at a foreign exchange currency bureau in Kampala, Uganda, on Wednesday, Aug. 16, 2023. Uganda&#8217;s central bank said it stands ready to act if the World Bank&#8217;s decision to halt new funding over the country&#8217;s passage of anti-LGBTQ legislation impacts the currency further. Photographer: Luke Dray/Bloomberg via Getty Images</figcaption></figure>



KAMPALA, Aug 5 (Reuters) &#8211; The Ugandan shilling was weaker on Monday due to increased demand for dollars from commercial banks, traders said.



At 0916 GMT, commercial banks quoted the shilling at 3,725/3,735, compared with Friday&#8217;s closing rate of 3,718/3,728.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

Ugandan Economy Following Rate Cut

Ugandan shilling weakens due to increased commercial bank FX demand

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2.png" alt="" class="wp-image-527193" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2-300x200.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2-135x90.png 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/2-768x512.png 768w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Mobile money has exploded across African economies as an enabler of financial inclusion by bringing in large swaths of the population that remained unbanked into the fold to participate in economies across the continent.



According to <a href="https://www.gsma.com/sotir/wp-content/uploads/2024/03/GSMA-SOTIR-2024_Report.pdf">GSMA&#8217;s 2024 State of the Industry Report on Mobile Money</a>, registered mobile money accounts grew by 12% to 1.75 billion in 2023 while transaction values for international remittances via mobile money grew to almost $29 billion and merchant payments by 14% to around $74 billion.



Today, consumers can do anything with a mobile wallet that they can accomplish with a traditional bank account or card. In Kenya, where the mobile money market reached <a href="https://www.imarcgroup.com/kenya-mobile-money-market">$133.2 billion</a> in 2023 and M-Pesa holds a <a href="https://african.business/2023/10/african-banker/kenyas-higher-mobile-money-ceiling-risks-fanning-inflation">96.5%</a> market share, consumers can buy groceries from a grocer, purchase goods from the market, pay electricity bills or top up airtime with a simple code from M-Pesa. But, they’re not guaranteed to be able to do so outside of the country, region, or with international properties.



While many of the world’s largest digital merchants have started accepting mobile money payments, most international merchants still do not. This has meant that utilizing mobile money in the global commercial space is cumbersome, resulting in a gap between financial inclusion locally within the continent and access to the global financial system. Essentially, this means that individuals using mobile money can’t do things like make payments on an international airline’s website or pay for a Netflix account, small businesses can’t purchase ads on social media platforms like Facebook or search engines like Google, and content creators can’t get paid by the social media platforms they make content on.



Fortunately, card scheme payment rails have the ability to bridge that gap as cards continue to be the preferred payment method for consumers and merchants alike. That’s why it’s imperative to move beyond the idea that African economies will not adopt cards because of mobile money and instead look towards increased interoperability between mobile money wallets and card networks.



<h2 class="wp-block-heading" id="h-connecting-africa-to-itself-and-the-world">Connecting Africa to itself and the world</h2>



Much like the continent itself, the payments environment in Africa is highly dynamic and diverse. Across individuals and countries, payment types can vary significantly, resulting in a splintered and disconnected payment ecosystem. For example, when purchasing from Takealot in South Africa, consumers have the option to pay by credit card, an electronic fund transfer (EFT) from their bank or use domestic-flavored payment solutions such as PayFast, Ozow or Discovery Miles. However, international merchants or companies would have to integrate with each of these different payment service providers individually in every single economy on the continent in order to cater to a wide range of consumers, which is simply not feasible.



According to the <a href="https://www3.weforum.org/docs/WEF_Defining_and%20Measuring_Interoperability_2022.pdf">World Economic Forum</a>, the varied technical standards, laws and regulations that span countries across Africa contribute to the fact that historically many digital payment methods were closed loops and not interoperable with one another. Additionally, established mobile money interoperability in countries was usually limited to cases such as person-to-person transfers while merchant payments weren’t really considered.



But, advancements in payments interoperability technologies as well as strategic partnerships are facilitating the innovation needed to both achieve the desired convenience, speed and accessibility within the payments space while also enabling merchants to accept payments from and people to make payments to anyone .



Although before, people would need to transfer funds from their mobile wallet to a bank account and then use the bank-issued card to make a payment, this interoperability between the two legacy platforms—mobile wallet and card—means that both individuals and businesses are able to make direct payments by simply linking the two together.



Onafriq’s own partnership and subsequent acquisition of GTP, the number one processor for prepaid cards in Africa, in 2022 underscores the importance of card and mobile wallet interoperability by enabling participation in the global digital commerce environment, connecting traditional card scheme ecosystems such as Visa and Mastercard to the mobile money world.



Now, instead of a prefunded card where money can only be loaded on and not withdrawn, users can easily move money between their card and wallet. And, with digital cards, card networks can now be embedded directly onto the wallet app instead of carrying around a physical card. Even global players like Visa and Mastercard are realizing that the only way to be successful in Africa is to play hand in hand with mobile money clients and cater to their needs &#8211; as evidenced by Mastercard’s <a href="https://techpoint.africa/2024/02/06/mastercard-acquires-minority-stake-momo/">$200 million minority stake</a> in MTN’s fintech division.



<h2 class="wp-block-heading" id="h-making-borders-matter-less">Making borders matter less</h2>



As the world, and Africa, becomes more connected and digitalised, consumers are branching out in terms of where they’re purchasing goods from and merchants are catering to a more global customer base.



As such, African businesses and consumers alike should be able to make payments to any destination easily and through whichever payment channel they prefer. Cross-border payments need to become faster, cheaper, more transparent and accessible, while also ensuring their safety and security.



Payments interoperability between mobile money and cards will enable an ecosystem whereby you don’t need to link different payment methods, systems, and currencies to one another to ensure that no matter where you are, where you’re sending money to, or where you’re purchasing from, there is nothing standing in your way. Ultimately, ensuring that these different payment products are able to understand and speak to each other is enabling a more inclusive and accessible financial services landscape, making it as easy as possible for people to perform transactions in a way that is both affordable and reliable.

Interoperability between mobile money and card is enabling Africa’s access to the global financial system

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-820x547.jpg" alt="" class="wp-image-515322" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/KR23UUE5KBL57FNLACCPQ4B2DA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian police personnel patrol the streets, amid ongoing anti-government demonstrations against bad governance and economic hardship, in Lagos, Nigeria August 4, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



LAGOS, Aug 5 (Reuters) &#8211; Protests in Nigeria over the soaring cost of living ebbed on Monday, with only a few hundred people turning out in major cities following a deadly crackdown by security forces since the demonstrations began last week.



Hundreds of thousands of people have taken to the streets in the capital Abuja, Lagos and other big cities during the protests against economic hardship and crime, which started on Thursday and were meant to continue until Aug. 10.



Amnesty International said at least 13 people have been killed in clashes with police since the start of the protests, which were dubbed &#8220;#10DaysOfRage&#8221;. Police put the death toll at seven, saying some of the fatalities were caused by accidents and an explosive device.



A tough police response and a call for a protest pause by President Bola Tinubu appeared to have dampened the demonstrations, which came weeks after data showed annual inflation hit a 28-year high of 34.19% in June.



In the commercial hub of Lagos, where demonstrations have been largely peaceful, about 100 people gathered at the protest venue singing and chanting &#8220;we are hungry&#8221;. In Abuja, there were no signs of protests at the main stadium where protesters have been gathering since Thursday.



In the north of the country, about 200 protesters were dispersed by armed security forces in Maiduguri, capital of Borno state, while in Katsina, security forces fired teargas at protesters who were chanting &#8220;hunger and insecurity are killing us&#8221;.



Curfews have been imposed in parts of the north, which has seen some of the largest and fiercest protests, and in the central state of Plateau.



On Sunday, Tinubu called for an end to violence and said he was always open to dialogue.



Tinubu, in office since May 2023, defended his economic reforms, which have included a partial end to costly petrol and electricity subsidies and devaluation of the naira, as necessary to reverse years of economic mismanagement.



(Additonal reporting by Ope Adetayo in Abuja, Ahmed Kingimi in Maiduguri and Hamza Ibrahim in Kano; Writing by Elisha Bala-Gbogbo;Editing by Angus MacSwan and Helen Popper)

Nigerians continue to protest against economic hardship

Nigerian protests fizzle out amid deadly police crackdown

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-820x462.jpeg" alt="" class="wp-image-515303" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man looks at an electronic boarddisplaying stock prices of the Nikkei 225 listed on the Tokyo Stock Exchange in Tokyo on April 30, 2024.  Kazuhiro Nogi | Afp | Getty Images</figcaption></figure>



Investors on Monday turned to safe-haven assets as a global stock sell-off deepened, following weaker-than-expected U.S. jobs data at the end of last week.



The disappointing jobs report spurred investor fears that the Federal Reserve made a mistake last week when it kept interest rates unchanged, and that the world’s largest economy is headed toward a recession.



The stock sell-off has also been exacerbated by volatility in some of the major earnings and a more hawkish Bank of Japan, which has led to speculation that the popular yen “carry trade” has imploded over a short-term basis. A “carry trade” takes place when investor borrows in a currency with low interest rates, such as the yen, and reinvests the proceeds in a currency with a higher rate of return.



On Monday morning, the Swiss franc strengthened 1.2% against the dollar to trade at 0.847 against the greenback, or its strongest level since January this year.



Similarly, U.S. Treasury yields extended their fall to notch a one-year low. At 2:41 a.m. ET, the yield on the 10-year Treasury was down by over eight basis points to 3.7099%. The 2-year Treasury yield was last trading at 3.7315% after falling by around 14 basis points. The yield on Japan’s 10-year government bond also dipped to 0.204%.



Gold futures climbed 0.38% to trade at $2,479.2 per ounce.



The buying was in sharp contrast to the selling seen in the stock markets. U.S. stock futures fell early Monday, with the Dow Jones Industrial Average futures declining by some 600 points by 4 a.m. ET, or roughly 1.5%. S&amp;P 500 futures and Nasdaq-100 futures dipped 2.8% and 4.9%, respectively.



Japan stocks confirmed a bear market in Asia overnight. The 12.4% loss on the Nikkei — which brought it to close at 31,458.42 — marked the worst day for the index since the “Black Monday” of 1987. The loss of 4,451.28 points on the index was also the largest decline in terms of points in its entire history.



In Europe, the regional Stoxx 600 index was 2.34% lower, with all sectors and major regional bourses trading in the red. Tech stocks shed as much as 5% before paring losses slightly to trade down 2.8%. Mining stocks also lost 3.65%, while banks were 3.22% lower.



Ted Alexander, chief investment officer at BML Funds, said that the current volatility in markets has “been a long time coming,” and that it was not a reason to panic.



“Everyone’s been expecting it for a while, [it’s] great for active managers,” he told CNBC via email, adding that the shake up may actually bring equity investors back if stocks offer better value.



“Stock markets aren’t cooked yet. Don’t abandon some exposure to tech and growth,” Alexander said.



—CNBC’s Sarah Min and Lim Hui Jie contributed to this report

107408859-1714578761524-gettyimages-2150252824-AFP_34QJ4L2

A global stock rout is deepening with investors fleeing to safe havens

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-820x429.jpg" alt="" class="wp-image-515283" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Employees pack bottles of Kenya Cane spirit from a conveyor belt at the East African Breweries Limited factory in Ruaraka factory in Nairobi, Kenya April 6, 2018. REUTERS/Thomas Mukoya </figcaption></figure>



NAIROBI, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s private sector activity dropped in July, undermined by the effects of public protests against the government which hurt confidence in the economy and disrupted some business activity, a survey showed on Monday.



The Stanbic Bank Kenya Purchasing Managers&#8217; Index (PMI) fell to&nbsp;43.1 from 47.2 in June. Readings below 50.0 signal a contraction in activity.



&#8220;Protests in Kenya caused disruption to the private sector in July, leading to a marked deterioration in business conditions,&#8221; Stanbic Bank Kenya said in comments accompanying the survey.



&#8220;Political instability led to a reluctance among customers to commit to new orders, while the protests themselves in some cases blocked access to businesses and prevented them from opening.&#8221;



More than 50 people have been killed since mid-June, according to the government-funded Kenya National Commission on Human Rights (KNCHR), after protesters began taking to the streets to oppose tax increases in a now-shelved proposed law by President William Ruto&#8217;s government.



The youth-led marches continued after Ruto withdrew the tax legislation, with protesters calling for the president to resign and an end to what they called widespread government corruption and inefficiencies.



The intensity of the protests has since reduced.



&#8220;Private sector business activity deteriorated, reflecting ongoing demonstrations and unrest in parts of Kenya for some weeks now, discouraging output and new orders,&#8221; Christopher Legilisho, an economist at Stanbic Bank, said.



(Reporting by George Obulutsa; Editing by Susan Fenton)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_SQJ2VVQSQBJMPLT5VTNRT62TJQ

Kenya private sector activity falls in July amid public unrest, PMI shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-820x517.jpg" alt="" class="wp-image-515280" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-820x517.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-768x484.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-1536x968.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/AS7LW77Q75MZNCRQYFM67SUJRQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker looks on next to loafs of bread at a spaza shop in Thembisa, on the East Rand, in South Africa, August 2, 2023. REUTERS/Siphiwe Sibeko/file photo</figcaption></figure>



JOHANNESBURG, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;South African private sector activity remained subdued in July amid weaker sales and increased supply-side pressures, a survey showed on Monday.



The S&amp;P Global South Africa Purchasing Managers&#8217; Index (PMI) rose slightly to 49.3 in July from 49.2 in June, but remained below the 50 level which marks growth for the second month in a row.



South Africa&#8217;s private sector saw &#8220;new orders continuing to decline and supplier performance worsening as global transport issues and domestic port congestion hindered vendors,&#8221; said David Owen, senior economist at S&amp;P Global Market Intelligence.



This forced businesses to cut their output at the sharpest rate in four months.



South Africa&#8217;s logistics firm Transnet suspended operations at some of its ports in July as strong winds and waves lashed parts of the country, setting back efforts to clear backlogs.



However, firms were upbeat that conditions would improve in the coming 12 months, Owen said.



&#8220;Many suggested that the stabilisation in the political landscape should lead to greater confidence and a pick-up in spending, while reduced load shedding (power cuts) and softer price pressures are also expected to support growth,&#8221; Owen added.



(Reporting by Tannur Anders; Editing by Susan Fenton)

A worker looks on next to loafs of bread

South Africa business activity contracts again in July, PMI shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



JOHANNESBURG, Aug 5 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Monday.



<h2 class="wp-block-heading" id="h-economic-events">ECONOMIC EVENTS</h2>



South Africa&#8217;s Johannesburg Stock Exchange will release data on foreigners&#8217; buying and selling of bonds and stocks during the previous week.



South Africa&#8217;s government will hold its weekly auction for Treasury bills.



<h2 class="wp-block-heading" id="h-south-african-markets">SOUTH AFRICAN MARKETS</h2>



The South African rand firmed on Friday as U.S. economic data showed a slowdown in jobs growth in July and a rise in the unemployment rate, boosting bets of a September rate cut in the world&#8217;s biggest economy and pressuring the dollar.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed about 1.7% down. South Africa&#8217;s benchmark 2030 government bond was stronger, with the yield down 9.5 basis points at 9.25%.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Share markets tumbled and bonds rallied in Asia on Monday as fears the United States could be heading for recession sent investors rushing from risk assets while wagering that rapid fire rate cuts will be needed to rescue growth.



<h2 class="wp-block-heading" id="h-wall-street">WALL STREET</h2>



U.S. stocks sold off for a second straight session on Friday, and the Nasdaq Composite confirmed it was in correction territory after a soft jobs report stoked fears of an oncoming recession.



<h2 class="wp-block-heading" id="h-gold">GOLD</h2>



Prices of safe-haven gold were flat on Monday as some profit-taking partially offset support from U.S. recession jitters and rising expectations of a September rate cut from the Federal Reserve.



&#8211; &#8211; &#8211; &#8211;



Some of the main stories out in the South African press:



<h2 class="wp-block-heading" id="h-business-day">BUSINESS DAY</h2>



&#8211; Engineering economic recovery set to take centre stage at ANC lekgotla



&#8211; SA can create up to 275,000 green jobs by 2030, report shows



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Aug 5

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



NAIROBI, Aug 5 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Monday.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Share markets tumbled and bonds rallied in Asia on Monday as fears the United States could be heading for recession sent investors rushing from risk assets while wagering interest rates will have to fall rapidly to rescue growth.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices hovered at eight-month lows on Monday as fears of a recession in the United States, the world&#8217;s top oil consumer, offset concerns that escalating tensions in the Middle East may affect supplies from the largest producing region.



The South African rand firmed on Friday as U.S. economic data showed a slowdown in jobs growth in July and a rise in the unemployment rate, boosting bets of a September rate cut in the world&#8217;s biggest economy and pressuring the dollar.



<h2 class="wp-block-heading" id="h-nigeria-politics">NIGERIA POLITICS</h2>



Nigeria&#8217;s President Bola Tinubu called on Sunday for a suspension of protests against a cost of living crisis, saying this would create an opportunity for dialogue, his first public comments since frustrated citizens took to the streets last week.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



Kenya&#8217;s shilling slipped on Friday due to dollar demand from the manufacturing sector, traders said, adding that a credit rating review by S&amp;P Global later this month could be a big driver in the weeks ahead.



<h2 class="wp-block-heading" id="h-kenya-ratings">KENYA RATINGS</h2>



Global credit ratings agency Fitch downgraded Kenya&#8217;s sovereign rating to &#8220;B-&#8221; from &#8220;B&#8221; on Friday, citing heightened risks to the East African country&#8217;s public finances after the government backtracked on key revenue measures following protests.



<h2 class="wp-block-heading" id="h-kenya-economy">KENYA ECONOMY</h2>



Kenya&#8217;s finance minister nominee on Saturday defended the International Monetary Fund&#8217;s role in supporting the economy for now, but said the country should become more self-reliant by cutting its budget deficit and shifting to cheaper debt.



<h2 class="wp-block-heading" id="h-ethiopia-debt">ETHIOPIA DEBT</h2>



Ethiopia will save $4.9 billion from its debt restructuring exercise, State Finance Minister Eyob Tekalign said on Friday.



((Compiled by Nairobi Newsroom))

African Markets – Factors to watch on Aug 5

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-scaled.jpg" alt="" class="wp-image-515273" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TI3IMIAIRNMQLKEZYNUUIVZMGM-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Nigerian security forces stand guard during the third day of anti-government demonstrations against bad governance and economic hardship in Lagos, Nigeria August 3, 2024. REUTERS/Francis Kokoroko</figcaption></figure>



ABUJA, Aug 4 (Reuters) &#8211; Nigeria&#8217;s President Bola Tinubu called on Sunday for a suspension of protests against a cost of living crisis, saying this would create an opportunity for dialogue, his first public comments since frustrated citizens took to the streets last week.



Amnesty International has said at least 13 people were killed in clashes with security forces on the first day of protests on Thursday. Police denied using excessive force and said seven people had died as of Saturday &#8211; four from an explosive device during a march in northeast Borno state, two who were hit by a car and another who was shot by a guard when protesters looted a shop.



In a televised broadcast, Tinubu called for an end to violence in several states since the protests started, saying he was always open for dialogue.



&#8220;My dear&nbsp;Nigerians, especially our youth, I have heard you loud and clear. I understand the pain and frustration that drive these protests, and I want to assure you that our government is committed to listening and addressing the concerns of our citizens,&#8221; he said.



Nigerians have been mobilising online to organise protests against economic hardship and bad governance and have called for a cut in petrol prices and electricity tariffs, among several demands.



Tinubu, in office since May 2023, defended his economic reforms, which have included a partial end to petrol and electricity subsidies and devaluation of the naira, as necessary to reverse years of economic mismanagement.



He government revenues had more than doubled to 9.1 trillion naira ($5.65 billion) in the first half of this year while 68% of revenue now went to debt servicing, down from 97% before he took office in May last year.



The government was also ramping up spending on infrastructure projects, started a loan scheme for university students and was building thousands of housing units across&nbsp;Nigeria&#8217;s 36 states, the president said.



&#8220;But we must not let violence and destruction tear our nation apart,&#8221; said Tinubu.



($1 = 1,610.9000 naira)



(Writing by MacDonald Dzirutwe; Editing by Frances Kerry)

Nigerians continue third day of hardship protests

Nigeria’s president calls for end to protests against economic hardship

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="929" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS.jpeg" alt="" class="wp-image-515270" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS.jpeg 929w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/107383735-1709777816198-gettyimages-1981632561-JAPAN_COMMUTERS-768x432.jpeg 768w" sizes="auto, (max-width: 929px) 100vw, 929px" /><figcaption class="wp-element-caption">Pedestrians cross an intersection in the Shibuya district of Tokyo, Japan, on Tuesday, Feb. 6, 2024.  Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Japan stocks confirmed a bear market on Monday as Asia-Pacific markets continued the sell-off from last week, with the Nikkei 225 and Topix dropping over 12%.



The benchmark indexes have fallen more than 20% from their all-time highs on July 11.



The 12.4% loss on the Nikkei — which saw it close at 31,458.42 — was the worst day for the index since the “Black Monday” of 1987. The loss of 4,451.28 points on the index was also the largest in terms of points in its entire history.



The Nikkei also erased all its gains so far this year, moving into a loss position year to date.



The broad-based Topix also saw a rout as it tumbled 12.23% and closed at 2,227.15.



Heavyweight trading houses such as Mitsubishi, Mitsui and Co, Sumitomo and Marubeni all plunged over 14%, with Mitsui seeing a wipeout of almost 20% of its market cap.



Monday’s decline follows Friday’s rout when Japan’s Nikkei 225 and Topix fell more than 5% and 6%, respectively. The broader Topix marked its worst day in eight years, while the Nikkei marked its worst day since March 2020.



In Monday trading, the yen also strengthened to its highest level against the dollar since January, and was last trading at 142.09.



South Korea’s Kospi fell 8.77%, closing at 2,441.55, and the small-cap Kodaq saw a 11.3% wipeout, ending at 691.28.



Due to the magnitude of the sell-off, the exchanges hit circuit breakers, halting trade for the Kospi index at 2.14 p.m. Seoul and at 1.56 p.m. for the Kosdaq. The halt was for 20 minutes. Circuit breakers are activated if stocks rise or fall 8%.



Investors, meanwhile, awaited key trade data from China and Taiwan this week, a well as central bank decisions from Australia and India.



China’s service sector expanded at a faster pace in July, with the country’s purchasing managers’ index climbing to 52.1 in July, up from 51.2 in June.



The Caixin survey said the acceleration of growth was due to faster new business growth, “supported by sustained improvements in underlying demand conditions and an expansion of services offerings.”



Taiwan’s benchmark index, the Taiwan Weighted Index, was down over 8%, dragged by tech and real estate stocks , while Australia’s S&amp;P/ASX 200 fell 3.7% to 7,649.6.



The Reserve Bank of Australia kicks off its two-day monetary policy meeting Monday. Economists polled by Reuters expect the central bank to hold rates steady at 4.35%, but markets will monitor the monetary policy statement for clarity on whether the RBA is still considering a rate hike.



Hong Kong Hang Seng index was down 1.61%, while mainland China’s CSI 300 was down 0.48%, seeing the smallest loss in Asia.



On Friday in the U.S., stocks fell sharply as a much weaker-than-anticipated jobs report for July ignited worries that the economy could be falling into a recession.



The Nasdaq was the first of the three major benchmarks to enter correction territory, down more than 10% from its record high. The S&amp;P 500 and Dow were 5.7% and 3.9% below their all-time highs, respectively.



The S&amp;P 500 dropped 1.84%, while the Nasdaq Composite lost 2.43%. The Dow Jones Industrial Average fell 610.71 points, or 1.51%.



—CNBC’s Pia Singh and Hakyung Kim contributed to this report.

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home

African Markets – Factors to watch on Aug 6

U.S. crude oil falls to six-month low as market sells off on recession fears

South African rand, stocks sink as US recession fears hit riskier assets

South African banks’ earnings in spotlight ahead of first rate cuts

Why Monthly Home Payments Are Skyrocketing Right Now

Congolese police officers flee to Uganda as fighting intensifies

South African grocer Pick n Pay’s rights offer oversubscribed

Ugandan shilling weakens due to increased commercial bank FX demand

Interoperability between mobile money and card is enabling Africa’s access to the global financial system

Nigerian protests fizzle out amid deadly police crackdown

A global stock rout is deepening with investors fleeing to safe havens

Kenya private sector activity falls in July amid public unrest, PMI shows

South Africa business activity contracts again in July, PMI shows

South African Markets – Factors to watch on Aug 5

African Markets – Factors to watch on Aug 5

Nigeria’s president calls for end to protests against economic hardship

Japan’s Nikkei logs worst day since 1987 Black Monday crash

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Advertise With Us

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