<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-scaled.jpg" alt="" class="wp-image-459116" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. REUTERS/Angus Mordant/File Photo</figcaption></figure>



BRUSSELS/LONDON, July 4 (Reuters) &#8211; Nigeria&#8217;s debt to gasoline suppliers has surpassed $6 billion &#8211; doubling since early April &#8211; as state oil firm NNPC struggles to cover the gap between fixed pump prices and international fuel costs, six industry sources said.



Nigerian President Bola Tinubu announced an end to expensive fuel subsidies last year, allowing pump prices to triple. But state oil company NNPC capped pump prices shortly afterward as citizens chafed under rising cost of living.



The cap, coupled with a naira currency crash, allowed the subsidy to creep back. Tinubu&#8217;s government expects the subsidy to cost at least $3.7 billion this year.



Analysts, NGOs and even government officials have slammed the subsidy for years as wasteful and corrupt. But Nigerians, who get few government services, have long seen cheap fuel as their right, especially in the current cost-of-living crisis.



Last week, deadly riots forced Kenya&#8217;s debt-burdened government to cancel planned tax rises, casting a shadow over efforts elsewhere to inflict any further pain on citizens stung by rising inflation.



Senegal&#8217;s energy subsidy bill remains high, at 3.3% of GDP, while Egypt and Angola are also trying to axe subsidies to shore up state finances.



NNPC began struggling early this year when late gasoline payments surpassed $3 billion.



The company has still not paid for some January imports, traders said, and the late payments amount to $4 billion-$5 billion. Under contract terms, NNPC is meant to pay within 90 days of delivery.



NNPC declined to comment.



&#8220;The only reason traders are putting up with it is the $250,000 a month (per cargo) for late payment compensation,&#8221; one industry source said.



At least two suppliers already stopped participating in recent tenders after hitting self-imposed debt exposure limits to Nigeria, the sources said, meaning they will not send more gasoline until they receive payments.



Traders thrive in risky environments, but they place limits on how much credit they allocate per trade in order to avoid too much exposure on one borrower. These limits vary by company based on their size and where they operate.



As a result, Nigeria&#8217;s tenders to buy gasoline in June and July were smaller, traders said. NNPC will import via tender about 850,000 tonnes in July, two of the sources said, down from the typical 1 million tonnes in previous months.



Fresh fuel queues have already started to form in Lagos this week.



Nigeria, Africa&#8217;s largest oil exporter, imports virtually all its fuel due to years of neglect at its state-owned oil refineries. The newly opened 650,000 barrel per day Dangote refinery has not yet produced marketable gasoline, and is selling other fuels abroad.



The country has few savings to fall back upon as corruption and wasteful spending have eaten up decades of oil revenues. Cash-strapped NNPC has also mortgaged much of its spot oil cargoes, limiting what it can sell for cash.



In late 2023, NNPC secured its biggest-ever oil-backed loan worth $3.3 billion from Afreximbank and a consortium of traders, including Gunvor, to shore up the country&#8217;s foreign exchange.



(Reporting by Julia Payne and Libby George; Additional reporting by Isaac Anyaogu in Lagos; Editing by Jan Harvey)

FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County

As Nigeria’s gasoline debt hits $6 billion, some traders back out, say sources

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1341" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-scaled.jpg" alt="" class="wp-image-503927" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-820x537.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-768x503.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107357803-1705027006499-AP24012015065200-1536x1005.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Britain’s Prime Minister Rishi Sunak, left, and U.S. President Joe Biden speak at the start of the meeting of the North Atlantic Council (NAC) during the NATO Summit in Vilnius, Lithuania, July 11, 2023. Paul Ellis | AP</figcaption></figure>



The U.K. and U.S. have a lot in common — a shared language, history, democratic ideals and values. But when it comes to politics, us Brits do things very differently from our American friends.



Those differences are plain to see as election campaigns ramp up in the U.K. and U.S., ahead of the British vote on July 4 and the U.S. ballot on Nov. 5.



Of course, our political systems encompass different electoral procedures and processes, but there are other nuances to how the Brits and Americans do political races differently. Here are a handful of them:



<h2 class="wp-block-heading" id="h-1-campaigns"><a></a>1) Campaigns</h2>



By the time a presidential election takes place in the United States, the electorate will have already endured months of seemingly endless electioneering — with the entire election campaign process from candidacies and the campaign trail to the actual presidential election and inauguration taking up to two years.



In the U.K., the time frame between a prime minister calling a general election to the actual vote is just six weeks. American readers might, very reasonably, read that and weep.



With such a tight window in which to win voters’ support, the leaders of Britain’s political parties dash about the U.K. on campaign “battle buses” as they try to visit as many constituencies as possible to persuade voters to elect the local party candidate as a member of Parliament (MP).



The party that wins the most seats in the House of Commons (the British Parliament) usually forms the new government and its leader becomes prime minister. It sounds simple, and usually is, unless there’s a “hung parliament” in which no political party wins a majority of seats. In that case, the largest party can either form&nbsp;a minority government or enter into a&nbsp;coalition government of two or more parties.



Bobby Duffy, director of the Policy Institute at King’s College London, told CNBC that there are many historical and structural differences between the countries when it comes to politics, and reasons why American campaigns are so much longer.



“The hugeness of the election in the U.S. is a function of the massive amounts of money at play to some degree. You do have to have these long periods of fundraising alongside campaigning and we just have completely different rules and structures around that.”



<h2 class="wp-block-heading"><a></a>2) Election spending and ads</h2>



Money is certainly one of biggest differences between U.K. general elections and U.S. presidential elections. Stateside, billions of dollars can be fundraised and spent on campaign activities and political ads, far above that spent in the U.K. (after all, the parties in Britain only have six weeks in which to spend the money!).



For a Brit, the money raised and spent by Republicans and Democrats during election campaigns is eye-watering. In April, the U.S. Federal Election Commission released data that showed that during the first 12 months of the 2024 election cycle (covering 2023), presidential candidates collected $374.9 million and disbursed $270.8 million, while political parties received $684.5 million and spent $595 million, and political action committees raised $3.7 billion and spent $3.1 billion, according to campaign finance reports filed with the commission.



A number of political action committees, or PACs, raise money and make direct contributions to candidates’ campaigns or parties. In the case of “super PACs,” committees raise and spend an unlimited amount of money in support of their preferred candidates, often funding large-scale ad campaigns.



In the U.K., meanwhile, the Electoral Commission sets out strict rules on spending limits for political parties contesting the general election in Great Britain (made up of England, Wales and Scotland). In England, for example, the limit is whichever the greater is of £1,458,440 ($1,845,098) or £54,010 times the number of seats the party is contesting in each part of Britain. Parties can be fined, and often are, for breaching those limits.



In the U.K., political advertising&nbsp;on TV and radio is not allowed, so U.K. voters are subjected to the somewhat quaint “party political broadcasts” during election campaigns. That’s where parties are allocated broadcast slots, free of charge, on radio and TV channels in which they can set out their election pledges. The broadcasts are sporadic, however, and easy to miss, unlike the thousands of ads in the U.S.



<h2 class="wp-block-heading"><a></a>3) ‘We don’t do God’</h2>



You will never hear a British politician — at least not a mainstream one — mentioning God in a political speech or campaign. Ever.



Religion, in general, is kept separate from politics in the U.K., a multifaith country but also one in which religious belief is declining, particularly among younger generations. Just under half (49%) of Britons surveyed in 2022 said they believed in God — down from three-quarters (75%) in 1981, according to a study by King’s College London published last year.



While it’s common to hear U.S. politicians proclaim “God bless America,” jaws would drop in the U.K. if a British politician made such an expression of faith in a political speech. Political aides say the subject is better left alone.



Alastair Campbell, who served as the Labour Party’s director of communications and strategy under former Prime Minister Tony Blair, reportedly interjected with the now famous phrase&nbsp;“we don’t do God,” when Blair, then a member of the Church of England, was asked about his faith while in power.



On another occasion, Blair was reportedly keen on ending a speech with the phrase “God bless Britain” but later said he was advised against it, noting that “one of the civil servants said in a very po-faced way ‘I just remind you prime minister, this is not America’ in this very disapproving tone, so I gave up the idea.” Blair converted to Catholicism on leaving office in 2007.



An aversion to mixing politics and personal belief still runs deep in British public life, Dan Stevens, professor of politics at Exeter University, told CNBC, unlike in the U.S.



“They’re just a much more religious society than we are. The U.K., along with much of Western Europe, is just so secular it’s just not even something worth talking about. Whereas in America, although it is secularizing, particularly among younger people &#8230; there is still this need for political candidates, including people like Donald Trump, to espouse some kind of religion to earn the electorate’s trust.”



<h2 class="wp-block-heading"><a></a>4) Age is just a number</h2>



U.K. voters have been hearing a lot in the press about how U.S. election debates have focused on incumbent President Joe Biden’s age. Indeed, British politicians look like whippersnappers when compared with the 81-year-old president and 78-year-old Republican candidate Trump.



Incumbent British Prime Minister Rishi Sunak is a youngster in comparison, at a mere 44 years old while Keir Starmer, the leader of the Labour Party and, polls suggest, the man likely to become the next prime minister, is “only” 61.



“There are so much older candidates in the U.S.,” the Policy Institute’s Duffy told CNBC, describing it to a “gerontocracy trend” in which society is governed by old people. “It’s very different from around the world where we’re actually seeing a decline in the age of world leaders.”



In the U.S., the age of the candidates reflects the decades it takes to build “political capital and connections,” Duffy said. With support for Biden shaken by his poor performance in a televised debate with Trump, it’s that political capital and connections that appear to be keeping Biden’s election campaign alive.



<h2 class="wp-block-heading"><a></a>5) ‘Culture wars’</h2>



Another point of difference in British elections, and politics in general, is that “morality issues” are not prominent points of debate, dissent or divergence. Unlike the U.S., where the abortion debate, gun control and gay marriage are sources of contention, those debates are not hot topics in the U.K. where abortion is legal, gun ownership is rare and heavily restricted (critics would argue the U.K. has a knife crime problem instead), and gay marriage is (aside from among some members of the clergy) uncontested.



Similarly, “identity politics” and “culture wars” — the umbrella term for conflicts between often opposed political groupings with different cultural values and beliefs — are not so prominent in the U.K. But the U.K. does have our “moments” — the topics of immigration, transgender rights, the U.K.’s relationship with the European Union (yes, Brexit is still “a thing” eight years after a referendum on EU membership) and assisted dying are hot topics where divisions are evident among the British press and public. Still, such issues are seen as “more of a personal rather than a party issue” in the U.K., according to John Curtice, a top U.K. polling expert who has studied British social attitudes extensively.



“Moral issues of life and death are indeed taken out of our party politics, but other aspects of the argument between social liberals and social conservatives are not taken out, and it’s become more important,” he told CNBC.



<h2 class="wp-block-heading"><a></a>6) ‘Absurd’ diversions</h2>



British political experts note that, unlike in the U.S., where broad political debates tend to remain the key focus, U.K. election campaigns can see more minor or fringe issues dominate the short election campaign.



A betting scandal has erupted in Britain in recent weeks, for example, after several candidates for the Conservative Party, and a candidate for the opposing Labour Party, were found to have placed bets on the date of the general election before it was officially announced, and its outcome, leading to accusations of impropriety in public office. It’s uncertain what amounts were staked, and those accused deny wrongdoing, though investigations have been launched by the U.K.’s gambling watchdog and the police.



Before the gambling debacle, Prime Minister Rishi Sunak’s decision to skip the main D-Day commemorations in France also caused a massive stir in the British press, who questioned his judgment. Such “diversions” during British election campaigns are common, and often pertain to issues that start as “matters of principle” that are then “taken to absurd lengths,” according to Stevens.



“There’s a tendency for our campaigns to veer off in these strange directions where we just lose the big picture,” Stevens said. “I don’t think that happens in America where the stakes are just higher,” he said.



“There, the stakes are just massive.”

107357803-1705027006499-AP24012015065200

No God, no big ads and no age debate: The UK election race is very different to America’s

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001628-1720062067145-gettyimages-814141990-kidsunset-820x462.jpeg" alt="" class="wp-image-503924" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001628-1720062067145-gettyimages-814141990-kidsunset-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001628-1720062067145-gettyimages-814141990-kidsunset-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001628-1720062067145-gettyimages-814141990-kidsunset-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001628-1720062067145-gettyimages-814141990-kidsunset-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001628-1720062067145-gettyimages-814141990-kidsunset.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A little boy with his mother and grandmother, watch the sunset scenery at Beijing international airport.  Zhang Peng | Lightrocket | Getty Images</figcaption></figure>



China’s population is shrinking, and the demographic shift will ultimately hurt its economy, shrink the labor force and put pressure on fiscal policy.



“The working age population [in China] will fall so rapidly over the next decade, that the Chinese economy will need to deal with 1% drag in GDP growth per year for next 10 years,” Darren Tay, head of Asia country risk at BMI Country Risk &amp; Industry Analysis, told “Squawk Box Asia” in June, referring to estimates gathered by evaluating world population data released by the United Nations.



“The fiscal strain as a result of ageing is immediate and concerning,” the Economist Intelligence Unit has warned.



“Economic growth hinges on productivity, capital accumulation and labour inputs. The negative effect of an adverse demographic landscape will manifest primarily through a shrinking workforce,” according to the report published in January.



Raising the retirement age is “one of the few viable options” to maintain long-term fiscal balance, the EIU said.



“Our calculations suggest that&nbsp;if the retirement age is raised to 65 by 2035, the pension budget shortfall could be reduced by&nbsp;20% and received net pension can be increased by 30%, suggesting relief of both government and household burden,” according to the report.



Birth rates are falling around the world as women choose to have children later, or not at all.



Fertility rates have halved across OECD countries — some of the world’s richest nations — falling from about 3.3 children per woman in 1960 to about 1.5 children per woman in 2022, according to the OECD, or Organisation for Economic Co-operation and Development.



“This is significantly below the ‘replacement level’ of 2.1 children per woman needed to keep population constant in the absence of migration,” according to the&nbsp;June&nbsp;report.



<h2 class="wp-block-heading" id="h-china-s-shrinking-population"><a></a>China’s shrinking population</h2>



China’s population fell for a second consecutive year in 2023 to 1.409 billion people — dropping by 2.08 million from the previous year, according to data from the National Bureau of Statistics of China.



That’s more than the population decline of about 850,000 in 2022 — the first year deaths outnumbered births in the country since the early 1960s during the Great Famine.



“This is a consequence of the one-child policy [set] in place [in] the 1980s,” Erica Tay, director of macro research at Maybank, told CNBC.



China’s population is expected to shrink to 1.317 billion by 2050, and drop by nearly half — to 732 million — by 2100.



Fertility rate in the country is dropping more quickly than its regional peers like South Korea and Japan, Tianchen Xu, a senior economist at The Economist Intelligence Unit (EIU), told CNBC.



He said the three countries are disproportionately impacted by&nbsp;a rapidly aging population,&nbsp;largely due to&nbsp;improved standards of living,&nbsp;which&nbsp;have&nbsp;a “very strong inverse relationship with fertility rates.”



China, in particular, has been “growing at a very high rate for nearly three decades.” and its economic expansion has been “rapid and extended,” he added.



The country’s&nbsp;welfare system has also “lagged” and fiscal support for childbearing is “quite low by international comparison,” according to Xu.



Surging home prices are not helping.



“The government has largely been incapable of managing the significant rising housing costs,” according to Xu, who pointed out that as housing becomes increasingly costly, people may find it difficult to purchase homes and delay starting a family.



<h2 class="wp-block-heading"><a></a>Falling birth rates</h2>



The rapid economic expansion seen in recent decades in developed nations has brought about rising income levels and the broadening of educational and career opportunities for women.



These improved conditions have led to a greater opportunity cost for having children, Xu said.



“In more developed societies, the tendency is that parents face a much higher cost of raising children, and that tends to be a deterrent to having [them],” said BMI’s Tay.



“The more developed an economy is, the more skills the actors in the economy have to have, and thus, the required investment in each [child] rises by that amount,” he said.



The work culture in Asia can also&nbsp;play a part.



“Among the Asian countries, there’s the entrenched mindset of working long hours,” said Xu, which is “particularly an issue in China, South Korea&#8230; [and] other parts of East and Southeast Asia.”



“These countries are where the aggregate working hours are the longest in the world,” and as a result, workers have less time to build a family, Xu told CNBC.



<h2 class="wp-block-heading"><a></a>Shrinking workforce</h2>



A decline in fertility rate puts pressure on the economy and&nbsp;the society at large&nbsp;as the working population shrinks.



“A country’s birth rates will translate into its working age population growth, some two decades down the road,” said Tay from Maybank..



Additionally, falling fertility rates can impact the ratio of elderly folks who need support from younger generations, which can put “excessive burdens on a country’s health care and pension systems,” Maybank’s Tay told CNBC.



Ultimately, the&nbsp;burden on younger&nbsp;generations will grow as they need to care not only for their own children, but for their elderly parents as well.



This demographic shift in parts of Asia is a structural issue that will require “determined and holistic government effort,” on both fiscal and monetary policy, she said.



<h2 class="wp-block-heading"><a></a>China’s policy shifts</h2>



In China, policymakers have been putting a big emphasis on “productivity growth,” Xu told CNBC.



“They have [seen] that there’s a very big decline in the labor contribution to GDP, [which] cannot be mitigated via any sort of policy intervention in the short term,” he said. “That’s why they have been focusing on their productivity growth.”



The country has invested heavily into shifting to digital solutions and developing technologies such automation and advanced chips, said Xu, with the goal of making traditional industries more efficient, and overall, improving productivity.



Looking ahead, Chinese policymakers are encouraged to do more about the labor environment. “That probably entails tighter enforcement of the labor law and promoting work-life balance,” said Xu.



Economists also agree that Chinese policymakers should also work to raise the retirement age in the country, create more aggressive tax rebates for costs associated with child-rearing, and step-up its efforts in constructing affordable housing in the country.



Despite the slowdown in growth expected in China due to its demographics issue, the country’s GDP has grown an average of 9% per year since 1978, according to the World Bank.



Ultimately, “the fact remains that growth of even around 3% would not be, by any stretch of the imagination, a disaster for the Chinese economy,” Tay from BMI told CNBC.



“If they would continue to grow at that pace, which probably would be more sustainable, the average Chinese citizen would be in real terms, better off in income by 13% by 2033,” he added. “So living standards would still continue to rise.”

108001628-1720062067145-gettyimages-814141990-kidsunset

China faces economic headwinds as it grapples with an aging — and shrinking — population

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS.jpg" alt="" class="wp-image-503921" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/LYNXNPEE8A12W-OZABS-768x504.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">Trafigura logo is pictured in the company entrance in Geneva March 11, 2012. REUTERS/Denis Balibouse</figcaption></figure>



July 4 (Reuters)&nbsp;&#8211;&nbsp;Trafigura and engineering company Promarks have signed a memorandum of understanding (MOU) with the government of Angola to develop a regional power transmission and supply project, the commodities trading company said on Thursday.



The project under consideration is a 2,000 megawatt high-voltage electricity transmission line to take power produced by hydroelectric dams in the north of Angola to the DRC copper belt and Zambia, integrating with the Southern Africa Power Pool, Trafigura said.



(Reporting by Brijesh Patel in Bengaluru; Editing by David Goodman)

LYNXNPEE8A12W-OZABS

Trafigura and Promarks sign preliminary agreement on Angola power project

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-820x547.jpg" alt="" class="wp-image-503918" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President William Kipchirchir Ruto of Kenya speaks during a plenary session of the Summit on peace in Ukraine, in Stansstad near Lucerne, Switzerland, June 16, 2024. URS FLUEELER/Pool via REUTERS/File Photo</figcaption></figure>



NAIROBI, July 4 (Reuters) &#8211; Kenyan President William Ruto spoke by phone with International Monetary Fund chief Kristalina Georgieva in the days after he withdrew $2.7 billion in proposed tax hikes in response to deadly protests, two diplomatic sources told Reuters.



The finance bill containing the tax increases was central to policy reforms agreed by Kenya with the IMF as part of a lending programme worth $3.6 billion.



Analysts say its withdrawal a week ago is likely to result in Kenya missing key programme targets.



The IMF has been a major target of the ire of young Kenyan protesters, who have accused it of being the driving force behind the proposed tax hikes.



The two sources, who spoke on condition of anonymity, did not provide details about Ruto and Georgieva&#8217;s phone call.



However, they said there was agreement among major donors that the IMF needed to show flexibility on programme targets as Kenya looked to fill the gap caused by the bill&#8217;s withdrawal.



The IMF reached a staff level agreement with Kenya in early June on a policy package needed to complete the lending programme&#8217;s seventh review, expected to unlock a disbursement of several hundred million dollars, but the deal has not yet received approval from the fund&#8217;s Executive Board.



An IMF spokesperson said: &#8220;We remain deeply concerned by the recent tragic events in Kenya and maintain close ongoing and constructive dialogue with the Kenyan authorities,&#8221; when asked about the call.



Ruto&#8217;s spokesperson did not respond to requests for comment.



Since shelving the bill, Ruto has pledged to include austerity measures in a supplemental budget, but has also suggested that the government will need to significantly increase borrowing in the 2024/25 fiscal year.



An IMF spokesperson said last week that its main goal has been helping Kenya overcome its economic challenges and improving its people&#8217;s well-being.



At least 39 people have been killed in the protests, according to a government-funded human rights organisation. Anti-government demonstrations have continued since Ruto pulled the bill, although with lower turnout.



(Additional reporting by Karin Strohecker; Editing by Alexander Smith)

Summit on peace in Ukraine, in Switzerland

Kenya president spoke to IMF chief after pulling tax hikes, sources say

Influencers have changed the ad industry. Now what?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-820x573.jpg" alt="" class="wp-image-503885" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-1536x1072.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ethiopian Prime Minister Abiy Ahmed speaks in parliament during a session to approve the country&#8217;s 2024/25 budget, in Addis Ababa, Ethiopia, July 4, 2024. REUTERS/Tiksa Negeri</figcaption></figure>



ADDIS ABABA, July 4 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia will receive $10.5 billion in support over the coming years if long-running negotiations with the International Monetary Fund and World Bank are successful, Prime Minister Abiy Ahmed said on Thursday.



In December, East Africa&#8217;s most populous country, struggling with high inflation and chronic foreign currency shortages, became the third on the continent in as many years to default on its debt.



Sources familiar with the matter previously told Reuters that Ethiopia was seeking to borrow around $3.5 billion under a reform programme with the IMF, while a Western diplomat said it was also trying to secure $3.5 billion in budget support from the World Bank and find another $3.5 billion in savings through debt restructuring.



Analysts say Ethiopia may need to agree to devalue its birr currency&nbsp;ETB=, which trades about 50% weaker than the official exchange rate on the black market, to secure IMF support.



&#8220;We have been having a wide range of talks, negotiations and discussions with the IMF and World Bank. Because we were a bit tough with them and they were also tough with us, the (talks) took five years,&#8221; Abiy told lawmakers.



&#8220;Now with the support of some friendly countries, it seems like many of our ideas have been accepted. If this succeeds and we are able to agree on the reforms, Ethiopia will get $10.5 billion in the coming years,&#8221; he said.



Abiy added that there were some reforms the government was unwilling to undertake right away, without elaborating.



&#8220;There are some areas we think should be reformed now, and there are things we think should stay as it is. If all these suggestions get accepted and we agree, there is an opportunity ahead of us. This reform agenda will play a huge impact in alleviating the debt burden,&#8221; the prime minister said.



(Reporting by Dawit Endeshaw; writing by Hereward Holland; editing by Alexander Winning and Mark Heinrich)

Ethiopia’s Parliament approves 2024/25 fiscal year budget

Ethiopia to get $10.5 bln if IMF, World Bank talks succeed, PM says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="929" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001664-1720074872647-gettyimages-2159858100-UK_STARMER.jpeg" alt="" class="wp-image-503819" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001664-1720074872647-gettyimages-2159858100-UK_STARMER.jpeg 929w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001664-1720074872647-gettyimages-2159858100-UK_STARMER-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001664-1720074872647-gettyimages-2159858100-UK_STARMER-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001664-1720074872647-gettyimages-2159858100-UK_STARMER-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108001664-1720074872647-gettyimages-2159858100-UK_STARMER-768x432.jpeg 768w" sizes="auto, (max-width: 929px) 100vw, 929px" /><figcaption class="wp-element-caption">Keir Starmer, leader of the Labour Party, campaigns ahead of the general election, in Redditch, UK, on Wednesday, July 3, 2024. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



LONDON — The U.K. heads to the ballot box on Thursday, as the incumbent Conservative Party seeks to defy months of polls that suggest it will suffer a historic defeat at the hands of the center-left Labour Party.



Prime Minister Rishi Sunak announced the vote six weeks ago, taking politicians and the public alike by surprise. Most had expected the election to take place later in the year, giving more time for the recent decline in inflation and anticipated reduction in interest rates to hit voters’ wallets.



A number of smaller parties are vying to win seats in the 650-member House of Commons, the U.K.’s lower house of parliament, including the Liberal Democrats, Greens, Scottish National Party, Plaid Cymru, the Democratic Unionist Party and Nigel Farage’s Reform UK. Votes will be cast across England, Scotland, Wales and Northern Ireland.



Within the U.K. political system, a party increasing its share of the popular vote does not necessarily translate to winning more parliamentary seats — and it is all but guaranteed that either the Conservatives or Labour, led by Keir Starmer, will receive the reins of power. That could either be through winning an absolute majority or by forming a coalition government.



Convention says the leader of the party with the most seats in the Commons becomes prime minister



Political surveys have for nearly two years pointed to a resounding Labour victory, even though the party will require a historic gain of nearly 13% in the national vote to win even a narrow parliamentary majority, according to Hannah Bunting, lecturer in quantitative British politics at the University of Exeter. That would be a bigger swing than the one achieved by Labour’s Tony Blair over John Major in 1997.



A strong Labour lead was reinforced in a major aggregate poll released by YouGov earlier this week.



However, politicos and Labour itself caution that no outcome is guaranteed and that the polling can be inaccurate. More than 100 seats are considered very close to call, including those currently held by high-profile Conservatives, including Finance Minister Jeremy Hunt and Sunak himself.



The Thursday ballot is the first U.K. general election since 2019, when then-Conservative leader Boris Johnson clinched the party’s biggest majority win since 1987 over Jeremy Corbyn’s Labour. That was on a platform promising to complete the “Brexit” process of leaving the European Union, which had become mired in a political gridlock.



Johnson’s administration was then marked by several public scandals, including the “Partygate” case in which senior politicians broke lockdown rules during the Covid-19 pandemic, leading to his reluctant resignation in July 2022.



He was succeeded by Liz Truss, who lasted just 44 days in office before resigning over the so-called mini-budget crisis, which rocked financial markets.



Sunak, a former finance minister for the Conservative Party, has since overseen a period of relative political stability; but one in which the country has been grappling with a severe cost of living crisis and sluggish economic growth.



The legacy of 14 years of Conservative rule — with the party winning power through a coalition arrangement under David Cameron in 2010 — has been a key theme on the campaign trail.



Sunak and Starmer have sought to convince the public that their party can address critical issues spanning housing, the National Health Service and defense.



Sunak claimed during a debate in early June that Labour’s policies would lead to a £2,000 ($2,553.73) tax rise for “every working family” over the course of the next parliament. Starmer said the figure was “made-up,” while the party has laid out tax increases targeting only specific groups.



The public has from 7 a.m. to 10 p.m. local time to cast a vote for their local parliamentary candidate, shortly after which a closely-watched exit poll will be released.



Ballots will be counted overnight, with a result expected out on Friday morning.

108001664-1720074872647-gettyimages-2159858100-UK_STARMER

Landmark UK election kicks off as center-left Labour seeks return to power after 14 years

<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, July 4 (Reuters)&nbsp;&#8211;&nbsp;The following equity and currency market moves may affect South African markets on Thursday.



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



South African assets gained on Wednesday, lifted by optimism over comments by the Federal Reserve chair that reinforced expectations that U.S. interest rate cuts were not far off.



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



Asia stocks hit 27-month highs on Thursday as softer U.S. data narrowed the odds on a September rate cut there, boosting bonds and commodities while dragging on the dollar.



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



The S&amp;P 500 index and technology-laden Nasdaq rose on Wednesday to post record high closes, as data pointing to a softening economy raised hopes the Federal Reserve could cut interest rates in September.



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



Gold prices eased on Thursday but hovered near a two-week high hit in the previous session after softer-than-expected U.S. economic data fuelled hopes that the Federal Reserve could cut interest rates as soon as September.



&#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; Bidvest to end 26-year bank journey



&#8211; Leon Schreiber extends temporary concession for foreign nationals



<h2 class="wp-block-heading" id="h-fin-24">FIN 24</h2>



&#8211; Global giants are ditching SA&#8217;s massive gas find amid frustration with govt, insiders say



(Compiled by Bhargav Acharya)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on July 4

<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>



July 4 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.



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



Ethiopia&#8217;s Prime Minister Abiy Ahmed to appear in parliament to answer wide-ranging questions from lawmakers.



Tanzania&#8217;s central bank announces its latest lending rate decision.



After Kenya&#8217;s President William Ruto withdrew the contentious finance bill of 2024, anti-government protesters vowed to keep demonstrating as their demands spread to include a call for his resignation.



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



Asia stocks hit 27-month highs on Thursday as softer U.S. data narrowed the odds on a September rate cut there, boosting bonds and commodities while dragging on the dollar.



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



Oil prices fell in Asia on Thursday, with investors turning cautious on expectations of lower demand as U.S. employment and business data came in weaker than forecast, signalling the economy of the world&#8217;s top oil consumer may be cooling.



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



South African assets gained on Wednesday, lifted by optimism over comments by the Federal Reserve chair that reinforced expectations that U.S. interest rate cuts were not far off.



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



The Kenyan shilling shrugged off uncertainty caused by nationwide anti-government protests and firmed slightly on Wednesday, bolstered by hard currency inflows from tea exporters and diaspora remittances, traders said.



<h2 class="wp-block-heading" id="h-niger-security">NIGER SECURITY</h2>



Niger&#8217;s junta has agreed to talks with Benin&#8217;s government, led by two former Benin presidents, to help restore relations after a coup in Niger last year led to the border closing and a China-backed oil pipeline shutting down.



<h2 class="wp-block-heading" id="h-congo-imf">CONGO IMF</h2>



The International Monetary Fund said on Wednesday its executive board had concluded a sixth and last review of Congo&#8217;s loan program, allowing for an immediate disbursement of about $224.7 million.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on July 4

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-820x542.jpg" alt="" class="wp-image-503797" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Traffic drives down Sokoine Drive at dusk away from modern high rise buildings in the Ilala central business district in Dar es Salaam, Tanzania. (Photo by: Andy Soloman/UCG/Universal Images Group via Getty Images)</figcaption></figure>



DAR ES SALAAM, July 4 (Reuters) &#8211; Tanzania&#8217;s central bank left its key interest rate unchanged at 6%, it said on Thursday, adding that inflation expectations were well below target, the economy was growing strongly and exchange rate pressures were expected to ease.



The Bank of Tanzania introduced a benchmark interest rate in January as part of a new monetary policy framework, first setting it at 5.5% before raising it to 6.0% in April.



The bank targets inflation of 5%, but consumer inflation has stayed comfortably below that, coming in at 3.1% year-on-year in May.



In its latest Monetary Policy Committee (MPC) statement, the central bank said inflation was expected to range from 3%-4% in the second half of 2024.



&#8220;The MPC expects Tanzania&#8217;s economy to continue growing strongly, food supply to be adequate, and exchange rate pressures to moderate owing to increased foreign exchange inflows from tourism, gold, as well as cash crops and food,&#8221; the statement read.



Economic growth for the first and second quarters of the year was estimated around 5.0% and 5.4%, respectively, it said.



The current account deficit in the country of around 65 million people is estimated to have narrowed slightly to $959 million in the quarter ending in June, compared with $978 million in the corresponding quarter in 2023.



The improvement was driven by higher export earnings from gold and crops as well as tourism, the bank said.



Foreign exchange reserves remained adequate, above $5 billion at the end of June, sufficient to cover more than 4 months of projected imports, it said.



In the financial year that ended in June, the central bank bought 418 kg of gold to bolster its reserves and in the current financial year it intends to buy 6 metric tons of gold, deputy governor Yamungu Kayandabila told reporters.



(Reporting by Nuzulack Dausen; Writing by Hereward Holland; Editing by Alexander Winning and Emelia Sithole-Matarise)

Kivokoni Road and tall buildings Dar es Salaam, Tanzania

Tanzania central bank holds key rate, sees strong economic growth

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="820" height="469" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DALL·E-2024-07-04-09.58.06-A-modern-power-utility-facility-in-Africa.-The-scene-includes-a-large-power-plant-with-solar-panels-and-wind-turbines-in-the-foreground.-The-facility--820x469.webp" alt="" class="wp-image-503774" style="width:840px;height:auto" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DALL·E-2024-07-04-09.58.06-A-modern-power-utility-facility-in-Africa.-The-scene-includes-a-large-power-plant-with-solar-panels-and-wind-turbines-in-the-foreground.-The-facility--820x469.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DALL·E-2024-07-04-09.58.06-A-modern-power-utility-facility-in-Africa.-The-scene-includes-a-large-power-plant-with-solar-panels-and-wind-turbines-in-the-foreground.-The-facility--300x171.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DALL·E-2024-07-04-09.58.06-A-modern-power-utility-facility-in-Africa.-The-scene-includes-a-large-power-plant-with-solar-panels-and-wind-turbines-in-the-foreground.-The-facility--158x90.webp 158w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DALL·E-2024-07-04-09.58.06-A-modern-power-utility-facility-in-Africa.-The-scene-includes-a-large-power-plant-with-solar-panels-and-wind-turbines-in-the-foreground.-The-facility--768x439.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DALL·E-2024-07-04-09.58.06-A-modern-power-utility-facility-in-Africa.-The-scene-includes-a-large-power-plant-with-solar-panels-and-wind-turbines-in-the-foreground.-The-facility--1536x878.webp 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/DALL·E-2024-07-04-09.58.06-A-modern-power-utility-facility-in-Africa.-The-scene-includes-a-large-power-plant-with-solar-panels-and-wind-turbines-in-the-foreground.-The-facility-.webp 1792w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Representation of a modern power utility. Image by DAL-E. For illustration purposes only.</figcaption></figure>



<h2 class="wp-block-heading">Global Markets</h2>



Asian stocks achieved their highest levels in 27 months due to softer U.S. economic data, which raised the likelihood of a rate cut in September. This development boosted bonds and commodities while weakening the dollar.



<h2 class="wp-block-heading">World Oil Prices</h2>



Oil prices declined in Asia amid investor caution regarding expectations of lower demand, as U.S. employment and business data came in weaker than anticipated—indicating a potential cooling in the world&#8217;s top oil-consuming economy.



<h2 class="wp-block-heading">Country-Specific Updates:</h2>



<ul class="wp-block-list">
<li>South Africa: South African assets saw gains on Wednesday, fueled by optimistic comments from the Federal Reserve chair regarding upcoming U.S. interest rate cuts.</li>



<li>Kenya: The Kenyan shilling slightly firmed on Wednesday, supported by hard currency inflows from tea exporters and diaspora remittances despite ongoing nationwide protests.</li>



<li>Niger: Niger&#8217;s junta has agreed to talks with Benin&#8217;s government, aimed at restoring relations following a 2022 coup which led to border closures and a shutdown of a China-backed oil pipeline.</li>



<li>Congo: The International Monetary Fund (IMF) concluded a sixth and final review of Congo&#8217;s loan program, allowing an immediate disbursement of approximately $224.7 million.</li>
</ul>



<h1 class="wp-block-heading" id="h-top-interviews-on-cnbc-africa">Top Interviews on CNBC Africa</h1>



<h2 class="wp-block-heading" id="h-1-the-future-of-south-africa-s-automotive-industry">1. The Future of South Africa&#8217;s Automotive Industry</h2>



Renai Moothilal, CEO of the National Association of Automotive Component and Allied Manufacturers (NAACAM), emphasizes the significance of policy continuity within South Africa&#8217;s automotive industrial policy framework. The government aims to reach 60% localization rate by 2035 while transitioning towards electric vehicles.



<a href="https://cnbcafrica.com/media/6356451878112" target="_blank" rel="noreferrer noopener">Watch the full video on CNBC Africa</a>



<h2 class="wp-block-heading" id="h-2-eskom-s-recovery-plan-brings-stability">2. Eskom’s Recovery Plan Brings Stability</h2>



Eskom Chairman Mteto Nyati discusses strategies to improve Eskom&#8217;s financial health, including securing 250 billion rand from the National Treasury and reducing reliance on diesel. The long-term vision involves unbundling the utility into three distinct entities and promoting renewable energy.



<a href="https://cnbcafrica.com/media/6356446398112" target="_blank" rel="noreferrer noopener">Watch the full video on CNBC Africa</a>



<h2 class="wp-block-heading" id="h-3-ramaphosa-appoints-new-leadership-for-agricultural-sector">3. Ramaphosa Appoints New Leadership for Agricultural Sector</h2>



Wandile Sihlobo, Chief Economist of the Agricultural Business Chamber of South Africa, discusses the new multi-party leadership in South Africa’s agriculture and land reform ministries. Highlights include land reform, financial support for farmers, and projected sector growth.



<a href="https://cnbcafrica.com/media/6356446665112" target="_blank" rel="noreferrer noopener">Watch the full video on CNBC Africa</a>



<h2 class="wp-block-heading" id="h-4-scaling-up-green-housing-solutions-in-east-africa">4. Scaling Up Green Housing Solutions in East Africa</h2>



Shiv Arora, CEO of Superior Homes Kenya, explains the drivers behind the adoption of sustainable building practices in East African real estate. Challenges and strategies for broader implementation of green housing solutions are discussed.



<a href="https://cnbcafrica.com/media/6356446525112" target="_blank" rel="noreferrer noopener">Watch the full video on CNBC Africa</a>



<h2 class="wp-block-heading" id="h-5-eu-kenya-economic-partnership-agreement-boosts-msmes">5. EU-Kenya Economic Partnership Agreement Boosts MSMEs</h2>



Victor Otieno, Managing Director of Viffa Consult, discusses opportunities and challenges for Kenyan MSMEs under the new Economic Partnership Agreement with the EU, aiming to enhance trade and investment flows sustainably.



<a href="https://cnbcafrica.com/media/6356445453112" target="_blank" rel="noreferrer noopener">Watch the full video on CNBC Africa</a>



<h2 class="wp-block-heading" id="h-6-economic-crossroads-in-east-africa">6. Economic Crossroads in East Africa</h2>



Pamela Akidi from Stanbic Bank Uganda analyzes economic factors affecting East Africa such as inflation, exchange rates, and market performance, with a focus on Kenya and Uganda.



<a href="https://cnbcafrica.com/media/6356444415112" target="_blank" rel="noreferrer noopener">Watch the full video on CNBC Africa</a>



<h2 class="wp-block-heading" id="h-7-multinationals-exiting-nigeria-opportunities-for-local-industries">7. Multinationals Exiting Nigeria: Opportunities for Local Industries</h2>



Chika Mordi from United Capital Group discusses the challenges and opportunities for Nigeria’s manufacturing sector following the exit of multinational companies, emphasizing localization and cost optimization.



<a href="https://cnbcafrica.com/media/6356440442112" target="_blank" rel="noreferrer noopener">Watch the full video on CNBC Africa</a>



<h2 class="wp-block-heading" id="h-8-insights-on-access-holdings-rights-issue">8. Insights on Access Holdings’ Rights Issue</h2>



Morounke Olufemi and Roosevelt Ogbonna discuss Access Holdings&#8217; rights issue, part of their 2023-2027 strategic plan, aiming to meet regulatory requirements and deliver value to shareholders.



<a href="https://cnbcafrica.com/media/6356431885112" target="_blank" rel="noreferrer noopener">Watch the full video with Morounke Olufemi</a> <a href="https://cnbcafrica.com/media/6356428921112" target="_blank" rel="noreferrer noopener">Watch the full video with Roosevelt Ogbonna</a>



<h2 class="wp-block-heading" id="h-9-vetiva-research-on-inflation-in-nigeria-and-ghana">9. Vetiva Research on Inflation in Nigeria and Ghana</h2>



Ibukun Omoyeni from Vetiva Research provides insights into the potential moderation of inflation in Nigeria and Ghana during H2 2024, highlighting the undervaluation of the naira and the role of external funding.



<a href="https://cnbcafrica.com/media/6356428985112" target="_blank" rel="noreferrer noopener">Watch the full video on CNBC Africa</a>

DALL·E 2024-07-04 09.58.06 – A modern power utility facility in Africa. The scene includes a large power plant with solar panels and wind turbines in the foreground. The facility

Before the bell: Today’s Business News

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="558" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-820x558.jpg" alt="" class="wp-image-503524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-820x558.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-1536x1046.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Farmers harvest maize crop facilitated by the Safaricom DigiFarm App that helps agribusinesses and small holding farmers to share information and transact easily, in Sigor village of Bomet County, Kenya, May 28, 2020. REUTERS/Jackson Njehia/File Photo</figcaption></figure>



NAIROBI, July 3 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s economy grew 5.0% year-on-year in the first quarter of 2024, down slightly from the 5.5% growth in the same quarter last year, its statistics office said on Wednesday.



Growth was driven by sectors including agriculture, forestry and fishing, real estate, financial and insurance, information and communication, and accommodation and food services, the Kenya National Bureau of Statistics (KNBS) said.



&#8220;Similar to the first quarter of 2023, agricultural production was vibrant in the corresponding quarter of 2024, owing to favourable weather conditions that supported crop and animal production during the quarter,&#8221; KNBS said in a statement.



Growth was also marginally higher in the fourth quarter of 2023, at 5.1% year-on-year.



(Reporting by Hereward Holland; Editing by Alexander Winning)

Farmers harvest maize crop facilitated by the Safaricom DigiFarm App that helps agribusinesses and small holding farmers to share information and transact easily, in Sigor village of Bomet County

Kenyan economic growth down slightly at 5.0% in first quarter

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-820x525.jpg" alt="" class="wp-image-503489" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-820x525.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-768x492.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-1536x984.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A protester carries a casket during a demonstration over police killings of people protesting against the imposition of tax hikes by the government, in Nairobi, Kenya, July 2, 2024. REUTERS/John Muchucha/File Photo</figcaption></figure>



NAIROBI, July 3 (Reuters) &#8211; Activists behind Kenya&#8217;s anti-government protests are rethinking their strategy after demonstrations on Tuesday were marred by violence and looting that they fear could undermine the movement and its efforts to push President William Ruto to resign.



The activists say the violence was the work of &#8220;goons&#8221; hired by politicians to either discredit legitimate demonstrators or advance their own agendas. Some called on social media for the next planned demonstration on Thursday not to go ahead.



&#8220;It seems the state has realised that the only way to counter this movement is by using goons to incite violence, break into people&#8217;s property, loot, and tarnish our cause,&#8221; Ojango Omondi, an activist in the capital Nairobi, told Reuters.



&#8220;It&#8217;s time to go back to the drawing board and strategise on how best to overcome this violence and keep our protests focused on their true objectives.&#8221;



Kenya&#8217;s government spokesperson did not respond to a request for comment. In a statement on Tuesday, Interior Minister Kithure Kindike blamed violence on &#8220;hordes of marauding criminal gangs&#8221; and said there was an attempt to &#8220;politicise crime&#8221;.



The initial protests last month against proposed tax hikes were overwhelmingly peaceful, although the police fired tear gas and water cannon at demonstrators.



The mobilisation of Kenyans from across ethnic lines around common economic demands marked a break with previous protest movements that have typically been organised by political figures with ethnic grievances often at the fore.



The protests became violent as some demonstrators briefly stormed parliament last week and the police opened fire, killing dozens.



The next day, Ruto withdrew the tax increases. But protesters vowed to carry on, issuing a range of demands, from anti-corruption measures to Ruto&#8217;s resignation.



Almost from the outset, protests on Tuesday were marked by violence. Stone-throwing young men clashed with police in Nairobi and other towns. Looters stormed businesses, leading shopowners to arm themselves with sticks and clubs.



Foi Wambui, a young actress who had come to protest in downtown Nairobi, said she was heading home because of the chaos.



&#8220;What has happened is that peaceful protesters are deterred from coming to town, and we are deterred from actually coming and practising our civic duties,&#8221; she told Reuters.



<h2 class="wp-block-heading" id="h-discrediting-the-movement">DISCREDITING THE MOVEMENT</h2>



In official statements, Ruto and the government have generally distinguished between peaceful protesters and those they brand as criminals that have hijacked the demonstrations.



But their allies have seized on the violence to try to discredit the movement, popularly known as Gen Z protests for their youthful following.



Dennis Itumbi, a political consultant close to Ruto, posted a video on X of a group of young men robbing another man in the streets. It was not clear where or when the video was taken.



&#8220;Congratulations Gen-Z for your Peaceful and democratic protests along the streets,&#8221; Itumbi wrote. &#8220;The police should not interfere with your moves.



Gerald Bitok, the communications director at the presidency, said young people were beginning to turn against the protests.



&#8220;The Gen Zs and the young people of this country have made it crystal clear that going forward, they will not be part of the demonstrations that are now synonymous with terror,&#8221; he said on X.



On a public forum on X on Tuesday evening that was attended by over 400,000 people, one supporter of the protest movement said it bore some responsibility for the chaos by continuing to call for demonstrations after Ruto withdrew the tax hikes.



&#8220;You are equally culpable if you are still beating the drums of war,&#8221; he said.



Other speakers said what they referred to as paid goons were to blame, but several agreed that demonstrators should take a step back and call off Thursday&#8217;s protest.



&#8220;We will have more casualties and we will not achieve what we want,&#8221; said one. &#8220;Let&#8217;s go back. Let&#8217;s strategise.&#8221;



(Reporting by Aaron Ross; Additional reporting by George Obulutsa and Mukelwa Hlatshwayo; Editing by Tomasz Janowski and Barbara Lewis)

FILE PHOTO: Anti-government protests against the imposition of tax hikes by the government in Nairobi

Kenyan activists rethink strategy after protests turn violent

<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, July 3 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, equity and currency market moves may affect South African markets on Wednesday.



<h2 class="wp-block-heading" id="h-economic-event">ECONOMIC EVENT</h2>



S&amp;P Global Whole Econ PMI for June



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



The South African rand extended losses on Tuesday after a turbulent start to the week as markets waited to see how the new government of national unity (GNU) would approach economic reform following the formation of the cabinet.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed down 0.3%.



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



Asian stocks rose on Wednesday as comments from Federal Reserve Chair Jerome Powell reinforced expectations that U.S. rate cuts were not far off, while the yen struggled at levels last seen in 1986, keeping traders wary of Japanese intervention.



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



Wall Street&#8217;s main stock indexes closed higher on Tuesday, boosted by gains in Tesla and megacap growth stocks, but volumes were thin ahead of the July Fourth holiday and the closely watched release of June nonfarm payrolls on Friday.



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



Gold prices were flat on Wednesday as investors awaited minutes of the Federal Reserve&#8217;s last policy meeting for fresh cues on when the U.S. central bank will start cutting interest rates.



&#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; Sibanye carves away over 11,000 jobs in 18 months



&#8211; Sasol warns of uncertain future for piped-gas market



<h2 class="wp-block-heading" id="h-fin-24">FIN 24</h2>



&#8211; Discovery ordered to withdraw &#8216;misleading&#8217; gap cover ad



(Compiled by Bhargav Acharya)

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China faces economic headwinds as it grapples with an aging — and shrinking — population

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Kenyan economic growth down slightly at 5.0% in first quarter

Kenyan activists rethink strategy after protests turn violent

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