<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1544" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-scaled.jpg" alt="" class="wp-image-508589" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-300x226.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-820x618.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-119x90.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-768x579.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CAMB3048-1-1536x1158.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Zen Dlamini &#8211; Executive Head: Infrastructure and Sovereign &amp; Public Sector, at Standard Bank CIB</figcaption></figure>



South African public-private partnerships (PPPs) are the key to unlocking the massive infrastructure investment opportunities available to investors. The funding capacity of local investors is, however, not sufficient to meet the country’s infrastructure funding needs. The total value of the country’s Strategic Integrated Projects project pipeline has grown from R340 billion in July 2020 to R540 billion today, and the South African Government estimates that it will require R3.2 trillion (US$168 billion) from the private sector in order to meet its infrastructure needs by 2030.



South Africa’s ambitious infrastructure objectives cover four mission-critical infrastructure areas: energy, transport, water and digital communications. These areas, were they to receive sufficient investment, would support economic growth and job creation, and act as an enabler of future development. President Ramaphosa said in March this year: “Infrastructure is an enormous economic multiplier, providing dividends for an economy long after the infrastructure has been delivered.”



To unlock this potential, and to meet South Africa’s crucially important developmental needs, the country’s state-owned companies (SOCs) are increasingly looking at International Investors for PPP opportunities aligned with their interests and capacity.&nbsp; Over the past decade, the GCC has emerged as a major investor with interest across Africa, with a growing number of trade deals that significantly benefit both regions. Foreign Direct Investments from the GCC into Africa from 2012-2022 saw $101.9 billion invested in 628 projects.&nbsp;



South Africa’s infrastructural investment opportunities span various economic sectors, offering portfolio diversification potential for investors seeking global opportunities. The opportunities include social and utility infrastructure projects to improve access to much-needed water and power resources, and vital transport networks, including roads, rail, and ports. There are also ample investment opportunities in digital infrastructure and developing agriculture and agro-processing infrastructure.



The South African government is highly incentivised to create conditions conducive to attracting international investments, and that includes establishing a predictable and sustainable regulatory environment. Faced with a notable decline in PPP activity in recent years, the National Treasury has instituted reforms that simplify and speed up the regulatory process of establishing PPPs.



It has created two pathways for PPPs: one for high-value projects and a simplified version for low-value projects (less than R2 billion). The reforms mean that low-value projects no longer have to go through the lengthy process of obtaining Treasury approvals. Thus, investors who want to partner with the government on a smaller project won’t need to go through the time-consuming processes previously required.



As a bank committed to fostering cross-border relationships and collaboration between all the local and international stakeholders that will make these partnerships a success, Standard Bank fully supports the amended PPP regulatory framework. We believe this will make it easier for South Africa to benefit from the more than $50 trillion international investment pool held by the world’s top 300 investors.



It is important that international investors work with institutions that can capably navigate the country’s broader regulatory framework. For instance, international investors entering into PPPs must prioritise community building, job creation, localisation, and skills transfer. They would also be expected to source local suppliers from the surrounding communities instead of importing necessary supplies. Unless given a special dispensation as a priority project, international investors must meet the local requirements.



For investors looking to explore South African PPP infrastructure investment opportunities, Standard Bank is ideally positioned to help. We have the local know-how, experience, and expertise and have been a committed role player in the government’s private sector capital-raising initiatives. In terms of assets, we are the largest of the big four commercial and investment banks in sub-Saharan Africa and are equipped to put together large, impactful, and high-profile PPPs.



Already a meaningful partner to many international investors, Standard Bank has a global presence in 20 countries on the African continent, as well as in the UAE, Dubai, Beijing, London, New York, New Jersey, and the Isle of Man. We are a preferred partner for many global multinationals coming to the continent and South Africa. We operate across multiple sectors and have been involved in many large infrastructure projects in the renewable energy sector in particular, including a sizeable hydro-electric project in the Northern Cape.



Standard Bank has long nurtured its relationships with investors in the GCC and the surrounding region, where investors have access to substantial capital and the appetite to invest in the opportunities South Africa has to offer. These opportunities offer investors sustainable, long-term returns and exposure to a fast-growing population with tremendous economic potential.



Standard Bank’s State-Owned Company Investment Summit, held recently in Dubai, provided a platform for investors in the Gulf region to connect with representatives of South Africa’s state-owned companies to explore infrastructure opportunities and possible collaborations. We expect the summit to lead to a round of significant infrastructural investment agreements, as has occurred at each previous iteration of this annual event.



PPPs in South Africa have played a crucial role in attracting much-needed private investment. But more is needed. By sharing risks and rewards with the private sector, and international investors in particular, the government can unlock additional funding sources and accelerate the development of critical infrastructure projects.



The overhaul of the PPP regulatory framework has been instrumental in sending the right message to international investors about South Africa’s infrastructure opportunities. The country cannot meet its massive infrastructure development goals – and reach its full economic potential – without international investors and successful PPPs. The latest regulatory changes shift the dial in the right direction for all stakeholders.

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South Africa’s PPP reforms provide an investor-friendly platform for global infrastructure capital

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, July 17 (Reuters) &#8211; The Ugandan shilling was weaker on Wednesday, undermined by an uptick in demand for dollars from merchandise importers, traders said.



At 1045 GMT, commercial banks quoted the shilling at 3,695/3,705, compared with Tuesday&#8217;s closing rate of 3,688/3,698 levels.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

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Ugandan shilling weaker on uptick in importer dollar demand

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1292" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



LONDON, July 17 (Reuters)&nbsp;&#8211;&nbsp;The World Bank is looking to issue its first drought bond in the next 12-18-months and broaden its offering of catastrophe bonds supporting countries suffering devastation from storms and earthquakes, a senior executive at the lender said.



The drought bond would be a new instrument in the multilateral lender&#8217;s suite of so-called cat bonds &#8211; fixed income instruments that pay out to countries in the event of a natural disaster.



&#8220;We would love to do something in the drought space, that is something we are working on,&#8221; said George Richardson, director of the capital markets and investment department at the World Bank Treasury told Reuters, adding this would be most likely focussed on Africa.



The World Bank has arranged and issued cat bonds though its lending arm, the International Bank for Reconstruction and Development (IBRD), to help emerging economies mitigate the fallout from storms and earthquakes for well over a decade. It has made $568 million of insurance payouts on these instruments.



The vast majority of the World Bank&#8217;s existing cat bonds cover countries in the Pacific and Caribbean regions, with Mexico dominating issuance.



The lender was now in talks with more countries to broaden the geographic scope, Richardson said.



Southern Africa is reeling from its worst drought in years, owing to a combination of naturally occurring El Nino &#8211; a warming of waters in the eastern Pacific leading to hotter weather across the world &#8211; and higher average temperatures produced by greenhouse gas emissions. This led to a number of record-breaking weather extremes last year.



Richardson said modelling droughts, wildfires and floods was a little more difficult than earthquakes or storms for a parametric cat bond, an instrument where triggers depend on physical parametres of an event.



&#8220;The fundamental challenge is that you need data, and you need to have some history of that so that it can be modelled by various agencies,&#8221; Richardson said.



The World Bank has also recently offered vulnerable, low income countries the option of introducing clauses into their borrowing from the Washington-based lender that would allow governments to defer repayments for up to two years if they were hit by a severe natural disaster.



So far, seven countries have signed up to the so-called Climate Resilient Debt Clauses (CRDC) &#8211; Bahamas, Barbados, Belize, Grenada, St. Lucia, St. Vincent and the Grenadines and Montenegro.



&#8220;Some of these are evaluating whether they should activate this clause after hurricane Beryl but so far, no decision has been made from what we know,&#8221; said Richardson.



Beryl left a trail of devastation across several Caribbean islands earlier this month, destroying as many as 90% of homes in parts of Grenada and St. Vincent and the Grenadines.



(Reporting by Karin Strohecker and Marc Jones; Editing by Mark Potter)

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

World Bank eyes first ‘drought’ bond in next 12-18 months

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-scaled.jpeg" alt="" class="wp-image-508539" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-scaled.jpeg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107405347-1713901590053-gettyimages-1467862508-r15207-fr-01-ge-01-1536x1024.jpeg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Golden Horn and Bosphorus at sunset, Istanbul, Turkey Matteo Colombo | Digitalvision | Getty Images</figcaption></figure>



Turkey came out miles ahead of the rest of the world in an annual global wealth ranking — in a result that may come as surprising, given the country’s high levels of inflation.



“Türkiye stands out with a staggering growth of over 157% in wealth per adult between 2022 and 2023, leaving all other nations far behind,” Swiss bank UBS wrote in its Global Wealth Report 2024, using the local spelling for the country’s name.



The next-highest countries in terms of average wealth growth per adult were Russia and Qatar with nearly 20% and South Africa with just over 16%. In the U.S., average wealth per adult grew by nearly 2.5%.



Inflation in Turkey sits at nearly 72%, an eye-watering figure for the country’s 85 million people, many of whom have seen a dramatic drop in their purchasing power over the last several years. In the last five years, the Turkish lira has lost nearly 83% of its value against the dollar, and the currency trades at 33 lira to the greenback as of 09:07 a.m. London time on Wednesday.



But for Turks who own assets like homes, wealth has grown, as inflation pushes up the costs of those holdings.



The UBS report defines net worth or “wealth” as “the value of financial assets plus real assets (principally housing) owned by households, minus their debts.” In a call with journalists, some of the report’s authors broke down the relationship between inflation and wealth rises in Turkey.



“In certain ways, the high pace of inflation also helps explain why wealth has risen much much more in local currency terms, at least [more] than in other countries because it’s worth keeping in mind that wealth is measured in nominal terms,” Samuel Adams economist at UBS Global Wealth Management, told CNBC.



“If inflation is very high, what tends to happen is that if you have a real asset like housing, the house prices tend to rise in line with inflation, if not even faster,” he said. “So those people with have homeownership, or who have equities, which also tend to perform fairly well in those environments, they tend to see their wealth accumulate a bit faster.



“Of course, it doesn’t mean that everybody benefits to the same extent,” Adams added. “If you’re not in those assets, if your wage rises don’t keep pace with inflation, then, of course, it will be fairly negatively affected.”



The report also noted the “currency effect”, which is what changes wealth growth the most — local currency growth figures for wealth are often significantly different from those in dollar terms.



“Türkiye’s already exceptional growth of over 63% in USD &#8230; more than doubles to nearly 158% in Turkish lira,” it said. Other examples in the report included Japan, which in dollar terms has seen less than 2% average growth in wealth per adult in U.S. dollar terms between 2022-23, but in local currency that growth was 9%.



Evaluating countries’ average wealth growth between the years of 2008 and 2023, “the most dramatic evolution has taken place in Türkiye,” UBS wrote, “where average wealth per adult in this period has shot up by 1708% in local currency.”



UBS Global Wealth Management’s Chief Economist Paul Donovan pointed out that being asset-rich does not necessarily mean being cash-rich — in Turkey, this could actually be the opposite.



“In terms of living standards rather than wealth, it’s also important to remember that if you own a house, the value of your house has gone up, but your real wage may be negative at the same time. So you can be &#8230; asset rich and cash poor,” Donovan said last week.



“That’s certainly a possibility, where a lot of the stresses that have arisen in the Turkish economy over the last few years have come about because of negative real income,” he added, “not necessarily what’s happening on the asset side.”

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Wealth growth in Turkey, South Africa shows surprising expansion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg" alt="" class="wp-image-506011" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller serves a client with Kenya shilling notes at the cashier&#8217;s booth of a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, July 17 (Reuters) &#8211; Kenya&#8217;s shilling was stable on Wednesday as foreign exchange inflows from tea exports matched dollar demand, traders said.



At 0737 GMT, commercial banks quoted the shilling at 129.50/130.50 per dollar, the same as Tuesday&#8217;s close.



(Reporting by Hereward Holland; Editing by Alexander Winning)

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Kenyan shilling stable as FX inflows from tea exports match demand

<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/wmp-9109-820x547.jpg" alt="" class="wp-image-508505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/wmp-9109-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Rassem Zok &#8211; Chief Executive, Middle East, Standard Bank Group</figcaption></figure>



Africa has made significant progress in terms of infrastructure development, committing billions of dollars to improve its transportation, energy, water, and digital networks. This infrastructure boom is crucial for boosting economic growth, creating jobs, and reducing poverty across the continent. With the right investments and reforms, Africa can build the modern infrastructure needed to boost trade, create jobs, and transform the continent&#8217;s economic prospects.



Yet current investment still falls far short of demand. According to the African Development Bank, the continent has a $100 billion annual shortfall in infrastructure financing. This infrastructure gap is not only impacting lives today, but also significantly curtailing the continent’s potential for economic, entrepreneurial, and developmental progress. The African Union estimates that inadequate infrastructure has led to the reduction of national economic growth by 2% annually in most African countries and as much as 40% reduction in industrial productivity.



If we manage to close this gap, we unlock the immense potential of infrastructure – and especially sustainable infrastructure – to drive growth and development on the continent. There is a real desire amongst state-owned companies (SOCs) to do so, and an increasing awareness amongst investors of the alignment of interests that opportunities in African infrastructure represent.



We have noticed, in particular that Gulf Cooperation Council (GCC) countries have stepped up their investments in Africa as they look to diversify their own economies. The GCC&#8217;s strategic policy priorities and economic diversification interests align perfectly with the opportunity to support Africa&#8217;s development agenda, and the GCC is equipped with the technical expertise and financial resources necessary to bridge Africa’s investment gap through innovative public-private partnerships (PPPs).



Over the past decade, the GCC has emerged as a major investor across Africa, with a growing number of trade deals finalised that significantly benefit both regions. Dubai is increasingly establishing itself as the gateway to African investment. Investing in Africa, and developing relationships with SOCs and financial institutions, allows GCC nations to access new markets, expand business operations, and secure access to abundant natural resources. The GCC states generally have superb relationships with many of the 20 countries in which our Group has a universal presence, which is an important foundation for the development of effective PPPs and direct investment projects.



&nbsp;Iconic transactions of late include the acquisition of Imperial Logistics, a South African logistics operator, by DP World, the global infrastructure-led supply chain solutions provider based in Dubai. As a result of this transaction, DP World gained a stronger foothold in Africa and Imperial Logistics benefitted from DP World&#8217;s leading technology, global networks, and key trade-lane volumes. It’s a win for DP World and Imperial Logistics – the two are clients of the bank.



Another success has been our partnership with DP World to offer trade finance solutions to African SMEs, which will help in closing the gap in unmet demand for working capital on the continent. This partnership reflects our strategic vision of driving Africa’s growth, and is a demonstration of our commitment, as Africa’s largest bank, to the transition of financial services to platform-based ecosystems and to the improvement of client experiences.



ESG and the broad-scale sustainable impact of our work is a key focus area for Standard Bank, and this aligns with the appetitive for sustainability that we’ve seen from the UAE. UAE investors are sophisticated supporters of the vision of more circular economies and are making a demonstrable impact in enabling a just transition for the continent.



Spurred by the benefits of economic diversification, GCC countries are actively investing in high-growth sectors such as clean energy, manufacturing, and logistics, while also committing to sustainable development projects including food and water security. Against this backdrop, the opportunities in African infrastructure align seamlessly with the GCC states&#8217; multi-sectoral investment appetite.



We have, for the past four years, facilitated the State-Owned Company Investment Summit, which introduces large sovereign-owned companies to investors from the MENA region. Each year we record tangible, significant successes as a result of the summit.



It was as a result of last year’s Investment Summit that Standard Bank was able to facilitate a unique syndication facility for the Development Bank of Southern Africa in the UAE. The US$255 million facility was the first of its kind to be successfully accessed by a South African state-owned entity in the UAE and broader Middle East/North Africa (MENA) markets, representing a milestone for both DBSA and for South African fundraising initiatives in the UAE.



Standard Bank and UAE-based Mashreq were joint lead mandated arrangers in a deal which was oversubscribed, demonstrating significant market interest from UAE investors and the MENA broader region. The DBSA mandated Standard Bank to act as the mandated lead arranger to anchor and raise US dollar liquidity to diversify its global investor base.



Standard Bank is actively involved in supporting effective PPPs by demonstrating the economic value that derives from these projects, and through the rigorous governance structures that we’ve optimised. Risk is managed through an end-to-end process that takes deep cognisance of the value chains that are required for doing business in Africa, and which gives our partners comfort and security and the confidence to engage in these beneficial transactions.



There is nothing exceptional in terms of the risk projects face in Africa. What is unique is the degree to which local knowledge is able to ameliorate risk. In more mature markets, there isn’t the same degree of guidance required. In Africa, an experienced hand guiding the process is far more valuable.



Doing business in Africa requires an understanding of cultural sensitivities and experience as to what works. Africa is not a country: it is a continent made up of 54 disparate nations with unique operating environments. Our continental expertise is born of on-the-ground experience and a commitment to innovative, world-leading funding and risk-management solutions.



We believe in Africa, and we&#8217;re committed to its success. The vast proportion of our balance sheet is deployed in Africa. We have 50 000 experienced, knowledgeable staff who drive our return on equity. We have a universal presence in 20 African countries. We have offices in Dubai, Beijing, London and New York, and expect our new representative office to be opened in Egypt by year end. This will allow us to capitalise on the significant emergence of the Gulf–sub-Saharan-Africa–Egypt corridors, and further support our clients in those corridors.



The future looks bright for the cross-border opportunities available across Africa. As the largest bank in Africa, our largest stakeholder, in a sense, is the continent itself. That awareness drives our partnerships with multinationals, regional corporates, state structures and sovereign funds to enable cross-border flows – because they are critical catalysts of African growth and significant opportunities for value creation.

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Unlocking continental potential: The importance of local knowledge in African infrastructure investment

<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, July 17 (Reuters)&nbsp;&#8211;&nbsp;The South African rand slipped against the dollar in early trade on Wednesday before the release of retail sales figures.



At 0625 GMT, the rand traded at 18.0725 against the dollar, about 0.2% weaker than its previous close.



Statistics South Africa will publish May retail sales data at 1100 GMT, shedding light on consumer spending patterns in one of Africa&#8217;s biggest economies.



Economists polled by Reuters predict retail sales will rise 0.7% year on year in May, after a 0.6% increase in April.



From 1200 GMT, mining and petroleum minister Gwede Mantashe will brief reporters on his plans for those sectors.



On Thursday investor attention will shift to an interest rate announcement by South Africa&#8217;s central bank and a speech in parliament by President Cyril Ramaphosa laying out priorities for the new coalition government.



(Reporting by Alexander Winning; Editing by Kim Coghill)

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

South African rand slips before retail sales data

<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 17 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Wednesday.



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



May retail sales data at 1100 GMT



Mining and petroleum minister briefs reporters on his department&#8217;s plans from 1200 GMT



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



The South African rand clawed back some losses on Tuesday, after tumbling on Monday, on rising expectations that the U.S. Federal Reserve will soon cut interest rates.



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



Gold hit a record and bonds rallied on Wednesday as markets prepared for global interest rates to fall, while stocks in Taiwan slipped after U.S. presidential candidate Donald Trump sounded lukewarm in his commitment to the island&#8217;s defence.



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



Wall Street stocks rose and the Dow Jones Industrial Average hit an all-time closing high on Tuesday after U.S. retail sales data supported the view that the Federal Reserve is approaching its easing cycle, reining in inflation while avoiding a recession.



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



Gold prices rose to an all-time peak on Wednesday, driven by mounting hopes of a U.S. interest rate cut in September after recent comments from Federal Reserve officials.



&#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; Bond rally since election gives fiscus a breather



&#8211; Presidential climate advisers propose way forward to streamline just transition financing



(Compiled by Alexander Winning)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on July 17

<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 17 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Wednesday.



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



Gold hit a record and bonds rallied on Wednesday as markets prepared for global interest rates to fall, while stocks in Taiwan slipped after U.S. presidential candidate Donald Trump sounded lukewarm in his commitment to the island&#8217;s defence.



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



Oil prices were steady on Wednesday, with global benchmark Brent hovering near the one-month low it hit in the prior session, as signs of weakening demand growth in China clashed with the prospect of declining U.S. oil stockpiles.



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



The South African rand clawed back some losses on Tuesday, after tumbling on Monday, on rising expectations that the U.S. Federal Reserve will soon cut interest rates.



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



Kenya&#8217;s shilling slid lower on Tuesday, with traders saying there was a shortage of dollars on the market.



<h2 class="wp-block-heading" id="h-kenya-politics">KENYA POLITICS</h2>



At least one person was killed in renewed anti-government protests across Kenya on Tuesday, a Reuters reporter said, as police clashed with demonstrators demanding that President William Ruto step down.



<h2 class="wp-block-heading" id="h-nigeria-binance">NIGERIA BINANCE</h2>



A Nigerian court on Tuesday adjourned a money laundering trial against cryptocurrency exchange Binance and two of its executives to Oct. 11, after the court&#8217;s annual holiday that starts next week.



<h2 class="wp-block-heading" id="h-ghana-cocoa">GHANA COCOA</h2>



Ghana&#8217;s cocoa marketing board Cocobod made a 2.3 billion cedi ($149.84 million) profit in 2022/23, helped by the restructuring of its debt, the west Africa nation&#8217;s auditor general said in a report obtained by Reuters on Tuesday.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on July 17

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1600" height="1067" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE.webp" alt="" class="wp-image-418642" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE.webp 1600w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-300x200.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-820x547.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-135x90.webp 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-768x512.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/07/responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE-1536x1024.webp 1536w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Africa’s abundant renewable energy sources could make it a global hub for producing low-carbon hydrogen
Image: Unsplash/Anastasia Palagutina</figcaption></figure>



JOHANNESBURG, July 17 (Thomson Reuters Foundation)&nbsp;&#8211;&nbsp;When Shireen Gouws heard about a new hotline advertised in the community centre where she works in the small town of Laingsburg in South Africa, she was quick to spread the word.



Finally, she thought, people could have their say about renewable projects in their area and make sure they were reaping the benefits of the transition to green energy.



The toll-free hotline, available in 11 official South African languages, was launched on July 9 after a year-long pilot in Laingsburg and the town of Sutherland, where people could call in with complaints, queries and suggestions related to the wind farms operating in the area.



&#8220;Usually companies come and go and there is no engagement with the community, maybe a meeting once in a while. (Now) the community can express themselves if they are happy or unhappy about something,&#8221; Gouws, who works as a clerk at the community centre, told the Thomson Reuters Foundation in a phone interview.



The ENGAGE! hotline was launched by South African sustainable consulting company Cultiver following a year-long pilot with Enel Green Power, a renewable power unit of Italy&#8217;s largest utility firm, Enel Group.



Enel Green runs the Karusa and Soetwater wind farms in Laingsburg and Sutherland. Cultiver has worked with Enel on community projects in the area since construction on the wind farms began in 2019, and the hotline offers a new way of engaging with the public.



Enel did not immediately reply to a request for comment.



Cultiver now offers the hotline platform to renewable energy, infrastructure and mining projects across southern Africa.



Cultiver&#8217;s aim is to ensure residents of remote towns where solar and wind farms are being installed are included in the dialogue about how these green projects can also benefit locals, said Fezeka Stuurman, the head of Cultiver.



ENGAGE! allows community members to put their grievances directly to project owners and local government, if relevant, to ensure their concerns are dealt with urgently and minimise the risk of social unrest, Stuurman added.



&#8220;We decided that we needed something for communities to reach us directly and in a way that would be dignified, private and insightful,&#8221; Stuurman told the Thomson Reuters Foundation.



As a result of the pilot project, Cultiver helped facilitate the drilling of boreholes for drought-stricken areas, the creation of a value-chain workshop for businesses interested in working with Enel, and the organisation of a registration event for small businesses to take part in procurement, Stuurman said.



Richard Halsey, a policy advisor on the South African team at the International Institute for Sustainable Development (IISD), praised the hotline&#8217;s free access and inclusivity for community members.



But the fact that it is funded by project owners could mean some renewable energy and mining companies or infrastructure developers may choose not to use the hotline as it is an additional, optional expense, he said.



Its effectiveness could also be limited as community members are only invited to engage once the project has started, rather than giving them an initial say in what kind of project they would like to see in their area, Halsey added.



&#8220;Effective communication across communities isn&#8217;t just a &#8216;nice to have&#8217; bonus for developers,&#8221; said Halsey.



&#8220;Real involvement and interaction can empower decision-making on both sides &#8230; smoothing the way towards clean energy deployment and helping avoid frustrating delays and opposition,&#8221; he said in emailed comments.



<h2 class="wp-block-heading" id="h-fighting-distrust">FIGHTING DISTRUST</h2>



South Africa is among the world&#8217;s top 15 greenhouse gas emitters &#8211; and the leading emitter in Africa. About 80% of its carbon emissions, and some 90,000 jobs, are linked to coal.



South Africa has secured $676 million in grants from rich nations to shift from coal to clean energy sources such as wind and solar power.



The country&#8217;s sweeping coastline, vast semi-desert and near all-year-round sun are seen by many renewable energy investors as offering impressive potential for solar and wind projects.



South Africa already has in place a 13-year-old programme that procures clean energy from independent power producers (IPPs) to feed into the national grid, while aiming to empower local communities by giving them some of the profits back.



IPP policy states that the power producers should prioritise socioeconomic development within a 50-km (31-mile) radius of the project site.



More than 6,000 megawatts of generation capacity, primarily from wind and solar, have already been granted to bidders under the IPP scheme, according to the U.S. International Trade Administration (ITA).



But research has shown that the money from these projects does not always trickle down to the surrounding communities, building a culture of mistrust when new projects move in.



The hotline is meant to combat this trend. It is advertised through pamphlets and community ambassadors from Cultiver, who talk directly to residents.



Gouws said community members told her that they used the hotline to understand how the wind farm would support the community, and to complain if the funding processes were not clear.



<h2 class="wp-block-heading" id="h-inform-and-be-informed">&#8216;INFORM AND BE INFORMED&#8217;</h2>



In the past year the platform, which is also available via WhatsApp, received more than 150 calls from residents of Sutherland and Laingsburg, which together are home to some 12,000 people.



Around 50% of the calls were about funding and financial support for community projects under the IPP policy, 20% were grievance-related, 20% focused on training and support for small businesses, and the rest were general inquiries, Cultiver said.



The response time for grievances is about 10-20 working days, depending on the complexity, Stuurman said.



&#8220;Communities called us directly saying &#8230; we need a counsellor, we need a school psychologist, we need a safe house,&#8221; Stuurman said.



A number of calls were about a contractor who was allegedly underpaying workers and failing to supply necessary protective equipment, she said. Following guidance received via the ENGAGE! platform, the workers submitted a collective petition and a new contractor was appointed.



Gouws said students, whose bursaries were being funded through Enel&#8217;s community profit-sharing schemes, used the hotline to follow up on payment delays, resolving the issue almost immediately.



The platform was a good start to allow &#8220;quieter voices to share concerns &#8230; to inform and be informed,&#8221; said Allistar Gibbons, the manager of community services in the Karoo Hoogland Municipality in the Northern Cape, where Sutherland is.



<h2 class="wp-block-heading" id="h-opportunity-to-learn">&#8216;OPPORTUNITY TO LEARN&#8217;</h2>



Community support also has a financial benefit, said Stuurman, who has witnessed protests and stoppages halt various projects she has worked on in the past decade.



&#8220;When you&#8217;re investing billions of rands into an asset, the immediate risk is around having that asset jeopardised in some shape or form,&#8221; she said.



South Africa&#8217;s economy was built on extractive mining industries, including coal, gold and diamonds, that made use of Black, migrant labour to enrich the white minority during colonial and apartheid years.



The renewable industry offers an opportunity to learn from past practices, said Holle Wlokas, co-founder of the Initiative for Social Performance in Renewable Energy (INSPIRE) non-profit.



Wlokas said ENGAGE! represented an &#8220;exciting opportunity&#8221; to keep investing in community relationships, both via the hotline and in person.



&#8220;We do see in the renewable sector, at times, community narratives comparing renewables with the mining industry,&#8221; said Wlokas in a phone interview.



&#8220;Quite a common saying is that the wind and solar projects steal the diamonds from the sky as the mining sector stole the diamonds out of the earth,&#8221; she said.



&#8220;And that experience of extraction and exploitation is an important one to listen very carefully to.&#8221;



(Reporting by Kim Harrisberg in Johannesburg. Editing by Clar Ni Chonghaile. The Thomson Reuters Foundation is the charitable arm of Thomson Reuters.)

responsive_big_webp_g4HszNIBPcEQqWKXN36WnGfcOeIXBid9O1akAXmkSmE

South African hotline gives locals a say on green energy projects

Why Outlet Malls Are Struggling In The U.S.

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., as IMF Managing Director Christine Lagarde meets with Argentine Treasury Minister Nicolas Dujovne September 4, 2018. REUTERS/Yuri Gripas</figcaption></figure>



WASHINGTON, July 16 (Reuters) &#8211; The global economy is set for modest growth over the next two years amid cooling activity in the U.S., a bottoming-out in Europe and stronger consumption and exports for China, but risks to the path abound, the International Monetary Fund said on Tuesday.



The IMF warned in an update to its World Economic Outlook(WEO) that momentum in the fight against inflation is slowing, which could further delay an easing of interest rates and keep up strong dollar pressure on developing economies.



The IMF kept its 2024 global real gross domestic product growth forecast unchanged from April at 3.2% and raised its 2025 forecast by 0.1 percentage point to 3.3%. The forecasts fail to shift growth from the lackluster levels that IMF managing director Kristalina Georgieva has warned would lead to &#8220;the tepid twenties.&#8221;



But the revised outlook reflected some shifting sands among major economies, with the 2024 U.S. growth forecast reduced by 0.1 percentage point to 2.6%, reflecting slower-than-expected first-quarter consumption. The Fund&#8217;s 2025 U.S growth forecast was unchanged at 1.9%, a slowdown driven by a cooling labor market and moderating spending in response to tight monetary policy.



&#8220;Growth in major advanced economies is becoming more aligned as output gaps are closing,&#8221; IMF chief economist Pierre-Olivier Gourinchas said in a blog post accompanying the report, adding that the U.S. was showing increasing signs of cooling, while Europe was poised to pick up.



The IMF significantly hiked its China growth forecast to 5.0% &#8211; matching the Chinese government&#8217;s target for the year &#8211; from 4.6% in April due to a first-quarter rebound in private consumption and strong exports. The IMF also boosted its 2025 China growth forecast to 4.5% from 4.1% in April.



<h2 class="wp-block-heading" id="h-china-risks">CHINA RISKS</h2>



But China&#8217;s momentum may be sputtering, as Beijing on Monday reported second-quarter GDP growth of just 4.7%, significantly below forecasts amid weak consumer spending amid a protracted property downturn.



Gourinchas told Reuters in an interview that the new data poses a downside risk to the IMF forecast, as it signals weakness in consumer confidence and continuing problems in the property sector. To boost domestic consumption, China needs to fully resolve its property crisis, as real estate is the main asset for most Chinese households.



&#8220;When you&#8217;re looking at China, the weaker the domestic demand, the more growth is going to rely potentially on the external sector,&#8221; he said, inviting more trade tensions.



On a more positive note, the IMF slightly upgraded its 2024 eurozone growth forecast by 0.1 percentage point to 0.9%, leaving the bloc&#8217;s 2025 forecast unchanged at 1.5%.



The eurozone has &#8220;bottomed out&#8221; and saw stronger first-half services growth, while rising real wages will help power consumption next year and easing monetary policy will aid investment, the IMF said.



It cut Japan&#8217;s 2024 growth forecast to 0.7% from 0.9% in April due in part to supply disruptions from a major auto plant shutdown and weak private investment in the first quarter.



<h2 class="wp-block-heading" id="h-inflation-risks-remain">INFLATION RISKS REMAIN</h2>



The IMF warned of near-term upside risks to inflation as services prices remain elevated amid wage growth in the labor-intensive sector and said renewed trade and geopolitical tensions could stoke price pressures by increasing the cost of imported goods along the supply chain.



&#8220;The risk of elevated inflation has raised the prospects of higher-for-even-longer interest rates, which in turn increases external, fiscal and financial risks,&#8221; the IMF said in the report.



Gourinchas said that despite a fall in U.S. consumer prices last month, the Federal Reserve



can afford to wait



a bit longer to begin cutting rates to avoid any inflationary surprises.



<h2 class="wp-block-heading" id="h-protectionism-risks">PROTECTIONISM RISKS</h2>



The IMF also warned of potential swings in economic policy as a result of many elections this year that could have negative spillovers to the rest of the world.



&#8220;These potential shifts entail fiscal profligacy risks that will worsen debt dynamics, adversely affecting long-term yields and ratcheting up protectionism,&#8221; the Fund said.



The Fund did not name U.S. Republican Party candidate Donald Trump, who has proposed to impose a 10% tariff on all U.S. imports, nor Democratic President Joe Biden, who has sharply hiked tariffs on Chinese electric vehicles, batteries, solar panels and semiconductors.



But it said that higher tariffs and a scaling up of domestic industrial policy could create &#8220;damaging cross-border spillovers, as well as trigger retaliation, resulting in a costly race to the bottom.&#8221;



Instead, the IMF recommended that policymakers persevere with restoring price stability &#8211; easing monetary policy only gradually &#8211; replenish fiscal buffers drained during the pandemic and pursue policies that promote trade and increase productivity. 



(Reporting by David Lawder; Editing by Andrea Ricci and Dan Burns)

IMF logo is seen outside the headquarters building in Washington

IMF sees steady global growth, warns of slowing disinflation momentum

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="528" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OMLJWHVFZILBPXIQFVWFUYC2M-820x528.jpg" alt="" class="wp-image-508174" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OMLJWHVFZILBPXIQFVWFUYC2M-820x528.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OMLJWHVFZILBPXIQFVWFUYC2M-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OMLJWHVFZILBPXIQFVWFUYC2M-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OMLJWHVFZILBPXIQFVWFUYC2M-768x494.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OMLJWHVFZILBPXIQFVWFUYC2M-1536x988.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/7OMLJWHVFZILBPXIQFVWFUYC2M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A protestor reacts during an anti-government demonstration following nationwide deadly riots over tax hikes and a controversial now-withdrawn finance bill in Kitengela, Kenya, July 16, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, July 16 (Reuters)&nbsp;&#8211;&nbsp;Police in Kenya fired tear gas on Tuesday to disperse hundreds of protesters aiming to keep pressure on President William Ruto after he made a series of concessions to demonstrators&#8217; demands.



Leading activists behind weeks of protests, initially sparked by proposed tax hikes, called for a &#8220;total shutdown&#8221; of the country on Tuesday.



The protests have created the biggest crisis of Ruto&#8217;s two years in power and have continued &#8211; albeit with a smaller turnout &#8211; even after the president withdrew $2.7 billion in tax hikes and fired nearly his entire cabinet.



Many demonstrators are demanding that Ruto step down, blaming him for misgovernance, corruption and the deaths of dozens of protesters during earlier anti-government rallies.



On Tuesday, police fired tear gas in Kitengela, a town on the southern outskirts of the capital Nairobi, where around 200 protesters burned tyres and chanted &#8220;Ruto must go&#8221; and &#8220;Stop killing us&#8221;, Reuters reporters said.



Riot police in Nairobi&#8217;s city centre also fired tear gas as a few dozen protesters chanted for Ruto to step down. Demonstrators in the coastal city of Mombasa marched waving palm fronds, footage from Kenyan media showed.



Ruto&#8217;s office had announced &#8220;multi-sectoral&#8221; talks for this week to address grievances raised by the protesters, but there was no sign they had begun. Most of the leading activists behind the protests have rejected the invitation, instead calling for immediate action on issues like corruption.



Ruto&#8217;s spokesperson did not immediately respond to a request for comment.



With Kenya spending over 30% of its revenues just paying the interest bills on its debt, Ruto has been caught between the demands of lenders to cut deficits and a hard-pressed population reeling from rising living costs.



The protests began peacefully but later turned violent. Some demonstrators briefly stormed parliament on June 25, and the police opened fire. More than 40 people have been killed in the protests, rights groups say.



Ruto on Monday accused the Ford Foundation, an American philanthropic organisation, of sponsoring those who had caused &#8220;violence and mayhem&#8221; in Kenya, without providing evidence.



The Ford Foundation rejected the allegation, saying it did not fund or sponsor the protests and has a strictly non-partisan policy for its grant-making.



(Additional reporting by Hereward Holland and Humphrey Malalo; Editing by Aaron Ross and Ros Russell)

Anti-government protests against the imposition of tax hikes by the government, in Kajiado

Kenya police fire tear gas as anti-government protesters burn tyres

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-820x549.jpg" alt="" class="wp-image-425202" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-1536x1028.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African Rand coins are seen in this photo illustration . REUTERS/Mike Hutchings</figcaption></figure>



JOHANNESBURG, July 16 (Reuters)&nbsp;&#8211;&nbsp;The South African rand clawed back some losses on Tuesday, after tumbling on Monday, on rising expectations that the U.S. Federal Reserve will soon cut interest rates.



At 0800 GMT, the rand traded at 18.1575 against the dollar, about 0.2% stronger than its previous close.



Federal Reserve Chair Jerome Powell said on Monday that recent U.S. inflation readings have somewhat added to confidence that the pace of price increases is sustainably returning to the Fed&#8217;s target, driving hopes that interest rate cuts are nearing.



The rand slipped more than 1% against the greenback on Monday as investor appetite for riskier assets waned globally after the assassination attempt on former U.S. President Donald Trump on Saturday.



Locally, investors will focus on the South African Reserve Bank&#8217;s (SARB) interest rate decision and President Cyril Ramaphosa&#8217;s opening address to parliament, both on Thursday.



A Reuters poll found that the SARB will leave its repo rate unchanged on Thursday, but cut rates by 25 basis points to 8.00% in September as inflation cools, earlier than a November move that was expected in a June survey.



&#8220;For now with no interest rate cut expected locally on Thursday, the rand will look at the international front for cues,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index was down around 1% in early trade.



South Africa&#8217;s benchmark 2030 government bond was stronger in early deals, as the yield fell 5.5 basis points to 9.52%.



(Reporting by Tannur Anders; Editing by Susan Fenton)

South African Rand coins are seen in this photo illustration

South African rand claws back losses as markets bet on US rate cuts soon

A perfect day in Essex with local guide and CEO Queenie Porter

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, July 16 (Reuters) &#8211; The Ugandan shilling was slightly firmer on Tuesday, underpinned by hard currency inflows from commodity exporters and offshore investors looking to participate in a treasury auction, traders said.



At 0853 GMT commercial banks quoted the shilling at 3,690/3,700, compared to Monday&#8217;s close of 3,693/3,703.



(Reporting by Elias Biryabarema; Editing by Hereward Holland)

Ugandan shilling firms on commodity inflows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-scaled.jpg" alt="" class="wp-image-409717" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Kenyan shilling banknotes and coins sit arranged at a market stall in Mombasa, Kenya, on Thursday, Nov. 23, 2017. The countrys Treasury has already cut this years growth target to 5 percent from 5.9 percent as the protracted election furor damped investment and a drought curbed farm output. Photographer: Luis Tato/Bloomberg via Getty Images</figcaption></figure>



NAIROBI, July 16 (Reuters) &#8211; Kenya&#8217;s shilling slid lower on Tuesday, with traders saying there was a shortage of dollars on the market.



At 0913 GMT, commercial banks quoted the shilling at 129.50/130.50 per dollar, compared with Monday&#8217;s closing rate of 128.50/129.50.



&#8220;There&#8217;s very muted demand, but even less supply of dollars,&#8221; one trader said.



(Reporting by Hereward Holland; Editing by Alexander Winning)

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home

South Africa’s PPP reforms provide an investor-friendly platform for global infrastructure capital

Ugandan shilling weaker on uptick in importer dollar demand

World Bank eyes first ‘drought’ bond in next 12-18 months

Wealth growth in Turkey, South Africa shows surprising expansion

Kenyan shilling stable as FX inflows from tea exports match demand

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South African rand claws back losses as markets bet on US rate cuts soon

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Ugandan shilling firms on commodity inflows

Kenyan shilling falls; traders cite dollar shortage

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