<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/DBZFXU6Y5JOSPOSIFLO3GNER5Q-820x550.jpg" alt="" class="wp-image-409711" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/DBZFXU6Y5JOSPOSIFLO3GNER5Q-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/DBZFXU6Y5JOSPOSIFLO3GNER5Q-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/DBZFXU6Y5JOSPOSIFLO3GNER5Q-119x80.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/DBZFXU6Y5JOSPOSIFLO3GNER5Q-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/DBZFXU6Y5JOSPOSIFLO3GNER5Q-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/DBZFXU6Y5JOSPOSIFLO3GNER5Q-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: A vertical gas flaring furnace is seen in Ughelli, Delta State, Nigeria September 16, 2020. Picture taken September 16, 2020. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, July 15 (Reuters) &#8211; Nigeria&#8217;s senate approved a reconciled version of a bill on Thursday aimed at attracting billions in investment to its ageing oil sector, capping a two-decade bid for reforms, just as investors begin to look beyond fossil fuels.



The overhaul governs all aspects of petroleum in Africa&#8217;s largest oil exporter &#8211; from oil drilling to gasoline prices, and now faces one final hurdle &#8211; house approval &#8211; before it can go to President Muhammadu Buhari for signature into law.



Each parliamentary chamber passed the bill this month, but approved different amendments, which required harmonisation between lawmakers from the two chambers.



While the order paper was not yet available in the house, both chambers were expected to vote as soon as it arrives.



Further amendments are barred and legislators can only vote yes or no. Approval by both would send the package to President Buhari to sign into law.



The reconciled bill included sending a 3% share of the annual operating expenditure of oil companies to communities where petroleum is produced. The house had approved a 5% share, and the difference was a key sticking point in the reconciliation process.



Other last major points of disagreement in the legislation centred on who is allowed to import fuel and what amount of money should be directed to developing &#8220;frontier&#8221; fields, which are mostly located in northern Nigeria. 



(Reporting by Camillus Eboh, writing by Libby George; editing by Jason Neely and David Evans)

FILE PHOTO: A vertical gas flaring furnace is seen in Ughelli, Delta State.

Nigerian senate approves finalised petroleum overhaul bill

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Uganda&#8217;s President Museveni recently issued the country&#8217;s second lockdown since the Covid-19 pandemic to mitigate the spread of the virus as the country&#8217;s health system grappled with the second wave of infections. But are the lockdown measures worth it? CNBC Africa spoke to Epidemiologist and Minister of ICT in Uganda, Dr. Chris Baryomunsi for more.

COVID-19: Are Uganda’s lockdown measures effective?

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Nigeria plans to concession power generation plans

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/IAJ7XAGG3BJTTDKX2ZI34A5GWI-820x547.jpg" alt="" class="wp-image-409675" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/IAJ7XAGG3BJTTDKX2ZI34A5GWI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/IAJ7XAGG3BJTTDKX2ZI34A5GWI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/IAJ7XAGG3BJTTDKX2ZI34A5GWI-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/IAJ7XAGG3BJTTDKX2ZI34A5GWI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/IAJ7XAGG3BJTTDKX2ZI34A5GWI.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Members of the military keep guard outside looted shops as the country deploys army to quell unrest linked to jailing of former President Jacob Zuma, in Soweto, South Africa, July 13, 2021. REUTERS/Siphiwe Sibeko</figcaption></figure>



DURBAN, South Africa, July 15 (Reuters) &#8211; A week of violence, arson and looting that has engulfed South Africa slowly began to ebb on Thursday as several districts rocked by the mayhem were quiet ahead of an expected surge in soldiers on the streets.



Pockets of looting contiued in the eastern port city of Durban.



A Reuters reporter saw crowds in Durban&#8217;s Mobeni neighbourhood rollling away trolleys loaded with maize meal and other looted staples. Some loaded pick-up trucks &#8211; one such truck had to be abandoned as it had run out of fuel. Petrol stations have shut across the city because of the unrest.



Taxi drivers blockaded some roads to try to prevent further pillaging.



The riots initially started with the jailing of ex-president Jacob Zuma last week after he failed to appear at a corruption inquiry. But they swiftly degenerated into looting and destruction, driven by widespread anger over the hardship and inequality that nearly three decades of democracy since the end of apartheid have failed to address.



South Africa&#8217;s defence minister said on Wednesday he planned to deploy up to 25,000 soldiers in the two provinces where security forces are struggling to quell days of looting, arson and violence.



The soldiers were expected in the hot spots of KwaZulu-Natal and Gauteng provinces, where the police and army have been battling the disorder for days. Authorities say 5,000 troops are already on the streets since Wednesday, double the number originally planned. It was unclear when the rest would arrive.



More than 70 people have been killed in the unrest, the worst in South Africa for years, and hundreds of businesses wrecked. Security forces have arrested at least 1,350 people.



Shopping malls and warehouses have been ransacked or set ablaze in several cities, mostly in Zuma&#8217;s home in the KwaZulu-Natal province, especially Durban, and the financial and economic centre Johannesburg and surrounding Gauteng province.



In South Africa&#8217;s largest township Soweto, outside Johannesburg, streets were quiet on Thursday and shopkeepers were going through the wreckage left of their stores, a Reuters reporter said.



In Johannesburg&#8217;s central business district, and the township of Alexandra, both also hit hard by violence, the streets were calm.



(Reporting by Siyabong Sishi, Additional reporting by Nqobile Dludla and Shafiek Tassiem, Writing by Tim Cocks, Editing by Angus MacSwan)

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South Africa looting dies down in places as more troops expected

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Government has admitted that South Africa’s vaccination program has been adversely affected by the violent looting this week.

Violent looting derails South Africa’s vaccination program

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106910522-1626221756421-gettyimages-1233899841-AFP_9EJ3Q2.jpeg" alt="" class="wp-image-409660" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106910522-1626221756421-gettyimages-1233899841-AFP_9EJ3Q2.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106910522-1626221756421-gettyimages-1233899841-AFP_9EJ3Q2-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106910522-1626221756421-gettyimages-1233899841-AFP_9EJ3Q2-140x80.jpeg 140w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A McDonald’s delivery worker walks past pig statues outside an art museum in Beijing on July 10, 2021. Jade Gao | AFP | Getty Images</figcaption></figure>



BEIJING — China reported second-quarter GDP growth that came in slightly below expectations, while retail sales and industrial production grew faster than forecast in June.



The country’s gross domestic product increased 7.9% in the second quarter from a year ago, the National Bureau of Statistics said Thursday. That fell short of Reuters’ estimate of 8.1% growth for the April to June period.



“Overall, China’s economy looks to be on track for recovery, with the 6% annual growth goal in reach,” Chaoping Zhu, global market strategist at JPMorgan Asset Management, said in a note.



“However, downside and structural risks in domestic demand are concerning,” he said, pointing to weak growth in long-term credit and uncertainty over market regulation.



Second-quarter GDP rose 1.3% from the first quarter, faster than the 0.6% pace between the first quarter of this year and fourth quarter of 2020. However, the latest quarterly increase was still slower than the 2.6% pace of the fourth quarter.



<a href="https://www.cnbc.com/2021/04/16/china-economy-q1-gdp.html">In the first quarter, GDP grew 18.3%</a>, up from a contraction a year ago.



“China’s economy sustained a steady recovery,” the statistics bureau said in a release. But the bureau added there were still concerns about the global spread of the pandemic and “unbalanced” recovery domestically.



Retail sales rose 12.1% in June from a year ago, more than the expected 11% level forecast by Reuters. The fastest-growing category was beverages, up 29.1% year-on-year.



Retail sales growth has lagged that of the overall economy, and missed analysts’ expectations for the first two months of the second quarter.



Consumption declined year-on-year in May for four provincial capitals — Wuhan, Guiyang, Shijiazhuang and Yinchuan — according to analysis of public data by Pinpoint Asset Management.



Industrial production grew by 8.3%, greater than the 7.8% Reuters estimate.



In the last three months, Chinese authorities have also announced&nbsp;<a href="https://www.cnbc.com/2021/05/27/china-boosts-support-for-businesses-as-commodity-prices-surge.html">support for companies affected by the surge in commodity prices.</a>



The urban survey unemployment rate held steady at 5% in June, while unemployment for the younger 16 to 24 age category climbed to 15.4% — the same as June 2020.



On Thursday, a&nbsp;<a href="https://www.cnbc.com/2021/07/12/china-monetary-policy-pboc-to-cut-rrr-impact-on-economy-and-sectors.html">cut to the reserve requirement ratio (RRR)</a>, or the amount of funds banks must hold in reserve, was set to take effect. Authorities’ initial hint of such a cut&nbsp;<a href="https://www.cnbc.com/2021/07/08/china-economy-pboc-central-bank-signals-rrr-cut-in-surprise-policy-move.html">surprised investors</a>&nbsp;last week, and signaled concerns of slower growth.



The cut is expected to release about 1 trillion yuan (or $154 billion) into the economy.



Meanwhile, China’s customs agency said earlier this week that&nbsp;<a href="https://www.cnbc.com/2021/07/13/china-trade-data-june-exports-imports.html">exports rose a more-than-expected 32.2% in June.</a>



Exports growth will likely slow in the second half of the year, said Bruce Pang, head of macro and strategy research at China Renaissance. He cited factors such as a high level of growth in the second half of last year and weaker growth in commodity prices.



China’s slower pace of economic recovery “is still clouded with uncertainties and unbalanced growth, as employment, household income, consumption, manufacturing investment, the service sector and private companies have yet to return to pre-pandemic levels,” Pang said.



— CNBC’s Yen Nee Lee contributed to this report.

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China’s GDP grew 7.9% in the second quarter; retail sales beat expectations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-820x547.jpg" alt="" class="wp-image-405408" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Standard Bank, Photo: via Flickr</figcaption></figure>



JOHANNESBURG, July 15 (Reuters) – Lender Standard Bank is to take full control of insurer Liberty Holdings, the two South African companies said on Thursday, with current shareholders to receive cash and shares worth around 8.6 billion rand ($594 million) in total.



Standard Bank already owns 54% of the insurer, and wants to acquire the remaining 96 million shares excluding those of one other shareholder, in a deal that would see Liberty de-listed from the Johannesburg bourse and subsumed into the lender.



Africa’s largest bank by assets said in a statement that the move was a natural progression in the companies’ relationships, and in line with its strategy of offering a wider set of financial services to its customers across the continent.



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<h3 class="wp-block-heading" id="h-standard-bank-ceo-what-the-full-integration-of-liberty-means-for-africa-strategy">Standard Bank CEO: What the full integration of Liberty means for Africa strategy</h3>


</div></div>



“This will be a whole that will be much greater than the sum of its parts,” Chief Executive Officer Sim Tshabalala said, adding the transaction would also bring significant capital efficiencies and opportunities for growth.



Liberty CEO David Munro said in the joint statement the board planned to recommend the deal to shareholders, describing it as a vote of confidence in the insurer and creating a “united and formidable competitor in financial services in Africa, at scale”.



Standard Bank will offer 0.5 Standard Bank shares and a cash payment of 14.40 rand for each Liberty share, while Liberty will also pay shareholders 11.10 rand, they said, adding the deal is subject to approval by investors and regulators.



Standard Bank, which also outlined a plan to acquire Liberty’s preference shares, said this represented a 32.6% premium to the insurer’s closing price on July 14.



It had already received letters supporting the transaction from Liberty investors holding 41 million shares in aggregate, it added.



($1 = 14.4715 rand) 



(Reporting by Emma Rumney; Editing by Olivia Kumwenda and Emelia Sithole-Matarise)

Standard Bank, photo: via Flickr

South Africa’s Standard Bank to acquire rest of insurer Liberty

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According to the 2021 Global Fintech Ranking, Nairobi jumped 26 places upwards to rank 37th on the global ranking.

2021 Global Fintech Rankings: Here’s how Africa fared

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/download-11.jpg" alt="" class="wp-image-409645" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/download-11.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/download-11-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/download-11-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/download-11-768x512.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption>People loot an area near a burning warehouse after violence erupted following the jailing of former South African President Jacob Zuma, in Durban, South Africa, July 14, 2021. REUTERS/Rogan Ward</figcaption></figure>



JOHANNESBURG, July 14 (Reuters) &#8211; After loosing 53 cars during xenophobic attacks in South Africa in 2019, Johannesburg car dealership owner Okey Uchendu never thought he would see his business destroyed again by civil unrest in less than two years.



Already dealing with the impact of COVID-19 on the economy, Uchendu received a call at midnight on Sunday that his dealership was engulfed in flames as looting and violence, the worst in South Africa for years, escalated, wrecking hundreds of businesses.



&#8220;I&#8217;m speechless,&#8221; the 45-year old told Reuters on Wednesday standing next to 58 burnt cars. &#8220;I feel like committing suicide because my livelihood has been taken away from me. I was sitting crying, helpless because I can&#8217;t do anything.&#8221;



Among the severely burnt cars was an unrecognisable second hand Range Rover Evoque worth 220,000 rand ($15,000), which stood alongside low to high-end cars.



&#8220;All these things are gone. I don&#8217;t even know where to start because how will I start. I still need to pay my rent, I&#8217;ve got three kids I need to take care of, how will I take care of my kids?,&#8221; the visibly emotional Uchendu said.



Triggered by the jailing of ex-president Jacob Zuma last week after he failed to appear at a corruption inquiry, the unrest has widened into an outpouring of anger over poverty and inequality.



Many of South Africa&#8217;s small, medium-sized and micro enterprises (SMME) are not insured, compounding any attempts of recovery of those damaged in the unrest.



&#8220;We small businesses, nobody wants to insure us here in Jules (street), it&#8217;s a high risk area. When you call insurance (companies) they say no this is a high risk area,&#8221; he said of his business that employed 16 people.



A survey done by the Small Business Institute (SBI), revealed last year that as many as 55,000 SMMEs may not make it through the COVID-19 pandemic. With the unrest, the number was expected to rise, SBI Chief Executive John Dludlu told Reuters.



More than 200 malls have been looted or destroyed and over 600 stores burnt or damaged thus far, the South African Property Owners Association said on Wednesday.



The liquor industry said more than 200 liquor shops have been looted in Kwa-Zulu Natal and Gauteng provinces, which are the most affected by the unrest.



Bigger businesses like clothing retailer Mr Price were forced to temporarily shut hundreds of stores after being entirely looted, with some malls also shutting their doors.



&#8220;Investing in this particular property here, in this area, I&#8217;m out, I&#8217;m done,&#8221; Uchendu said. 



(Reporting by Nqobile Dludla; Editing by Olivia Kumwenda-Mtambo and Toby Chopra)

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Counting the costs: South Africa businesses wrecked by unrest

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="780" height="471" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/download-10.jpg" alt="" class="wp-image-409593" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/download-10.jpg 780w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/download-10-300x181.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/download-10-132x80.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/download-10-768x464.jpg 768w" sizes="(max-width: 780px) 100vw, 780px" /><figcaption>Police fire at protesters during unrest linked to the jailing of former President Jacob Zuma, in Soweto, Johannesburg, South Africa, July 13, 2021. REUTERS/Sumaya Hisham</figcaption></figure>



JOHANNESBURG, July 14 (Reuters) &#8211; Days of <a href="https://www.reuters.com/world/africa/south-african-crowds-rampage-overnight-defying-calls-end-violence-looting-2021-07-14">riots and looting</a> in South Africa have left more than 70 people dead, hurt thousands of businesses and damaged major infrastructure in some of the worst civil unrest since the end of white minority rule in 1994.



What is driving the violence?



<h2 class="wp-block-heading" id="h-zuma-s-jailing">ZUMA&#8217;S JAILING</h2>



The unrest started after former President Jacob Zuma handed himself over last week to start a 15-month prison sentence for contempt of court.



Zuma supporters, who believe he is the victim of a political witch-hunt, burned tyres and blocked roads in his home province of KwaZulu-Natal.



Support for Zuma stems partly from his image as a man of the people during his nine years in power until 2018, and because some see his jailing as an attack on the nation&#8217;s largest ethnic group, the Zulu.



Although many wealthy and middle-class South Africans were overjoyed when Zuma was ousted after multiple sleaze and graft allegations, he still retains loyal followings in KwaZulu-Natal and some poor, rural areas.



His support among the population mirrors a division within the governing African National Congress (ANC), where a pro-Zuma faction opposes his successor President Cyril Ramaphosa.



<h2 class="wp-block-heading" id="h-poverty-inequality">POVERTY, INEQUALITY</h2>



The hardship that persists 27 years after the end of apartheid is a major reason why hundreds of shops and dozens of malls have been stripped bare.



Statistics agency data show roughly half of the country&#8217;s 35 million adults live below the poverty line and that young people are disproportionately affected by unemployment.



South Africa has one of the highest levels of inequality in the world according to the commonly-used Gini index, with a &#8220;dual economy&#8221; catering to a small, largely white elite and large, mainly black majority.



Moves by the ANC, which has governed since the start of democratic rule, to redistribute land and wealth have progressed slowly.



<h2 class="wp-block-heading" id="h-covid-19">COVID-19</h2>



COVID-19 has exacerbated poverty, with a recent survey showing a sharp increase in hunger.



Official unemployment hit a record high above 32% in the first three months of 2021.



Although the government increased social grants to cushion the pandemic, it cannot afford to match the costly furlough schemes of wealthier nations.



<h2 class="wp-block-heading" id="h-criminal-elements">CRIMINAL ELEMENTS</h2>



Police say some criminals have been taking advantage of anger over Zuma&#8217;s imprisonment to steal and cause destruction. So far more than 1,200 people have been arrested.



<h2 class="wp-block-heading" id="h-inflammatory-messages">INFLAMMATORY MESSAGES</h2>



People are fanning the violence with inflammatory comments and social media posts, security officials say.



Two people drawing criticism are a spokesman for Zuma&#8217;s charitable foundation, Mzwanele Manyi, who attributed some early acts of violence to &#8220;righteous anger&#8221;, and Zuma&#8217;s daughter Duduzile.



Manyi told Reuters the violence could have been avoided and that the manner in which 79-year-old Zuma was jailed reminded people of the apartheid days.



An account bearing Duduzile&#8217;s name has repeatedly posted images and videos of protests and violence on Twitter with the rallying cry &#8220;Amandla!&#8221; (Power!) used during the liberation struggle. Reuters has not been able to reach her to verify she posted those messages.



The ANC has said it is concerned by the tweets and that party member Duduzile will have to explain herself.



(Reporting by Alexander Winning; Editing by Tim Cocks and Andrew Cawthorne)

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Why violence is engulfing South Africa

LONDON, July 14 (Reuters) &#8211; South Africa&#8217;s worst unrest in years threatens to derail one of this year&#8217;s star emerging market performers and highlights the chronic joblessness and poverty papered over by a short-term export boom.



The rand tumbled as much as 3.4% this month and hit a more than three-month low, stocks of property firms and retailers dropped as much as 7% in a single day and sovereign bonds sold off after more than 70 people were killed in unrest and looting that erupted following the jailing of ex-president Jacob Zuma.



The price moves are a stark reversal for a market that had until recently outpaced emerging market peers such as Brazil, Mexico and Russia. The rally was underpinned by exports rebounding at the fastest pace globally thanks to surging metal prices.



That export boom has turned a long-standing balance of payments deficit into surplus.



However, behind all that lurked the same social pressures which are being felt more acutely since the pandemic.



An unemployment rate over 32% is the highest in the Group of 20 major economies, while poverty and wider inequality are widespread 27 years from the end of apartheid.



These grievances have now boiled over into protests linked to Zuma&#8217;s imprisonment for defying a constitutional court order to give evidence at an inquiry investigating high-level corruption during his nine years in office until 2018.



&#8220;This is an economy that has been bouncing back faster than many expected from six months ago, but for the average person unemployment remains one of the highest in the world and recovery has been concentrated on exports, so doesn&#8217;t necessarily lift all boats,&#8221; said UBS&#8217;s head of emerging market strategy Manik Narain.



Africa&#8217;s most industrialised economy was on track to grow more than 4% in 2021 after recovering from a recession that started even before it recorded its first COVID-19 infection last March. That bounce-back will almost certainly take a hit.



&#8220;There is never a good moment for riots, but now the timing is particularly unfortunate,&#8221; said Viktor Szabo, portfolio manager at fund manager abrdn. &#8220;It will dampen economic activity through temporary business and infrastructure closures, just as the economy was recovering from the COVID shock.&#8221;



For markets, the rand has been the lightning rod. Having been the best-performing emerging market currency during the pandemic by late April, it has lost some 8% since hitting a more than two-year peak in early June.



This week, it ceded all its year-to-date gains.



&#8220;There is a risk of further short-term losses if the government does not manage to control the violence,&#8221; said Commerzbank EM analyst Elisabeth Andreae.



Wall Street bank Citi has already trimmed its exposure to both the currency and local government bonds.



On the ground, one of the immediate consequences was a number of immunisation centres shutting temporarily, further slowing the pace of vaccinations, which at 2% of a population of 60 million is among the lowest even among emerging markets.



The setback for South Africa comes just as the global backdrop is becoming more challenging.



South Africa is the top global producer of platinum and chrome. But platinum prices have fallen 15% from February&#8217;s more than six-year highs and commodity prices could soften if Chinese demand slows and more countries, including the United States, withdraw pandemic-era stimulus.



&#8220;One of the reasons the rand has been strong has been South Africa having one of the single strongest export markets in the world because of metals like platinum and rhodium,&#8221; said UBS&#8217; Narain. &#8220;That&#8217;s at already very mature levels and we think that South Africa has passed peak exports.&#8221;



There is a chance that Zuma&#8217;s arrest will prove to be a positive if it deals a decisive blow against South Africa&#8217;s chronic corruption problem.



It may also strengthen President Cyril Ramaphosa&#8217;s grip on power within the ruling African National Congress. That will be put to the test in local government elections in October. &#8220;These legal outcomes now hand President Ramaphosa a clear path to accelerate state reform,&#8221; TS Lombard&#8217;s Larry Brainard told clients. &#8220;But the wheels of justice will still take time to play out.&#8221;



(Additional reporting by Marc Jones; Editing by Emelia Sithole-Matarise)

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Violence gives South African markets a reality check

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Kenya’s National Treasury followed through with plans to re-impose a 20 per cent excise tax on betting stakes through the country&#8217;s 2021 Finance Act.

Kenya re-introduces 20% excise duty on betting stakes

JOHANNESBURG, July 14 (Reuters) &#8211; Claims for damage and theft from businesses affected by civil unrest in South Africa are likely to be between 7 billion rand and 10 billion rand ($481 million to $683 million), the head of the only insurer covering political violence in the country told Reuters.



Days of riots and looting have left more than 70 people dead, hurt thousands of businesses and damaged major infrastructure in some of the worst civil unrest in decades.



Triggered by the jailing of ex-president Jacob Zuma last week after he failed to appear at a corruption inquiry, its has widened into an outpouring of anger over poverty and inequality.





Sasria, a state-owned insurer set up after private firms stopped underwriting risks relating to political violence due to unrest during apartheid, has received around 100 million rand in claims so far, its managing director Cedric Masondo told Reuters, adding this was expected to rise significantly.



The company, the only insurer to offer cover for such risks, expects total claims of up to 10 billion rand, or 12 billion rand in a worst-case scenario &#8211; making the unrest likely the most significant event in terms of the value of claims since Sasria was set up in 1974, Masondo continued.



&#8220;This is the worst in terms of financial magnitude,&#8221; he said.



Masondo said while Sasria has re-insurance cover that runs into the high single digits and can fund up to 10 billion rand of claims from its own balance sheet, it only covers customers up to a threshold of 500 million rand.



This will mean smaller firms will likely see their losses insured in full, while major companies that have suffered significant damage are likely to have to shoulder some of the cost themselves.



Some 40,000 firms have been affected in the Ethekwini municipality in the province of KwaZulu-Natal alone, with damages in the area put at 15 billion rand, according to its mayor.



Violence has been concentrated in KwaZulu-Natal, Zuma&#8217;s homeland, as well as the country&#8217;s economic and financial centre of Johannesburg and surrounding areas in the Gauteng province.



($1 = 14.6309 rand) (Reporting by Emma Rumney; Editing by Olivia Kumwenda-Mtambo and Toby Chopra)



(c) Copyright Thomson Reuters 2021. Click For Restrictions &#8211; https://agency.reuters.com/en/copyright.html

Why Flood Insurance May Encourage Americans To Live Near Danger

Insurance claims from S.African unrest seen at up to $680 mln – govt insurer

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106837526-1612866638564-gettyimages-1294702554-yn_cryptoimages_016.jpeg" alt="" class="wp-image-409576" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106837526-1612866638564-gettyimages-1294702554-yn_cryptoimages_016.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106837526-1612866638564-gettyimages-1294702554-yn_cryptoimages_016-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106837526-1612866638564-gettyimages-1294702554-yn_cryptoimages_016-140x80.jpeg 140w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption>A visual representation of digital currencies. Yuriko Nakao | Getty Images</figcaption></figure>



LONDON — Cryptocurrencies aren’t yet big enough to pose a systemic risk to financial stability, Bank of England Deputy Governor Jon Cunliffe said Wednesday.



“The speculative boom in crypto is very noticeable but I don’t think it’s crossed the boundary into financial stability risk,” Cunliffe told CNBC’s Joumanna Bercetche in an exclusive interview.



<a href="https://www.cnbc.com/bitcoin/">Bitcoin</a>&nbsp;and other digital currencies shot up in value at the start of the year, briefly becoming a $2.5 trillion market. Backers of bitcoin claimed it could offer an alternative store of value as savers struggle to find yield due to ultra-low interest rates.



However, cryptocurrencies are highly volatile, and the market has lost more than $1 trillion in value since May. Bitcoin has fallen from a record high of nearly $65,000 reached in April to around $32,500 as of Wednesday.



Regulators have increasingly been sounding the alarm about crypto. China in particular has sought to crack down on the industry, in a&nbsp;<a href="https://www.cnbc.com/2021/06/22/china-crypto-crackdown-wipes-nearly-300-billion-off-market-btc-slides.html">series of measures</a>&nbsp;that have weighed on investor sentiment in recent weeks.



Meanwhile, Binance, the world’s largest crypto exchange, was&nbsp;<a href="https://www.cnbc.com/2021/06/28/cryptocurrency-exchange-binance-banned-by-uk-regulator.html">banned from operating in the U.K.</a>&nbsp;by the Financial Conduct Authority last month. Binance was one of many exchanges that failed to register with the regulator due to not meeting anti-money laundering requirements.



Cunliffe said crypto speculation was mainly limited to retail investors for now, reiterating the central bank’s position that people investing in digital assets should be prepared to lose all their money.



“There are issues of investor protection here. These are highly speculative assets,” he said. “But they’re not of the size that they would cause financial stability risk, and they’re not connected deeply into the standing financial system.”



“Were we to start to see those links develop, were we to start to see it move out of retail more into wholesale and see the financial sector more exposed, then I think you might start to think about risk in that sense,” he added.



The Bank of England official added a distinction should be drawn between speculative crypto assets like bitcoin and so-called “stablecoins” which are backed by existing financial assets.



Tether, for example, is the world’s largest stablecoin with more than $60 billion worth of tokens in circulation. It is meant to be backed 1:1 by U.S. dollars to maintain a stable value, however tether has&nbsp;<a href="https://www.cnbc.com/2021/07/07/tether-cryptocurrency-usdt-what-you-need-to-know.html">garnered controversy</a>&nbsp;due to concerns it doesn’t have enough reserves to justify its dollar peg.



Cunliffe said he thinks stablecoins should come under regulatory supervision.



“I think the international community needs to at least be developing standards to actually be able to distinguish but also to have regulatory standards for that sort of product,” he said.



It comes as several central banks around the world —&nbsp;<a href="https://www.cnbc.com/2021/04/19/uk-to-explore-issuing-its-own-digital-currency-amid-bitcoin-boom.html">including the Bank of England</a>&nbsp;— are exploring digital currencies of their own, in response to dwindling cash use and growing interest in crypto.

106837526-1612866638564-gettyimages-1294702554-yn_cryptoimages_016

Cryptocurrencies don’t yet pose a threat to financial stability, Bank of England’s Cunliffe says

<div style="max-width: 100%;"></div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
A joint report by Appsflyer and Google shows that African mobile app market showed strong growth, with overall installs increasing by 41per cent.

African mobile market records 41% rise in overall installations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-494806374-820x547.jpg" alt="" class="wp-image-409553" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-494806374-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-494806374-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-494806374-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-494806374-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-494806374-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-494806374-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Yachts sail past the container ship A.P. Moller, operated by AP Moeller-Maersk A/S, in Durban harbour at the Port of Durban, operated by Transnet SOC Holdings Ltd.&#8217;s Ports Authority, in Durban, South Africa, on Wednesday, Oct. 28, 2015. Transnet is planning to spend between 340 billion rand and 380 billion rand over the next ten years to expand and upgrade rail and port capacity, Acting Chief Executive Officer Siyabonga Gama said. Photographer: Kevin Sutherland/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, July 14 (Reuters) &#8211; South Africa&#8217;s Durban port has suffered major disruption after days of unrest, and operations have also been badly affected at the Richards Bay port and on a national freight rail line, logistics and freight companies said on Wednesday.



The violence erupted last week in KwaZulu-Natal province, where Durban is located, after the jailing of former president Jacob Zuma but it has rapidly escalated in widespread looting and destruction in several other provinces.



Durban has one of the busiest shipping terminals on the African continent, and is a hub for exports including agricultural commodities and imports like crude oil and petroleum products. Richards Bay is home to a major coal export terminal.



State logistics group Transnet said in a statement that service levels at Durban and Richards Bay were impacted &#8220;as the entire supply chain is closed,&#8221; including roads into and out of the ports.



The South African Association of Freight Forwarders told Reuters that port health services at Durban had been closed, effectively preventing vessels from berthing because COVID-19 testing could not be carried out.



&#8220;This situation is exacerbated by launch crews also not being available,&#8221; it said.



Juan Enslin, managing director at Leschaco Group, said his logistics firm had to leave several containers in Durban port for safety reasons.



&#8220;We therefore will fall way behind in our delivery schedules. Cargo that has been on the road was also diverted,&#8221; he said.



On the impact on freight rail, Transnet said force majeure had been declared on the NATCOR rail line that connects Durban to Gauteng province that is home to the country&#8217;s financial and economic powerhouse, Johannesburg.



Force majeure allows certain terms of an otherwise legally binding agreement to be waived due to unavoidable circumstances.



Transnet said it was deploying resources to avert commercial fuel operations being affected, after being served with a force majeure notice by the SAPREF oil refinery. 



(Reporting by Wendell Roelf, Tanisha Heiberg and Alexander Winning; Editing by Olivia Kumwenda-Mtambo and Angus MacSwan)

Newsletter

Nigerian senate approves finalised petroleum overhaul bill

COVID-19: Are Uganda’s lockdown measures effective?

Nigeria: Traders expect yields to moderate on incoming bond maturities

Nigeria plans to concession power generation plans

South Africa looting dies down in places as more troops expected

Violent looting derails South Africa’s vaccination program

China’s GDP grew 7.9% in the second quarter; retail sales beat expectations

South Africa’s Standard Bank to acquire rest of insurer Liberty

2021 Global Fintech Rankings: Here’s how Africa fared

Counting the costs: South Africa businesses wrecked by unrest

Why violence is engulfing South Africa

Violence gives South African markets a reality check

Kenya re-introduces 20% excise duty on betting stakes

Insurance claims from S.African unrest seen at up to $680 mln – govt insurer

Cryptocurrencies don’t yet pose a threat to financial stability, Bank of England’s Cunliffe says

African mobile market records 41% rise in overall installations

South Africa’s Durban port suffers major disruption over violence

News Tips

Advertise With Us

Newsletter

Nigerian senate approves finalised petroleum overhaul bill

COVID-19: Are Uganda’s lockdown measures effective?

Nigeria: Traders expect yields to moderate on incoming bond maturities

Nigeria plans to concession power generation plans

South Africa looting dies down in places as more troops expected

Violent looting derails South Africa’s vaccination program

China’s GDP grew 7.9% in the second quarter; retail sales beat expectations

South Africa’s Standard Bank to acquire rest of insurer Liberty

2021 Global Fintech Rankings: Here’s how Africa fared

Counting the costs: South Africa businesses wrecked by unrest

Why violence is engulfing South Africa

Violence gives South African markets a reality check

Kenya re-introduces 20% excise duty on betting stakes

Insurance claims from S.African unrest seen at up to $680 mln – govt insurer

Cryptocurrencies don’t yet pose a threat to financial stability, Bank of England’s Cunliffe says

African mobile market records 41% rise in overall installations

South Africa’s Durban port suffers major disruption over violence

News Tips

Advertise With Us

Newsletters