<div style="max-width: 100%;"></div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
French President Emmanuel Macron will today host several African leaders and heads of global financial institutions in a summit that seeks to provide needed funds for Africa’s post-pandemic recovery. Meanwhile, Nigeria’s headline inflation slipped marginally from 18.17 per cent in March to 18.12 per cent in April according to the National Bureau of Statistics. Dipo Ajayi, Head of Fixed Income and Forex at Chapel Hill Denham joins CNBC Africa for more.

France host African leaders on financing for economic recovery

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="435" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1208080781-820x435.jpeg" alt="" class="wp-image-397285" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1208080781-820x435.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1208080781-300x159.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1208080781-768x407.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1208080781-1536x814.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1208080781-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Panoramic View of Dubai Skyline at Sunrise</figcaption></figure>



DUBAI, May 18 (Reuters) &#8211; Dubai expects to attract over 5.5 million overseas visitors this year, hopeful that new markets can help make up for the loss of visitors from key places where travel is restricted.



Dubai had 5.5 million overseas visitors last year, when the tourism sector was pummelled by the coronavirus pandemic. In 2019, 16.7 million tourists visited.



Visitors from India, traditionally Dubai&#8217;s top source market, are largely banned from the United Arab Emirates due to the latest outbreak in the South Asian nation.



Meanwhile, the United Kingdom, Dubai&#8217;s third biggest source market in 2019, has barred direct flights and requires travellers from the UAE to hotel quarantine.



But Dubai Tourism Chief Executive Issam Kazim said visitor numbers from newer markets in Europe, Africa and the Commonwealth of Independent States (CIS) were performing well.



&#8220;All of these markets will start to add up and hopefully fill the gaps and give us a much stronger foundation to build a confident rebound going forward,&#8221; he told Reuters at the Arabian Travel Market in Dubai



The Middle East city reopened its borders to international visitors last July and was a popular holiday spot over the New Year with many other global destinations shut off due to the pandemic.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="How Dubai plans to bring back tourism hit hard by the pandemic" width="500" height="281" src="https://www.youtube.com/embed/VvOH5bp2r3U?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div><figcaption>How Dubai plans to bring back tourism hit hard by the pandemic</figcaption></figure>



But the influx of foreign tourists coincided with a second wave of coronavirus infections across the UAE and led Dubai to tighten capacity restrictions on hotels and restaurants.



Many of those restrictions were eased this week.



Kazim cited a high rate of testing in UAE as the reason behind the rise in case numbers, arguing that the more people are tested the more infections will be uncovered.



The number of infections in the country have now fallen from a daily peak of 3,977 in February to roughly 1,300. Figures for each emirate are not disclosed by authorities.



Dubai is also expecting Expo 2020, which runs from October to March after being delayed by the pandemic last year, to be a draw for many tourists who have never visited before.



Expo organisers said before the coronavirus outbreak the event could attract 11 million foreign visitors, though Kazim said on Tuesday that the pandemic now made it difficult to predict numbers.



In the UAE&#8217;s north, the smaller Ras Al Khaimah emirate expects 915,000 visitors this year, a 14% increase on 2020 but still down from 1.1 million in 2019.



&#8220;I am cautiously optimistic that we will probably do better than that the way things are travelling but there is so much uncertainty,&#8221; Ras Al Khaimah Tourism Development Authority CEO Raki Phillips told Reuters.



(Reporting by Alexander Cornwell, editing by Ed Osmond)



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

Dubai Marina from the sea side during sunset

Dubai targets over 5.5 mln overseas tourists this year

UBA: Investors to place unmet bids from last week’s auction

Africa Month: Lessons from Africa: What COVID-19 taught our sector

<div style="max-width: 100%;"></div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
The ANC has suspended Ace Magashule from the position of Secretary General. This follows a resolution by the party&#8217;s National Working Committee stating that members accused of corruption must vacate office, pending the outcome of their cases. Magashule is the party&#8217;s most senior member to get the boot, over his implication in the Free State asbestos scandal. Political Analyst, Ongama Mtimka joins CNBC Africa for more.

ANC suspends secretary-general Ace Magashule

<div style="max-width: 100%;"></div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
BNP Paribas South Africa has revised up its 2021 GDP estimate to 4.2 per cent, citing higher commodity prices amid a supportive global backdrop.

BNP Paribas revises up SA’s GDP growth to 4.2%

<div style="max-width: 100%;"></div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
A 2019 report by the African Development Bank revealed that the trade finance gap on the continent was unacceptably high at $81 billion. In East Africa, Kenya has the highest trade finance gap, estimated at $2.8 billion. What can be done to bridge this gap? TradeMark East Africa CEO, Frank Matsaert, joins CNBC Africa for more.

TradeMark East Africa CEO: How to bridge the trade finance gap in East Africa

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/106847030-1614600901695-106847030-16146008302021-02-28t233333z_286474706_hp1eh2s1tfx53_rtrmadp_0_usa-trump.jpg" alt="" class="wp-image-403277" width="836" height="470" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/106847030-1614600901695-106847030-16146008302021-02-28t233333z_286474706_hp1eh2s1tfx53_rtrmadp_0_usa-trump.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/106847030-1614600901695-106847030-16146008302021-02-28t233333z_286474706_hp1eh2s1tfx53_rtrmadp_0_usa-trump-300x169.jpg 300w" sizes="(max-width: 836px) 100vw, 836px" /><figcaption>Former U.S. President Donald Trump speaks at the Conservative Political Action Conference in Orlando, Florida, U.S. February 28, 2021. Joe Skipper | Reuters</figcaption></figure>



<a href="https://www.cnbc.com/quotes/FB" target="_blank" rel="noreferrer noopener">Facebook’s</a>&nbsp;independent Oversight Board&nbsp;<a href="https://www.oversightboard.com/news/226612455899839-oversight-board-upholds-former-president-trump-s-suspension-finds-facebook-failed-to-impose-proper-penalty/" target="_blank" rel="noreferrer noopener">ruled</a>&nbsp;to uphold the company’s January decision to suspend the Facebook and Instagram accounts of former President Donald Trump.



But, the board said, the indefinite timeframe of the suspension “was not appropriate.” The board effectively punted the decision back to Facebook, saying it “insists” the company “review this matter to determine and justify a proportionate response that is consistent with the rules that are applied to other users of its platform.”



The board asked that Facebook complete the review within six months and made suggestions for how to create clear policies that balance public safety and freedom of expression.



“We will now consider the board’s decision and determine an action that is clear and proportionate,” Facebook said in a&nbsp;<a href="https://about.fb.com/news/2021/05/facebook-oversight-board-decision-trump/amp/" target="_blank" rel="noreferrer noopener">blog post</a>&nbsp;following the announcement. “In the meantime, Mr. Trump’s accounts remain suspended.”



The case



Facebook first&nbsp;<a href="https://www.cnbc.com/2021/01/07/facebook-will-block-trump-from-posting-for-the-remainder-of-his-term.html">suspended</a>&nbsp;Trump’s accounts following the Jan. 6 insurrection on the U.S. Capitol. The suspension was Facebook’s most aggressive action against Trump during his four-year term.



“We believe the risks of allowing the President to continue to use our service during this period are simply too great,”&nbsp;Facebook CEO Mark Zuckerberg&nbsp;wrote in a post on his Facebook page at the time.&nbsp;



Facebook referred the decision to its Oversight Board a few weeks later,&nbsp;<a href="https://about.fb.com/news/2021/01/referring-trump-suspension-to-oversight-board/" target="_blank" rel="noreferrer noopener">saying</a>&nbsp;that given the significance of the decision, “we think it is important for the board to review it and reach an independent judgment on whether it should be upheld.”



The decision to uphold Trump’s suspension is the most significant action taken thus far by Facebook’s Oversight Board, which was launched in October 2020 as a de facto “Supreme Court” for the company’s content moderation decisions. The board is an independent body made up of civic, technological, free speech, journalism and human rights experts from around the world.



Facebook has agreed to abide by the Oversight Board’s rulings, even though Zuckerberg still has undisputed control of the company, with majority voting control over the company’s shares.



The board’s findings



The Oversight Board found that Trump had “severely violated” Facebook’s community standards with his posts on Jan. 6. But it also said the platform “seeks to avoid its responsibilities” by applying a vague penalty and then referring it to the board to review.



His declarations, “We love you. You’re very special,” referring to the people who rioted around the U.S. Capitol, calling the rioters “great patriots” and telling them to “remember this day forever,” violated Facebook’s rules that prohibit praise of people engaged in violence, the board wrote.



“The Board found that, in maintaining an unfounded narrative of electoral fraud and persistent calls to action, Mr. Trump created an environment where a serious risk of violence was possible,” the board wrote, adding that when Trump posted his statements, “there was a clear, immediate risk of harm and his words of support for those involved in the riots legitimized their violent actions.”



But Facebook’s decision to make the ban indefinite was not justified, the board found, since it “did not follow a clear, published procedure” in doing so.



“In applying a vague, standardless penalty and then referring this case to the Board to resolve, Facebook seeks to avoid its responsibilities,” the board wrote. “The Board declines Facebook’s request and insists that Facebook apply and justify a defined penalty.”



The board said that though Facebook should apply the same rules to all members, the company should take context into account in assessing harm, including when posts are made by “influential users.” It added that newsworthiness considerations “should not take priority when urgent action is needed to prevent significant harm.”



This story is developing. Refresh for updates.

106847030-1614600901695-106847030-16146008302021-02-28t233333z_286474706_hp1eh2s1tfx53_rtrmadp_0_usa-trump

Facebook will uphold Trump ban but reassess the decision over coming months

<div style="max-width: 100%;"></div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
Shariah products seem to be gaining new ground among impact investors lately and they show no sign of slowing down, so what&#8217;s largely behind this growth? CNBC Africa spoke to the Director of Finance for Africa and Middle East at Jersey Finance, Faizal Bhana for more.

Shariah financial products gaining ground during Ramadan

<div style="max-width: 100%;"></div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
Frontier market-focused publisher of social games, Carry1st is looking to explore the African mobile games space with its recent 6-million-dollar Series A fundraise. CEO Cordel Robbin-Coker joins CNBC Africa for more.

Mobile gaming start-up Carry1st raises $6mn Series A to fund Africa expansion

<div style="max-width: 100%;"></div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
FBNQuest’s manufacturing Purchasing Managers’ Index recovered from 51.4 points to 53 points in April. Chinwe Egwim, Economist at FBNQuest Merchant Bank, joins CNBC Africa for more.

FBNQuest’s manufacturing PMI recovers to 53 points in April

NEW YORK/LONDON, May 4 (Reuters) &#8211; World equity indexes slid and U.S. Treasury yields fell on Tuesday as low trading volume, a lull in economic news and lack of a catalyst to lift stocks higher sparked a sell-off by investors worried further upside in markets is limited.



The tech-rich Nasdaq fell 1.9%, its biggest single-day decline in almost six weeks, while the yield on 10-year Treasury notes fell to a low of 1.557%, a slide that normally would push technology shares higher on lower financing costs.



A surge in commodity prices bucked the downdraft in equity markets, helping spur talk of rising inflation, while the dollar rose after U.S. Treasury Secretary Janet Yellen said interest rates may need to rise to prevent overheating the U.S. economy. Yellen later downplayed inflation and rate hike concerns.



The Refinitiv/CoreCommodity CRB Index traded near three-year highs as commodities rallied on investor bets that demand will grow as economies reopen.



Investors sold the high-flying tech-related stocks that have doubled the value of the Nasdaq since March 2020 lows, and bought government debt, pushing yields lower.



Apple Inc, Amazon.com Inc and Microsoft Corp led the decline on Nasdaq and the S&amp;P 500.



&#8220;There&#8217;s not a lot of conviction among traders of which way markets should go from here,&#8221; said Patrick Leary, chief market strategist and senior trader at Incapital. &#8220;We&#8217;ve priced in a great amount of reopening optimism.&#8221;



MSCI&#8217;s benchmark for global equity markets fell 0.81% to close at 697.60.



On Wall Street, the Dow Jones Industrial Average rose 0.06%, the S&amp;P 500 lost 0.67% and the Nasdaq Composite dropped 1.88%.



Economically sensitive value stocks eked out a gain of 0.04%, outperforming a 1.6% slide in growth stocks. After Tuesday&#8217;s slide, the Russell 1000 Value Total Return Index has nearly tripled the performance of the Russell 1000 Growth Total Return Index so far this year.



European tech stocks plunged 3.8% in their worst day since late October. Germany&#8217;s bourse shed 2.5%, the most in Europe, due to its high composition of tech stocks.



Chipmaker Infineon fell 5.9%, among the top drags on the German index, after the company said automotive supply constraints would only ease in the second half, with lost volumes likely to be made up in 2022.



Skepticism crept into the Treasury market that upcoming economic data might not be as stellar as the market has priced in, keeping a damper on longer-dated bonds. The benchmark 10-year Treasury note last yielded 1.587%.



In currency markets, the dollar clawed back some ground to partially unwind last month&#8217;s long decline as investors squared up positions ahead of monthly payrolls data due at the end of the week.



The dollar index rose 0.289%, with the euro down 0.36% at $1.2018. The Japanese yen weakened 0.19% versus the greenback at 109.28 per dollar.



Signs that the world&#8217;s major central banks remain in no rush to reel in their massive stimulus programs kept 10-year U.S. Treasury yields under 1.65% and Germany&#8217;s Bund yields below 13-month highs.



Australia&#8217;s central bank left its key interest rates at near zero overnight for a fifth straight meeting and pledged to keep its policies super-supportive for a prolonged period.



Australia&#8217;s S&amp;P/ASX200 had risen 0.6% and Hong Kong had climbed 0.7% in thin Asian trading due to holidays in both China and Japan.



Cryptocurrency ether powered to another record peak, nearing $3,500, before paring gains to close 0.8% lower.



Oil prices rose after more U.S. states eased pandemic-related lockdowns and the European Union sought to attract travelers, though soaring COVID-19 cases in India capped gains.



Brent crude futures settled up $1.32 at $68.88 a barrel, while U.S. crude futures rose $1.20 to settle at $65.69 a barrel.



Gold fell 1% on Yellen&#8217;s remarks as rising rates increase the opportunity cost of holding the non-interest bearing precious metal.



U.S. gold futures settled down 0.9% at $1,776 an ounce.



(Reporting by Marc Jones; Editing by John Stonestreet, Chizu Nomiyama and Jonathan Oatis)

Stock market report. 3d illustration

Shares slide as Nasdaq tumbles, dollar edges higher

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/51099375662_a0d2d16798_b-820x548.jpg" alt="" class="wp-image-403249" width="842" height="562" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/51099375662_a0d2d16798_b-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/51099375662_a0d2d16798_b-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/51099375662_a0d2d16798_b-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/51099375662_a0d2d16798_b.jpg 1024w" sizes="(max-width: 842px) 100vw, 842px" /><figcaption>Janet Yellen Photo: via Flickr</figcaption></figure>



Treasury Secretary Janet Yellen conceded Tuesday that interest rates may have to rise to keep a lid on the burgeoning growth of the U.S. economy brought on in part by trillions of dollars in government stimulus spending.



“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat,” Yellen said during an economic forum presented by The Atlantic. “Even though the additional spending is relatively small relative to the size of the economy, it could cause some very modest increases in interest rates.”



“But these are investments our economy needs to be competitive and to be productive. I think our economy will grow faster because of them,” she added.



Later in the day, she tempered her comments somewhat on the need for higher rates, saying she respects the Federal Reserve’s independence and was not trying to influence decision-making there. Yellen chaired the Fed from 2014-18. The Fed sets interest rates through its Federal Open Market Committee.



“It’s not something I’m predicting or recommending,” Yellen told the Wall Street Journal’s CEO Council Summit. “If anybody appreciates the independence of the Fed, I think that person is me, and I note that the Fed can be counted on to do whatever is necessary to achieve their dual mandate objectives.”



The U.S. economy has been on fire, with first-quarter GDP growth at 6.4%. Goldman Sachs recently said it anticipates the second quarter growing around 10.5%.



Since the Covid-19 pandemic broke in March 2020, Congress has allocated some $5.3 trillion in stimulus spending, resulting in a more than $3 trillion budget deficit in fiscal 2020 and a $1.7 trillion shortfall in the first half of fiscal 2021.



The Biden administration is pushing an infrastructure plan that could see another $4 trillion spent on a variety of longer-term projects.



Though she said the U.S. needs to focus on fiscal responsibility longer term, she said spending on matters central to the government’s mission has been ignored for too long.



President Joe Biden is “taking a very ambitious approach, making up really for over a decade of inadequate investment in infrastructure, in R&amp;D, in people, in communities and small businesses, and it is an active approach,” Yellen said. “But we’ve gone for way too long on letting long-term problems fester in our economy.”



The Fed has kept short-term interest rates anchored near zero for more than a year, despite an economy growing at its fastest pace in nearly 40 years. Central bank officials have vowed to keep accommodative policy in place until the economy makes “substantial further progress” toward full and inclusive employment and inflation that averages around 2% over a longer term.



Inflation concerns have arisen due to all the spending and the rapid growth, but Fed officials have said that after a brief rise this year, price pressures are likely to ebb.



Yellen has said she is largely not concerned about inflation becoming a problem, though she has added that there are tools to address it should that happen. Fed Chairman Jerome Powell recently said that the primary tool to control inflation is through higher interest rates.



White House Press Secretary Jen Psaki said Biden “certainly agrees with his Treasury secretary,” on the potential need for higher rates, according to various media reports..



As for concerns about the large deficits the U.S. is running, Yellen said “we need to pay for some of the things that we’re doing” though the government still has “a reasonable amount of fiscal space.”

51099375662_a0d2d16798_b

Treasury Secretary Yellen says rates may have to rise somewhat to keep economy from overheating

<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/shipping-containers-1096829-820x547.jpg" alt="" class="wp-image-403190" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/shipping-containers-1096829-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/shipping-containers-1096829-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/shipping-containers-1096829-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/shipping-containers-1096829-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/shipping-containers-1096829-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Photo: via SnappyGoat.com</figcaption></figure>



The ancient trade routes of East Africa’s Swahili Coast – a 3,000 kilometre littoral stretching from Somalia in the north to Northern Mozambique in the south – is riddled with illegal trading. These networks are connected to political instability in the wider region as well as the emergence of extremist movements which threaten to undermine and corrode the region’s fragile institutions.



The seizure of the town of Palma in the extreme north of Mozambique by armed groups associated with the Islamist Ahlu Sunnah Wal Jamaah (ASWJ) in March has galvanised the world’s attention. Although the event seemed to come as a shock to governments of the region, analysts of the illegal trade have warned of the area’s vulnerability for several years. In 2018, a report by the United Nations sponsored Global Initiative Against Transnational Organised Crime (GI) revealed that a substantial <a href="https://globalinitiative.net/wp-content/uploads/2018/10/TGIATOC-North-Mozambique-Report-WEB.pdf">narcotic-trafficking</a> economy had emerged. Heroin, originally produced in Afghanistan and Pakistan, and often carried on ocean-going dhows, is routed through the area on its way to the wider global market.



But heroin is only one of many illicit trade items and the Palma incident is but one example of a much wider phenomenon. A <a href="https://www.counterextremism.com/sites/default/files/unholy-alliance-report-032921.pdf">recent report</a> by the distinguished scholar and former British diplomat, Sir Ivor Roberts, contains more detail of illicit trade and the way it fuels political extremism and crime across the entire wider region. Among items being traded from Somalia to Mozambique as well as inland (Uganda, Rwanda, Burundi, South Sudan, the Central African Republic [CAR] and the Democratic Republic of Congo [DRC]) are wildlife products, including ivory and rhino horn, small arms, narcotics, gold, gemstones and valuable ‘green minerals’ such as coltan, illegally logged wood, cigarettes, alcohol, counterfeit goods, sugar and human beings.



Roberts describes the scale of the problem as ‘staggering’. He writes that a recent survey in Kenya determined that 40 percent of consumer products, including cigarettes and alcohol, are illicit. As much as 70 percent of the alcohol sold in Uganda is thought to be illegal and a billion illegal cigarettes are sold in the region each year. Counterfeit goods alone rob Kenya of US$900 million a year, Roberts estimates.



The deepest implication of the problem is the power the illicit trade gives to those who carry it out and the extent to which this undermines legitimate governance. The <a href="https://books.google.co.za/books?id=raO8jHBdDhYC&amp;redir_esc=y">blood diamond</a> financed civil wars in Sierra Leone, Liberia, Angola, the DRC and elsewhere on the continent in the 1990s showed a close link between the proliferation of illicit trade, political instability and violence, irrespective of whether the participants have political agendas or not.&nbsp;



Among the political players who Roberts identifies as being financed by the illicit trade along the Swahili Coast are Al Shabaab who are responsible for numerous terror assaults in Kenya, Somalia and Tanzania, the Lord’s Resistance Army in Northern Uganda, Janajaweed in Sudan, the rump of Renamo in Mozambique and ASWJ in southern Tanzania and northern Mozambique. But attaching names and labels to the widespread phenomenon can be misleading. Much more representative are the so-called militia groups of the Eastern DRC and CAR which illustrates the point that the illicit trades are socially embedded and associated with dynamics which run in parallel (and in competition) with formal state institutions.



In the CAR for instance, at least 14 different armed groupings are active. The country is so unstable that the state’s writ runs hardly further than the capital, Bangui, and <a href="https://reliefweb.int/sites/reliefweb.int/files/resources/Situation%20Report%20-%20Central%20African%20Republic%20-%205%20Mar%202021.pdf">one-in-four</a> Central Africans are internally displaced or refugees abroad. The <a href="https://globalinitiative.net/analysis/illicit-flows-car-conflict/">armed groupings</a> trade in diamonds, small arms, human trafficking, illegal logging and wildlife products and exercise state-like powers, including informal taxation, in the areas they control. Sexual violence is reported to be endemic.



Roberts is clear on the issue. The region is being ‘picked apart’ by extremist groups, organised crime syndicates and urban gangs, <a href="https://www.newtimes.co.rw/opinions/illicit-trade-and-fight-east-africas-future">he writes</a>. The implication is that political extremism cannot be viewed separately from its criminal associations. Illicit trade has to be dealt with in parallel to initiatives to counter political extremism.



The experience of the regional power, Kenya, illustrates how pervasive the problem is and how difficult it is to control. Kenya has repeatedly acted against illegal trade for more than <a href="https://globalinitiative.net/wp-content/uploads/2017/12/IPI-Termites-at-Work-A-Report-on-Transnational-Organized-Crime-and-State-Erosion-in-Kenya.pdf">30 years</a> but the problem simply pops up elsewhere. Kenya has a stronger state than any of its neighbours and has established a coast guard and an Anti-Counterfeit Authority. The government has repeatedly clamped down on illicit trade via Mombasa harbour and <a href="https://www.tralac.org/news/article/12732-cargo-scanners-give-kra-sh131m-more-daily-at-the-ports.html">Jomo Kenyatta Airport</a> in Nairobi. In 2016, the world’s largest bust of counterfeit pharmaceuticals was made in Kenya. However, no matter what action the Kenyan state takes, illicit traders circumvent it, moving goods through other entry points along the Swahili Coast, in cooperation with existing criminal networks, especially urban gangs, or corrupt officials and politicians.



The fight against the illicit tobacco industry in Kenya illustrates the regional dimensions of the problem. Kenya adopted the WHO Illicit Tobacco Trade Protocol in 2020, the only East African country to do so and a signal of how serious the government is about combatting illicit trade. But the country’s 20-year campaign against the trade – including the closure of loopholes which facilitated illegal imports, round tripping and underdeclared values in 2003 – is undermined by regional dynamics. The actions of criminal actors in Uganda, where excise taxes are notable lower and factory inspections virtually non-existent, has seen an increased stream of illicit product entering Kenya once again.



Illicit tobacco is often treated (by the international media) as a less significant problem than higher profile illicit trade in people, narcotics and wildlife products. But it has been a primary source of funding for terror groups ranging from the Irish Republican Army to Hezbollah in Lebanon. Inland of the Swahili coast, it financed the Forces Armées du Peuple Congolais (FAPC) insurgency in the DRC in the early 2000s. FAPC leaders were <a href="https://www.refworld.org/docid/4d957302c.html">convicted</a> of ‘rape, pillaging, destruction of schools and abduction of children’ in 2011.



The Swahili Coast and its hinterland is assailed by political instability. But it is now clear that the problem is not simply underdevelopment and political radicalism, but that illicit trade is an integral part of the problem. Solutions will have to address this too.



David Christianson has been a political scientist, NGO researcher and development banker. He entered business journalism in 1997 and was Diageo African Business Writer of the Year in 2006.

shipping-containers-1096829

How illicit Trade destabilises the Swahili Coast

<div style="max-width: 100%;"></div>
<script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script>
In the next couple of days, investor attention will turn to a scheduled review of South Africa&#8217;s sovereign credit by Moody&#8217;s on Friday. The ratings agency already has the country&#8217;s debt in &#8220;junk&#8221; status, and the question is whether it will cut that rating even further. With a negative outlook, there is the potential for a further downgrade. Annabel Bishop, Chief Economist at Investec joins CNBC Africa for more.

SA has done enough to prevent a further sovereign downgrade

SA has done enough to prevent a further sovereign downgrade, economist says

JOHANNESBURG, May 4 (Reuters) &#8211; A top committee of South Africa&#8217;s governing African National Congress (ANC) has reaffirmed that all members charged with corruption or other serious crimes must vacate their posts within 30 days or face suspension, the party said on Tuesday.



The ANC added in a statement that the National Working Committee (NWC) had instructed that letters be written to affected members &#8220;implementing this decision, and outlining the terms and conditions regulating their participation and conduct during the suspension&#8221;.



The &#8220;step aside&#8221; rule is an important test of President Cyril Ramaphosa&#8217;s control over the ANC and his commitment to tackle graft.



One of Ramaphosa&#8217;s most prominent party rivals, Secretary-General Ace Magashule, faces corruption charges but has refused to vacate his position in charge of the day-to-day running of the party that has governed South Africa since the end of apartheid.



The NWC comprises top ANC officials and implements the decisions of the party&#8217;s executive.



The ANC said that at a meeting on Monday the NWC had received reports on party members charged with corruption or other serious crimes and the status of their cases.



A decision by a member to voluntarily &#8220;step aside&#8221; from their post would be reviewed by the party every six months, it added. 



(Reporting by Alexander Winning; Editing by Olivia Kumwenda-Mtambo and Ed Osmond)

235783120_f11948a18d

South Africa’s ANC reaffirms ‘step aside’ rule for corruption-charged members

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="258" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Absa-Access_CNBC-Header-Banner-_1910x600-130-kb-820x258.jpg" alt="" class="wp-image-403175" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Absa-Access_CNBC-Header-Banner-_1910x600-130-kb-820x258.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Absa-Access_CNBC-Header-Banner-_1910x600-130-kb-300x94.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Absa-Access_CNBC-Header-Banner-_1910x600-130-kb-768x241.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Absa-Access_CNBC-Header-Banner-_1910x600-130-kb-1536x483.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Absa-Access_CNBC-Header-Banner-_1910x600-130-kb.jpg 1910w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



Technological breakthroughs in the banking industry have shaped how we bank today, advancing an industry that is reliant on innovation to meet the needs of its clients. These advancements are a part of our everyday life and challenge banks to create innovative solutions that make their clients’ run their business easier and it is imperative that the industry adopts the latest trends in technology, security, design and data. &nbsp;



As a Transactional Banking business, Absa’s ambition is to provide its clients with a Pan-African platform that will enable them to effortlessly oversee their payments, collections, information products, trade finance, FX and international banking as well as liquidity management through a single platform.



For this reason, Absa Corporate and Investment Banking (CIB) has over the past three years been investing in building out the Absa Access platform. Absa Access is a Pan-African, single sign-on platform that gives clients standardised, secure, and near real-time access to their business portfolios and the banking services. This enables them to make informed decisions to drive the growth of their businesses, managing their finances with the speed and intelligence that the platform provides.



“This platform will offer our Corporate clients with an integrated solution to complete their domestic and cross border payments including verified payments &#8211; including Tax and Custom Payments. This ensures greater visibility of their cash flow needs in all their markets, says Yasmin&nbsp;Masithela, Managing Executive for Transactional Banking at Absa Corporate and Investment Banking



A game-changing platform launched as part of Absa CIB’s digital journey, Absa Access is testament to Absa’s decision to become a digitally-led organisation.&nbsp;



“Absa&nbsp;Access&nbsp;provides a framework which enables clients in the way that makes the most sense for them be it online, host, mobile or API’s or a combination thereof across all geographies.&nbsp;The convenience and risk mitigation options of this framework are enormous as well as allowing us to have a multi-tenant approach which allows us to significantly increase the rate of change to this environment as the market changes around us,” says Masithela. &nbsp;



James Scott, Head of Absa Digital and Platform Services, says there has been a big shift in the way that businesses are looking for solutions from their banking partners. “It is imperative that the industry adopts the latest trends in digital, data, security, experience and design. The shift from traditional products to platforms will be a big trend unfolding on the continent in years to come.”



Masithela believes that the payment industry on the continent will represent a big opportunity for the CIB cluster, driven by the displacement of cash, increased digitisation and the potentially shifting regulatory landscape. The opportunity to deliver solutions and form partnerships to capture the growth will be essential and with competition from fintechs, telcos and the traditional players it’s going to be an interesting time for the continent.



The increase in the number of Fintechs, innovative solutions from Acquirers and other technology companies as well as digital solutions from Telcos operators will all provide new&nbsp;opportunities on the continent.&nbsp;



The biggest opportunity remains the displacement of physical cash which still accounts for more than 70% of transactions and remains a costly method of doing payments. According to a study by Mastercard, the cost of cash processing &nbsp;in South Africa is R23billion and estimated to be R45billion in Nigeria according to analysis from the Research Gate reviewing the importance of the Cashless Policy in Nigeria, says Masithela.



Data out of the African Development Bank estimates the Trade Finance Gap in Africa to be $91bn, with the focus on Intra Africa Trade and improving credit risk management solutions on the continent, the ability to offer innovative finance solutions on the continent will offer new opportunities for growing the bank’s market share in trade.



New digital solutions &#8211; such as concluding trade transactions using blockchain &#8211; will increase the data integration between the flow of goods and the financial transaction flow, which will improve the risk profile of trade transactions and be the catalyst for narrowing the Trade Finance Gap. &nbsp;



Masithela concludes: “We have invested in both technology and people in this space and are transforming towards a more modern world which is more aligned to customers and responsive to market changes.”

Newsletter

France host African leaders on financing for economic recovery

Dubai targets over 5.5 mln overseas tourists this year

UBA: Investors to place unmet bids from last week’s auction

Africa Month: Lessons from Africa: What COVID-19 taught our sector

ANC suspends secretary-general Ace Magashule

BNP Paribas revises up SA’s GDP growth to 4.2%

TradeMark East Africa CEO: How to bridge the trade finance gap in East Africa

Facebook will uphold Trump ban but reassess the decision over coming months

Shariah financial products gaining ground during Ramadan

Mobile gaming start-up Carry1st raises $6mn Series A to fund Africa expansion

FBNQuest’s manufacturing PMI recovers to 53 points in April

Shares slide as Nasdaq tumbles, dollar edges higher

Treasury Secretary Yellen says rates may have to rise somewhat to keep economy from overheating

How illicit Trade destabilises the Swahili Coast

SA has done enough to prevent a further sovereign downgrade, economist says

South Africa’s ANC reaffirms ‘step aside’ rule for corruption-charged members

Innovation is key to unlocking Africa’s banking potential

News Tips

Advertise With Us

Newsletter

France host African leaders on financing for economic recovery

Dubai targets over 5.5 mln overseas tourists this year

UBA: Investors to place unmet bids from last week’s auction

Africa Month: Lessons from Africa: What COVID-19 taught our sector

ANC suspends secretary-general Ace Magashule

BNP Paribas revises up SA’s GDP growth to 4.2%

TradeMark East Africa CEO: How to bridge the trade finance gap in East Africa

Facebook will uphold Trump ban but reassess the decision over coming months

Shariah financial products gaining ground during Ramadan

Mobile gaming start-up Carry1st raises $6mn Series A to fund Africa expansion

FBNQuest’s manufacturing PMI recovers to 53 points in April

Shares slide as Nasdaq tumbles, dollar edges higher

Treasury Secretary Yellen says rates may have to rise somewhat to keep economy from overheating

How illicit Trade destabilises the Swahili Coast

SA has done enough to prevent a further sovereign downgrade, economist says

South Africa’s ANC reaffirms ‘step aside’ rule for corruption-charged members

Innovation is key to unlocking Africa’s banking potential

News Tips

Advertise With Us

Newsletters