(Reuters) &#8211; Mauritius has arrested the captain of a Japanese bulk carrier that ran aground off its coast, causing a devastating oil spill in one of the world’s most pristine maritime environments, police said on Tuesday.



“We have arrested the captain of the vessel and another member of the crew. After having been heard by the court they have been denied bail and are still in detention,” Inspector Siva Coothen told Reuters.



The MV Wakashio struck a coral reef off the Indian Ocean island nation on July 25 and began spilling oil on Aug. 6, prompting the government to announced a state of “environmental emergency” the next day.



The oil spill spread over a vast area of endangered corals, fish and other marine life in what some scientists called the country’s worst ecological disaster. Emergency crews managed to remove most of the remaining oil before the carrier split in two on Saturday.



The Mauritius coastguard had repeatedly tried to reach the ship to warn that its course was dangerous but had received no reply, a maritime official with knowledge of the incident who asked not to be named told Reuters.



“The route set five days before the crash was wrong and the boat navigation system should have signaled that to the crew and it seems the crew ignored it. The boat did also fail to send out an SOS (when it ran aground), and did not respond to attempts by the coast guard to get in touch,” the official said.



Local media have reported that the crew were having a birthday party on board. Coothen and the official declined to comment on the reports but the official said an examination of the ship’s black box might reveal whether that was true.



Scientists say the full impact of the spill is still unfolding, but the damage could affect Mauritius and its tourism-dependent economy for decades. Removing the ship is likely to take months.

Op-Ed: Tourism sector in Mauritius devastated by COVID-19

Mauritius arrests captain of Japanese oil spill ship

LAGOS (Reuters) &#8211; Nigeria’s oil ministry will present a long-awaited oil and gas reform bill to the president in the coming days aimed at boosting output and attracting foreign investment, three sources close to the negotiations told Reuters.



The reforms, 20 years in the making, are particularly urgent this year as low oil prices and a shift towards renewable energy have made competition tougher to attract investment from oil majors.



Fiscal uncertainty has delayed a decision&nbsp;<a href="https://reut.rs/3g28DoM">reut.rs/3g28DoM</a>&nbsp;on a multi-billion dollar expansion by Royal Dutch Shell (<a href="https://www.reuters.com/companies/RDSa.L">RDSa.L</a>) and its partners, while Chevron (<a href="https://www.reuters.com/companies/CVX.N">CVX.N</a>), Total (<a href="https://www.reuters.com/companies/TOTF.PA">TOTF.PA</a>) and ExxonMobil&nbsp;<a href="https://reut.rs/348WfAX">reut.rs/348WfAX</a>&nbsp;(<a href="https://www.reuters.com/companies/XOM.N">XOM.N</a>) are selling various Nigerian assets.



A spokesman for the Petroleum Ministry, which led the bill’s drafting, did not reply to a request for comment and the president’s office declined to comment.



Royal Dutch Shell, the largest international operator in Nigeria, said a botched reform effort would be “putting at risk and making unviable most of the planned projects.”



“We hope that the final bill would be one that would unlock potential investments that Nigeria’s rich resource base truly deserves,” a spokesman for Shell companies in Nigeria said.



A draft summary seen by Reuters included provisions that would streamline and reduce some oil and gas royalties. One of the sources described even the government’s reduced take of oil revenues, through taxes, royalties and other fees, as “aggressive” compared with other nations. Some African countries are trying to cut red tape and taxes in order to make developing their oil and gas reserves attractive to companies.



It proposes to boost the amount of money companies pay to local communities and for environmental cleanups.



It would also alter the dispute resolution process between companies and the government, though specifics of the changes were not included in the summary. The bill also included measures aimed at pushing companies to develop gas discoveries and a framework for gas tariffs and delivery.



Commercializing gas, particularly for use in local power generation, is a core government priority.



The bill will be presented in one piece with four chapters, the sources said. An effort to pass reforms by breaking them into several bills in 2018 fell flat; just one portion made it to President Buhari&#8217;s desk, and he never signed it&nbsp;<a href="https://reut.rs/346RIPH.">reut.rs/346RIPH.</a>



Once Buhari signs off on the draft, it will go to the National Assembly, which is controlled by his All Progressives Congress party. The alignment of the presidency and the assembly give the measure the best chance of passage it has had in years.



The law underpinning oil, the financial lifeline for Africa’s biggest exporter, has not been updated since the 1960s.



Pumping its oil has historically been hugely profitable, but changes late last year that hiked Nigeria’s take of oil earnings, and a VAT increase, frustrated companies.

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Exclusive: Nigeria’s long-awaited oil reform bill to go to president – sources

TOKYO (Reuters) &#8211; A Japanese disaster relief team helping to clean up a devastating oil spill off the Indian Ocean island nation of Mauritius is focusing on mangroves, beaches and wetlands after most of the oil at sea had been collected, it said on Tuesday.



A Japanese bulk carrier struck a coral reef on July 25, spilling about 1,000 tonnes of fuel oil in what environmentalists say is the country’s worst ecological disaster, killing wildlife and damaging pristine waters.



“As most of the spilled oil at sea has been collected, we are moving into a next stage, with the focus on cleaning up the seaside and minimising the environmental impact,” Keiji Takechi, deputy team leader, told an online news conference from Mahebourg, Mauritius.



“Environmental experts who can give advice and instruction are needed now.”Japan sent six officials, mainly oil spill experts, to Mauritius last week and plans to send another team of environment ministry officials and specialists this week.



Team leader Junji Gomakubo said the focus was not only on the immediate impact.



“We also need to think about plans to restore the environment in the long run, like in a 10-, 20-, 30-year span,” he said.FILE PHOTO: A view shows Japanese bulk carrier ship MV Wakashio as it begins to break apart, after it ran aground on a reef in Mauritius, in this August 15, 2020 satellite image provided by Maxar Technologies. Satellite image 2020 Maxar Technologies/Handout via REUTERS



The full impact of the spill is still unfolding, scientists say. As island residents scrambled to mop up the oil slicks and clumps, they saw dead eels and fish floating in the water, as fuel-soaked seabirds limped ashore.



The damage, scientists say, could impact Mauritius and its tourism-dependent economy for decades.



The bulk carrier, MV Wakashio, owned by Japan’s Nagashiki Shipping and chartered by Mitsui OSK Lines, broke apart on Saturday, releasing a small amount of additional oil into the sea, Takechi said.

Mauritius oil clean-up team turns focus from sea to mangroves

JOHANNESBURG (Reuters) &#8211; South African power utility Eskom will implement planned blackouts on both Tuesday and Wednesday after breakdowns at a number of power stations overnight, it said on Tuesday.



The power cuts, known locally as loadshedding, will last from 1400 GMT to 2000 GMT on Tuesday, and start again between 0700 GMT and 2000 GMT on Wednesday, the company said in a statement posted on Twitter.

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South Africa’s Eskom implements power cuts after breakdowns

JOHANNESBURG (Reuters) &#8211; South Africa’s Impala Platinum’s (Implats) said on Tuesday that charges relating to contraventions of lockdown rules against the chief executive of its Rustenburg operations had been dropped.



“All criminal charges in the matter against Impala as represented by Mark Munroe have been withdrawn,” said Implats in a statement after Munroe appeared in court on Monday.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="229" height="220" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/download-1.jpg" alt="" class="wp-image-379302"/><figcaption>Mark Munroe</figcaption></figure>



A case was laid against Munroe in April for allegedly contravening South Africa’s lockdown rules by calling non-essential workers back to work.



A lockdown that started on March 27 ordered most underground mines and furnaces to be put on care and maintenance. The government has since eased regulations, allowing all miners to operate at 100% from June.



The miner, which has denied any wrongdoing, expressed its support for Munroe and its management teams, saying it will continue to operate in a legally compliant and responsible manner.



An Implats spokesman said the court did not provide details on why the charges had been dropped.



South Africa is the world’s biggest producer of chrome ore, accounts for around 70% of global mined platinum supply, and is a major producer of other minerals and metals.

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Charges of contravening lockdown provisions against Implats executive dropped

The United States and Kenya formally launched negotiations for a free trade agreement on 8 July 2020. With the US gearing up for presidential elections in a few months, these talks may not draw much global attention. But as&nbsp;<a href="https://www.csis.org/analysis/going-solo-what-significance-us-kenya-free-trade-agreement">a prototype for evaluating the substance of future US-Africa trade</a>&nbsp;relations, a lot rides on Washington using this deal to make a bold statement of its commitment to effective North-South free trade agreements.



The US is the third most important destination for Kenyan exports after Uganda and Pakistan,&nbsp;<a href="https://oec.world/en/profile/country/ken">accounting for 8% of its total exports</a>. Kenya exported goods worth US$ 527 million in 2018, primarily apparels, coffee and nuts. Its imports were mainly commercial aeroplanes and other spacecraft, polymers and medicaments. Kenya has a slim trade surplus that the US will probably be keen to balance.



Washington has a penchant for using free trade agreements to signal the status of partner states as regional strategic allies. Such agreements with Morocco, South Korea, Colombia and Bahrain were all intended to signal much deeper strategic alliances beyond trade.



For the European Union and China the Kenyan agreement further signals America’s intent for commercial expansion and competition in Africa. The principal objective is to secure duty free access for American industrial, apparel and agricultural goods in Africa. Its all about making American exports competitive.



US trade officials have described the Kenyan deal as a&nbsp;<a href="https://ustr.gov/about-us/policy-offices/press-office/press-releases/2020/march/trump-administration-notifies-congress-intent-negotiate-trade-agreement-kenya">model</a>&nbsp;for other African free trade deals. Terming Kenya a “strategic partner, regional leader and commercial hub”&nbsp;<a href="https://ke.usembassy.gov/joint-statement-between-the-united-states-and-kenya-on-the-launch-of-negotiations-towards-a-free-trade-agreement/">statements</a>from both the US Trade Representative Robert Lighthizer and the US ambassador to Kenya Kyle McCarter highlight the seriousness with which Washington wants this deal done.



This vigour affirms President Trump’s strategy outlined by the 2018 US-Africa policy. But since the Kenyan deal is an&nbsp;<a href="https://ustr.gov/about-us/policy-offices/press-office/press-releases/2020/march/trump-administration-notifies-congress-intent-negotiate-trade-agreement-kenya">initiative </a>&nbsp;of President Trump, the palpable pressure to conclude agreement could be detrimental to Kenya’s interests. The pressure hampers Kenya more given the asymmetry of capacity between the two states.



Free trade agreements are protracted affairs which take more than a year to complete. The US-Morocco agreement, for instance, took 15 months. Talks with Peru (18 months) and Colombia (20 months) lasted even longer. The Kenya-EU economic partnership agreements took more than 10 years to conclude.



Additionally, there’s no guarantee that Trump will be in office come January 2021. For this reason, Kenya’s team in Washington should consider informally engaging the democrats in case the deal has to be concluded under President Biden.



<h2 class="wp-block-heading">Kenya’s negotiating objectives</h2>



It is my view that Kenya’s negotiations should be guided by four principal questions and objectives as follows:



<ul class="wp-block-list"><li>Does the proximity of the November election in the US unduly compromise the quality of negotiations?</li><li>What are the prospects for renewal of the&nbsp;<a href="https://agoa.info/about-agoa.html">African Growth and Opportunity Act (AGOA)</a>&nbsp;in 2025? If extended, would Kenyan exports not covered benefit from US tariff removal?</li><li>Can Kenyan negotiators defend against US pressure to liberalise industrial goods under the East African Community Sensitive List and</li><li>Can the US extend to Kenya the “qualified industrial zones” model to bolster US foreign direct investment in Kenya?</li></ul>



From a political perspective, a trade agreement makes sense. It shields Kenya from the uncertainties over the extension of the African deal and the vicissitudes of political party changes in Washington. As a trade tool, the merits of a free trade agreement depend a lot on the extension (or not) of AGOA after 2025 under President Trump or Biden.



More principally, whether democrats or Republicans win in November, the extension of the Africa market access law will depend on the extent to which sub-Saharan Africa states will be regarded as important flashpoints for US-China commercial competition in Africa.



Trump is certainly more combative in wanting to nullify China’s huge commercial advantage in Africa. But a Biden presidency would be more receptive to the appeals of the&nbsp;<a href="https://agoa.info/news/article/15634-us-house-black-caucus-to-advocate-extension-of-agoa.html">US Congress Black Caucus which champions</a>&nbsp;the unilateral extension of AGOA. Because of the uncertainty about the whims of the US presidency, it is in Kenya’s interest to concurrently lobby US democrats on the importance of this deal in case of a Biden presidency.



If AGOA is not extended without a free trade agreement, Kenya’s three biggest exports to the US –&nbsp;<a href="https://oec.world/en/profile/country/ken">apparels, macadamia nuts and cut flowers</a>&nbsp;– would face duty increases of 5%, 0.5% and 4% respectively. This would undoubtedly negatively affect exports.



But if it is extended, and the US-Kenya agreement ratified by Congress, elimination of duties on Kenyan non-AGOA exports (mainly minerals) will not amount to much in terms of export enhancement.



<h2 class="wp-block-heading">Jordanian model</h2>



Constraints to Kenyan exports to the US are not primarily tariff based. From Kenya’s standpoint, therefore, these trade talks are less about tariff and trade, than they are about attracting foreign investment into Kenya. The most useful potential outcome will be the extent to which Kenya draws manufacturing foreign direct investment from the US and other states, into its economic processing zones.



To achieve this, Kenya should negotiate for liberal rules of origin requirements. Such rules should not unduly constrain investors to use only US or Kenyan inputs for Kenyan exports to qualify for the duty free entry into the US. A rules-of-origin threshold of no more than 30% value add should be the target.



As an investment vehicle, the Kenya US agreement should be modelled on the Jordanian “qualified industrial zones model” which increased bilateral trade between the two states&nbsp;<a href="https://jo.usembassy.gov/us-jordan-joint-committee-meets-in-amman-praises-7-5-percent-increase-in-jordanian-exports-to-the-united-states-in-2018/">tenfold since its inception in 2001</a>.



This model permits foreign owned companies situated in select export processing zones to qualify for duty free exports into the US market. With apparel as Kenya’s principal target export, the success of its negotiating dexterity will be judged on how well it integrates the inputs and outputs of its export processing zones. An agreement that considers all apparel exports “Kenyan” irrespective of ownership and input source for a reasonable duration should be the target.



Finally, the US will no doubt be keen on Kenya’s liberalisation of agriculture and services as part of its ambition to compete with the EU as preeminent agricultural exporters. Every country keeps a short list of goods that it is allowed to protect either for infant industry protection or security reasons. Kenya’s highly protected commodities include wheat, matches, rice and cement which can attract customs tariffs of up to 75% in the case of certain types of rice.



My view here is that Kenya should grant the US the same agricultural exports conditions as those granted to the EU under the&nbsp;<a href="https://www.tralac.org/news/article/13865-epa-test-of-unity-as-kenya-breaks-away.html">Economic Partnership Agreement</a>. But at the same time, it should defend the continued protection of the “industrial” goods in the sensitive list such as cement, natural gas and most importantly worn clothing. These should be protected for purposes of the modest infant industry already in existence in production of these products. But it could end protection for some agricultural products like wheat.



If properly negotiated the agreement has the potential to rapidly enhance Kenya’s foreign industrial investment and overall export volumes. To do so, Kenya must pay more attention to the role of this agreement as an investment attraction vehicle and not just a simple tariff centred ‘traditional’ pact.

Uhuru_Kenyatta_2015

Kenya-US free trade talks are under way: what Nairobi must get right from start

ABUJA (Reuters) &#8211; Nigeria expects to spend a record 12.65 trillion naira ($33.20 billion) in 2021 despite severe revenue constraints, according to an outlook released by the Finance Ministry on Monday.



The spending by Africa’s largest economy, still reeling from low oil prices and the new coronavirus pandemic, is a 17.2% jump from the record 10.8 trillion naira budgeted this year.



The projected debt servicing payments would consume 3.1 trillion naira of the spending, or just under 25%.



Additionally, revenues in the year are expected to reach 7.5 trillion naira in 2021, implying a higher deficit.



The document also said spending would focus on completing as many ongoing projects as possible, and that no new works would be allowed unless there were adequare resources to complete ongoing projects.



($1 = 381.0000 naira)

Nigeria_naira

Nigeria eyes record 12.65 trillion naira spending plan for 2021 – document

(Reuters) &#8211; Democratic Republic of Congo’s central bank said on Monday it expected the economy to contract -1.7% in 2020, improving on an earlier forecast of a -2.4% contraction due to higher mining receipts.



The mining sector has performed better than anticipated because of the success of confinement measures introduced to combat the coronavirus, paired with a rise in the global price of copper, one of Congo’s key exports, the central bank said in a statement.

congo franc

Congo central bank raises 2020 GDP forecast to -1.7%

ABUJA/LAGOS (Reuters) &#8211; The World Bank is unlikely to approve a much-needed $1.5 billion for Nigeria in August as planned due to concerns over desired reforms, three sources familiar with the talks told Reuters.



A delay in financing from multilateral lenders could leave Africa’s biggest economy and top oil producer, battered by low crude prices, unable to fully finance a record 10.8 trillion naira ($28.35 billion) budget. The central bank has said Nigeria’s balance of payments gap this year will be $14 billion.



The World Bank, which has said Nigeria could be heading toward its greatest fiscal crisis in 40 years, had aimed to bring the loan to its board for approval this month, but the sources said negotiations over what Nigeria will do to secure it were incomplete.



“They are not convinced about the reforms,” a source close to the government said. All three sources declined to be named due to the sensitivity of the negotiations. The source added that the currency was the core issue.



World Bank loans are often contingent upon reforms. It has not outlined any demands, but said previously that it was “recommending” a more unified, flexible exchange rate. Fuel subsidies and electricity tariffs are also being discussed.



Another banking source said the loan could now not be approved until October.



Nigeria’s finance ministry directed queries to the World Bank. In a statement, the lender said discussions were at&nbsp;an advanced stage, but confirmed that it had not presented the loan to its board.



“Of particular importance are the steps the government is taking to marshal the needed fiscal resources for a pro-poor response to the crisis and undertake the reforms that will help ensure a robust recovery,” the statement said.



Nigeria’s policy of supporting the naira has become more costly since the oil price slide, as it relies on oil for 90% of its foreign exchange. It has devalued the naira twice this year, but the sources said that was not enough for the World Bank, which wanted fuller reform of the naira policy.



Nigeria also said it had eliminated fuel subsidies through a “floating” price cap, but two of the sources said the World Bank felt the mechanism was not sufficiently transparent.



($1 = 381.00 naira)

Logo_The_World_Bank.svg

Nigeria’s $1.5 bln World Bank loan delayed over reforms -sources

JOHANNESBURG (Reuters) &#8211; The South African rand was slightly firmer against the dollar early on Tuesday, as the U.S. currency extended its fall to new lows on global markets.



At 0642 GMT, the rand traded at 17.4750 versus the dollar, almost 0.2% stronger than its previous close.



Government bonds were flat, with the yield on the 2030 bond at 9.28%.



With no major domestic data releases due this week, the rand is expected to take its cue from global factors.



President Cyril Ramaphosa announced a further easing of the country’s strict coronavirus lockdown over the weekend, but the impact on the local currency has been muted.



Official forecasts predict gross domestic product will contract by at least 7% this year, extending the pain for an economy that was already in recession before the COVID-19 pandemic struck.



The rand had a torrid start to 2020, slumping over 20% against the dollar over the first quarter in the leadup to Moody’s downgrading the country’s sovereign credit rating to “junk” status.



The rand has swung back and forth since and is still down almost 20% against the U.S. currency year to date.

ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions

South African rand marginally stronger in early trade

JOHANNESBURG (Reuters) &#8211; South African retailer TFG said on Monday it has concluded an agreement to buy select assets of budget clothes retailer Jet from the administrators of rival Edcon and expects to meet all conditions by the end of September.



TFG, known as The Foschini Group, said in July it will buy 371 stores and some assets of Jet for 480 million rand ($27.56 million) in order to expand into the budget clothes market, a segment in which it is not a major player. [nL3N2EK1XF]



It said it has now reached an agreement for the assets in South Africa, where most of the stores it is buying are located. Similar agreements for stores in Botswana, Namibia, Lesotho and the kingdom of eSwatini are expected to be finalised shortly, it said.



The remaining conditions include approval by competition authorities, an agreement with Jet’s landlords on amended lease terms and a deal with credit and financial services provider RCS to continue to operate Jet’s credit book.



Edcon, which also owns department store chain Edgars, applied for bankruptcy protection in April in an attempt to salvage parts of the group. Edcon has been a go-to place for South African shoppers for nearly a century, but ran into financial problems and failed to compete with international fashion chains such as Sweden’s H&amp;M.



($1 = 17.4145 rand)

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South Africa’s TFG concludes agreement to buy Jet stores, some approvals pending

JOHANNESBURG (Reuters) &#8211; South African food producer Tiger Brands has entered into two separate sale agreements for its processed meats units for 428 million rand ($24.68 million), it said on Monday.



Molare Proprietary Limited will buy the abattoir business at Olifantsfontein while the meat processing factories at Germiston, Polokwane and Pretoria will be acquired by Silver Blade Abattoir Proprietary Limited, a wholly-owned subsidiary of Country Bird Holdings.



($1 = 17.3430 rand)

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South Africa’s Tiger Brands to sell processed meats units for $24.6 mln

U.S. drug developer Novavax Inc said on Monday that it is starting a mid-stage study of its experimental COVID-19 vaccine in South Africa, as the country experiences a surge in coronavirus cases.



The Phase 2b trial study of NVX-CoV2373 will be conducted on about 2,665 healthy adults and will evaluate the safety and immunogenicity in about 240 medically stable, HIV-positive adults, the company said in a statement&nbsp;<a href="https://reut.rs/3g0sRzb.">reut.rs/3g0sRzb.</a>



“Because South Africa is experiencing a winter surge of COVID-19 disease, this important Phase 2b clinical trial has the potential to provide an early indication of efficacy, along with additional safety and immunogenicity data for NVX-CoV2373,” said Novavax research chief Gregory Glenn.



<figure class="wp-block-image size-large"><img decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/05/GettyImages-1189261957-1110x767.jpg" alt="Bill Gates: ‘I wish I had done more’ to warn world about pandemic danger" class="wp-image-371281"/><figcaption>Bill Gates: ‘I wish I had done more’ to warn world about pandemic danger (Photo by Hou Yu/China News Service/VCG via Getty Images)</figcaption></figure>



South Africa is fifth worst affected country with 583,653 coronavirus cases and 11,677 deaths, according to a Reuters tally.



The Bill &amp; Melinda Gates Foundation is providing a $15 million grant towards the clinical trial, the company said.



Novavax said it intends to initiate the Phase 2 portion of this trial in the United States and Australia in the near future and that it would include about 1,500 candidates.



Earlier this month, Glenn told Reuters the company would start much larger late-stage clinical trials soon and could potentially glean enough data to obtain regulatory approvals as early as December.



The U.S. government in July had awarded Novavax $1.6 billion to cover testing and manufacturing of a potential vaccine for the novel coronavirus in the United States with the aim of delivering a 100 million doses by January.



Last month, AstraZeneca said late-stage trials of its experimental drug AZD1222, which is developed by AstraZeneca and Oxford University, are under way in Brazil and South Africa and due to start in the United States, where prevalence is higher.

Clarification on COVID-19 “hotspots” as SA moves to level 3 lockdown

Novavax begins mid-stage study of COVID-19 vaccine in South Africa

JOHANNESBURG (Reuters) &#8211; The South African rand began the week stronger on Monday after President Cyril Ramaphosa announced a sweeping removal of lockdown restrictions over the weekend.



Ramaphosa said that from midnight on Monday a ban on alcohol and tobacco sales would be lifted, inter-provincial travel would be allowed and restaurants and taverns could return to normal business subject to hygiene protocols.



By 0631 GMT the rand was trading at 17.3400 versus the dollar, roughly 0.3% firmer than its previous close. Dollar weakness on global markets also supported the rand.



Government bonds were little changed in early trade, with the yield on the 2030 bond at 9.16%.



Africa’s most industrialised economy has been hit hard by one of the world’s strictest lockdowns, imposed in late March to curb the spread of the coronavirus, but Ramaphosa said the indications were that the country had reached the peak of COVID-19 infections.



Official forecasts are for gross domestic product to contrac by at least 7% this year, with South Africa having recorded the fifth-highest number of COVID-19 infections worldwide.

101416618-rand

South African rand stronger after Ramaphosa announces lockdown easing

HARARE (Reuters) &#8211; Zimbabwe’s Catholic bishops and the law society have criticised the government for alleged human rights abuses and a crackdown on dissent, adding to growing concerns over authorities’ treatment of opponents amid a worsening economic crisis.



President Emmerson Mnangagwa’s government swiftly hit back, saying the “evil” accusations were baseless.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="594" height="407" src="https://www.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-899231420-594x594-1.jpg" alt="" class="wp-image-352505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-899231420-594x594-1.jpg 594w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-899231420-594x594-1-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-899231420-594x594-1-100x70.jpg 100w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/gettyimages-899231420-594x594-1-218x150.jpg 218w" sizes="auto, (max-width: 594px) 100vw, 594px" /><figcaption>Zimbabwes former army commander and newly appointed vice president General Constantino Chiwenga (L) and Zimbabwe&#8217;s president Emmerson Mnangagwa (R) sit as they attend the swearing-in ceremony in Harare, on December 28, 2017.
Zimbabwes former army commander who led a military takeover that helped end Robert Mugabe&#8217;s 37-year rule sworn in as one of the country&#8217;s two vice presidents. General Constantino Chiwenga, 61, took the oath of office in Harare, pledging to be &#8220;faithful&#8221; to Zimbabwe and to &#8220;obey, uphold and defend the constitution&#8221;.
 / AFP PHOTO / Wilfred Kajese (Photo credit should read WILFRED KAJESE/AFP via Getty Images)</figcaption></figure>



Inflation running at more than 800% is the clearest sign of the worst economic crisis in over a decade and has evoked memories of hyperinflation under Robert Mugabe, whose 37-year rule was ended by an army coup in 2017.



The Zimbabwe Catholic Bishops Conference said in a pastoral letter that the country had a multi-layered crisis, including economic collapse, deepening poverty, corruption and human rights abuses.



“Fear runs down the spine of many of our people today. The crackdown on dissent is unprecedented,” the bishops said in the letter, read out at Catholic churches on Sunday.



“Is this the Zimbabwe we want? To have a different opinion does not mean to be an enemy.”



In response, information minister Monica Mutsvangwa criticised the head of the bishops conference, Archbishop Robert Ndlovu, and described the pastoral letter as an “evil message” meant to stoke a “Rwanda-type genocide”.



“His (Ndlovu’s) transgressions acquire a geopolitical dimension as the chief priest of the agenda of regime change that is the hallmark of the post-imperial major Western powers for the last two decades,” Mutsvangwa said in a statement.



Critics accuse Mnangagwa, Mugabe’s former deputy, of resorting to authoritarian tactics like those seen under his predecessor. Like Mugabe, Mnangagwa says Western countries are funding the opposition to topple his government.



The Law Society of Zimbabwe said in a statement that the human rights situation was deteriorating and that lawyers were also under attack from government agents.



“The law society further condemns the abduction and torture of citizens across the country by state security agents and individuals allegedly unknown but aligned to the state,” it said.

Emmerson_Mnangagwa_(2019-01-15)

Zimbabwe Catholic bishops, lawyers criticise alleged government abuses

JOHANNESBURG, Aug 17 (Reuters) &#8211; South African petrochemicals group Sasol reported an annual loss on Monday, hit by a writedown of 111.6 billion rand ($6.43 billion) and a drop in oil and chemical prices due to the coronavirus outbreak.



The world’s top producer of motor fuel from coal reported a loss of 91.3 billion rand for the full year ended June 30, compared with earnings of 6.1 billion rand in the prior year.



But core headline earnings per share, the primary profit gauge in South Africa that strips out certain once-off items, fell 61% to 14.70 rand ($0.85) for the year from 37.65 rand a year earlier.



Sasol said earnings were severely impacted by a collapse in oil prices and the economic impact of COVID-19 in the second half of the year despite good production and higher oil prices in the first half of the year.



The company said it recorded impairments of 111.6 billion rand, with 72.6 billion rand related to its base chemicals business and 38.8 billion rand related to other assets mainly in South Africa.



Earnings were further impacted by 3.9 billion rand in depreciation charges and 6.0 billion rand in finance charges for the year as its Lake Charles Chemicals project (LCCP) units reached beneficial operation, Sasol said.



Investors have been concerned by the company’s debt, largely due to delays and cost overruns at LCCP in Louisiana, that forced its former joint chief executive officers to resign in a bid to restore shareholder confidence.



Sasol said total debt for the year stood at 189.7 billion rand, compared with 130.9 billion rand a year earlier.



The petrochemical firm said it would continue to suspend dividends to protect liquidity amid ongoing economic uncertainty.

oil-rig-industry-oil

Africa’s Sasol swings to $5.3 bln annual loss on lower oil prices, write down

DAKAR (Reuters) &#8211; The central bank of Democratic Republic of Congo has raised the main interest rate to 18.5% from 7.5%, central bank official Plante Kibadhi said on Saturday.



The regulator had lowered the rate from 9% in March in order to cushion the economy from the impact of the coronavirus crisis, following similar actions by African central banks as the virus spread across the continent.



The latest rate hike was carried out to re-anchor inflation expectations, the International Monetary Fund said.



Year-on-year inflation in Congo stood at over 14% as of end-July, around 10 percentage points higher than at the same point last year, according to central bank figures.



The central bank has previously said it expects the economy to contract 2.4% this year compared with growth of over 4% in 2019 partly due to coronavirus-linked disruptions to mining, which accounts for a third of national output.



The pandemic has also dampened global demand for metals and other raw materials.

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Newsletter

Mauritius arrests captain of Japanese oil spill ship

Exclusive: Nigeria’s long-awaited oil reform bill to go to president – sources

Mauritius oil clean-up team turns focus from sea to mangroves

South Africa’s Eskom implements power cuts after breakdowns

Charges of contravening lockdown provisions against Implats executive dropped

Kenya-US free trade talks are under way: what Nairobi must get right from start

Nigeria eyes record 12.65 trillion naira spending plan for 2021 – document

Congo central bank raises 2020 GDP forecast to -1.7%

Nigeria’s $1.5 bln World Bank loan delayed over reforms -sources

South African rand marginally stronger in early trade

South Africa’s TFG concludes agreement to buy Jet stores, some approvals pending

South Africa’s Tiger Brands to sell processed meats units for $24.6 mln

Novavax begins mid-stage study of COVID-19 vaccine in South Africa

South African rand stronger after Ramaphosa announces lockdown easing

Zimbabwe Catholic bishops, lawyers criticise alleged government abuses

Africa’s Sasol swings to $5.3 bln annual loss on lower oil prices, write down

Congo’s central bank makes huge rate hike to 18.5%

News Tips

Advertise With Us

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