WASHINGTON/BEIJING (Reuters) &#8211; Top U.S. and Chinese trade officials are expected to recommit to a Phase 1 trade deal during a review on Saturday, even though China’s promised purchases of U.S. exports are far behind schedule.FILE PHOTO: U.S. and Chinese flags are seen before Defense Secretary James Mattis welcomes Chinese Minister of National Defense Gen. Wei Fenghe to the Pentagon in Arlington, Virginia, U.S., November 9, 2018. REUTERS/Yuri Gripas



Current and former U.S. government officials and trade experts in both countries say the Phase 1 deal, signed in January after nearly two years of tit-for-tat tariffs and angry rhetoric, is the one area where the world’s two largest economies are still cooperating.



The Trump administration has sanctioned companies and individuals linked to a security crackdown in Hong Kong and human rights, banned a Chinese owned video app, penalized Chinese academics and closed Beijing’s consulate in Houston in recent months.



Beijing has responded by closing the U.S. consulate in Chengdu and sanctioning some members of Congress.



Despite the escalating conflict, the Phase 1 trade deal won’t be dismantled, U.S. officials say.



“They have said they intend to implement the plan and we are engaged with them,” White House economic adviser Larry Kudlow said Thursday. “We have big differences with China on other matters, but regarding the Phase 1 trade deal, we are engaging.”



Chinese trade advisors say the slowing of both economies because of coronavirus-related lockdowns has made it difficult to meet purchase targets, but they don’t expect the White House to walk away.



“Being able to sit down and communicate with each other is a good thing,” said a Chinese state think tank economist who has advised Beijing on the trade deal, while cautioning there was little optimism about further trade breakthroughs.



“It’s hard for things to get even worse, while a best case scenario is hard to achieve,” said the economist, who spoke on condition of anonymity. “How can flowers grow in such a bad environment?”



China is falling far short of a promised additional $77 billion in purchases of U.S. farm and manufactured products, energy and services, although it has ramped up purchases of U.S. farm goods including soybeans and corn in recent weeks.



Imports of farm goods have been lower than 2017 levels, far behind the 50% increase needed to meet the 2020 target of $36.5 billion.



Beijing has bought only 5% of the energy products needed to meet the Phase 1 first year goal of $25.3 billion.



How to close or explain away this gap will be the biggest challenge for U.S. Trade Representative (USTR) Robert Lighthizer and Chinese Vice Premier Liu He during Saturday’s video call.



<h3 class="wp-block-heading">BEST OF A BAD SITUATION</h3>



Trade experts said there is little political upside for U.S. President Donald Trump to abandon the deal at this stage, which would admit one of his biggest trade initiatives &#8211; already being hammered by Democratic rival Joe Biden &#8211; had failed.



And even some Trump administration officials have been wary of reigniting a tariff war that would roil markets and likely knock down the S&amp;P 500&nbsp;<a href="https://www.reuters.com/finance/markets/index?symbol=.SPX">.SPX</a>, which traded close to record highs this week.



“At the moment, the agreement serves the interests of the Trump administration and Chinese leaders,” said former acting USTR Miriam Sapiro, now a managing director at communications firm Sard Verbinnen, adding the requirements set in the deal were “never realistic.”



Trump, who has said the trade deal no longer means as much to him because of China’s handling of the coronavirus pandemic, has expressed support for the deal this week, saying it should continue and purchases should surge in 2021..



Stephen Vaughn, former USTR general counsel and a legal architect of punitive tariffs on Chinese goods, said compliance with the deal also benefits China by keeping its U.S. relationship from deteriorating further. Now that its economy is recovering strongly from the coronavirus pandemic, Beijing has little excuse not to ramp up its purchases, he added.



“I don’t see what China would gain from a failure to comply.&nbsp;My guess is that will not happen,” said Vaughn, a trade partner with the King and Spalding law firm in Washington.



Claire Reade, a former USTR official and senior fellow at the Center for Strategic and International Studies, said the agreement does offer some incremental progress for U.S. firms seeking access to the lucrative Chinese market.



“If the administration lets the Phase 1 deal die, it becomes difficult to justify the pain caused by the lengthy trade war,” she wrote in an essay this week.



Nearly 90% of firms surveyed by the U.S.-China Business Council have a positive view of the trade deal, but only 7% say its benefits outweigh the costs of tariffs incurred along the way.

Trump’s Renewed Fight With China Explained

A faltering U.S.-China trade deal is now the nations’ strongest link

NAIROBI (Thomson Reuters Foundation) &#8211; Peter Njeru used to live in central Nairobi’s rundown Michuki Memorial Park because he had nowhere else to go. Now the 28-year-old is restoring and guarding the green space, one of about 200 jobless former park residents hired to help with the work.



“This park was my home with other street families, though people were dumping here illegally,” he said, noting that he used to collect and sell plastic bottles and metal scraps to buy food.



But after being evicted in 2017, he was hired for a few months to help clear trash in the park &#8211; and began guarding it in his spare time.



Now he has a full-time job keeping clean the once trash-choked Nairobi River that runs through the green space, earning enough to rent a house for himself and his family.



Kenya’s capital city is one of the fastest-growing in sub-Saharan Africa, according to the United Nations, and more people, trash and homelessness have taken a toll, along with new challenges like the COVID-19 pandemic.



But a government effort to better protect and restore parks in the city &#8211; particularly along the Nairobi River &#8211; is now having a significant payoff, not just in jobs but in green spaces to beat the heat and cope with virus restrictions, backers say.



The effort is part of a broader push to expand green infrastructure in Kenya’s capital, including ensuring widened road corridors have good sidewalks and drainage to prevent flooding, as well as more trees.



Maurice Kavai, an environmental compliance officer with Nairobi City County government, said such changes, including better water service and waste management, will help residents cope not just with the coronavirus crisis but with worsening climate change impacts and future pandemics.



Already it’s improving air quality and making the city a more pleasant place to work, said Loyd Ngere, a carpenter who sells wood furniture near expanded sidewalks along the road to Ngong.



The roadside is much less dusty, he said, and “my wares are visible to customers who often pass by because many people prefer walking due to good and safe pedestrian sidewalks”.



The effort to improve Michuki Memorial Park began in March, when the government allocated 30 million Kenyan shillings ($278,000) to rapidly rehabilitate the park to create more green space for social distancing, said Julius Wanjau, who runs Nairobi’s central business district.



“Early this year, the place was a criminal hideout, a (space for) illegal charcoal dealing, a dumping site, a home to many street families in Nairobi,” he said, with evicted families continuing to move back into the park.



But since the park was again cleared, 1,200 tons of garbage removed, and other improvements made, “now the place is clean with cool air and you can even find fish in the Nairobi River, which were never there before”, Wanjau said.



By asking former residents of the park what they wanted to see change, and giving them priority doing casual work to improve it, the project has also created what Wanjau calls “ambassadors” for the green space, committed to protecting it.



“They understand this place,” he said.



The timing of the work also has, coincidentally, helped cushion many of the city’s most vulnerable families economically through the city’s pandemic lockdown, providing work as other jobs dried up.



Phillip Dinga, who works for the C40 alliance of cities pushing for climate action and advises Nairobi officials, said the kind of changes Nairobi is making are crucial across Africa, both to cater for swelling urban populations and cut disaster risks.



Carrying out such work is a good way to use government spending to spur economies trying to recover from the COVID-19 economic slowdown as well, he said.



“We want to transition Nairobi to a world-class resilient city,” he said, including with air quality that meets World Health Organization standards.



Nairobi is moving towards that both by installing air quality monitors and working to make non-motorised transport &#8211; such as walking and cycling &#8211; easier and more pleasant, Dinga said.



Clement Ngoriareng, of the Kenya Forest Service, said his agency and others also are trying to identify more open spaces in the city that could be managed as urban forests to provide cooling, fresh air and recreation spaces.



Chris Kiptoo, principal secretary in the Ministry of Environment and Forest, said green, environmentally smart policy was key to both making cities more liveable and recovering effectively from the virus slowdown.



“The solutions lie with us,” he said during an online event, particularly in terms of finding “a deal that balances nature and people”.

Op-Ed: Jubilee, Kanu formalise coalition as internal battles rage in Kenya

Facing COVID-19 and climate threats, Nairobi ramps up green efforts

The full impact of the toxic spill is still unfolding, scientists say. As the Indian Ocean island’s residents scramble to mop up the oil slicks and clumps, they are seeing dead eels and fish floating in the water, as fuel-soaked seabirds limp onto shore.



Satellite images also show the 1,000 tonnes of spilled oil spreading northward along the coastline from the spill site in the turquoise waters of Blue Bay Marine Park.



<h4 class="wp-block-heading">RELATED COVERAGE</h4>



<ul class="wp-block-list"><li><a href="https://www.reuters.com/article/us-mauritius-environment-japan/japanese-shipping-company-says-mauritius-government-has-requested-compensation-idUSKCN25A009">Japanese shipping company says Mauritius government has requested compensation</a></li></ul>



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



“This oil spill occurred in one of, if not the most, sensitive areas in Mauritius,” oceanographer and environmental engineer Vassen Kauppaymuthoo told Reuters by telephone from the island, where he was surveying the disaster. “We are talking of decades to recover from this damage, and some of it may never recover.”



The wildlife at risk include the seagrasses blanketing sand in the shallow waters, clownfish darting around coral reefs, mangrove trees corralling the coastline with their tangled root systems, and the critically endangered Pink Pigeon, endemic to the island.



Giant tortoises slow-walk through a nature reserve on the nearby islet, Ile-aux-Aigrettes, where there is also a scientific research station. Altogether, Blue Bay Marine park counts 38 types of coral and 78 species of fish.



The spill brings “a massive poisonous shock to the system,” said Adam Moolna, an environmental scientist from Mauritius who lectures at Keele University in Britain. “This oil will have cascading effects across the webs of life.”



<h3 class="wp-block-heading">STILL UNCONTAINED</h3>



The spill came from the Japanese-owned MV Wakashio, which rammed into a reef in the marine park on July 25. It is still unclear why the ship was sailing so closely to the coast. About a week later, oil began gushing from the cracked vessel.A general view shows the bulk carrier ship MV Wakashio, belonging to a Japanese company but Panamanian-flagged, ran aground on a reef, at the Riviere des Creoles, Mauritius August 13, 2020. REUTERS/Reuben Pillay



However, the flow had been stopped, authorities say, after they pumped the remaining oil from the ship.



On Thursday, the ship’s owner Nagashiki Shipping said it would face up to its liability and assess compensation for the disaster.



Already, about 15 km of coastline have been affected by the spill, said Mauritius Marine Conservation Society President Jacqueline Sauzier.



“We don’t have the equipment or the expertise to remove the oil, and time is of the essence to limit the damage,” she told Reuters.



Local residents are wading unprotected into the toxic waters, while using human hair as well as husks from sugar cane factories to quickly soak up as much of the spill as they can.



For both people and wildlife, the spill will have a “resonating and resounding impact for the next 10 to 20 years,” said environmental toxicologist Craig Downs, who assesses oil spills but has not studied the spill in Mauritius.



<h3 class="wp-block-heading">SPIRALING IMPACT</h3>



Coral reefs and fish are likely to suffer first. That’s especially rough for Mauritius, where tourism and fishing are mainstays of the economy.Slideshow&nbsp;(4 Images)



Corals that survive could have weakened resistance to marine heat waves, which are hitting the area due to climate change and have already caused some coral bleaching, experts say.



“If things continue to go the way they are the future prospects for coral reefs look very, very bleak indeed,” said Alex Rogers, a visiting professor at Oxford University and science director of REV Ocean, a not-for-profit company.



Conservationists are also anxious about oil washing into mangrove forests, where roots serve as nurseries for fish.



Oil also could sink into sediments around mangroves, where it could smother molluscs, crabs and fish larvae, said Callum Roberts, a professor of marine conservation at the University of Exeter in Britain.



“It’s very hard to remove once it’s sunk into the sediment,” Roberts said. “Trees can become sick and die.”



Birds nesting in the mangroves, or migrating via nearby mudflats, are also vulnerable. Ingesting oil can make it hard for birds to fight disease or even to fly, said environmental toxicologist Christopher Goodchild at Oklahoma State University.



Research has shown that “just a small amount of oil being transferred to a bird’s egg — as small as a droplet of blood — can actually cause a change in the bird embryo’s physiology,” he said.



Beds of seagrass, which like mangroves store vast quantities of climate-warming carbon dioxide, play a vital role in protecting coasts from waves.



On land, some scientists warn that washed up oil deposits could harden and lead to lasting change.



“In the long term, we could see an asphalt-like coast as the oil dissipates and degrades, as the oil puddles,” said Ralph Portier, an environmental scientist at Louisiana State University who studied the aftermath of the 2010 Deepwater Horizon spill in the Gulf of Mexico.



“It’s a real tragedy,” Portier said.

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

‘Massive poisonous shock’: Scientists fear lasting impact from Mauritius oil spill

JOHANNESBURG (Reuters) &#8211; In an Italian bistro in an upmarket Johannesburg neighbourhood, smiling patrons chat at candle-lit tables in a scene reminiscent of less-troubled times before the COVID-19 pandemic.



But there’s no alcohol on the menu. Instead, diners order red or white “coffee” served in grey mugs, the tell-tale sign of a modern-day South African speakeasy.



Under one of the world’s strictest lockdowns, South Africa banned alcohol to lower hospital admissions for injuries from drink-related violence and accidents and ease the burden on healthworkers facing the worst coronavirus outbreak in Africa.



But businesses from wine makers to restaurants to informal taverns say the ban is costing jobs at a time when the economy is on its knees and President Cyril Ramaphosa is coming under pressure to end the prohibition as infection rates fall.



“Am I happy with what I’m doing? No,” said the bistro owner, who asked not to be named, adding that alcohol sales had saved him from firing half a dozen staff. “They’ve turned everybody into criminals.”



Restaurant workers, among the hardest hit by layoffs, protested last month calling for the right to sell alcohol while lobby group Agri SA said the ban had cost the wine industry 3.3 billion rand ($189 million) and 117,000 jobs.



Local media reported this week that the government body charged with managing the health crisis has recommended loosening lockdown restrictions and that has fueled speculation the ban might be lifted, possibly as soon as this weekend.



The presidency did not immediately respond to requests for comment.



‘NON-ALCOHOLIC?’



Introduced in March, restrictions on alcohol sales have spawned a thriving underground industry, complete with bootleggers and online traders offering doorstep delivery.



More recently, as authorities allowed sit-down dining to resume, some restaurants have joined the illicit trade.



Just doors down from the Italian bistro, Reuters found at least two more restaurants flouting the ban, seating drinkers in back rooms or serving wine in bottles labelled “non-alcoholic”.



According to statistics through July, South African police had arrested over 6,000 people on charges related to the ban.



But with alcohol now so readily available to thirsty South Africans, some question whether the measure is still enforceable &#8211; and bootleggers who once thrived under the ban are taking a hit to their business.



“A lot of people have their own contacts now,” one 27-year-old bootlegger told Reuters.



As the underground trade flourishes, however, legitimate businesses complain they are paying the price.



Since the ban came in, Dutch beer maker Heineken has dropped plans to build a new 6 billion rand ($345 million) brewery while Anheuser-Busch InBev’s South African Breweries has postponed a 5 billion rand investment.



In recession even before the pandemic, South Africa’s economy is now set to contract by more than 7% this year with a unemployment rate above 30%.



The growing economic fallout, coupled with indications the outbreak may be receding, have piled pressure on President Ramaphosa to end the prohibition.Slideshow&nbsp;(2 Images)



“Illicit alcohol trading is shooting through the roof and government is losing billions in tax and excise income,” Mihlali Xhala, head of the corporate chamber of Agri SA, said in a statement this week. “If our main priority is economic recovery, this is definitely not helping.”



<h3 class="wp-block-heading">‘TRAUMA CARNAGE AS USUAL’</h3>



South Africa has recorded more than 560,000 coronavirus cases and more than 10,700 deaths, by far the highest recorded total on the African continent. Daily new cases have now fallen to their lowest level since mid-June.



But despite progress in curbing the spread of the disease, some experts warn that repealing the alcohol ban risks eroding the benefits that have allowed the health system to cope.



“Going back to business as usual will go back to trauma carnage as usual,” said Professor Leslie London, head of public heath medicine at the University of Cape Town.



Before the lockdown, alcohol-related cases accounted for roughly 40% of hospital trauma admissions, according to the South African Medical Research Council.



In the two months after the ban was introduced, the health department in Western Cape province &#8211; an early epicentre of the virus &#8211; recorded a 40% to 50% drop in trauma cases.



“It substantially removed an unnecessary burden on the health services, which enabled hospitals to ready themselves for COVID-19. There is no dispute possible about that,” said the University of Cape Town’s London.



Four months into the lockdown, however, some South Africans now say they too need relief.



“You’re locked up in one space,” said one drinker, who asked not be named, served wine from a bottle labelled “non-alcoholic” at a tapas bar down the road from the Italian bistro.



“The main reason for buying alcohol is just to kind of regain some of those moments of just letting loose.”

How Coronavirus Decimated The Restaurant Industry Overnight

South African speakeasies boost calls for end to COVID booze ban

According to unconfirmed reports, suspected Islamist militants have once again attacked and occupied Mocímboa da Praia in the northern Cabo Delgado province. Reports suggest that the port town was first attacked overnight on August 5/6, with intense fighting continuing until August 11. 



Security forces are said to have been given air support by the South Africa-based private security company Dyck Advisory Group (DAG), which has been active in the region since May. 



DAG is currently based in the port city of Pemba, more than 300 km to the south. Although unconfirmed, both militants and security forces are believed to have suffered multiple casualties. Mocímboa da Praia has been targeted numerous times in 2020, including on March 23 when it was temporarily occupied. recently, the town was attacked and occupied overnight on June 27, the same day eight employees of Fenix Constructions Service, a subcontractor of Total, were killed when their vehicle was ambushed by gunmen near Palma, some 80 km north of Mocímboa da Praia. Both attacks on Mocímboa da Praia were claimed by the Islamic State Central African Province (ISCAP) militant group. ISCAP has claimed or been blamed for the most recent attacks in Cabo Delgado.



 However, it is only one of several groups known to be active in the region, with the group commonly known as Ansar al-Sunna or Ahlu Sunnah Wa-Jamo (also referred to by locals as Al-Shabaab) operating there since 2017. The groups are not thought to have direct links with their better-known namesakes, but rather identify with them ideologically. Indeed, most analysts agree that socio-economic issues, underdevelopment, and perceived marginalisation are major drivers of the Islamic insurgency in the region, along with militants’ links to organised crime. The government has struggled to contain the escalating insurgency, which has threatened major liquified natural gas projects in the province, deploying additional security forces and engaging private security companies to try and contain the growing violence.



 On May 14, Interior Minister Amade Miquidade announced that 50 militants were killed in a security operation launched in the Meluco, Mocímboa da Praia, Mueda, Muidimbe, Nangade, and Quissanga districts. However, security forces have also suffered major reversals, impacting morale and operational capacity. The insurgency has been considered at a multilateral level with the Southern African Development Community (Sadc) discussing it at a special summit in Harare on May 19.



 A communiqué released after the conclusion of the Extraordinary Organ Troika Summit plus Mozambique “urged Sadc member states to support the Government of Mozambique in fighting the terrorists and armed groups in some districts of Cabo Delgado”. However, there have been no concrete commitments by either the bloc or any individual member to provide military support.



 Senior figures in South Africa have made comments suggesting that the possibility was at least under discussion. South Africa’s Minister of International Relations and Cooperation, Naledi Pandor, briefed Parliament in May, saying that government was in discussion with Mozambique about how it could help fight the insurgency, prompting the Islamic State to issue threats to “open a fighting front inside [South Africa’s] borders”. The chairperson of the country’s National Joint Operational and Intelligence Structure (Natjoints) has since been quoted as saying, “We can’t interfere in a country’s sovereign matters, but we make sure we are keeping our forces ready.”



 In a development that may be related to the situation in Cabo Delgado, Tanzania’s military has been conducting military exercises along that country’s shared border with the troubled province since August 10. Tanzania first announced that it would be deploying soldiers to the border in May, in response to the insecurity. Islamist militants have significantly stepped up their activities in Cabo Delgado in 2020 and have become increasingly emboldened with its usual modus operandi evolving from targeting small villages and rural dwellers to launching relatively sophisticated attacks on district capitals, like Mocímboa da Praia and Quissanga. 



This has seen them driving security forces from towns they were garrisoned in, allowing militants to achieve psychological victories and capture weaponry. The security situation in Cabo Delgado is not expected to improve significantly over the short to medium term as there is no purely military solution to the insurgency. Most analysts agree that a coordinated, regional response to the insurgency is required as porous borders and organised crime activities are some of the key drivers of the violence. Mozambique is said to be reluctant to agree to a regional force being deployed, partly due to its poor relationship with Tanzania and Botswana, which will soon take over from Zimbabwe as chair of the Sadc Troika. Media reports allege that President Filipe Nyusi had proposed a bilateral arrangement to his Zimbabwean counterpart, Emmerson Mnangagwa, which was rejected as the latter preferred a coordinated response. A coordinated response appears unlikely in the immediate future. Louw Nel, Political Analyst

Mozambique records first COVID-19 death

Analysis: Why Mozambique is suffering from terror attacks

AMBOSELI NATIONAL PARK, Kenya (Reuters) &#8211; Kenya’s elephant numbers more than doubled between 1989 and 2018, thanks to increased anti-poaching efforts, the tourism minister said on Wednesday.



Kenya had just 16,000 elephants in 1989, and this rose to more than 34,000 in 2018, Minister Najib Balala said.



“In the last couple of years, we have managed to tame poaching in this country,” he told reporters during a visit to the Amboseli National Park.



The number of elephants poached so far this year stood at seven, down from 34 in all of 2019, and 80 in 2018.



While at the park, Balala participated in attaching a tracking collar to a bull elephant and naming of a pair of twin calves, as part of a naming campaign for elephants to be done next August.



Poaching had surged in past years in Kenya and other sub-Saharan African countries, where gangs killed elephants and rhinos to feed Asian demand for ivory and horns for use in folk medicines.



In 2016, President Uhuru Kenyatta set fire to thousands of elephant tusks and rhino horns, destroying a stockpile that would have been worth a fortune to smugglers and sending a message that trade in the animal parts must be stopped.



The government has put in place stiffer penalties &#8211; longer jail terms and bigger fines&nbsp;&#8211; on anyone convicted of poaching or trafficking in wildlife trophies, saying poaching was harming tourism, a major foreign exchange earner.



Balala said due to the COVID-19 pandemic, the number of foreign tourists visiting Kenya was expected to drop by 80% to 90% in 2020 and 2021.

COVID-19: Liven up your lockdown routine with SA’s ‘virtual safaris’

Kenya elephant numbers more than double in 1980-2018: tourism minister

As President Cyril Ramaphosa ponders whether to allow South Africans to smoke and drink again,the Commissioner for the South African Revenue Service revealed that the lockdown booze ban had already cost government coffers R15 billion, at a time when it can ill afford it. He also lamented the back street sales that have grown during the pandemic claiming it will take years to stamp them out. 



This was the word from SARS Commissioner Edward Kieswetter as he told CNBC Africa that the country had fallen short of its R321 billion tax target, set for the end of July, collecting a mere R316.8 billion- a shortfall of more than R4 billion.



&#8220;The real concern is that, year on year, we are already 21% down, which is R86 billion down.If you look at where that comes from, employment taxes are down by R14.5 billion, which is some 9%. That is a concern because many of these jobs may not return. CIT (corporate income tax) is down R16 billion, or 28%, and again there is a concern that some of the businesses that are trading may not also come back,&#8221;says Kieswetter. 



 



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VAT was down 11 %, by R14.5 billion; customs duty down by 16.7 billion, 26%, he said. Tax from alcohol was down by R 7 billion, 75% down year-on-year; cigarettes by R3 billion. 



&#8220;Ïf you then add the downstream taxes from those companies you will also add the loss in corporate income tax and employment taxes that gets you to a shortfall of R15 billion,&#8221; says Kieswetter. 



Kieswetter admitted that it was difficult for the government to balance the impact of the sale of alcohol on the health of the nation, with the impact on the economy. He lamented the black market that had grown during the ban. 



&#8221; It is going to take us years to root out the corruption and illegal activity that has taken root in this pandemic, &#8220;says Kieswetter.



The only bright spot on the horizon, says Kieswetter, was that the downtime gave SARS time to rebuild after years of taxes failing get back to the taxpayer. 



&#8220;&#8221;We are hopeful, if we worked hard on overall project in rebuilding SARS, that even though not all of the gap would be plugged, but we can handle the decline. We have to try our best We can&#8217;t let a good crisis go to waste and we must do what we can to rebuild SARS,&#8221;Kieswetter told Power Lunch on CNBC Africa.

beer

How no beer and cigarettes has cost South Africa R15 billion.

JOHANNESBURG (Reuters) &#8211; South Africa’s rand weakened slightly early on Thursday, pausing an advance in the previous session that saw the currency trade at its firmest in three days, with investors cautiously watching developments in the global economy.



At 0600 GMT the rand was 0.07% weaker at 17.4800 per dollar, having rallied to 17.3500 on Wednesday as souring diplomatic relations between the United States and China felled the greenback.



Recent tensions between Washington and Beijing over U.S. allegations of spying against the Asian superpower have overshadowed local issues, driving demand into riskier assets as investors searched for short-term returns.



With lending rates still relatively high in South Africa, despite deep cuts by the central bank, the rand and local bonds have seen inflows from investors ditching safe-havens but analysts have said these may offer only short-term relief.



“The rand posted meaningful short-term gains yesterday as apparent stop-losses were triggered below 17.5000, and this provided the catalyst for some exporter activity that saw the local unit reach the mid-17.30s,” analysts at Nedbank wrote.



“However, it has not been able to sustain these gains; it currently holds at sub-17.5000. Local markets are likely to be cautious, as Eskom has announced the resumption of stage 2 load-shedding.”



State power firm Eskom said breakdowns of some its generating units had forced it to resume countrywide blackouts, or loadshedding, with “stage 2” seeing it slash up to 2,000MW from the national grid.

money-coins-currency-business-royalty-free-thumbnail

South Africa’s rand backtracks as relief rally pauses

JOHANNESBURG (Reuters) &#8211; South African coal company Exxaro Resources reported a 40% jump in core earnings due to higher coal exports and a favourable exchange rate offsetting one-off items.



Exxaro said earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months to June 30 rose 40% to 3.929 billion rand ($224.9 million), boosted by higher commercial coal revenue offsetting higher costs.



Higher coal revenue was mainly driven by increased volumes of sales to power utility Eskom and a 39% rise in export volumes during the half-year, it said.



“Despite sustained global and domestic economic headwinds, compounded by market challenges and COVID-19, Exxaro maintained a resilient financial and operational performance, continuing our positive trajectory year-on-year,” Chief Executive Mxolisi Mgojo said.



However, headline earnings per share (HEPS) fell 24% to 13.21 rand ($0.7561) per share, compared with 17.30 rand a year earlier.



HEPS were impacted by the recognition of non-controlling interest charge of 1.224 billion rand for external shareholders of Eyesizwe RF, a special purpose private company that holds a 30% shareholding in Exxaro.



Coal production increased by 7% to 1,495 kilotonnes, mainly due to its Belfast and Grootegeluk mines.



The coal miner was deemed an essential service during South Africa’s lockdown, which lasted from late March to the end of May.



($1 = 17.4720 rand)

black-coal-1542285036I13

South Africa’s Exxaro reports jump in interim core earnings

NAIROBI (Reuters) &#8211; Tourist operators in Mauritius fear that an oil spill from a Japanese ship will further damage their businesses, already reeling from the coronavirus epidemic, and could cost jobs if their pristine beaches are spoiled.



Tourism generated 63 billion rupees ($1.6 billion) for the economy last year. In May, the central bank said that in the past two months alone, the nation had lost 12 billion rupees in foreign exchange due to the fall in tourism.



Willow River-Tonkin, who owns a kite-surfing business, said local guides would be some of the hardest hit.



“It is really going to affect the communities down there, especially for the fisherman, the local guys that live there, you know that’s how they make money from tourists,” said



“Taking them out to go diving to go snorkelling, to go wake boarding, to go see dolphins and all that sort of thing you know and all of that is going to affect it, if we don’t get it under control very soon.”



The MV Wakashio, owned by Nagashiki Shipping and operated by Mitsui OSK Lines Ltd, struck a reef and went aground off the Indian Ocean island’s southeast coast on July 25. It began leaking oil last Thursday.



Prime Minister Pravind Jugnauth declared a state of emergency last Friday.Slideshow&nbsp;(5 Images)



Romina Tello, the 30-year-old founder of sustainable tourism agency Mauritius Conscious, said that border closures due the coronavirus had already battered tourism. Mauritius shut its borders on March 19 and has had only 344 cases of COVID-19, of which 332 have recovered and 10 have died.



It is still closed to international air travel.



The southeast coast where the oil spill happened is famous for snorkelling, kite surfing and people visiting the sea flora and the fauna of Mauritius, Tello said, as well as sailing, as boats tend to travel to the islands nearby.



“We are trying to activate domestic tourism. But now, it is impossible for me to recommend for people to travel to the southeast coast due to the smell and they can’t swim because of the spill,” she told Reuters.

Mauritius tourism, reeling from COVID, now hit by oil spill

NAIROBI (Reuters) &#8211; Mauritius’ Prime Minister Pravind Jugnauth said on Wednesday nearly all remaining oil had been removed from a damaged Japanese ship, which leaked about 1,000 tonnes in a threat to tourism already hurt by the coronavirus pandemic.



“At the time I’m talking to you, almost all the oil has been removed from the ship,” Jugnauth told reporters, according to remarks shared by his office.



All fuel had been removed from tanks, but there was some residue in parts of the ship, his office added.



Tourist operators fear the spill will further damage businesses already reeling from the epidemic and could cost jobs if pristine beaches are spoiled.



Tourism generated 63 billion rupees ($1.6 billion) for the economy last year. In May, the central bank said that in the past two months alone, the nation had lost 12 billion rupees in foreign exchange due to the fall in tourism.



“It is really going to affect the communities down there, especially for the fisherman, the local guys that live there, you know that’s how they make money from tourists,” said Willow River-Tonkin, who owns a kite-surfing business.



“Taking them out to go diving, to go snorkelling, to go wakeboarding, to go see dolphins and all that sort of thing you know, and all of that is going to affect it, if we don’t get it under control very soon.”



The MV Wakashio, owned by Nagashiki Shipping and operated by Mitsui OSK Lines Ltd, struck a reef and went aground off the Indian Ocean island’s southeast coast on July 25.



It began leaking oil last Thursday.



Romina Tello, the 30-year-old founder of sustainable tourism agency Mauritius Conscious, said border closures due to the coronavirus had already battered tourism.Slideshow&nbsp;(5 Images)



Mauritius shut its borders on March 19 and has had only 344 cases of COVID-19, with 10 deaths.



The southeast coast where the oil spill happened is famous for snorkelling, kite surfing, sailing, sea flora and fauna, Tello said. “We are trying to activate domestic tourism. But now, it is impossible for me to recommend for people to travel to the southeast coast due to the smell and they can’t swim because of the spill,” she told Reuters.

Mauritius says almost all oil removed from damaged Japanese ship

LAGOS (Reuters) &#8211; Revenues for African e-commerce heavyweight Jumia slid by 10% in the second quarter, dashing hopes that lockdowns aimed at stemming the spread of the new coronavirus would lead to a flood of online orders.



The company also said it would pay $5 million to settle class action lawsuits alleging misstatements and omissions related to its initial public offering.



Shares in the struggling firm were 27% lower by 1350 GMT at $11.82 per share, driven in part by a 13% decline in gross merchandise value (GMV) — a closely watched figure that tallies the total amount of goods sold over the period.



Revenue for the quarter fell to 34.9 million euros ($41.1 million). The company said while there were surges in demand in markets that went into total lockdown, this only happened in four countries, which hold 24% of its adjustable market.



Softer restrictions elsewhere led to “less drastic changes in consumer behaviour”, Jumia co-founder Sacha Poignonnec said on an earnings call, while the surge in some markets was offset by lost revenue due to logistical problems and closed borders.



“Things went back to normal sometime in (the second quarter), and since then have been pretty steady, with no significant disruption and no significant surge,” Poignonnec said.



Still, Poignonnec pointed to encouraging signs including a 26% drop in its adjusted loss before interest, tax, depreciation and amortization, a rise in gross profits per order, and higher orders of the fast-moving consumer goods it hopes will yield more frequent orders.



“We are still at the very beginning of e-commerce in Africa,” he said.



Jumia was the first Africa-focused tech start-up to list on the New York Stock Exchange and reached a market capitalisation of over $1.5 billion just after it went public in April 2019.



It has since faltered, and its share price on Wednesday was roughly 70% below last year’s peak.



($1 = 0.8495 euros)

Jumia_Maroc

African e-commerce firm Jumia takes lockdown revenue hit

JOHANNESBURG (Reuters) &#8211; Formally adding unemployment or economic growth to the South African central bank’s mandate would risk policy mistakes and hurting its credibility, Governor Lesetja Kganyago said on Wednesday.



The Reserve Bank (SARB) has long been under pressure to take more drastic measures to revive growth in Africa’s most advanced economy, with calls for the bank to slash lending rates and finance government through quantitative easing (QE).



The bank has cut rates by 300 basis points in 2020 to a record-low 3.50%.



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And in March it launched a bond-buying program, purchasing government debt in the secondary market to ease a liquidity collapse in the capital markets prompted by the COVID-19 pandemic.



But with the economy, already in recession before the coronavirus and set to contract by more than 7% this year, and the government budget nearing double-digits deficit, labour and some politicians have called for more drastic action, including a widening of the bank’s mandate.



“The problem is that formally adding an extra mandate, in the context of our propensity to stagflation, could encourage policy mistakes and weaken credibility,” Kganyago said in a speech broadcast virtually by the University of Pretoria.



“While we would all like South Africa to reach permanently high growth, this is beyond the powers of a central bank,” Kganyago said, adding the bank would stick to inflation-targeting policy.



“We are in very difficult circumstances, but QE isn’t the answer. We need to focus on real solutions.”

South African Reserve Bank Governor Lesetja Kganyago Interview

S.Africa’s economic woes bigger than monetary policy -cenbank governor

TOKYO (Reuters) &#8211; Most of oil remaining on a Japanese bulk carrier that struck a coral reef off Mauritius late last month and leaked an estimated 1,000 tonnes of oil has been collected, a representative of the ship owner, Nagashiki Shipping, said on Wednesday.



The ship, MV Wakashio, is owned by Nagashiki and operated by Mitsui OSK Lines Ltd.



Activists told Reuters that dead eels were floating in the water and dead starfish were marked by the sticky black liquid. Crabs and seabirds are also dying.



“We don’t know what may happen further with the boat, it may crack more,” said clean up volunteer Yvan Luckhun.



The MV Wakashio is still holding some 2,000 tonnes of oil and it is expected to eventually break up, Prime Minister Pravind Jugnauth said late on Monday, warning that the country must brace for the worst.



Tourism is a leading part of the Mauritius economy. The government, which declared an emergency on Friday due to the spill, is working with former colonial ruler France to try to remove the oil.



The spill has set back two decades worth of restoring the natural wildlife and plants in the lagoon, which started after the government banned sand harvesting in the area back in 2000, said Vikash Tatayah, conservation director at Mauritius Wildlife Foundation, a non-governmental organisation.



The fragmentation of the oil in the sea is expected to damage corals when the heavier particles in the oil settle on them, he said, adding that the steps taken by the government to prevent the disaster are also being scrutinised.



“There is some anger and some criticism from the civil society that the government may have taken too much time to respond,” Tatayah said. The ship was grounded for nearly two weeks before it started leaking oil.



There was no immediate comment from Mauritian government officials.Slideshow&nbsp;(5 Images)



The Wakashio passed an annual inspection in March without any problems, Japan’s ClassNK inspection body said.



Mitsui OSK Lines said in statement: “We will do our utmost towards resolving the situation quickly.” It did not provide any details. The company said it has sent six employees to the site and was considering sending more, along with transport supplies.



The International Maritime Organization said it had joined efforts to tackle the spill by providing technical advice and coordinating the response. U.N. agencies and other international groups were also mobilising environmental and oil spill experts.

Most of oil on damaged ship in Mauritius collected: representative for ship owner

(Reuters) &#8211; Democratic presidential candidate Joe Biden and his new running mate, Senator Kamala Harris, will make their first appearance as a ticket on Wednesday in Wilmington, Delaware, as the campaign for the White House enters a more frenetic phase.



The two are scheduled to deliver remarks just days before Biden formally accepts the Democratic nomination during the party’s national convention, which will take place largely as a virtual event next week due to the coronavirus pandemic.



The Republican convention, where President Donald Trump will be nominated for a second four-year term, follows a week later and kicks off a 10-week sprint to the Nov. 3 election.



<h4 class="wp-block-heading">RELATED COVERAGE</h4>



<ul class="wp-block-list"><li><a href="https://www.reuters.com/article/us-usa-election-biden-harris-analysis/why-kamala-harris-may-prove-an-elusive-target-for-trump-idUSKCN25818T">Why Kamala Harris may prove an elusive target for Trump</a></li></ul>



Harris, 55, the first Black woman and the first Asian American to appear on a major-party presidential ticket, was announced as Biden’s choice on Tuesday after a selection process that drew extra scrutiny thanks to Biden’s age.



The 77-year-old would be the oldest president ever if he wins, raising speculation that he would not seek re-election in 2024.



Wednesday’s event in Biden’s hometown will take place on the third anniversary of the “Unite the Right” rally in Charlottesville, Virginia, where violent clashes erupted as white supremacists and neo-Nazis descended on the town.



Biden has said Trump’s comment after the clashes that there were “very fine people on both sides”, which drew widespread criticism, convinced him to run for president.



In choosing Harris, Biden selected a former rival for the nomination whose most memorable campaign moment was when she criticized his past position on using busing to integrate schools during a televised debate.



But Harris was regarded as a relatively safe choice. She is a more dynamic campaigner than Biden and will be relied upon to help energize Black voters, who represent a crucial constituency for Biden in key swing states.



In recent months, as unrest has convulsed U.S. cities following the police killing of George Floyd, a Black man in Minneapolis, Harris has become a prominent voice calling for change. She has marched alongside protesters and pushed legislation to reform policing practices.



Biden, who had vowed to pick a female running mate, had come under increasing pressure to select a Black woman.



As a former prosecutor and attorney general, Harris has shown herself to be a sharp questioner in Senate hearings and appears to be well suited to the traditional “attack dog” role that vice presidential candidates are often asked to assume.



The Trump campaign wasted little time on Tuesday attacking Harris as a “radical” who would drag Biden to the left. But it remains unclear whether the broadsides will be effective.

540px-Senator_Harris_official_senate_portrait-1

Democrat Biden and new running mate Harris to make first campaign appearance

WASHINGTON (Reuters) &#8211; Joe Biden’s selection of Senator Kamala Harris as his running mate provides a brand-new target for President Donald Trump’s re-election campaign that has struggled to find an effective line of attack against his Democratic rival.



But going after Harris comes with its own risks and challenges.



Within minutes of Biden’s announcement on Tuesday, Trump had called Harris “nasty,” “horrible” and “disrespectful,” while his campaign painted her as an extremist who would yank the moderate Biden to the left.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="540" height="720" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/540px-Senator_Harris_official_senate_portrait-1.jpg" alt="" class="wp-image-378750" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/540px-Senator_Harris_official_senate_portrait-1.jpg 540w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/540px-Senator_Harris_official_senate_portrait-1-225x300.jpg 225w" sizes="auto, (max-width: 540px) 100vw, 540px" /></figure>



But there is little evidence at the moment that suggests that the public views Harris, a former California prosecutor and attorney general with strong ties to the Democratic establishment, as a radical.



In fact, she’s more liked by Republicans than Biden, according to a Reuters/Ipsos poll conducted on Aug. 10-11, just before she was announced as Biden’s pick. The poll showed 21% of registered Republican voters have a favorable impression of Harris, compared with 13% who had a similarly favorable view of Biden.



More concerning for Trump: Attacks that could appear sexist or racist against the first Black woman on a major party ticket in U.S. history could complicate his campaign’s effort to shore up his standing among suburban women, a critical voting bloc he must win back in order to get re-elected, strategists on both sides say.



Already, leading Democratic women warned against a replay of Trump’s match-up in 2016 with then Democratic presidential nominee Hillary Clinton, who was subject to gender-based critiques as the first female presidential candidate. Trump has also called Clinton “nasty” and accused her of playing the “woman’s card.”



“If he wants to use misogynistic tropes against Kamala Harris, I think that is deeply challenging for him,” said Neera Tanden, a top aide to Clinton during her presidential bid. “He has no room for error with suburban women.”



According to the latest Reuters/Ipsos poll, Biden had an advantage of 10 percentage points among women and a 6-point lead among those who live in the suburbs. Overall, Biden leads Trump by 11 points, less than three months to go before the Nov. 3 vote.



Sarah Longwell, a Republican pollster, said Trump’s advisers would likely want the president, known for fiery and bombastic rhetoric against his political rivals, to be more cautious about attacking Harris unless they had reason to believe suburban women distrusted or disliked her.



“But there’s no evidence yet that they do dislike or distrust her,” Longwell said. “In fact, my guess is that she’ll play pretty well with suburban women.”



<h3 class="wp-block-heading">LOOKING FOR AN EDGE</h3>



Trump’s standing with the public has faded badly amid the coronavirus pandemic, the economic downturn and nationwide protests over police brutality and racial injustice.



Scrambling for something to alter the trajectory of the race, Trump and his Republican allies quickly launched a fusillade of attacks at Harris moments after the pick was announced.



The campaign hosted a conference call with reporters to assail her early stances during her own White House bid, when she supported progressive policy proposals such as the Green New Deal, a sweeping clean energy plan, and Medicare for All, a single-payer, government sponsored healthcare plan. Biden has not backed either proposal.



Harris shifted several of her policy stances in the course of the campaign in a bid to move toward the center. But the Trump campaign made clear it will attempt to paint her as an unrepentant leftist, while suggesting that the 77-year-old Biden could soon be out of office and replaced by her.



At the same time, the campaign said it will also seek to highlight criticism of Harris from the African-American community over her criminal justice record, hoping to drive a wedge between her and the Democratic Party’s most loyal constituency.



Privately, however, Trump’s aides acknowledged Harris would be a formidable adversary. One senior White House official said that the Harris pick means Vice President Mike Pence would have a tough debate in October.



Trump, in his White House news conference, acknowledged Harris’ aggressive questioning of then-Supreme Court nominee Brett Kavanaugh at his 2018 confirmation hearing.



“She was nasty to a level that was just a horrible thing the way she treated now-Justice Kavanaugh, and I won’t forget that soon,” Trump said.



Harris and Biden’s immediate challenge, in fact, will be to stamp out any brush fires among progressives who had urged Biden to choose a more overtly progressive candidate, such Senator Elizabeth Warren, Democratic activists say. [L1N2FD2IE]



During her presidential bid, Harris was fiercely criticized by progressives who viewed her prosecutorial record as overly supportive of law enforcement. She has since become a vocal supporter of progressive criminal-justice reforms.



Rashad Robinson, executive director of Color of Change, an advocacy group that has worked with Harris on police reform efforts, said the nominee will have to engage her progressive critics to win them over.



“These are questions she has to answer head-on,” Robinson said. “She has to answer questions about her evolution. Talk about the challenges that she has and talk about where she has moved.”

540px-Senator_Harris_official_senate_portrait

Why Kamala Harris may prove an elusive target for Trump

JOHANNESBURG (Reuters) &#8211; South African business confidence recovered from a 35-year low in July, boosted by improving global economic activity, but the measure remained well-below average, over worries about the slow re-openinng of the economy and soaring local infections.



On Wednesday the South African Chamber of Commerce and Industry’s (SACCI) monthly business confidence index (BCI) rose to 82.8 in July from 81.4 in June.



The sentiment gauge had crashed to 70.1 in May, its lowest since the inception of the survey in 1985, and below last year’s average of 92.6.

Newsletter

A faltering U.S.-China trade deal is now the nations’ strongest link

Facing COVID-19 and climate threats, Nairobi ramps up green efforts

‘Massive poisonous shock’: Scientists fear lasting impact from Mauritius oil spill

South African speakeasies boost calls for end to COVID booze ban

Analysis: Why Mozambique is suffering from terror attacks

Kenya elephant numbers more than double in 1980-2018: tourism minister

How no beer and cigarettes has cost South Africa R15 billion.

South Africa’s rand backtracks as relief rally pauses

South Africa’s Exxaro reports jump in interim core earnings

Mauritius tourism, reeling from COVID, now hit by oil spill

Mauritius says almost all oil removed from damaged Japanese ship

African e-commerce firm Jumia takes lockdown revenue hit

S.Africa’s economic woes bigger than monetary policy -cenbank governor

Most of oil on damaged ship in Mauritius collected: representative for ship owner

Democrat Biden and new running mate Harris to make first campaign appearance

Why Kamala Harris may prove an elusive target for Trump

South African business confidence recovers from 35-year low

News Tips

Advertise With Us

Newsletter

A faltering U.S.-China trade deal is now the nations’ strongest link

Facing COVID-19 and climate threats, Nairobi ramps up green efforts

‘Massive poisonous shock’: Scientists fear lasting impact from Mauritius oil spill

South African speakeasies boost calls for end to COVID booze ban

Analysis: Why Mozambique is suffering from terror attacks

Kenya elephant numbers more than double in 1980-2018: tourism minister

How no beer and cigarettes has cost South Africa R15 billion.

South Africa’s rand backtracks as relief rally pauses

South Africa’s Exxaro reports jump in interim core earnings

Mauritius tourism, reeling from COVID, now hit by oil spill

Mauritius says almost all oil removed from damaged Japanese ship

African e-commerce firm Jumia takes lockdown revenue hit

S.Africa’s economic woes bigger than monetary policy -cenbank governor

Most of oil on damaged ship in Mauritius collected: representative for ship owner

Democrat Biden and new running mate Harris to make first campaign appearance

Why Kamala Harris may prove an elusive target for Trump

South African business confidence recovers from 35-year low

News Tips

Advertise With Us

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