<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-820x547.jpg" alt="" class="wp-image-487665" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1166232221-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Fabricio Bloisi, chief executive officer of Movile Group, a unit of Napsers Ltd, poses for a photograph in Amsterdam, Netherlands, on Thursday, Aug. 29, 2019. Naspers-owned internet ventures will be carved out into a new $100 billion company called Prosus NV, which is due to list in Amsterdam on Sept. 11. Photographer: Yuriko Nakao/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, May 17 (Reuters) &#8211; Dutch technology investor Prosus PRX.AS and its South African parent group Naspers NPNJn.J on Friday named the head of their iFood business, Fabricio Bloisi, as their new CEO, replacing long-time boss Bob van Dijk who stepped down last September.



The companies, whose main asset is Prosus&#8217;s 26% stake in Chinese tech giant Tencent&nbsp;0700.HK, said Bloisi &#8211; currently the CEO of Latin American food delivery business iFood &#8211; would assume the role at both companies on July 1.



&#8220;He (Bloisi) has a combination of vision, deep operational experience and strong discipline. It is this skill set which the board believes make him the right person to now lead us,&#8221; Prosus and Naspers Chair Koos Bekker said in a statement.



Bloisi welcomed the opportunity to lead both companies, adding: &#8220;A company like Prosus must play an important role in identifying new technologies, such as AI, that impact the world and specifically emerging markets&#8221;.



Prosus said the group&#8217;s strategic goals remained unchanged, adding it was on track to deliver on e-commerce profitability in the second half of its 2024 financial year and continue its open-ended share repurchase programme.



Outgoing CEO Dijk oversaw Prosus&#8217;s initial public offering in 2019 and the stock&#8217;s strong performance during the COVID-19 pandemic. But its shares fell in the broadly post-pandemic correction in technology valuations, and the company has struggled to reduce its discount to Tencent.



Since Bloisi is not as experienced in international mergers and acquisitions and dealing with investors, the board appointed interim CEO Ervin Tu as president and chief investment officer, Bekker told investors on a call.



&#8220;As our new President and CIO, he will play a fundamental role in shaping the group&#8217;s future strategy, investments, and capital allocation,&#8221; Bekker added.



But Bloisi will have the final say on capital allocation, Tu told investors.



Prosus shares were down 3.10% at 1116 GMT, while Naspers&#8217; were down 3.11%.



&#8220;Whilst we think the market will take some time to get to know Bloisi and could be sceptical initially &#8230; we believe the team of Bloisi heading and Tu alongside could work well,&#8221; UBS analyst Joseph Barnet-Lamb said.



Jefferies analysts said Bloisi&#8217;s skills as an owner-operator were unlikely to be fully used at the helm of Prosus given investments in both public and private companies have their own operators.



&#8220;We would have preferred a capital allocator with a track record in either private or public market expertise at the helm of Prosus,&#8221; they said.



(Additional reporting by Radhika Anilkumar and Prerna Bedi in Bengaluru; Editing by Sherry Jacob-Phillips and Mark Potter)

Naspers Prepares to List Global Empire From Ads to Tencent

Prosus and Naspers name iFood head Bloisi as new CEO

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-820x548.jpg" alt="" class="wp-image-487648" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/P763LBKESBL7DNF5FGYK2ONI4M-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Israeli delegation members sit at the International Court of Justice (ICJ), at the start of a hearing where South Africa requests new emergency measures over Israel&#8217;s attacks on Rafah, as part of an ongoing case South Africa filed at the ICJ in December last year accusing Israel of violating the Genocide Convention during its offensive against Palestinians in Gaza, in The Hague Netherlands May 17, 2024. REUTERS/Yves Herman</figcaption></figure>



THE HAGUE, May 17 (Reuters)&nbsp;&#8211;&nbsp;Israel on Friday defended the military necessity of its Gaza offensive at the International Court of Justice after South Africa asked judges to order it to halt operations in Rafah and completely withdraw from the Palestinian territory.



Israeli Justice Ministry official Gilad Noam called South Africa&#8217;s case, which accuses Israel of violating the Genocide Convention, &#8220;completely divorced from facts and circumstances&#8221;.



&#8220;(The case) makes a mockery of the heinous charge of genocide,&#8221; Noam said.



Ahead of Israel&#8217;s presentation, several dozen pro-Israeli protesters gathered outside, displaying photographs of hostages taken by Hamas fighters on Oct. 7 and demanding their release.



More than 35,300 Palestinians have been killed in Israel’s seven-month-old assault on the Gaza Strip, health officials in the enclave said on Thursday. The war began when Hamas militants attacked Israel on Oct. 7, killing 1,200 people and abducting 253 others.



On Thursday, South Africa&#8217;s ambassador to the Netherlands, Vusimuzi Madonsela, requested the court to order Israel to &#8220;immediately, totally and unconditionally, withdraw the Israeli army from the entirety of the Gaza Strip.&#8221;



The South African legal team framed the Israeli military operation as part of a genocidal plan aimed at bringing about the destruction of the Palestinian people.



In past rulings, the court has rejected Israel&#8217;s demands to dismiss the case and ordered it to prevent acts of genocide against the Palestinians, while stopping short of ordering it to halt the assault.



(Reporting by Stephanie van den Berg and Anthony Deutsch; Editing by Peter Graff)

South Africa asks World Court for more emergency measures over Israel’s Rafah offensive, in The Hague

Israel tells World Court South Africa case makes a mockery of genocide

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-820x536.jpg" alt="" class="wp-image-487632" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-1536x1004.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GSOSOM4DZFNTPBYDV4RS2U7HM4-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker&#8217;s uniform displays company branding at a Sainsbury&#8217;s store in London, Britain October 11, 2016. REUTERS/Neil Hall/File Photo</figcaption></figure>



LONDON, May 17 (Reuters)&nbsp;&#8211;&nbsp;Britain&#8217;s Sainsbury&#8217;s&nbsp;SBRY.L&nbsp;said on Friday it has agreed a five-year strategic partnership with Microsoft&nbsp;MSFT.O&nbsp;that will use the technology company&#8217;s artificial intelligence capabilities and the supermarket group&#8217;s rich data.



Seeking revenue gains and cost savings, more retailers are using generative AI to boost personalised shopping experiences for consumers and make staff working practices more efficient.



Sainsbury&#8217;s, Britain&#8217;s second-largest grocer after Tesco&nbsp;TSCO.L, said it would use AI to create a more interactive shopping experience for online shoppers, while also improving search functions.



In stores, staff would have real-time data and insights for key processes, such as shelf replenishment.



Time to market for new services and product innovations would also be reduced, Sainsbury&#8217;s said.



No financial details of the partnership were disclosed.



Sainsbury&#8217;s in February updated the market on its strategy, setting a new cost-savings target of 1 billion pounds ($1.3 billion) over three years and pledging to boost returns for shareholders.



Last month, it forecast up to 10% growth in profit in the current financial year that began on March 3, confident it can continue to win more customers from rivals.



($1 = 0.7895 pounds)



(Reporting by James Davey; Editing by Jamie Freed)

A worker’s uniform displays company branding at a Sainsbury’s store in London

British grocer Sainsbury’s partners with Microsoft to use AI for data insights

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-820x541.jpg" alt="" class="wp-image-487399" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-1536x1014.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Workers offload boxes with Oxford/AstraZeneca vaccines as the country receives its first batch of coronavirus disease (COVID-19) vaccines under COVAX scheme, at the international airport of Abuja, Nigeria March 2, 2021. REUTERS/Abraham Archiga</figcaption></figure>



ABUJA, May 16 (Reuters)&nbsp;&#8211;&nbsp;Dubai&#8217;s Emirates airline will resume flight schedules to Nigeria from Oct. 1, it said on Thursday, ending a close to two-year halt to flights.



The United Arab Emirates (UAE) stopped issuing visas to Nigerians in 2022 after Emirates suspended flights between the nations because of an inability to repatriate funds from Nigeria.



&#8220;We are excited to resume our services to Nigeria. We thank the Nigerian government for their partnership and support in re-establishing this route and we look forward to welcoming passengers back on board,&#8221; Adnan Kazim, the airline&#8217;s deputy president and chief commercial officer, said in a statement.



The Lagos-Dubai service has been popular with Nigerian customers in the past and Emirates said it hopes to reconnect travellers to Dubai and onwards to more than 140 destination with its resumption of services.



Nigerian President Bola Ahmed Tinubu and UAE President Mohamed bin Zayed Al Nahyan met last September in Abu Dhabi and discussed the lifting of the visa ban and new investments into Africa&#8217;s most populous country.



The resumption of schedules also includes cargo flights, the statement said.



(Reporting by Ope Adetayo; Additonal reporting by Elisha Bala-Gbogbo; Editing by Jason Neely and David Goodman)

Oxford/AstraZeneca vaccines against COVID-19 arrive in Abuja

Emirates to resume Nigeria flights after nearly two years

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-820x573.jpg" alt="" class="wp-image-487246" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/MRLWKTGVIRIYFC257KSXSP6GGA-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South Africa President Cyril Ramaphosa speaks at the Congress of South African Trade Unions (COSATU) National Worker&#8217;s Day rally at Athlone Stadium in Cape Town, South Africa, May 1, 2024.?REUTERS/Esa?Alexander/File Photo</figcaption></figure>



JOHANNESBURG, May 16 (Reuters) &#8211; South Africans vote in a national election on May 29 and, for the first time since the end of apartheid 30 years ago, polls suggest the ruling African National Congress party (ANC) is at risk of losing its parliamentary majority. Investors are paying close attention.



<h2 class="wp-block-heading" id="h-why-is-nbsp-a-majority-nbsp-important">WHY IS&nbsp;A MAJORITY&nbsp;IMPORTANT?</h2>



If the ANC gets less than 50% support it would have to seek one or more coalition partners to govern Africa&#8217;s most industrialised economy. The new parliament will choose South Africa&#8217;s next president.



The new government will set fiscal and economic policy for the coming five years, and investors want to see if the next administration is likely to tack sharply left, head in a more business-friendly direction or prevail with the status quo of slow reforms.



<h2 class="wp-block-heading" id="h-what-are-investors-focused-on">WHAT ARE INVESTORS FOCUSED ON?</h2>



An April Ipsos poll put the ANC&#8217;s support at 40.2% and most surveys have estimated it will get below 45%, the level financial analysts say it needs to reach to enlist smaller, centrist coalition partners.



Otherwise, the ANC may have to seek a deal with&nbsp;the far-left Marxist Economic Freedom Fighters (EFF) or the economically liberal Democratic Alliance (DA).



&#8220;The market is watching very closely to see the degree to which the ANC&#8230; (is) forced to engage in coalitions with what are perceived to be extremely left-wing parties such as the MK (uMkhonto we Sizwe party) and EFF,&#8221; said Yvette Babb, a portfolio manager at U.S.-asset manager William Blair Investment Management.



&#8220;The greyer zone of between 45%-50%, whereby they (ANC) may need to form a coalition with smaller parties that are more centrist, is not deemed to be a bad thing&#8230;perhaps that introduces more checks and balances into the governance process.&#8221;



<h2 class="wp-block-heading" id="h-how-will-markets-react">HOW WILL MARKETS REACT?</h2>



Post-election coalition discussions between the ANC and the EFF or the recently-formed MK, led by former President Jacob Zuma, would lead to a &#8220;kneejerk&#8221; sell-off of South African assets, said Mpho Molopyane, chief economist at South African investment and insurance company Alexforbes.



&#8220;The concern is that&#8230; we could see government turning more populist, increasing social spending, implementing policies that are anti-business, the reform agenda slowing down,&#8221; she said.



Meanwhile, coalition discussions between the ANC and DA would likely lead to a &#8220;risk-on rally&#8221;, where prices rise, Molopyane said.



&#8220;A coalition with the DA is regarded as likely to be more business friendly&#8230; an efficiently run state, fiscal prudence – all of which would bode well for South Africa&#8217;s growth prospects,&#8221; she said.



<h2 class="wp-block-heading" id="h-how-might-the-election-impact-the-rand">HOW MIGHT THE ELECTION IMPACT THE RAND?</h2>



The rand has reflected South Africa&#8217;s economic woes in recent years. The currency has weakened a touch year-to-date and marked annual losses of 5% or more in the previous four years.



&#8220;Fair value&#8221; for the rand-U.S. dollar exchange rate&nbsp;ZAR=D3&nbsp;is about 18.10 rand per dollar, so with it currently trading just below 18.40 there is a relatively small election-linked risk premium, said Elna Moolman, Standard Bank&#8217;s head of South Africa macroeconomic, fixed income and currency research.



&#8220;This is&#8230; consistent with the general sense that investors now generally expect a benign election outcome (which ensures policy continuity),&#8221; she said.



Citi&#8217;s Luis Costa noted that the election risk premium had already faded in recent days and weeks.



&#8220;The more fundamental factors in ZAR have been recently supportive of economic activity such as the terms of trade dynamics and the improved domestic load-shedding (which&nbsp;however&nbsp;may not last after the polls close),&#8221; Costa said in a note to clients.



Load-shedding refers to scheduled power cuts which have hobbled the economy in recent years.



<h2 class="wp-block-heading" id="h-how-will-the-election-affect-the-economy-and-investment">HOW WILL THE ELECTION AFFECT THE ECONOMY AND INVESTMENT?</h2>



South Africa&#8217;s economy has barely grown in the last decade, crippled by the record power cuts and the degraded transport network. The economy grew just 0.6% in 2023.



&#8220;I don&#8217;t see any political party with a real plan to stimulate the economy, only promises for everyone to somehow have a job,&#8221; said independent risk consultant Marisa Lourenco, adding foreign direct investors were in wait-and-see mode.



&#8220;But as the dust settles after the election, South Africa will still remain attractive for certain industries, like gas, renewables, mining (like manganese).&#8221;



Net FDI inflows have generally been higher than pre-1994, when the ANC took power, World Bank data shows. Inflows stood at $9.19 billion in 2022 compared to some $374 million in 1994.



In contrast, foreign investors have cut holdings of stocks and bonds. Foreign ownership of domestic government bonds fell from a peak of 42.8% in 2018 to under 25% this year.



Other issues for international businesses operating in South Africa include infrastructure challenges, skilled worker shortages, the&#8217;greylisting&#8217; of South Africa financial sector over transparency concerns and delays for foreign workers getting permits, said Simone Pohl, CEO of the Southern African-German Chamber of Commerce and Industry.



&#8220;Despite those challenges, South Africa&#8217;s highly diversified economy, overall market volume, free press and its independent justice system still make it the number one investment location in Southern Africa,&#8221; she added.



($1 = 18.4528 rand)



(Reporting by Rachel Savage, additional reporting by Libby George, Editing by Olivia Kumwenda-Mtambo and Toby Chopra)

FILE PHOTO: South Africa President Cyril Ramaphosa attends the Cosatu National Worker’s Day rally at Athlone Stadium in Cape Town

What are the key issues for investors in South Africa’s 2024 election?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="528" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-820x528.jpg" alt="" class="wp-image-487001" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-820x528.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-768x495.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-1536x990.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/ZN2RIXYPHJJ5HFHBQHPMQOWAVU-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Africa&#8217;s President Cyril Ramaphosa gestures as he signs into law a national health bill that aims to provide universal coverage to South Africans, at the Union Building in Pretoria, South Africa, May 15, 2024. REUTERS/Siphiwe Sibeko</figcaption></figure>



PRETORIA, May 15 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s President Cyril Ramaphosa signed into law on Wednesday a bill that aims to provide universal health coverage, hailing it as a major step towards a more just society two weeks before an election that is expected to be fiercely competitive.



The National Health Insurance (NHI) Act takes aim at a two-tier health system, in which a publicly funded sector that serves 84% of the population is overburdened and run-down while some people have access to better treatment through private insurance.



Opponents have vowed to challenge it in court and described it is a ploy for votes &#8211; which the presidency denied &#8211; ahead of an election in which the governing African National Congress (ANC) is fighting to retain its parliamentary majority after 30 years in power.



The legislation will gradually limit the role of private insurance, create a new public fund to provide free access for South African citizens, and set the fees and prices that private doctors and healthcare suppliers can charge for NHI-funded benefits.



&#8220;The provision of healthcare in this country is fragmented, unsustainable and unacceptable,&#8221; said Ramaphosa, framing the legislation as a solution to inequalities that date back to the apartheid era.



&#8220;For those who would like to see (their) privileges continuing, sorry, you are on the wrong boat. The boat we are on is about equality,&#8221; he said at a signing ceremony at the Union Buildings, the seat of government in Pretoria.



Opponents say the plan will drain already stretched public finances, limit patient choice, undermine the quality of care and drive talented doctors out of the country.



<h2 class="wp-block-heading" id="h-legal-challenges">LEGAL CHALLENGES</h2>



Industry and political analysts have said the legislation is likely to get bogged down in lawsuits for years, with the funding model the main aspect that is disputed.



The government has said the National Treasury will determine the funding sources for NHI, which will include a mandatory pre-payment system and other forms of taxes.



Big local health insurers like Discovery&nbsp;DSYJ.J, Momentum Metropolitan Health&nbsp;MTMJ.J&nbsp;and AfroCentric&nbsp;ACTJ.J&nbsp;say they support the goal of universal health coverage but they do not agree on the proposed funding model.



&#8220;There is no funding plan yet and given the country&#8217;s constrained fiscal position, low economic growth and narrow tax base, this can only be solved in the longer term,&#8221; said Adrian Gore, group CEO of Discovery.



&#8220;We see no scenario in which there is sufficient funding for a workable and comprehensive NHI in its current form.&#8221;



The NEHAWU labour union, part of the country&#8217;s COSATU federation which is in an alliance with the ANC, urged Ramaphosa and the Treasury to put their full political weight behind the NHI to ensure it is properly resourced.



But the chief whip of the Democratic Alliance (DA), the biggest opposition party, said the Act did not address systemic issues in the healthcare system. &#8220;What this government has done is essentially it has tried to put a band aid over a gashing wound,&#8221; the DA&#8217;s Siviwe Gwarube said.



The legislation is good in principle, but will face big challenges due to South Africa&#8217;s high unemployment rate and low tax base, and citizens&#8217; mistrust of government due to repeated corruption scandals, said Sivuyisiwe Wonci, a health policy researcher at the University of Johannesburg.



She estimated it would not be implemented for five to seven years but said signing it before the election was a strategic move.



&#8220;The African National Congress has a very big role to play in convincing the people that it cares about them. And healthcare,&#8230; it speaks to the hearts of the people.&#8221;



(Reporting by Nqobile Dludla and Nellie Peyton; Additional reporting by Bhargav Acharya in Johannesburg; Editing by Alexander Winning and Emelia Sithole-Matarise)

South Africa’s Ramaphosa to signs health insurance bill into law

South Africa’s president signs major health bill just before election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-820x429.jpg" alt="" class="wp-image-486962" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY.jpg 1920w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



ABUJA, May 15 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s headline consumer inflation&nbsp;NGCPIY=ECIaccelerated to a new 28-year high in April, hitting 33.69% year-on-year, up from 33.20% in March, statistics agency data showed on Wednesday.



Inflation in Africa&#8217;s most populous nation has been spurred by President Bola Tinubu&#8217;s administration&nbsp;slashing petrol and electricity subsidies and twice devaluing the local naira currency&nbsp;NGN=D1.



The central bank has raised interest rates twice this year, including its largest hike in around 17 years, as it struggles to contain the price pressures.



The central bank governor has indicated that rates will stay high for as long as needed to bring down inflation. The bank holds&nbsp;another rate-setting meeting next week.



Areport by the National Bureau of Statistics showed the food and non-alcoholic beverages category continued to be the biggest contributor to inflation in April.



Food inflation&nbsp;NGFINF=ECI, which accounts for the bulk of the inflation basket, reached 40.53% in annual terms, against 40.01% in March.



Price pressures have left millions of Nigerians grappling with the worst cost of living crisis in decades as they struggle to meet their basic needs.



To ease the pressure on government workers, Tinubu has announced a salary hike of up to 35% for civil servants. To help vulnerable households his government has also restarted a direct cash transfer programme and has distributed at least 42,000 tons of grains such as corn and millet.



(Reporting by Elisha Bala-Gbogbo; Additional reporting by Mohd Edrees; Editing by Alexander Winning and Gareth Jones)

GBZMQIYKR5O7TASYIDE6U6N6UY

Nigeria inflation scales new 28-year peak in April

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WNOCRFRNP5PYXB42R3OBGXFHQA-820x547.jpg" alt="" class="wp-image-486914" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WNOCRFRNP5PYXB42R3OBGXFHQA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WNOCRFRNP5PYXB42R3OBGXFHQA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WNOCRFRNP5PYXB42R3OBGXFHQA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WNOCRFRNP5PYXB42R3OBGXFHQA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WNOCRFRNP5PYXB42R3OBGXFHQA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/WNOCRFRNP5PYXB42R3OBGXFHQA-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Qatar Airways B777 aircraft arrives at the Cape Town International Airport, in Cape Town, South Africa, June 28, 2022. REUTERS/Shelley Christians/File Photo</figcaption></figure>



SEOUL, May 15 (Reuters)&nbsp;&#8211;&nbsp;Qatar Airways will soon announce an investment in an airline in southern Africa, its CEO said on Wednesday, part of the Gulf carrier&#8217;s drive to expand its network in Africa.



&#8220;We are at the final stage of an equity investment in an airline in the southern part of Africa,&#8221; Badr Mohammed Al Meer said on a panel at the Qatar Economic Forum in Doha, saying the deal could be announced in two to three weeks.



Meer, who became CEO in November, said the southern part of Africa was a gap in Qatar Airways&#8217; network coverage on the continent.



He added that Qatar Airways wants to expand the fleets of its partner airlines in Africa to improve connectivity.



Qatar Airways in 2019 took a 60% stake in a new $1.3 billion international airport being built in Rwanda and has code share agreements with several airlines in Africa including Rwandair.



Rwandair CEO Yvonne Manzi Makolo, speaking in Doha, said the airport could be incorporated around 2027-28.



(Reporting by Lisa Barrington; Editing by Elaine Hardcastle and Jacqueline Wong)

Qatar Airways B777 aircraft arrives at the Cape Town International Airport

Qatar Airways to invest in an airline in southern Africa, CEO says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="570" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QMLFVF7CCZNTDF35SJ3V4RTJ34-820x570.jpg" alt="" class="wp-image-486897" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QMLFVF7CCZNTDF35SJ3V4RTJ34-820x570.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QMLFVF7CCZNTDF35SJ3V4RTJ34-300x208.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QMLFVF7CCZNTDF35SJ3V4RTJ34-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QMLFVF7CCZNTDF35SJ3V4RTJ34-768x534.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QMLFVF7CCZNTDF35SJ3V4RTJ34-1536x1067.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/QMLFVF7CCZNTDF35SJ3V4RTJ34-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A villager arrives to collect her monthly allocations of food aid provided by the World Food Program (WFP) in Mumijo, Buhera district east of the capital Harare, Zimbabwe, March 16, 2024. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, May 15 (Reuters)&nbsp;&#8211;&nbsp;More than half of Zimbabwe&#8217;s population will need food aid this year following a devastating drought that led to widespread crop failure as humanitarian organisations seek funding to save many from hunger, the country&#8217;s cabinet heard late on Tuesday.



About 6 million people in rural areas and 1.7 million in urban areas will require assistance, according to the Zimbabwe Livelihoods Assessment Committee (ZIMLAC).



Zimbabwe is among the worst hit countries by the El Nino induced drought in Southern Africa, with Zambia and Malawi also facing food shortages this year.



This is Zimbabwe&#8217;s worst drought in 40 years, according to the government.



The latest crop assessment presented to the Cabinet of Zimbabwe also revised upwards Zimbabwe&#8217;s&nbsp;maize production&nbsp;deficit to 77% from last week&#8217;s predictions.



&#8220;A 77% reduction in production to 744,271 metric tonnes is estimated for the 2023/2024 summer season, indicating a major shortfall for both food and stock feed,&#8221; according to a cabinet brief.



A local consortium of private millers plan to import 1.4 million metric tonnes of white and yellow maize from Brazil and other countries to cover the food deficit.



The United Nations and the United Nations Children&#8217;s Fund (UNICEF) have appealed for financial assistance to save millions from hunger.



It follows the government&#8217;s appeal for $2 billion in food aid from well wishers and donors.



Zimbabwe has failed to feed itself since 2000, when former president Robert Mugabe led land reforms which disrupted production, while climate change has worsened the country&#8217;s ability to grow enough food.



(Reporting by Nyasha Chingono; Editing by Lincoln Feast.)

FILE PHOTO: Villagers collect monthly allocations of food aid provided by WFP in Mumijo

More than half of Zimbabwean population will need food aid, cabinet says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="519" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-820x519.jpg" alt="" class="wp-image-485152" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-820x519.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-768x486.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-1536x973.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/H55DMSYUAZO7PH4RBRJ4J7JK64-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A small toy figure and mineral imitation are seen in front of the BHP logo in this illustration taken November 19, 2021. REUTERS/Dado Ruvic/Illustration/File Photo</figcaption></figure>



MELBOURNE, May 15 (Reuters)&nbsp;&#8211;&nbsp;BHP Group&#8217;s&nbsp;BHP.AX&nbsp;options for its pursuit of rival miner Anglo American&nbsp;AAL.L&nbsp;include sweetening its $42.7 billion buyout offer, making a hostile bid or walking away for now as it approaches a May 22 deadline to lodge a binding offer.



As BHP weighs its next move, CEO Mike Henry and his team have been making the case for the mega-deal on the sidelines of an investor conference in Miami and elsewhere to its investors, a large proportion of whom also hold shares in Anglo.



&#8220;At this stage I think it is up to BHP to try to convince enough of Anglo&#8217;s institutional shareholders over the coming week that it&#8217;s worthwhile pressuring their board to engage with BHP, with a potentially even higher offer on the table should this occur,&#8221; Morningstar analyst Jon Mills said.



Anglo&#8217;s board has already knocked back two all-share proposals from BHP as inadequate and too difficult to execute and on Tuesday unveiled plans for a break-up to focus on energy transition metal copper while spinning out or selling its less profitable coal, nickel, diamond and platinum businesses.



That plan met with a mildly supportive response from Anglo investors, who said it provided a strategy but was short on details.



With the exception of Anglo keeping its South African iron ore assets and selling its Australian coal mines, it was also similar to BHP&#8217;s own plans for its takeover target.



&#8220;It would seem to me that they (Anglo) need to demonstrate why the bird in the hand is not better than two in the bush,&#8221; Anglo investor Todd Warren at Tribeca Investment Partners said.



A top 25 Anglo investor said that there was nothing compelling about the company&#8217;s restructuring proposal, which resulted in shares closing 3.2% lower at 26.195 pounds on Tuesday, below BHP&#8217;s latest offer of about 27.53 pounds per share.



&#8220;Anglo management need to push for a bump. An additional 10%. And then wait for Glencore,&#8221; said the investor who declined to be identified due to the sensitivity of the matter.



Swiss commodities group Glencore GLEN.L is studying a possible rival bid for Anglo, Reuters reported this month.



&#8220;We retain our view that interloper risk remains high,&#8221; JPMorgan analyst Lyndon Fagan wrote in a note published on Tuesday before Anglo&#8217;s restructure was announced.



Rio Tinto&nbsp;RIO.L&nbsp;CEO Jakob Stausholm said on Tuesday that his company was not afraid of M&amp;A, but it had strong organic growth options.



BHP, Anglo, Glencore and Rio Tinto declined to comment on Wednesday.



<h2 class="wp-block-heading" id="h-bhp-s-options">BHP&#8217;S OPTIONS</h2>



Under UK rules, BHP has one week left to make a binding bid for Anglo or it will be forced to walk away for at least six months.



To make its case for the buyout,&nbsp;BHP has pointed to its successful spin-off of South32&nbsp;S32.AX, the demerger of its petroleum business to Woodside Energy&nbsp;WDS.AX&nbsp;in 2022 and coal asset sales as evidence that it is a safer pair of hands, according to slides from Henry&#8217;s presentation in Miami.



It has also flagged execution risk after Anglo&#8217;s management did not follow through on a 2016 vision of a &#8220;new Anglo&#8221; that would simplify the miner&#8217;s structure into a core portfolio of diamonds, platinum group metals and copper.



The option of going hostile and taking its offer directly to Anglo shareholders is not new to BHP, which did so unsuccessfully in 2007 with a $140 billion all-share bid for rival Rio Tinto. It also made a $39 billion hostile bid for Canada&#8217;s Potash Corp in 2010 that was blocked by the Canadian government.



But two sources familiar with the matter said BHP will not take that approach because it needs Anglo&#8217;s management on board to clear regulatory hurdles in South Africa and to help it unlock the most value for shareholders. BHP also needs an agreed due diligence period to examine Anglo&#8217;s books, they added.



BHP has also told investors it will not drop its requirement for Anglo to demerge South African businesses Kumba Iron Ore KIOJ.J and Anglo American Platinum AMSJ.J as a condition of the deal. Making a binding bid at the price already rejected by Anglo would force BHP to buy the entire company, which it is not prepared to do, said a source with knowledge of the matter.



That narrows BHP&#8217;s options for a revised bid to improving the share ratio, adding some cash, or a mix of the two.



It could also decide to walk away, just as Xstrata, later bought by Glencore, did from a proposed $96 billion merger of equals that was rejected by Anglo&#8217;s board in 2009.



BHP has told investors that Anglo is not a make-or-break deal and it may need to take time to reassess, a prospect increasingly being priced in with BHP shares on the rise, one investor said.



BHP shares were up 2.6% on Wednesday.



BHP could come back later once Anglo does more restructuring, though it would need to be at a higher price, the investor added.



(Reporting by Melanie Burton in Melbourne and Scott Murdoch in Sydney. Additional reporting by Greg Roumeliotis in New York and Sinead Cruise, Amy-Jo Crowley, Anousha Sakoui and Clara Denina in London; Editing by Praveen Menon and Jamie Freed)

FILE PHOTO: Small toy figure and mineral imitation are seen in front of the BHP logo in this illustration

BHP’s options for Anglo American deal narrow as deadline looms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-820x547.jpg" alt="" class="wp-image-486652" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">SAINT PETERSBURG, RUSSIA &#8211; 2023/11/02: The national flag of the Federal Republic of Nigeria as a participating country at the 12th St. Petersburg International Gas Forum (SPIGF 2023). (Photo by Maksim Konstantinov/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



LAGOS, May 14 (Reuters)&nbsp;&#8211;&nbsp;The Nigerian government on Tuesday launched an information portal where investors can access details of its mineral resources, facilities and infrastructure, according to a statement from the ministry of mines.



&#8220;Before if you are a prospective foreign investor, you have to travel to Nigeria to access required information, but with this launch, anywhere you are in the world, with a click of a button, you can access all the information you require to make informed investment decisions,&#8221; said Dele Alake, Nigeria&#8217;s mining minister.



Africa&#8217;s top oil producer, which is also rich in gold, limestone and zinc, wants its mining industry to play a much bigger role in its effort to diversify the economy away from its reliance on oil.



The portal, called Nigeria Mineral Resources Decision Support System (NMDSS), can be accessed on the website of the same name, and contains publicly available data on geology and mineral wealth in Nigeria.



Nigeria is seeking to woo investors to a mining sector that has long been underdeveloped, contributing less than 1% to the country&#8217;s gross domestic product.



It has stepped up reforms in the sector including offering investors 75% in a new national mining company, cutting exports of unprocessed minerals, and enforcing compliance with rules against illegal mining.



Alake said illegal mining was being curbed by the recently unveiled mining marshals, while about 152 cooperatives had been formed by artisanal miners to legalise their operations, in line with reform efforts.



(Reporting by Isaac Anyaogu; Editing by Mark Potter)

The national flag of the Federal Republic of Nigeria as a

Nigeria launches mineral resources portal for investors

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/23OZQIJSZBN7BOYT5FMNOOIKGM-820x546.jpg" alt="" class="wp-image-486633" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/23OZQIJSZBN7BOYT5FMNOOIKGM-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/23OZQIJSZBN7BOYT5FMNOOIKGM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/23OZQIJSZBN7BOYT5FMNOOIKGM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/23OZQIJSZBN7BOYT5FMNOOIKGM-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/23OZQIJSZBN7BOYT5FMNOOIKGM-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/23OZQIJSZBN7BOYT5FMNOOIKGM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">CEO of BHP Mike Henry is interviewed at a Reuters NEXT Newsmaker event in New York City, U.S., November 30, 2022. REUTERS/Brendan McDermid</figcaption></figure>



JOHANNESBURG/ LONDON, May 14 (Reuters) &#8211; BHP BHP.AX Chief Executive Mike Henry said that Anglo American AAL.L investors need to consider the merits of his company&#8217;s bid for its smaller London-listed rival, seeking to drum up support for a proposal that has been rejected twice.



The CEO of the world&#8217;s biggest listed mining group told investors at a metals and mining conference in Miami that Anglo shareholders must make a &#8220;determination&#8221; on the benefits of a combination of the two companies and which team they think has a better track record of executing projects and delivering returns to investors.



Anglo on Tuesday laid out plans to refocus on energy transition metal copper while spinning out or selling its less profitable coal, nickel, diamond and platinum businesses.



BHP&#8217;s Henry, meanwhile, emphasised the merits of his company&#8217;s bid and dismissed concerns that the proposed deal would be complex to execute.



&#8220;At the end of the day, its going to be up to shareholders. They have to look at the plans, decide which one they believe is going to create the greatest value soonest,&#8221; he said.



&#8220;And they have to make a determination as to the likelihood of execution of those plans, including which team they believe is more capable and has a better track record of execution. It&#8217;s that simple.&#8221;



(Reporting by Felix Njini and Clara Denina; Editing by David Goodman)

Reuters NEXT Newsmaker event in New York City

BHP chief urges Anglo investors to consider takeover benefits

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-820x547.jpg" alt="" class="wp-image-486547" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1980175660-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Duncan Wanblad, chief executive officer of Anglo American Plc, speaks on the opening day of the Investing in African Mining Indaba in Cape Town, South Africa, on Monday, Feb. 5, 2024. Mining executives, investors and government ministers are meeting in Cape Town for the African Mining Indaba, the continent&#8217;s biggest gathering of one of its most vital industries. Photographer: Dwayne Senior/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, May 14 (Reuters)&nbsp;&#8211;&nbsp;The boss of Anglo American&nbsp;AAL.L&nbsp;said on Tuesday a bid by rival BHP&nbsp;BHP.AX&nbsp;to take over the company forced him to accelerate plans for a spin-off of its South African platinum assets, which come on the cusp of a national election.



While Anglo was already working on its own review of assets including the platinum and diamonds businesses, the timeline had to be speeded up after BHP&#8217;s approach, Anglo CEO Duncan Wanblad said.



As a pre-condition for its bid, rejected twice by Anglo, BHP had requested that Anglo exit its platinum and iron ore units in South Africa, drastically reducing its presence in the country.



After arguing that the BHP proposal undervalued Anglo, the London-listed mining giant laid out a strategy on Tuesday that includes a potential break-up of the group by demerging or selling its steelmaking coal, nickel, diamonds and platinum businesses.



That includes a demerger of its Johannesburg-listed Anglo American Platinum unit, known as Amplats. The plan sent Amplats&#8217;s shares down as much as 10%.



&#8220;The only thing that the BHP approach did is that it forced the timeline on work that we were already doing,&#8221; Wanblad said on a conference call after Tuesday&#8217;s announcement.



&#8220;This is an acceleration of a strategy process that we were already executing. I have to say that I would probably not have announced it at this particular point of time,&#8221; he added, referring to the looming election in South Africa on May 29.



South Africa Mines Minister Gwede Mantashe told Reuters he had no issues with the proposed demerger of Amplats, even if the ultimate fate of the business remains unclear.



&#8220;It is&#8230; important for Anglo to restructure itself to get optimal performance of every portfolio in their stable,&#8221; Mantashe said. &#8220;And I hope it will work for them.&#8221;



Mantashe, who had opposed BHP&#8217;s bid, said he hoped Anglo would continue resisting the offer from its rival, which was raised to $43 billion on May 7.



Shares in Anglo unit Kumba Iron Ore&nbsp;KIOJ.J, which under the review laid out on Tuesday would remain within the group, rose 2.3%, reversing earlier losses.



As the election looms, weak economic growth and high unemployment are among the key issues on voters&#8217; minds.



The planned break-up of Anglo, which had already announced thousands of job cuts in South Africa due to lower metals prices, raises the prospect of more job losses. The main union federation COSATU said it would seek reassurances.



Wanblad said the group, which has a 79% stake in Amplats, remained committed to South Africa. &#8220;I can&#8217;t belabour the point more that this is not actually leaving South Africa in any way, shape or form,&#8221; he said.



Founded by gold and diamond baron Ernest Oppenheimer at the peak of the World War One in 1917, Anglo American has been synonymous with South African mining for decades.



It employs roughly 45,000 people in South Africa, though Amplats has announced plans to cut 3,700 jobs while Kumba plans 490 job cuts.



(Reporting by Felix Njini; Writing by Silvia Aloisi; Editing by Jan Harvey)

Key Speakers at The Investing in African Mining Indaba

Anglo CEO says BHP bid forced his hand on demerger of South African assets

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-820x542.jpg" alt="" class="wp-image-486564" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-1536x1015.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/7IVAIW4RBVN7BE7P5VXAC66TQE-1-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Social grant recipients stand in a queue outside a post office, as joblessness takes its toll in Meadowlands, a suburb of Soweto, South Africa, February 24, 2022. Picture taken February 24, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



PRETORIA, May 14 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s unemployment rate rose for the second quarter in a row to 32.9% in the first three months of this year, data showed on Tuesday, two weeks before the governing African National Congress faces its toughest election yet.



The increase from 32.1% in the fourth quarter of last year brings the official unemployment rate closer to the record high of 35.3% reached in late 2021 during the COVID-19 pandemic.



South Africans will vote in national and provincial elections on May 29, with opinion polls suggesting that the governing African National Congress (ANC), which has been in power since the end of apartheid, is at risk of losing its parliamentary majority.



Joblessness has risen about 10 percentage points in the three decades since the ANC came to power under liberation hero Nelson Mandela and is a key concern among voters.



In the first quarter of 2024 the largest decreases in employment were in the community and social services and construction sectors. There were job gains in sectors like manufacturing, agriculture and mining.



Frank Blackmore, KPMG South Africa&#8217;s lead economist, said as long as the economy continues to grow below 1% with population growth of about 1.5% then the unemployment rate will continue to rise.



Sanisha Packirisamy, economist at Momentum Investments, said policy measures had failed to address structural problems contributing to joblessness, like matching graduates to jobs available.



Over the past decade the number of people in long-term unemployment, or those who have not worked for a year or longer, has nearly doubled. The total number of unemployed people stands at more than 8.2 million.



Unemployment rates are especially high among South African youth compared to older age groups, and among Black people versus other population groups.



The ANC government created a new benefit for the working-age unemployed accessed by over 6 million people during the COVID pandemic. Though it was meant to be temporary, it was extended earlier this year.



(Reporting by Kopano Gumbi; Additional reporting by Tannur Anders and Bhargav Acharya; Editing by Alexander Winning and Emelia Sithole-Matarise)

South Africa wrestles on takling poverty and inequality as joblessness takes toll

South Africa’s unemployment rate climbs weeks before election

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="509" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-820x509.jpg" alt="" class="wp-image-486544" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-820x509.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-300x186.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-145x90.jpg 145w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-768x477.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-1536x954.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/LRRRBXB3HJOKHHXC5IQJL57SFQ-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks past an outlet of South Africa&#8217;s MTN Group at the Mall of the South in Johannesburg, South Africa, November 4, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, May 14 (Reuters)&nbsp;&#8211;&nbsp;MTN Group&nbsp;MTNJ.J, Africa&#8217;s biggest telecoms operator, reported&nbsp;on Tuedsay an&nbsp;18.8% fall in first-quarter service revenue, weighed down by the performance of MTN Nigeria&nbsp;MTNN.LG, and also revised down its expected capital expenditure for 2024.



MTN, with 288 million subscribers in 18 markets across Africa, said its reported group service revenue fell to 42.9 billion rand ($2.34 billion) in the quarter ended March 31, from 52.8 billion rand in the same quarter last year.



In constant currency, service revenue, which excludes device and SIM card revenue, rose by 11.1%.



MTN&#8217;s service revenue from South Africa surpassed that of Nigeria, its biggest market by revenue, growing marginally by 3% to 10.4 billion rand, while Nigeria tumbled by 52.8% to 10.2 billion rand.



By 0806 GMT shares in MTN were down 2.92%.



&#8220;The macro environment in the first quarter of 2024 remained challenging with ongoing high inflation as well as local currency devaluations in some of our key markets,&#8221; Group President and CEO Ralph Mupita said in a statement.



Mupita also cited global geopolitical tensions as a factor impacting the operator&#8217;s performance, including the ongoing civil war in Sudan, which severely affected network availability and revenue generation in that business.



MTN was also impacted by subsea cable cuts that resulted in downtime.



Overall reported group earnings before interest, tax, depreciation and amortization (EBITDA) fell by 28.7% to 17.2 billion rand and rose by 3.9% in constant currency.



Reported EBITDA margin declined by 5.8 percentage points to 37.9% due to rising costs and currency depreciation mainly in Nigeria.



The group revised down its anticipated capital expenditure (excluding leases) deployment for 2024 to about 28 billion rand to 33 billion rand from a target of 35 billion rand to 39 billion rand, largely due to a reduction in expected spending by MTN Nigeria.



In 2023 it deployed 41.1 billion of capex.



Following an extraordinary general meeting, the board of MTN Nigeria approved a number of initiatives to restore profitability such as asking for tariff increases, reducing dollar exposure and lowering capex after extensive investment in its network over the past few years.



($1 = 18.3539 rand)



(Reporting by Nqobile Dludla; Editing by Kim Coghill, Subhranshu Sahu and Susan Fenton)

FILE PHOTO: A man walks past an outlet of South Africa’s MTN Group in Johannesburg

South Africa’s MTN service revenue falls, lowers capex target

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="515" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-820x515.jpg" alt="" class="wp-image-480200" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-820x515.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-300x188.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-768x482.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-1536x964.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7TNHWIKYLBNBXEDY3W64AQTLIM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The Anglo American logo is seen in Rusternburg October 5, 2015. Picture taken October 5, 2015. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



LONDON, May 14 (Reuters)&nbsp;&#8211;&nbsp;Anglo American&nbsp;AAL.L&nbsp;laid out plans on Tuesday to refocus on energy transition metal copper while spinning out or selling its less profitable coal, nickel, diamond and platinum businesses, as it moves to fend off BHP Group&#8217;s $43 billion takeover offer.



The announcement comes a day after the London-listed miner rejected its Australian suitor for the second time in less than three weeks, saying an increased proposal continued to significantly undervalue the company.



Anglo said on Tuesday it would divest its steelmaking coal assets, demerge its South African platinum unit, explore options for its nickel mines and divest or demerge diamonds business De Beers. The group expects the new configuration will lower costs by $1.7 billion.



&#8220;We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction,&#8221; Anglo CEO Duncan Wanblad said.



Anglo shares were down 3.3% at 26.17 pounds by 1224 GMT.



Moving to drum up support for his proposal, BHP BHP.AX CEO Mike Henry said on Tuesday it was down to investors to weigh the merits of his company&#8217;s offer for Anglo.



BHP&#8217;s 27.53 pound per share approach, raised from an initial 25.08 pounds, would require Anglo to sell its iron ore and platinum assets in South Africa, where it employs more than 40,000 people.



That has caused alarm in South Africa, where unemployment and a stagnant economy are major issues ahead of a May 29 election.



Wanblad said BHP&#8217;s bid had forced him to accelerate plans for a spin-off of Johannesburg-listed Anglo American Platinum&nbsp;AMSJ.J&nbsp;(Amplats).



Under Tuesday&#8217;s plan, Anglo will keep its South African Kumba Iron Ore business&nbsp;KIOJ.J, while Wanblad said the planned divestment of Amplats would be &#8220;completely different&#8221; in terms of time and complexity to the BHP proposal.



South Africa&#8217;s mines minister Gwede Mantashe said on Tuesday he had no problem with Anglo&#8217;s proposal, and that he hoped it would continue to resist BHP&#8217;s bid.



Anglo is also exploring an initial public offering of its diamond business De Beers, two people familiar with the matter told Reuters on Tuesday, with one flagging London as the preferred venue. Anglo declined to comment.



The company also said on Tuesday it would slow the development of its Woodsmith fertiliser project in northeast England and seek strategic partners. First production at Woodsmith will be pushed back from 2027, Wanblad said.



The divestment of Anglo&#8217;s steelmaking coal operations could move rapidly, he added, given available interest.



<h2 class="wp-block-heading" id="h-self-help">SELF-HELP</h2>



Anglo has been meeting investors since BHP&#8217;s initial approach in April, and after a review of its assets initiated in February following a 94% plunge in annual profit.



One top 20 investor at Anglo, who said a deal with BHP was likely to lead to less copper being produced rather than the increase needed to accelerate the world&#8217;s energy transition, welcomed Tuesday&#8217;s proposal.



&#8220;At the moment, Anglo has lots of very interesting assets &#8230; but it is not a focused business focused on a clear strategic goal,&#8221; the shareholder said. &#8220;This plan offers clarity of purpose.&#8221;



MKP Advisers said however that the concern with the &#8220;self-help plan&#8221; will be that it is &#8220;too little, too late&#8221;.



&#8220;There is no timescale attached to most of the plans and it has been clear to most that many of the potential disposals across the portfolio are simply tough to execute,&#8221; MKP said.



Activist fund Elliott, one of Anglo&#8217;s top 10 shareholders after building up a $1 billion stake, declined to comment on the plan. It is expected to put out a statement later in the day, sources say.



Developments such as artificial intelligence and automation, and the energy transition that includes electric vehicles and renewable energy, have driven up demand prospects for copper cable used to conduct electricity.



Copper prices&nbsp;CMCU3&nbsp;have risen 25% from this year&#8217;s Feb. 9 low to $8,127 a tonne.



Ashwin Pillay, senior associate at law firm Charles Russell Speechlys, said the new plan addressed shareholder concerns that the value of Anglo&#8217;s copper mines has been suppressed by less valuable operations such as the diamond division.



&#8220;Intriguingly, there is still an opportunity for BHP to raise their offer further, including by adding a cash component, which would sweeten the pot,&#8221; he added.



($1 = 0.7966 pounds)



(Additional reporting by Melanie Burton in Melbourne, Sinead Cruise in London and Eva Mathews; Writing by Jan Harvey; Editing by Nivedita Bhattacharjee, Kirsten Donovan, Sonali Paul, Catherine Evans and Emelia Sithole-Matarise)

FILE PHOTO: The Anglo American logo is seen in Rusternburg

Anglo American eyes break-up as it fends off BHP offer

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-820x615.jpg" alt="" class="wp-image-486266" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/OULLDAWHK5KNFJ24OWEHO2DK5I-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Members of the Nigerian Labour Union, holding flags and placards, march during a protest against fuel price hikes and rising costs, in Abuja, Nigeria August 2, 2023. REUTERS/Abraham Achirga</figcaption></figure>



LAGOS, May 13 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s labour unions on Monday began a protest over a hike in electricity tariffs by more than 200% for some users by blocking access to the offices of the country&#8217;s electricity regulator and power companies.



The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) &#8211; two of the country&#8217;s biggest unions &#8211; had issued a two-week notice calling for the reversal of the new tariff hike and warned of &#8220;swift and decisive action.&#8221;



Strikes by these unions, which often follow this kind of protest, usually have an economic impact.



The NLC and TUC are demanding an immediate return to the previous electricity tariff, an immediate end to the practice of segregating consumers into what they say are arbitrary bands, and a return to corporate governance within the sector.



The Nigerian Electricity Regulatory Commission (NERC) had on April 3 raised electricity tariffs from 66 naira ($0.0465)/kwh to 225 naira ($0.1585) for about 15% of the 12 million grid-connected customers who are supposed to get up to 20 hours of power monthly.



&#8220;We have noted your concerns and we will go back to the drawing board,” NERC head Sanusi Garba told the protesting workers, who have insisted that the new rates be reversed before any negotiations are held.



The increase drew nationwide outrage because the power companies lacked the capacity to meet the contracted hours and would trim supplies to other users to satisfy their wealthier customers. NERC last week reduced the tariffs to 206.8 naira ($0.1456)/kWh saying the naira rose marginally against the dollar.



Nigeria&#8217;s regulator fixes tariffs based on economic factors including the price of gas &#8211; still sold locally in dollars &#8211; the inflation rate and the exchange rate, as most inputs are imported. It is trying to wean the sector off government subsidies that have led to tariffs that cannot guarantee commercial returns for investors.



Labour unions chanting solidarity songs also blocked the offices of some of the country&#8217;s power distribution firms as well as the ministry of power in Abuja.



Electricity workers at some distribution companies were sent away from their own offices, forcing some to return home.



&#8220;NLC just chased us out of our office,&#8221; one electricity worker posted on X with a smiley emoji. &#8220;My weekend has been extended.&#8221;



($1 = 1,419.9000 naira)



(Reporting by Isaac Anyaogu; Editing by Hugh Lawson)

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