<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="405" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IMG_4495.jpeg" alt="" class="wp-image-486984" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IMG_4495.jpeg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IMG_4495-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/IMG_4495-160x90.jpeg 160w" sizes="(max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Inflation eased slightly in April, providing at least a bit of relief for consumers while still holding above levels that would suggest a cut in interest rates is imminent.



The consumer price index, a broad measure of how much goods and services cost at the cash register, increased 0.3% from March, the Labor Department’s Bureau of Labor Services reported Wednesday. That was slightly below the Dow Jones estimate for 0.4%.



On a 12-month basis, however, the CPI increased 3.4%, in line with expectations.,



Excluding food and energy, the key core inflation reading came in at 0.3% monthly and 3.6% on an annual basis, both as forecast.



This is breaking news. Please check back for updates.

IMG_4495

U.S consumer prices rose 0.3% in April, less than expectations

<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

Why generative art has the market so excited

<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

Americans can’t stop ‘spaving’ — here’s how to avoid this financial trap

<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)

Members of the Nigerian Labour Union protest against fuel price hikes and rising costs, in Abuja

Nigeria’s labour unions protest hike in electricity tariff

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-820x547.jpg" alt="" class="wp-image-408693" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A sign stands at the entrance to the offices of Anglo American Plc in the Marshalltown district of Johannesburg, South Africa, on Friday, Oct. 26, 2012. Anglo American Plc Chief Executive Officer Cynthia Carroll , the first woman, external hire and non-South African to hold the job, will quit after Anglo lost $14 billion in value in the more than five years she was in charge. Photographer: Chris Ratcliffe/Bloomberg via Getty Images</figcaption></figure>



LONDON, May 13 (Reuters)&nbsp;&#8211;&nbsp;BHP Group&nbsp;BHP.AX&nbsp;said on Monday that Anglo American&nbsp;AAL.L&nbsp;had rejected a revised buyout offer valuing the company at 34 billion pounds ($42.67 billion).



Anglo American had in April rebuffed BHP&#8217;s $39 billion all-share takeover proposal, saying it was opportunistic and significantly undervalued its prospects.



The new offer is 10% higher than BHP&#8217;s first one, or a 15% increase in the merger exchange ratio, lifting Anglo American shareholders&#8217; aggregate ownership in the combined group to 16.6% from 14.8% in the earlier proposal, it said.



Anglo&#8217;s share price was down 0.7% at 27.58 pounds.



&#8220;We are disappointed that this second proposal has been rejected,&#8221; BHP&#8217;s CEO Mike Henry said in a statement.



&#8220;BHP continues to believe that a combination of the two businesses would deliver significant value for all shareholders,&#8221; the statement added.



The world&#8217;s biggest listed miner has until May 22 to log in a binding offer.



Anglo declined to comment.



Anglo is attractive to its competitors for its prized copper assets in Chile and Peru. The metal is used in everything from electric vehicles and power grids to construction, and demand for it is expected to rise as the world moves to cleaner energy and wider use of AI.



But the London-listed miner&#8217;s sprawling portfolio also includes platinum, iron ore, steelmaking coal, diamonds and a fertiliser project.



The revised bid is still contingent upon Anglo selling its shares in iron ore and platinum assets in South Africa, a country BHP exited in 2015.



Anglo&#8217;s investors are concerned that they stand to lose heavily by holding shares in the South African subsidiaries if they are unbundled.



($1 = 0.7968 pounds)



(Reporting by Clara Denina, Eva Mathews; Editing by Louise Heavens and Bernadette Baum)

Anglo American Plc’s South African Headquarters As CEO Cynthia Carroll Quits

BHP says Anglo American rejected $42.7-billion revised proposal

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<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-2040295100-820x547.jpg" alt="" class="wp-image-486231" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-2040295100-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DURBAN, SOUTH AFRICA &#8211; FEBRUARI 24: South African President and African National Congress (ANC) President Cyril Ramaphosa seated next to National Chairperson (and minister of mineral resources) Gwede Mantashe (c) and Fikile Mabula (l), the secretary general of the ANC and deputy President Paul Mashatile after speaking to supporters at the ANC Election Manifesto at Moses Mabhida Stadium on February 24, 2024, in Durban, South Africa. About 70,000 people gathered to hear ANC President Cyril Ramaphosa state the promises in advance of the election which will be held on May 29, 2024. Mr. Ramapahosa promised to step up his governments efforts to create jobs, welfare grants and a national health care program. ANC has seen decreased support in recent polls and especially KwaZulu-Natal province will be a tightly contested province during 2024 elections, Thirty years after the first democratic elections on April 27, 1994. (Photo by Per-Anders Pettersson/Getty Images)</figcaption></figure>



JOHANNESBURG, May 13 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa on Monday rejected opposition allegations that a recent pause in the electricity cuts that have plagued the country for years was due to an election coming up on May 29.



Rolling power cuts imposed by state utility Eskom reached record levels in 2023 and continued in the first quarter of this year, but there has now been no load-shedding, as South Africans call the cuts, for 48 straight days, the longest period for more than two years.



Over the same 48-day period last year, there were power cuts every day, according to data collected by The Outlier, an independent South African publication specialising in public service data visualisations.



The dramatic improvement in power supply has been a talking point in South African media and has led to opposition accusations that the timing was designed to improve voter satisfaction with the governing African National Congress.



The ANC faces its toughest electoral test to date, with opinion polls suggesting it is on course to lose its parliamentary majority for the first time since it came to power 30 years ago at the end of apartheid.



In a weekly newsletter, Ramaphosa said Eskom&#8217;s improved performance showed that the government&#8217;s energy plan announced in 2022 was bearing fruit.



&#8220;Yet, against all the available evidence, some people have claimed that the reduced load-shedding is a political ploy ahead of the elections,&#8221; he said. &#8220;This is not borne out by the facts.&#8221;



Ramaphosa attributed the improvement to a renewed focus by Eskom on maintenance, new generation capacity from renewable energy projects and strong take-up of rooftop solar panels boosted by tax incentives.



<h2 class="wp-block-heading" id="h-burning-diesel">BURNING DIESEL</h2>



The Democratic Alliance, the biggest opposition party, last week attributed the improved power supply to &#8220;political interference&#8221; by the ANC, which it accused of putting pressure on Eskom to keep the lights on.



&#8220;South Africans should not be fooled by this brazen abuse of power and they must act to decisively vote out the manipulators on the 29th of May,&#8221; it said in a statement on its website.



A particular point of dispute was whether Eskom was burning more diesel to increase supply, as alleged last week by the utility&#8217;s former CEO, Andre de Ruyter, who is openly antagonistic towards the ANC.



&#8220;If the lights are on, well done, but they&#8217;re on because we are pouring money into diesel at a rate of knots,&#8221; de Ruyter, who stepped down in February 2023, told a conference in South Africa, in comments widely reported by local media.



South Africa&#8217;s energy regulator Nersa said on Friday that in April alone, Eskom had generated 168.5 GWh from diesel generators, more than half of the maximum it is normally allowed per quarter.



In televised remarks on Monday, Electricity Minister Kgosientsho Ramokgopa denied that excessive use of diesel-powered turbines was behind the pause in load-shedding.



&#8220;Nothing could be further from the truth,&#8221; he said, accusing Eskom&#8217;s detractors of attempting &#8220;to soil the work that the Eskom team has done&#8230; in its totality from the board to the lowest members of Eskom including the cleaners&#8221;.



(Editing by Estelle Shirbon, Kirsten Donovan)

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U.S consumer prices rose 0.3% in April, less than expectations

Nigeria inflation scales new 28-year peak in April

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

Why generative art has the market so excited

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

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

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BHP chief urges Anglo investors to consider takeover benefits

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

South Africa’s unemployment rate climbs weeks before election

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

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

Nigeria’s labour unions protest hike in electricity tariff

BHP says Anglo American rejected $42.7-billion revised proposal

What’s Next For Tesla Superchargers After Elon Musk Laid Off The Entire Team

South Africa’s Ramaphosa denies pause in power cuts is linked to election

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