Golfing greatness is getting younger, but are its enthusiasts? | CNBC Sports

Justina Crabtree
Source: <a href="https://www.cnbc.com/2018/08/03/south-africas-business-friendly-president-alarms-investors-with-land-.html">South Africa’s business-friendly president alarms investors with land grab proposal</a>
<ul>
<li>Cyril Ramaphosa announced this week that his government is to press on with a plan to overhaul how land is owned.</li>
<li>The ruling ANC party is to put through parliament an amendment to the constitution that would permit the seizing of land without expropriation.</li>
</ul>
<img loading="lazy" decoding="async" src="https://d16akly8855cs7.cloudfront.net/wp-content/uploads/2018/08/04200236/105373632-1533275407868gettyimages-916967692.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="RODGER BOSCH | AFP | Getty Images"/>
South African President Cyril Ramaphosa announced this week that his government is to press on with a plan to overhaul how land is owned in the country, a move that has alarmed some investors in Africa&#8217;s most developed economy.
Ramaphosa said Tuesday that the ruling African National Congress (ANC) party is to put through parliament an amendment to the South African constitution that would permit the seizing of land without compensation.
The bulk of South Africa&#8217;s land is owned by its minority white population, a vestige of its colonial past. Although apartheid ended almost 25 years ago, South African society remains one of the most unequal in the world.
&#8220;It has become pertinently clear that our people want the constitution to be more explicit about expropriation of land without compensation as demonstrated in the public hearings,&#8221; said Ramaphosa in a televised address.
He said that the proposal would &#8220;promote redress, advance economic development, increase agricultural production and food security.&#8221;
But, some investors are fearful that constitutionalizing land grabs would undermine business stability and economic growth, which has remained subpar thanks to years of corruption under former President Jacob Zuma&#8217;s administration. South Africa&#8217;s already-high unemployment rate rose in the second quarter of this year to 27.2 percent, it was announced Tuesday.
The volatile rand dropped to a one-week low of near 13.40 per U.S. dollar overnight after Ramaphosa&#8217;s announcement, according to Reuters.
Ramaphosa is walking a tightrope
Building bridges with the investment community has been of paramount importance to Ramaphosa since he 
took power in February 
. The president, himself a business tycoon and one of South Africa&#8217;s richest men, is on a mission to raise $100 billion in foreign investment.
<img loading="lazy" decoding="async" src="https://d16akly8855cs7.cloudfront.net/wp-content/uploads/2018/08/04200241/105373625-1533274925072gettyimages-898614786.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Gulshan Khan | AFP | Getty Images"/>
But, the president is walking a tightrope between satiating investors and the South African electorate, which is due to head to the polls next year.
South Africa-based analysis firm NKC African Economics described the announcement as &#8220;populist rhetoric with no clear answers,&#8221; in a note published Wednesday.
In neighboring Zimbabwe, land-grabbing is a now notorious policy associated with former strongman leader Robert Mugabe as the country adjusted to black majority rule. In the early 2000s, Mugabe pushed thousands of white farmers off their land to the result of food shortages, hyperinflation and violence — as well as contributing to the country&#8217;s international ostracization.
After South Africa&#8217;s white minority rule ended in 1994, the ANC has adhered to a &#8220;willing seller, willing buyer&#8221; framework. This means that the South African government buys white-owned farms for redistribution among the black population.
Investor perception versus reality
But, some analysts have sought to stymie investor worries.
&#8220;The perception is worse than the reality,&#8221; wrote Ben Payton, head of Africa research at consultancy Verisk Maplecroft, in a note on Wednesday. Payton pointed out that the amendment&#8217;s passing is dependent on political process and not necessarily a done deal.
Ramaphosa&#8217;s announcement was &#8220;almost certainly intended as a populist distraction from recent bad news on the economy,&#8221; Payton said. He added that the reality of any changes to the constitution were likely to be less significant than investors fear due to constitutional provisions and the president&#8217;s own views.
<img loading="lazy" decoding="async" src="https://d16akly8855cs7.cloudfront.net/wp-content/uploads/2018/05/14160225/105031798-GettyImages-916957534.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Rodger Bosch | AFP | Getty Images"/>
&#8220;Even so, while the direct economic impacts are likely to be limited, any threat to property rights will inevitably scare off much-needed investment,&#8221; Payton said.
John Ashbourne, senior emerging markets economist at consulting firm Capital Economics, echoed Payton&#8217;s sentiment. He also pointed out Ramaphosa&#8217;s lack of detail in the announcement.
&#8220;The political salience of agriculture far exceeds its economic weight; the sector makes up just 2 percent of (gross domestic product),&#8221; Ashbourne wrote in a note Wednesday. But, given the volatility of South African markets, particularly in the face of political news, &#8220;heated political rhetoric will probably shock the rand and gradually undermine investor confidence, even if — as we expect — the eventual amendment is relatively modest.&#8221;

South Africa’s business-friendly president alarms investors with land grab proposal

Justina Crabtree
Source: <a href="https://www.cnbc.com/2018/08/03/south-africas-business-friendly-president-alarms-investors-with-land-.html">South Africa’s business-friendly president alarms investors with land grab proposal</a>
<ul>
<li>Cyril Ramaphosa announced this week that his government is to press on with a plan to overhaul how land is owned.</li>
<li>The ruling ANC party is to put through parliament an amendment to the constitution that would permit the seizing of land without expropriation.</li>
</ul>
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/08/04200236/105373632-1533275407868gettyimages-916967692.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="RODGER BOSCH | AFP | Getty Images"/>
South African President Cyril Ramaphosa announced this week that his government is to press on with a plan to overhaul how land is owned in the country, a move that has alarmed some investors in Africa&#8217;s most developed economy.
Ramaphosa said Tuesday that the ruling African National Congress (ANC) party is to put through parliament an amendment to the South African constitution that would permit the seizing of land without expropriation.
The bulk of South Africa&#8217;s land is owned by its minority white population, a vestige of its colonial past. Although apartheid ended almost 25 years ago, South African society remains one of the most unequal in the world.
&#8220;It has become pertinently clear that our people want the constitution to be more explicit about expropriation of land without compensation as demonstrated in the public hearings,&#8221; said Ramaphosa in a televised address.
He said that the proposal would &#8220;promote redress, advance economic development, increase agricultural production and food security.&#8221;
But, some investors are fearful that constitutionalizing land grabs would undermine business stability and economic growth, which has remained subpar thanks to years of corruption under former President Jacob Zuma&#8217;s administration. South Africa&#8217;s already-high unemployment rate rose in the second quarter of this year to 27.2 percent, it was announced Tuesday.
The volatile rand dropped to a one-week low of near 13.40 per U.S. dollar overnight after Ramaphosa&#8217;s announcement, according to Reuters.
Ramaphosa is walking a tightrope
Building bridges with the investment community has been of paramount importance to Ramaphosa since he 
took power in February 
. The president, himself a business tycoon and one of South Africa&#8217;s richest men, is on a mission to raise $100 billion in foreign investment.
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/08/04200241/105373625-1533274925072gettyimages-898614786.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Gulshan Khan | AFP | Getty Images"/>
But, the president is walking a tightrope between satiating investors and the South African electorate, which is due to head to the polls next year.
South Africa-based analysis firm NKC African Economics described the announcement as &#8220;populist rhetoric with no clear answers,&#8221; in a note published Wednesday.
In neighboring Zimbabwe, land-grabbing is a now notorious policy associated with former strongman leader Robert Mugabe as the country adjusted to black majority rule. In the early 2000s, Mugabe pushed thousands of white farmers off their land to the result of food shortages, hyperinflation and violence — as well as contributing to the country&#8217;s international ostracization.
After South Africa&#8217;s white minority rule ended in 1994, the ANC has adhered to a &#8220;willing seller, willing buyer&#8221; framework. This means that the South African government buys white-owned farms for redistribution among the black population.
Investor perception versus reality
But, some analysts have sought to stymie investor worries.
&#8220;The perception is worse than the reality,&#8221; wrote Ben Payton, head of Africa research at consultancy Verisk Maplecroft, in a note on Wednesday. Payton pointed out that the amendment&#8217;s passing is dependent on political process and not necessarily a done deal.
Ramaphosa&#8217;s announcement was &#8220;almost certainly intended as a populist distraction from recent bad news on the economy,&#8221; Payton said. He added that the reality of any changes to the constitution were likely to be less significant than investors fear due to constitutional provisions and the president&#8217;s own views.
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/05/14160225/105031798-GettyImages-916957534.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Rodger Bosch | AFP | Getty Images"/>
&#8220;Even so, while the direct economic impacts are likely to be limited, any threat to property rights will inevitably scare off much-needed investment,&#8221; Payton said.
John Ashbourne, senior emerging markets economist at consulting firm Capital Economics, echoed Payton&#8217;s sentiment. He also pointed out Ramaphosa&#8217;s lack of detail in the announcement.
&#8220;The political salience of agriculture far exceeds its economic weight; the sector makes up just 2 percent of (gross domestic product),&#8221; Ashbourne wrote in a note Wednesday. But, given the volatility of South African markets, particularly in the face of political news, &#8220;heated political rhetoric will probably shock the rand and gradually undermine investor confidence, even if — as we expect — the eventual amendment is relatively modest.&#8221;

How do airlines price tickets? | CNBC Explains

<a class="inline_quotes" href="https://www.cnbc.com/quotes/?symbol=AAPL" data-gdsid="8016" data-inline-quote-symbol="AAPL">Apple</a> hit a $1 trillion market cap on Thursday, making the iPhone maker the first publicly traded U.S. company to reach the record valuation.
But it isn’t the first company to claim the $1 trillion title. In 2007, <a href="https://www.wsj.com/articles/apples-market-cap-hits-1-trillion-1533225150">WSJ</a> notes, <a href="http://quotes.wsj.com/PTR">PetroChina</a>&#8216;s market cap surpassed that level and Saudi Arabian Oil, the state-owned oil company in an initial public offering, that later stalled, was valued at as much as $2 trillion.
The stock rose nearly 3 percent following a strong <a href="https://www.cnbc.com/2018/07/31/apple-earnings-q3-2018.html">third-quarter earnings report</a> earlier this week, briefly hitting a session high of $207.05 in midday trading before falling back below $207.
Based on a <a href="https://www.cnbc.com/2018/08/01/apple-1-trillion-share-price-threshold.html">recently adjusted</a> outstanding share count of 4,829,926,000 shares, a stock price of $207.05 nudged Apple over the finish line in the <a href="https://www.cnbc.com/2018/07/19/amazon-is-hot-on-apples-trail-in-the-race-to-1-trillion.html">race to one trillion</a>. Investors had previously been looking for a share price of $203.45, but the company&#8217;s <a href="https://www.cnbc.com/2018/05/01/apple-buybacks-q2-2018.html">hefty stock buybacks</a> moved the threshold higher.
&#8220;I think it just speaks to just how powerful the Apple ecosystem has become over the last few decades,&#8221; GBH Insights analyst Dan Ives told CNBC after the historic market move. &#8220;This is not the end, that they hit $1 trillion. I view this as just kind of speaking to a new a stage of growth and profitability.&#8221;
Ives credited the company&#8217;s growing <a href="https://www.cnbc.com/2018/07/31/apple-q3-2018-services-revenue.html">software and services revenue</a> with driving the valuation. The catch-all category — which includes the App Store, AppleCare, Apple Pay, iTunes and cloud services — posted record quarterly revenue of $9.55 billion for the June quarter.
&#8220;It just speaks to the vision that [co-founder Steve Jobs] and now [CEO Tim Cook] have had in making sure Apple isn&#8217;t just a hardware company,&#8221; Ives said.
<a class="inline_quotes" href="https://www.cnbc.com/quotes/?symbol=AMZN" data-gdsid="9399" data-inline-quote-symbol="AMZN">Amazon</a> had also been approaching the threshold, <a href="https://www.cnbc.com/2018/07/17/amazon-announces-2018-prime-day-results.html">surpassing $900 billion</a> in market value in July. Apple had quite the head start, though, hitting $900 billion <a href="https://www.cnbc.com/2017/11/08/apple-aapl-market-capitalization-hits-900-billion-dollars.html">back in November</a>.
<a href="https://www.cnbc.com/2018/08/01/wall-street-gushes-over-apples-earnings-path-to-trillion-intact.html">Many on Wall Street</a> noted earlier this week Apple was firmly on the path to $1 trillion. The so-called &#8220;dean of valuation&#8221; said the <a href="https://www.cnbc.com/2018/08/01/wall-street-dean-of-valuation-damodaran-says-apple-still-a-value.html">stock is still cheap</a> even at $1 trillion.

Apple first publicly traded U.S. company to hit a $1 trillion market cap

Commerce Secretary Wilbur Ross and Sen. Chris Coons D-Del.
Source: <a href="https://www.cnbc.com/2018/08/02/china-is-pouring-money-into-in-africa-heres-why-the-us-must-compete.html">Wilbur Ross and Chris Coons: How the US can level the playing field as China pours money into Africa</a>
<ul>
<li>Africa is home to some of the world&#8217;s fastest growing economies.</li>
<li>China has seen an opportunity to both gain political influence and to reap future rewards in Africa.</li>
<li>Passage of the BUILD Act of 2018 will help America invest in these countries and compete with its Chinese rivals.</li>
</ul>
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/08/02210219/105368172-1533135808476gettyimages-481868578.1910x1000.jpeg" alt="KENYA-US-OBAMA-DIPLOMACY-SUMMIT" height="1000" width="1910" data-licensor-name="Till Muellenmeister | AFP | Getty Images"/>
The Africa offers real opportunities thanks to some of the world&#8217;s fastest growing economies and an expanding labor force.
As a Cabinet Secretary and a Democratic Member of the Senate Foreign Relations Committee, respectively, we agree that the United States must do more to present our African partners with better alternatives to state-led economic models, promoted by countries like China, so Africa can assume its rightful place in the global economy.
Through efforts such as its Belt and Road Initiative, China is pursuing a neo-mercantilist vision that uses investment in infrastructure to secure an economic foothold, from which it is attempting to secure political, diplomatic, and in some cases military access, with potentially serious consequences for U.S. interests from Central Asia to Eastern Europe and Africa. China is, at the same time, bankrolling new financial organizations that aim to rival or displace the international institutions created by the United States and its allies after the Second World War.
By pouring money into Africa, China has seen an opportunity to both gain political influence and to reap future rewards in a continent whose economies are predicted to boom in the coming decades.
Just spend a few hours in a major African city – from Abidjan, to Addis Ababa, to Nairobi – and you will see the hallmarks of China&#8217;s economic presence. Over the past decade, China has either financed or contributed to financing infrastructure projects across the continent, offering billions of dollars in commercial loans at concessional rates to African governments and state-owned entities. But China&#8217;s commercial path has not always applied the highest international standards of openness, inclusivity, transparency, and governance.
The United States seeks sovereign African states that are integrated into the world economy, able to provide for their citizens&#8217; needs, and capable of managing threats to peace and security. We oppose opaque investment and development initiatives that impose undue costs and burdens on recipients, limiting their options for determining their own future.
Fragmented and outdated
As competitors like China explore opportunities to leverage state financing to pave economic inroads, U.S. government foreign investment entities remain fragmented and outdated. The Overseas Private Investment Corporation, the leading U.S. development finance institution, is unable to compete with its Chinese counterpart. Unlike Chinese institutions, OPIC works to fund private sector-led projects that will be economically sound over the long haul. Yet the agency lacks any consistent Congressional authorization and has no way of leveraging new financial tools that have drastically changed the face of the global economy.
Passage of the Better Utilization of Investments Leading to Development Act of 2018, better known as the BUILD Act, would change this unsustainable situation. This bipartisan legislation would reform and modernize government development finance by establishing the U.S. International Development Finance Corporation (IDFC).
Moreover, this legislation would allow the IDFC to more than double OPIC&#8217;s investment portfolio and allow us to participate in equity investments, provide technical assistance, and issue catalytic grants to mobilize capital for innovative projects that advance our national security and foreign policy objectives. Most importantly, the Congressional Budget Office estimates that, on net, implementing the legislation would reduce Federal costs and direct spending.
The BUILD Act also contains important reforms to reduce risks to taxpayers and ensures Congress will maintain strong oversight to make certain the agency does not provide financing where the private sector could.
By modernizing our development finance tools, the United States can send a clear message that we will continue to lead the world in supporting sound, responsible and fair economic growth, as well as sustainable and equitable business practices. This matters more than ever before as developing countries decide whether to follow a model based on free market capitalism, the rule of law and transparency, or an opaque, autocratic, state-led alternative that promotes corruption, debt, and dependency.
The BUILD Act will make a difference
Passage of the BUILD Act will make a real difference by increasing American investment in low and middle-income countries while also making a positive impact on local communities and populations. In 2017, OPIC investments supported 13,000 new jobs in host countries. With the BUILD Act, this number could grow significantly, helping to create new trading partners and therefore greater prosperity for the United States and our partners.
By planting the seeds of free market growth, the IDFC will help businesses and economies grow by supporting critical development projects in sectors such as energy, agriculture, infrastructure, and healthcare around the world.
The President&#8217;s Advisory Council on Doing Business in Africa, a 50-person strong delegation of American CEOs and senior leaders of the United States Government tasked with identifying and addressing barriers to expanding trade with African partners, recently concluded a two-week fact-finding mission to Ethiopia, Kenya, Côte d&#8217;Ivoire, and Ghana.
At each stop, the delegation heard from host governments and the private sector about the critical need for development finance reform to even the playing field for American companies. With the BUILD Act having just passed the House, and now proceeding in the Senate, we must send a loud and clear message: The United States intends to remain fully engaged in Africa and elsewhere in the developing world. The IDFC would expand America&#8217;s influence there and help support its private sector.
The BUILD Act has the support of the Trump Administration and a bipartisan coalition, including Senate Foreign Relations Committee Chairman Bob Corker, R-Tenn. and Senator Tim Kaine, D-Va. It unanimously passed the House of Representatives, with a bipartisan coalition led by Representatives Ted Yoho, R-Fla. and Adam Smith, D-Wash.
The two of us, supporters of the bill from two political parties and two branches of government now urge the Senate to act swiftly to ensure the United States maintains its historic role spearheading global economic growth and prosperity.

Commentary by Sen. Chris Coons, D-Del., and Wilbur Ross, Secretary of Commerce and a member of the Board of Directors of the Overseas Private Investment Corporation (OPIC).

Wilbur Ross and Chris Coons: How the US can level the playing field as China pours money into Africa

How to build the world’s best airline | CNBC Reports

Justina Crabtree
Source: <a href="https://www.cnbc.com/2018/07/31/zimbabwe-election-mnangagwa-and-chamisa-votes-counted.html">High voter turnout in Zimbabwe as counting is underway in tight two-horse race</a>
<ul>
<li>Votes are being counted in the Zimbabwean election which took place Monday.</li>
<li>The vote is Zimbabwe&#8217;s first since its independence from the U.K. in 1980 without former strongman leader Robert Mugabe on the ticket.</li>
<li>The presidency is tightly contested between the incumbent, Emmerson Mnangagwa, and young lawyer Nelson Chamisa.</li>
<li>Regardless of the candidates&#8217; potential to revive Zimbabwe&#8217;s basket case economy, painful reforms required by the International Monetary Fund and other donors will hit the public hard, an expert in the country told CNBC.</li>
</ul>
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/07/31220301/105361353-1532943581894gettyimages-1007670284.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Jekesai Njikizana | AFP | Getty Images"/>
Votes are being counted in Zimbabwe following a historic election Monday that wields the potential to bring the isolated state back into the international community and resurrect its once-promising economy.
Turnout at the polls was high, averaging at 70 percent, according to the Zimbabwe Electoral Commission. Voting closed at 7 p.m. local time (1 p.m. ET) as Zimbabweans selected both a new president and parliament.
Foreign observers 
 from the U.S., the European Union and the Commonwealth were present at the election in the southern African country.
The historic vote is the first in nearly four decades without former strongman leader Robert Mugabe on the ballot paper. Instead, the two frontrunners for the presidency are Emmerson Mnangagwa, currently in office and Mugabe&#8217;s former right-hand man, and Nelson Chamisa, a 40 year-old lawyer and pastor.
A July 20 survey by pollster Afrobarometer revealed that Mnangagwa was in the lead with a projected 40 percent of the vote, closely tailed by Chamisa at 37 percent. Twenty percent of voting intentions were unknown.
Mnangagwa heads up Zimbabwe&#8217;s ruling ZANU-PF party, while Chamisa leads the Movement for Democratic Change (MDC).
Mnangagwa or Chamisa must achieve over 50 percent of the vote in order to secure the presidency or else face a run-off on September 8.
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/07/31220307/105361350-1532943334814gettyimages-1007602496.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Dan Kitwood | Getty Images"/>
It is hoped that new leadership in Zimbabwe will revive the fortunes of a country rich in natural resources and with a youthful population. Under Mugabe, Zimbabwe was exiled from the international community and saw its economy descend into hyperinflation.
Rivalry until the very end
Mnangagwa, Zimbabwe&#8217;s 75 year-old incumbent, assumed power after a de facto military coup to oust Mugabe in November 2017. He has made internationalizing Zimbabwe&#8217;s basket case economy a cornerstone of his leadership.
Speaking at a press conference on the eve of the vote, 94 year-old Mugabe came out in support of Chamisa.
&#8220;I hope the choice of voting tomorrow will throw, thrust away the military government and bring us back to constitutionality,&#8221; Mugabe said from his mansion in the capital Harare on Sunday.
&#8220;I said I can&#8217;t vote for those who have caused me to be in this situation&#8230; so there is Chamisa left,&#8221; Mugabe added, according to Reuters.
&#8220;Mr Mugabe&#8217;s wishes are his wishes. I am going to accept any voter with open hands. The more the merrier,&#8221; Chamisa said in response to a question about Mugabe&#8217;s support.
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/07/31220312/105361356-1532943781809gettyimages-1007636604.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Dan Kitwood | Getty Images"/>
In a video posted on his Facebook page, Mnangagwa said that Chamisa had &#8220;forged a deal&#8221; with Mugabe. Zimbabweans would be voting for Mugabe &#8220;under the guise of Chamisa,&#8221; he added.
Promise of a new dawn for investors
Mugabe ruled Zimbabwe for 37 years following the country&#8217;s independence from colonial power the U.K. in 1980.
&#8220;For many Zimbabwean voters, it&#8217;s the freshness of Chamisa that makes him a political gamechanger,&#8221; Charles Laurie, head of Africa at risk consultancy Verisk Maplecroft, wrote in a note.
&#8220;A Chamisa victory brings the promise of a new dawn for Zimbabwe&#8217;s beleaguered investment community. A win by the MDC is the most defiant and resolute sign that the country is not just &#8216;open for business,&#8217; but committed to a deep purging of the policies and entrenched interests of the Mugabe era,&#8221; Laurie added.
But, political upheaval might not be so easy.
&#8220;Locally, there is a widely held, if cynical, view that having seized power in the military coup that ousted Robert Mugabe last November, Mr Mnangagwa and his military backers will simply not allow the opposition to win,&#8221; Pat Thaker, editorial director for the Middle East and Africa at Economist Intelligence Unit, said in a note.
&#8220;The mostly youthful unemployed may turn on the government when they realize that promised change is largely cosmetic, and that the painful reforms insisted upon by donors and the IMF (International Monetary Fund) will mean massive lay-offs in the public sector, higher taxes, spending cuts and rampant inflation.&#8221;

High voter turnout in Zimbabwe as counting is underway in tight two-horse race

Does U.S. debt matter? | CNBC Explains

Justina Crabtree
Source: <a href="https://www.cnbc.com/2018/07/25/china-xi-and-india-modi-lend-to-africa-ahead-of-brics-summit.html">China and India launch investment spree in Africa ahead of key summit</a>
<ul>
<li>Chinese President Xi Jinping and Indian Prime Minister Narendra Modi have committed loans to several African countries this week.</li>
<li>On Tuesday Xi pledged $14.7 billion to South Africa, while Modi announced that Uganda would receive $200 million.</li>
<li>China is far more prevalent on the African continent than India.</li>
<li>Both Xi and Modi will attend a three day BRICS summit in South Africa which starts on Wednesday.</li>
</ul>
<img loading="lazy" decoding="async" src="https://d16akly8855cs7.cloudfront.net/wp-content/uploads/2018/07/26140237/105351685-1532520817860gettyimages-1007053200.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Sheng Jiapeng | China News Service | VCG"/>
Chinese President Xi Jinping and Indian Prime Minister Narendra Modi have continued to lend in tandem to African countries ahead of a major emerging markets summit in Johannesburg, South Africa, beginning on Wednesday.
Xi, arriving in South Africa on Tuesday, pledged $14.7 billion of investment to the country.
His South African counterpart Cyril Ramaphosa is attempting to reboot the country’s economy after years of mismanagement and stagnation under former President Jacob Zuma. Ramaphosa’s target is to raise $100 billion in foreign investment.
The South African 
rand 
 rose 1 percent on the news of China’s commitment, according to Reuters.
$2.8 billion of China’s cash will be siphoned off into South Africa’s primary state utility Eskom. The struggling public firm reported a $171 million full-year loss on Monday.
Modi’s lending on behalf of India has been more modest, as the world’s fastest-growing major economy trails China’s ubiquity on the African continent.
During a flying visit to Uganda, Modi pledged $205 million to the East African country. The sum is intended to help Uganda develop its dominant agricultural sector and electricity distribution infrastructure.
‘Alternatives to the West’
Both Xi and Modi were in 
Rwanda 
 earlier this week, where a total of over $300 million was announced in loans. The money will develop the tiny, landlocked East African nation’s agriculture, roads and special economic zones.
Analysts CNBC spoke to read the news as Rwandan President Paul Kagame sending a defiant message to the U.S. over trade, amid an ongoing 
spat 
 over second-hand clothes.
TWEET
Among African countries, “China and India are viewed as alternatives to the West,” Anna Rosenberg, research director at emerging markets advisory firm Frontier Strategy Group, told CNBC via e-mail.
“Since economic growth has accelerated and interest from other emerging markets has picked up, African governments are glad to have more choice among those that are willing to support development efforts.”
While China’s ready capital dwarfs that provided by India, the latter country can share its technological advances with Africa, Munish Gupta, vice president of the India Chamber of Commerce, told CNBC Africa. “Today, China shares very little of its technology with the rest of the world,” he said.
Rosenberg added that given China’s prominence on the African continent, countries were “now well aware of the strings attached” to business deals. Meanwhile, “Africans are well exposed to Indian work culture,” she said, given that “there are many African/Indian run distribution companies across the continent, especially in East Africa, typically run by locals of Indian descent.”
Xi and Modi are to attend a three day 
BRICS 
 (Brazil, Russia, India, China and South Africa) summit, uniting the leaders of the bloc which encompasses the five emerging economies.
Brazilian President Michel Temer and Russian President Vladimir Putin will also be joining host Ramaphosa. Trade, given the current climate of U.S.-China import tariffs, is 
set to dominate the agenda 
.

China and India launch investment spree in Africa ahead of key summit

Justina Crabtree
Source: <a href="https://www.cnbc.com/2018/07/25/china-xi-and-india-modi-lend-to-africa-ahead-of-brics-summit.html">China and India launch investment spree in Africa ahead of key summit</a>
<ul>
<li>Chinese President Xi Jinping and Indian Prime Minister Narendra Modi have committed loans to several African countries this week.</li>
<li>On Tuesday Xi pledged $14.7 billion to South Africa, while Modi announced that Uganda would receive $200 million.</li>
<li>China is far more prevalent on the African continent than India.</li>
<li>Both Xi and Modi will attend a three day BRICS summit in South Africa which starts on Wednesday.</li>
</ul>
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/07/26140237/105351685-1532520817860gettyimages-1007053200.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Sheng Jiapeng | China News Service | VCG"/>
Chinese President Xi Jinping and Indian Prime Minister Narendra Modi have continued to lend in tandem to African countries ahead of a major emerging markets summit in Johannesburg, South Africa, beginning on Wednesday.
Xi, arriving in South Africa on Tuesday, pledged $14.7 billion of investment to the country.
His South African counterpart Cyril Ramaphosa is attempting to reboot the country’s economy after years of mismanagement and stagnation under former President Jacob Zuma. Ramaphosa’s target is to raise $100 billion in foreign investment.
The South African 
rand 
 rose 1 percent on the news of China’s commitment, according to Reuters.
$2.8 billion of China’s cash will be siphoned off into South Africa’s primary state utility Eskom. The struggling public firm reported a $171 million full-year loss on Monday.
Modi’s lending on behalf of India has been more modest, as the world’s fastest-growing major economy trails China’s ubiquity on the African continent.
During a flying visit to Uganda, Modi pledged $205 million to the East African country. The sum is intended to help Uganda develop its dominant agricultural sector and electricity distribution infrastructure.
‘Alternatives to the West’
Both Xi and Modi were in 
Rwanda 
 earlier this week, where a total of over $300 million was announced in loans. The money will develop the tiny, landlocked East African nation’s agriculture, roads and special economic zones.
Analysts CNBC spoke to read the news as Rwandan President Paul Kagame sending a defiant message to the U.S. over trade, amid an ongoing 
spat 
 over second-hand clothes.
TWEET
Among African countries, “China and India are viewed as alternatives to the West,” Anna Rosenberg, research director at emerging markets advisory firm Frontier Strategy Group, told CNBC via e-mail.
“Since economic growth has accelerated and interest from other emerging markets has picked up, African governments are glad to have more choice among those that are willing to support development efforts.”
While China’s ready capital dwarfs that provided by India, the latter country can share its technological advances with Africa, Munish Gupta, vice president of the India Chamber of Commerce, told CNBC Africa. “Today, China shares very little of its technology with the rest of the world,” he said.
Rosenberg added that given China’s prominence on the African continent, countries were “now well aware of the strings attached” to business deals. Meanwhile, “Africans are well exposed to Indian work culture,” she said, given that “there are many African/Indian run distribution companies across the continent, especially in East Africa, typically run by locals of Indian descent.”
Xi and Modi are to attend a three day 
BRICS 
 (Brazil, Russia, India, China and South Africa) summit, uniting the leaders of the bloc which encompasses the five emerging economies.
Brazilian President Michel Temer and Russian President Vladimir Putin will also be joining host Ramaphosa. Trade, given the current climate of U.S.-China import tariffs, is 
set to dominate the agenda 
.

Nyshka Chandran
Source: <a href="https://www.cnbc.com/2018/07/25/brics-could-benefit-from-global-trade-tensions.html">The world&#8217;s major emerging economies could end up benefiting from global trade tensions</a>
<ul>
<li>Escalating trade tensions, and tariffs from U.S. President Donald Trump&#8217;s administration, could give BRICS countries fresh purpose to push forward their trade agendas.</li>
<li>Divergent trade policies between members, however, could be a problem.</li>
<li>The bloc — which consists of Brazil, Russia, India, China and South Africa — has struggled to establish a unified voice on the international stage.</li>
</ul>
<img loading="lazy" decoding="async" src="https://d16akly8855cs7.cloudfront.net/wp-content/uploads/2018/07/26140344/105350807-1532496152485gettyimages-967163620.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Alexander Shcherbak | TASS"/>
The bloc of emerging economies known as 
BRICS 
 have long struggled to establish a unified voice on the international stage, but U.S. President Donald Trump may be providing them with an unlikely boost.
As the leaders of Brazil, Russia, India, China and South Africa gather in Johannesburg on Wednesday for their annual meeting, the issue of trade protectionism is set to dominate talks amid 
Trump&#8217;s proposed tariffs 
 on the European Union and Beijing. If the five-member group plays its cards right, it can use the matter to push forward the nations&#8217; own trade agendas.
BRICS members have an interest in developing a world with multiple countries filling leadership roles, so they will be looking to &#8220;take advantage&#8221; of tensions to &#8220;to build up the profile of BRICS,&#8221; said Duncan Innes-Ker, regional director for Asia at The Economist Intelligence Unit.
BRICS has sought to reject the Western dominance of international institutions, but a lack of unity prevents members from coming up with an alternative solution. Now, with Trump&#8217;s duties on imported steel and aluminum set to hurt each BRICS member — Beijing, New Delhi and Moscow have already responded with retaliatory duties — the bloc has fresh purpose to rally together.
That&#8217;s a positive for Beijing, 
which is now trying to tout itself as a champion of free trade 
 and has claimed it was &#8221; 
forced 
&#8221; to fight back against Trump&#8217;s measures with reciprocal tariffs.
&#8220;Given the failure of the 
G-20 finance ministers meeting 
 held earlier this week to defuse the threat to world trade from rising protectionism, the BRICS summit is likely to become a key global forum for galvanizing global support for multilateral trade liberalization,&#8221; said Rajiv Biswas, Asia-Pacific chief economist at IHS Markit.
The Trump administration has said it is not advocating protectionism, but rather seeking to even a playing field that has been corrupted by unfair trade practices. Those penalized by Trump&#8217;s tariffs, however, have tried to paint the U.S. as no longer interested in free trade, vacating its traditional role on the global stage.
BRICS countries may try to step into that gap, negotiating wide-ranging trade agreements with many countries, Biswas continued.
The volatile global trade backdrop could also benefit emerging markets in more tangible ways.
&#8220;China might turn to India, Brazil, Russia &#8230; to source products it originally bought from the U.S., such as soy beans, wheat, and meat,&#8221; said Alex Capri, visiting senior fellow at the National University of Singapore. &#8220;This creates new opportunities for BRICS, at least temporarily.&#8221;
American firms may also seek to move some activities to emerging markets that are within existing trading blocs so as to avoid rising tariffs, he noted.
While many are hopeful for the three-day BRICS summit to advance trade liberalization, divergent policies between members could stand in the way.
&#8220;The challenge for BRICS has always been what exactly holds them together beyond a cute acronym,&#8221; warned Deborah Elms, executive director of the Asian Trade Centre, noting their different domestic structures. &#8220;China is outward looking and manufacturing focused. Brazil is increasingly outward focused, but mostly for agriculture, not manufacturing. India is really not open.&#8221;

The world’s major emerging economies could end up benefiting from global trade tensions

Justina Crabtree
Source: <a href="https://www.cnbc.com/2018/07/24/china-xi-india-modi-visit-rwanda-kagame.html">Xi and Modi just visited Rwanda and supplied millions of dollars, here&#8217;s why</a>
<ul>
<li>Chinese President Xi Jinping and Indian Prime Minister Narendra Modi have just paid separate visits to Rwanda, pledging over $300 million in loans to the tiny, landlocked African country.</li>
<li>Rwandan President Paul Kagame is spearheading a pan-African single market. His country is currently in a trade spat with the U.S. over second-hand clothes.</li>
<li>Xi and Modi are both travelling in Africa ahead of a BRICS summit in South Africa which begins on Wednesday.</li>
</ul>
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/07/24170224/105348507-1532428938287gettyimages-1004166358.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Simon Maina | AFP | Getty Images"/>
The leaders of the world’s two largest emerging economies have both just visited the tiny, landlocked African country of Rwanda – separately – and showed themselves to be friends with deep pockets.
Chinese President Xi Jinping landed in Rwanda’s capital Kigali on Sunday, where he met with his Rwandan counterpart Paul Kagame.
China granted Rwanda a loan of $126 million for the building of two roads, the latter country’s Minister of Finance Uzziel Ndagijimana told Reuters. 
On Monday evening, after Xi’s departure earlier in the day, Indian Prime Minister Narendra Modi touched down in Kigali. Meetings resulted in the signing of two loan agreements each worth $100 million, for investment in agriculture and the development of special economic zones.
The meetings signified the first time a Chinese or Indian leader has visited Rwanda.
China and India are the world’s two most populous nations, with 1.6 billion and 1.3 billion inhabitants respectively. India is likely to be the world’s fastest growing major economy in 2018, a mantle China once held. The latter is now the world’s second largest economy after the U.S.
Rwanda’s recent history has been marked by civil war and ethnic conflict. It was ravaged by the genocide of its Tutsi ethnic group in 1994, in which over half a million people were killed. Home to approximately 12 million people, it is now in the process of transitioning into a middle income economy and reducing its dependence on foreign aid. The East African country is also promoting itself as a technology hub.
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/07/24170228/105348516-1532429152905gettyimages-1004472618.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Simon Maina | AFP | Getty Images"/>
Kagame is currently chairperson of the African Union. “As such, Rwanda becomes shorthand for engagement with Africa generally,” Jared Jeffery, political analyst at South Africa-based research firm NKC African Economics, told CNBC via e-mail. He added that the deals inked with China and India were a significant sum for the small Rwandan economy.
“Modi’s visit is arguably more notable than Xi’s as India’s ascendancy in Africa is less meteoric than China’s,” Indigo Ellis, Africa analyst at consultancy Verisk Maplecroft, told CNBC via e-mail. She added that Kagame views cooperation between the world&#8217;s developing countries &#8220;as the future.&#8221;
The Rwandan president is spearheading the establishment of a 
single market across the African continent 
 for goods and services which would encompass a combined gross domestic product of $2.5 trillion. The majority of the African Union’s 55 members have signed up, although Nigeria, the continent’s largest economy is 
yet to endorse the proposal 
.
The issue of trade may have another dimension for Kagame. “It seems that the visit (from Xi) was an opportunity to take a subtle dig at the U.S. – with which the country is having a small 
trade spat 
 over second-hand clothing” Jeffery added.
“China relates to Africa as an equal,” Kagame said on Monday, a statement “implying that others did not,” Jeffery pointed out.
“Kagame is sending a strong message to the U.S. – that Rwanda does not need Washington’s ‘paternalistic’ version of aid when China and India are ready and willing to invest in his country,” said Ellis.
Xi and Modi are travelling in Africa ahead of a 
BRICS 
 summit in Johannesburg, South Africa, which begins on Wednesday. Xi’s Africa itinerary began in 
Senegal 
 over the weekend, and will also include a stop in Mauritius after the South Africa meeting. Meanwhile, Modi travelled to Uganda on Tuesday.

Xi and Modi just visited Rwanda and supplied millions of dollars, here’s why

How one American is capitalizing off his move to Vietnam | CNBC Profiles

Justina Crabtree
Source: <a href="https://www.cnbc.com/2018/07/23/china-president-xi-visits-senegal-belt-and-road-reaches-west-africa.html">China&#8217;s latest trade partner in Africa could help it export to the US</a>
<ul>
<li>Chinese President Xi Jinping has just concluded a visit to the west African country of Senegal, the first stop of his four-leg tour of the African continent.</li>
<li>Senegal&#8217;s coastal location could enable China to more easily access U.S. markets.</li>
<li>Senegal is the first West African country to sign up to China&#8217;s Belt and Road Initiative, a multi-billion dollar plan to resurrect ancient trading routes centered on China.</li>
</ul>
<img loading="lazy" decoding="async" src="https://d16akly8855cs7.cloudfront.net/wp-content/uploads/2018/07/24160223/105346104-1532344867993gettyimages-1003078598.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Seyllou | AFP | Getty Images"/>
Chinese President Xi Jinping visited the West African country of Senegal over the weekend, building trade ties which could bear fruit in terms of China’s access to U.S. markets.
Xi met with his Senegalese counterpart Macky Sall, as well as Senegalese Prime Minister Mohammed Dionne, as part of a two-day visit which began on Saturday.
Following bilateral talks, Senegal signed up to be the first West African nation committed to China’s Belt and Road Initiative, a multi-billion dollar scheme to resurrect ancient trading routes centered on China.
Senegal, with a population of just 16 million, might seem like a curious stop for Xi given that Nigeria, Africa’s largest economy, is also in the West Africa region.
But according to 
Ibrahima Diong 
, who has served as Senegal’s minister of Chinese affairs, the country’s location is particularly attractive. 
“For any Chinese companies that would like to export to the U.S., you cannot get better than Senegal,” he told CNBC via telephone, highlighting its position on the west coast of the African continent.
China is Senegal’s second largest trading partner after its former colonial power France.
Xi’s visit to Senegal was the first stop of a broader tour of the African continent. He landed in Rwanda on Monday and will then attend a 
BRICS 
 summit in South Africa, before stopping in Mauritius. The Chinese president visited the United Arab Emirates earlier last week.
Xi&#8217;s Africa visit is his fourth to the continent since he took office in 2013, and his first overseas trip since beginning his second term as Chinese president in March of this year.
<img loading="lazy" decoding="async" src="https://d16akly8855cs7.cloudfront.net/wp-content/uploads/2018/07/24160229/105346108-1532345160539gettyimages-1003700530.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name=" Seyllou | AFP | Getty Images"/>
While Senegal is the first West African country to partner with China as part of its Belt and Road Initiative, Chinese-built infrastructure projects are mushrooming in the region. Last week a railway network was opened in Nigeria’s capital Abuja, helping to address the country’s need for infrastructure.
But, China has been accused of lending to its Belt and Road partner countries under conditions that they will not be able to fulfill.
Diong pointed out that Senegal is a favorable place for China to do business given its stable democracy. He added that Senegal is already an established exporter of its oil and gas reserves, enabling China to carve out a different kind of relationship. “While China needs some commodities, (it doesn’t) want a relationship that’s just commodity driven,” he said.
Partnership with Senegal enables China to “make a dent in the francophone world,” added Diong. He said that “Africans are being extremely pragmatic” in their business decisions, and are no longer constrained by colonial ties.
That perspective was echoed in an editorial published in several South African newspapers over the weekend, in which Xi wrote that South Africa and China had “forged a deep friendship during our common struggle against imperialism, colonialism and racism.”
It detailed that &#8220;China’s direct investment in South Africa has grown by more than 80 times and (now) exceeded $10.2 billion in cumulative terms.&#8221;
For Diong, China&#8217;s inroads in Africa are symptomatic of a shifting geopolitical order, particularly as global media attention is largely focused on the U.S.&#8217; relationship with Russia.
“Africans love the Chinese story,” Doing said. “Beyond just money, China is seen by many Africans as a model to aspire towards,” he added.

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