<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-820x547.jpg" alt="" class="wp-image-478146" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/UGBD2ZAOI5NQPCFYW7PX6JS46A-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Street vendors wait for customers at an open market, ahead of Nigeria&#8217;s Presidential election in Awka, Anambra state, Nigeria February 23, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



JOHANNESBURG/WASHINGTON, April 19 (Reuters)&nbsp;&#8211;&nbsp;Incomes in Sub-Saharan Africa are falling further behind the rest of the world amid a &#8220;tepid&#8221; economic recovery, the International Monetary Fund (IMF) said on Friday, warning of risks from geopolitics, domestic instability and climate change.



The IMF earlier this week said the region&#8217;s economy would grow 3.8% this year, up from 3.4% in 2023, as it begins to emerge from four years of shocks, from the COVID-19 pandemic to Russia&#8217;s invasion of Ukraine and rising global interest rates.



&#8220;When accounting for population growth, the income gap with the rest of the world is widening,&#8221; the fund said in its biannual Regional Economic Outlook report, launched during its Spring Meetings this week in Washington.



It noted that other developing countries saw real income per person more than triple since 2000, while they grew 75% in Sub-Saharan Africa and 35% in developed countries.



However, there were some positive developments.



&#8220;Two-thirds of the countries are already experiencing acceleration in growth; diversified and fairly broad-based growth,&#8221; said Abebe Selassie, director of the IMF&#8217;s African Department, said in an interview with Reuters in Washington.



Many of the more diversified economies had already enjoyed some growth recovery since the pandemic, he added.



<h2 class="wp-block-heading" id="h-inflation-falling">INFLATION FALLING</h2>



Economic conditions have started to ease for many countries this year, with Ivory Coast, Benin and Kenya issuing international bonds and median inflation falling to 6% in February from almost 10% a year earlier, the IMF said.



But political instability is rising and denting investor confidence, it said, pointing to junta-led states Burkina Faso, Mali and Niger leaving the Economic Community of West African States (ECOWAS) and 18 elections across the region this year.



Devastating droughts last year in the Horn of Africa and currently in southern Africa, as well as cyclones and floods, have also increased the region&#8217;s struggles.



South Africa is set to grow just 0.9% this year, a slight increase from 0.6% in 2023, amid ongoing rolling power cuts and problems with the country&#8217;s railways and ports, the IMF said, adding that &#8220;electoral uncertainties&#8221; could derail ongoing energy sector reforms.



Africa&#8217;s most industrialised economy holds an election on May 29, in which the ruling African National Congress (ANC) party could lose its majority for the first time since the end of apartheid in 1994.



West Africa&#8217;s largest economy, Nigeria, is set to grow 3.3% this year, as it struggles with high inflation amid painful currency and subsidy reforms.



In its northern neighbour Niger, meanwhile, growth is predicted to rocket from 1.4% last year to 10.4%, as oil exports ramp up.



(Reporting by Rachel Savage and Karin Strohecker, Additional reporting by Maxwell Akalaare Adombila, Editing by Alex Richardson)

FILE PHOTO: Street vendors wait for customers at an open market, ahead of Nigeria’s Presidential election in Awka

Sub-Saharan Africa incomes falling further behind rest of world, says IMF

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="444" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UXGWX6XZO5LIROPXQDLPV6SPGA.jpg" alt="" class="wp-image-422268" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UXGWX6XZO5LIROPXQDLPV6SPGA.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UXGWX6XZO5LIROPXQDLPV6SPGA-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UXGWX6XZO5LIROPXQDLPV6SPGA-148x90.jpg 148w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings</figcaption></figure>



JOHANNESBURG, April 19 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand weakened in volatile trading early on Friday, as reports of an Israeli attack on Iran sapped risk sentiment and sent currency markets into a tailspin.



In the latest tit-for-tat exchange between the two arch-foes, Israel launched an attack on Iranian soil, sources told Reuters. Iranian state media reported that drones had been shot down.



The rand&nbsp;ZAR=D3&nbsp;initially hit a near two-month low of 19.3800 to the dollar in a sell-off of risk assets as investors scurried towards safe-haven dollar and gold.



However, some calm returned to the markets after a senior Iranian official said Iran had no plan to strike back immediately.



&#8220;Diminished concern over a broader regional conflict, as Iran reported minimal damage to its infrastructure and confirmed no impact on its nuclear sites, contributed to the markets&#8217; partial recovery,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



At 0802 GMT, the rand traded at 19.2300 against the dollar, down 0.38% from its previous close.



On the stock market, the Top-40&nbsp;.JTOPI&nbsp;index and the broader all-share&nbsp;.JALSH&nbsp;index were both trading in the red, about 0.7% weaker in early trade.



The dollar&nbsp;=USD&nbsp;was last down 0.1% against a basket of currencies but still hovered near a five-month high.



Capital Economics chief economist Neil Shearing said Iran lifting flight restrictions may also have helped the markets.



&#8220;This might indicate that the attack was at the more moderate end of the spectrum,&#8221; he said in a research note.



(Reporting by Bhargav Acharya; Editing by Alex Richardson)

South African Rand coins are seen in this illustration picture

Risk sensitive South African rand weakens as geopolitical tensions bite

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-820x547.jpg" alt="" class="wp-image-477848" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-2147886676-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) and World Bank spring meetings signage outside the IMF headquarters in Washington, DC, US, on Wednesday, April 17, 2024. The International Monetary Fund inched up its expectations for global economic growth this year, citing strength in the US and some emerging markets, while warning the outlook remains cautious amid persistent inflation and geopolitical risks. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



LONDON, April 18 (Reuters)&nbsp;&#8211;&nbsp;Development agencies gathering in Washington this week face one of their toughest battles in years: getting a rich world worried about wars abroad and elections at home to commit more cash to the world&#8217;s poorest countries.



The poor world&#8217;s development is backsliding at an historic rate amid debt crises, higher-for-longer global interest rates and mounting investment needs. At the same time, it needs trillions more per year to meet climate spending goals alone.



At the last round of IMF and World Bank meetings in October, global leaders expected rich-world inflation to ease more quickly than it has, and thus for interest rate cuts to take pressure off financing costs.



Since then, an expanding conflict in the Middle East and the ongoing war in Ukraine have thrown up additional funding pressures, curbing the rich world&#8217;s already waning appetite to spend on development aid.



&#8220;Budgetary constraint in a number of countries is increasing,&#8221; Odile Renaud-Basso, president of the European Bank for Reconstruction and Development told Reuters in London ahead of the meetings. &#8220;There is more expenditure for defense and there is tension about support for development aid.&#8221;



&#8220;The global situation is becoming increasingly challenging,&#8221; she added.



Renaud-Basso said lenders trying to raise funds, such as World Bank&#8217;s International Development Association (IDA), would provide a bellwether for the rich world&#8217;s appetite to donate.



The World Bank&#8217;s lending arm to poor countries is targeting record commitments above its last replenishment of $93 billion, which it used early due to the COVID-19 pandemic and the fallout from Russia&#8217;s invasion of Ukraine. It has begun issuing bonds to leverage its lending.



&#8220;We&#8217;ve been able to do more with the same level of donor contributions,&#8221; IDA director Dirk Reinermann told Reuters. &#8220;The problem is that this party is slowly coming to an end&#8230;the zero point where we are fully leveraged, it&#8217;s coming closer and closer.&#8221;



In its last replenishment, 52 high- and middle-income countries contributed, led by the United States, Japan, Germany, the United Kingdom and France.



But many of those are grappling with donor fatigue. France and the UK have made large cuts to overseas aid in recent years, while in the United States political battles ahead of the presidential election have stalled other foreign spending commitments, including to Israel and Ukraine.



According to a recent United Nations report, official development assistance globally hit a record in 2022, but the share of it going to developing countries fell by 2%.



&#8220;I don&#8217;t think the world has ever been in such a state,&#8221; said Vera Songwe, chair of the Liquidity and Sustainability Facility, a group that aims to lower debt costs for Africa.



Songwe herself worked on IDA&#8217;s replenishment round during her time at the World Bank, and described a whirlwind global tour to press finance ministers, parliamentarians and other officials for funding.



It is never an easy sell, she said. But this year is different.



&#8220;Even in 2008, China was still growing then. This is much more difficult.&#8221;



It amounts to a perfect storm for poor countries. In the decade after the global financial crisis, with record-low interest rates, money flowed freely and the external public debt stock in low and middle income rose to $9 trillion, from $5.6 trillion in 2012.



China during that time also opened its financial taps, lending billions via its Belt and Road Initiative. But amid simmering debt problems at home, it has since pulled back.



This has significantly narrowed the availability of affordable finance for developing countries.



&#8220;There are very few such pots of money with such low concessional rates the world over, especially pots of money that come from a multilateral lender that has certain checks and balances,&#8221; said Giulia Pellegrini, a senior portfolio manager for emerging market debt at Allianz Global Investors.



Getting money from IDA, or another multilateral lender such as EBRD, can spur private lenders and eurobond investors to open their wallets, she added.



&#8220;Seeing a strong vote of confidence from some of these multilateral bodies, giving them concessional finance is a way to say these countries are embarking on a positive reform,&#8221;&nbsp;she said.



Reinermann said IDA&#8217;s backing from the World Bank itself and other institutions is strong. But that would not, he said, make securing commitments easy.



&#8220;Fiscal situations are not flush anywhere,&#8221; he said. &#8220;Right now it looks like a real mountain to climb.&#8221;



(Reporting by Libby George and Karin Strohecker; editing by Christina Fincher)

Spring Meetings Of The International Monetary Fund And World Bank

Battle for development cash heats up at IMF/World Bank meetings

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-820x573.jpg" alt="" class="wp-image-458452" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/NEPKJJCZ6JMDDNTX4MOGZ42NFI-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South Africa&#8217;s Finance Minister Enoch Godongwana speaks during his medium-term budget policy statement in Cape Town, South Africa, November 1, 2023. REUTERS/Esa Alexander</figcaption></figure>



WASHINGTON, April 18 (Reuters)&nbsp;&#8211;&nbsp;South Africa will use future&nbsp;drawdowns&nbsp;of its Gold and Foreign Exchange Contingency Reserve Account to curb its debt burden, Finance Minister Enoch Godongwana said, adding he was pondering tax hikes and expenditure cuts in the next post-election budget.



Africa&#8217;s most industrialised nation is grappling with an ailing economy and high debt ahead of a general election on May 29 that could see the governing African National Congress party lose its parliamentary majority for the first time since the end of apartheid 30 years ago.



Earlier this year, the government announced a change to the framework governing the so-called GFECRA account that captures gains and losses to foreign currency reserve transactions, allowing for a drawdown of 150 billion rand ($8 billion) over the next three years.



&#8220;Eskom is out, or Transnet,&#8221; Godongwana told Reuters on the sidelines of the International Monetary Fund and World Bank meeting, ruling out financial support from the account for the country&#8217;s ailing state-energy firms.



&#8220;Debt service costs now have emerged the highest expenditure item &#8211; therefore that is a red flag.&#8221;



Other measures were also on the horizon a bit further out.



The country&#8217;s next 2025/2026 budget &#8211; scheduled for February next year &#8211; could also see more pronounced adjustments than the last one, the minister said.



&#8220;If you want to do a fiscal consolidation you must do it far away from the election, and the timing for us is the budget that we will table on the 19th February 2025,&#8221; said Godongwana, when asked about the absence of significant expenditure reductions in the recent budget.



The next budget, nearly a year down the line, must send a signal and timeline by which fiscal consolidation would be concluded, the minister added.



&#8220;Now that is going to require maybe well that we cut expenditure and maybe well that we tweak some taxes &#8211; it could be a combination of both,&#8221; he said.



Another push the government would focus on in the months to come was consolidating the plethora of social spending measures and grants, said Godongwana.



Prospects for economic growth, currently forecast at 1.6% for 2024, could face headwinds if loadshedding were to intensify or Middle East tension to escalate.



&#8220;I factor in that there is a possibility of downside risks.&#8221;



However, the recent droughts that have wreaked havoc across much of Sub-Saharan Africa, including South Africa itself, would have no impact on food inflation, at least for now, he said.



($1 = 18.9824 rand)



(Reporting by Karin Strohecker; Editing by Toby Chopra)

South Africa issues medium-term budget policy statement

S.Africa contingency reserves won’t be spent on Eskom, Transnet, finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-820x573.jpg" alt="" class="wp-image-460717" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/EU77SXNC7VKF5PUJALHFIPSWDU-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A MultiChoice logo is displayed outside the company&#8217;s building in Cape Town, South Africa February 2, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, April 18 (Reuters)&nbsp;&#8211;&nbsp;French media group Vivendi&#8217;s&nbsp;VIV.PA&nbsp;Canal+ said on Thursday that it has bought 3.7 million shares in South African broadcaster MultiChoice&nbsp;MCGJ.J&nbsp;to increase its stake to 40.83%.



Last Monday, Canal+ made an all-cash mandatory offer to buy all the shares of MultiChoice it does not already own for 35 billion rand.



Canal+ had said that it reserves the right to buy more MultiChoice shares in the market during the course of the offer. Should the French company buy these shares at more than 125 rand each, it is obliged to increase the offer price &#8220;to not less than the highest consideration paid per MultiChoice share&#8221;.



It has increased its stake from 36.6% as of April 8, buying shares from April 12 to April 17 at 117.50 rand, 115.99 rand, 115.95 rand and 116 rand per share, it said in a statement on Thursday.



The offer at 125 rand per share is with the board of MultiChoice awaiting approval.



(Reporting by Nqobile Dludla; editing by Jason Neely)

FILE PHOTO: MultiChoice logo is displayed outside the company in Cape Town

Vivendi’s Canal+ increases stake in South Africa’s MultiChoice to 40.83%

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VN5FZZMKXZJIXDOLESSOKHMKVU.jpg" alt="" class="wp-image-477732" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VN5FZZMKXZJIXDOLESSOKHMKVU.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VN5FZZMKXZJIXDOLESSOKHMKVU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VN5FZZMKXZJIXDOLESSOKHMKVU-135x90.jpg 135w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Bernadette Handing carries Pearl Millet Ear Head as she plods through the submerged sorghum field after heavy rain in Kournari village, on the outskirts of Ndjamena, Chad October 26, 2022. REUTERS/Mahamat Ramadan</figcaption></figure>



NIAMEY, April 18 (Reuters)&nbsp;&#8211;&nbsp;On a hospital bed in Niger, a 96-year-old woman lay motionless attached to a drip &#8211; one of thousands of possible victims of West Africa&#8217;s worst heatwave in living memory, which a report said on Thursday was linked to fossil fuel-driven climate change.



In late March and early April, days and nights of extreme heat above 40° Celsius (104°F) gripped many West African countries. Temperatures soared so high in Mali and Burkina Faso they equated to a once in 200-year event, according to the report on the Sahel region by World Weather Attribution (WWA).



The severity of the heatwave led WWA&#8217;s team of climate scientists to conduct a rapid analysis, which concluded the temperatures would not have been reached if industry had not warmed the planet by burning fossil fuels and other activities.



&#8220;In a pre-industrial climate, we wouldn&#8217;t expect to see heat waves at this intensity at all,&#8221; WWA statistician Clair Barnes told Reuters.



&#8220;It was the hottest that anyone in living memory has had to deal with (there),&#8221; she said.



Despite a lack of data, WWA estimates there were hundreds or possibly thousands of heat-related deaths, and it warned such extreme heat will become much more common without greater global efforts to reduce planet-warming emissions.



On the current trajectory, if fossil fuel emissions do not fall &#8220;we would expect to see heatwaves like this maybe ten times more frequently, so potentially up to ten times a year,&#8221; Barnes said.



&#8220;It&#8217;s something that people are going to have to adapt to and learn to live with.&#8221;



Given the growing threat, the group recommends that countries formulate heat action plans that would warn citizens when extreme temperatures are imminent and offer guidance on how to prevent overheating.



<h2 class="wp-block-heading" id="h-elderly-at-risk">ELDERLY AT RISK</h2>



The plight of the nonagenarian in Niger illustrates the threat such extreme temperatures pose, particularly to older people in countries where access to air conditioning or even electric fans can be limited.



Standing at the hospital bedside on Monday, daughter Zeynabou Toure described how her mother quickly sickened in the heat at the start of April, prompting them to rush to hospital.



They were among an unusually high number of patients seeking care at the facility in Niger&#8217;s sun-baked capital Niamey, said doctor Andia Abdoul-Kader.



&#8220;We have seen more and more cases of dehydration,&#8221; he told Reuters in his office. &#8220;It really affects the elderly &#8230; four to five litres of water need to be replenished for the patient to return to normal.&#8221;



While Abdoul-Kader has not recorded excess deaths, Gabriel Toure Hospital in the capital of neighbouring Mali reported 102 deaths, likely heat-related, in the first four days of April. This compares to 130 deaths it recorded in total for the whole of April last year.



&#8220;This indicates an exceptional situation this year,&#8221; said one of the hospital&#8217;s department heads, doctor Djibo Mahamane Django, in an online video post on April 5.



(Additional reporting by Cooper Inveen in Dakar and Tiemoko Diallo in BamakoAdditional reporting and writing by Alessandra Prentice; Editing by Aurora Ellis)

Catastrophic floods in West Africa threaten food security for years to come in Kournari

Deadly heat in West Africa warns of climate change-driven scorchers to come, says report

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-820x547.jpg" alt="" class="wp-image-424241" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo in Washington, United States, September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



LONDON, April 17 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund&#8217;s Board has backed a key change to give it more freedom to support crisis-hit countries even if debt renegotiations with big creditor governments like China are still ongoing.



The proposal is to reform what the IMF calls its Lending Into Official Arrears (LIOA) policy, a framework that determines if and when it can lend to a country that owes money to another IMF-member nation.



In a statement late on Tuesday the Fund said its Executive Board had endorsed &#8220;reforms to promote the IMF&#8217;s capacity to support countries undertaking debt restructurings&#8221;.



A key change will be that it will be able to lend to a country where no debt agreement with one or more of its bilateral creditors has been reached if the Fund has been provided with &#8220;additional safeguards&#8221;.



Debt crisis veterans have been long been urging a change to the IMF&#8217;s approach having seen delays in agreements with the likes of China widely blamed for dragging out Zambia, Ethiopia and Sri Lanka&#8217;s defaults for years.



&#8220;Directors supported the addition of a fourth strand under which the Fund shall seek additional safeguards where an adequately representative agreement has not been reached through a representative standing forum,&#8221; the IMF said.



(Reporting by Marc Jones; editing by Philippa Fletcher)

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

IMF Board backs key change to lending-into-official-arrears policy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="571" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-820x571.jpg" alt="" class="wp-image-477407" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-820x571.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-1536x1070.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/LZJDLC7DLROENA6JMXYHS2EK2E-1-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A woman uses a trolley as she shops at a Pick n Pay store at the Dobson Point Shopping Centre, in Soweto, South Africa, March 19, 2024. REUTERS/Siphiwe Sibeko/File photo</figcaption></figure>



JOHANNESBURG, April 17 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s headline consumer inflation fell to 5.3% year on year in March from 5.6% in February&nbsp;ZACPIY=ECI, statistics agency data showed on Wednesday.



Analysts polled by Reuters had forecast that inflation would slow to 5.4% in annual terms.



The South African Reserve Bank (SARB) kept its main interest rate unchanged at 8.25%&nbsp;ZAREPO=ECI&nbsp;last month, saying its policy stance needed to remain restrictive to tackle higher inflation expectations.



It expects headline inflation to reach the midpoint of its target range of 4.5% only near the end of 2025.



SARB Governor Lesetja Kganyago told Reuters earlier in April that South African policymakers were in discussions to lower the bank&#8217;s current inflation target range of between 3% and 6% to bring it more in line with peers.



On a month-on-month basis, inflation was at 0.8% in March compared to 1.0% a month before, Statistics South Africa said.



This is a developing story&#8230;



(Reporting by Bhargav Acharya; Editing by Alexander Winning)

A woman uses a trolley as she shops at a Pick n Pay store, in Soweto

South Africa inflation slows slightly more than expected in March

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-820x525.jpg" alt="" class="wp-image-477046" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-820x525.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-1536x983.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/W24QXKQRMVIZVBZNLSSJ7GLVBU-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The company logo for Johnson &amp; Johnson is displayed to celebrate the 75th anniversary of the company&#8217;s listing at the New York Stock Exchange (NYSE) in New York, U.S., September 17, 2019. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



Corrects to the Zimbabwean regulator saying it &#8220;did not have a record of&#8221; the syrup being imported into the country instead of that it &#8220;did have a record of&#8221; in penultimate paragraph



KIGALI, April 15 (Reuters)&nbsp;&#8211;&nbsp;Drug regulators in Tanzania, Rwanda and Zimbabwe have recalled a batch of Johnson &amp; Johnson&nbsp;JNJ.N&nbsp;children&#8217;s cough syrup as a precautionary measure after their Nigerian counterpart said laboratory tests found high levels of toxicity.



The countries join Nigeria, Kenya and South Africa in recalling the same batch of the syrup, which is used to treat coughs, hay fever and other allergic reactions in children. South Africa has also recalled an additional batch.



Laboratory tests on the syrup by Nigeria&#8217;s health regulator showed a high level of diethylene glycol, which has been linked to the deaths of dozens of children in Gambia, Uzbekistan and Cameroon since 2022 in one of the world&#8217;s worst waves of poisoning from oral medication.



Diethylene glycol is toxic to humans when consumed and can result in acute kidney failure.



The batch of Benylin Paediatric syrup recalled was made by J&amp;J in South Africa in May 2021, although Kenvue&nbsp;KVUE.N&nbsp;now owns the brand after a spin-off from J&amp;J last year.



Tanzania Medicines and Medical Devices Authority (TMDA) said it had begun the recall on April 12 after hearing about the Nigerian test results.



&#8220;This is an exercise that does not involve investigation but rather monitoring to ensure that those affected drugs are removed from the market,&#8221; TMDA spokesperson Gaudensia Simwanza told Reuters on Monday.



A spokesperson for Kenya&#8217;s drug regulator said its test results on the syrup would likely be ready on Wednesday.



&#8220;A review of our safety database doesn&#8217;t reveal any adverse events reported,&#8221; the Rwanda Food and Drugs Authority said in a statement dated April 12. &#8220;However, Rwanda FDA issues the present recall for precautionary measures.&#8221;



Zimbabwe&#8217;s Medicines Control Agency said that it did&nbsp;not&nbsp;have a record of the product&#8217;s importation into Zimbabwe, but that it was concerned the syrup could enter the local market illegally. It said it would step up inspections in case.



Kenvue said in a statement that it was conducting its own assessment and working with health authorities to determine a course of action.



(Reporting by Philbert Girinema, Nuzulack Dausen and Nyasha Chingono; Additional reporting by Aaron Ross; Writing by Bhargav Acharya; Editing by Hereward Holland, Susan Fenton and Alexander Smith and Aurora Ellis)

FILE PHOTO: The company logo for Johnson & Johnson is displayed to celebrate the 75th anniversary of the company’s listing at the NYSE in New York

Tanzania, Rwanda, Zimbabwe join African recall of J&J cough syrup

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-820x547.jpg" alt="" class="wp-image-476778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1243546489-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters in Washington, DC, US, on Tuesday, Sept. 27, 2022. World Bank President Malpass said he hasn&#8217;t considered resigning and isn&#8217;t under pressure from member countries to do so, after critics slammed him for dodging questions on whether he accepted the scientific consensus that the burning of fossil fuels is driving global warming. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



WASHINGTON, April 15 (Reuters)&nbsp;&#8211;&nbsp;Half of the world&#8217;s 75 poorest countries are experiencing a widening income gap with the wealthiest economies for the first time this century in a historical reversal of development, the World Bank said in a report on Monday.



The differential between per capita income growth in the poorest countries and the richest has widened over the past five years, according to the report.



&#8220;For the first time, we see there is no convergence. They&#8217;re getting poorer,&#8221; Ayhan Kose, deputy chief economist for the World Bank and one of the report&#8217;s authors, told Reuters.



&#8220;We see a very serious structural regression, a reversal in the world &#8230; that&#8217;s why we are ringing the alarm bells here,&#8221; he said.



The report said the 75 countries eligible for grants and zero-interest loans from the World Bank&#8217;s International Development Association (IDA) risk a lost decade of development without ambitious policy shifts and significant international aid.



Kose said growth in many IDA countries had already begun to taper off in these countries before the COVID-19 pandemic, but it would be just 3.4% in 2020-2024, the weakest half-decade of growth since the early 1990s. Russia&#8217;s invasion of Ukraine, climate change, increases in violence and conflict also weighed heavily on their prospects.



More than half of all IDA countries are in Sub-Saharan Africa; 14 are in East Asia and eight are in Latin America and the Caribbean. Thirty-one have per capita incomes of less than $1,315 a year. They include the Democratic Republic of Congo, Afghanistan and Haiti.



One in three IDA countries is poorer now than on the eve of the pandemic. IDA countries account for 92% of the world&#8217;s people who lack access to a sufficient quantity of affordable, nutritious food. Half of the countries are in debt distress, meaning they are unable to service debt or are at high risk of not being able to.



And despite their young populations &#8211; a demographic boon at a time when populations were aging nearly everywhere else, rich natural resources and abundant solar-energy potential, private and government creditors had been backing away from them.



U.S. Treasury Undersecretary Jay Shambaugh raised concerns about the worsening situation last week, warning China and other emerging official creditors against free-riding by curtailing loans to low-income countries just as the IMF or multilateral development banks were pouring funds in.



Almost 40 countries saw external public debt outflows in 2022, and the flows likely worsened in 2023, he said.



Kose said ambitious policies were needed to accelerate investment, including domestic efforts to strengthen fiscal, monetary and financial policies, and structural reforms to improve education and increase domestic revenues.



Significant financial support from the global community was also essential to make progress and lower the risk of protracted stagnation, Kose said, noting that the World Bank hoped to drum up a robust replenishment of IDA funds by December.



Stronger international coordination on climate change, debt restructurings and measures supporting cross-border trade would also be crucial, it said.



Indermit Gill, World Bank chief economist, noted that China, India and South Korea &#8211; now major economic powerhouses &#8211; had once been among the world&#8217;s poorest countries, but were able to tackle extreme poverty and raise living standards.



&#8220;The world cannot afford to turn its back on IDA countries,&#8221; he said.



(Reporting by Andrea Shalal; Editing by Edwina Gibbs)

World Bank As Chief Wont Resign Over Climate Comments

World Bank sounds alarm on ‘historical reversal’ of development for poorest nations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1-820x547.jpg" alt="" class="wp-image-476763" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



LAGOS, April 15 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s creaking grid collapsed for the fifth time this year in the early hours of Monday, highlighting the country&#8217;s inability to provide reliable power after raising tariffs for wealthier consumers by 230% only two weeks ago.



Nigeria&#8217;s electricity regulator on April 3 approved an increase in tariffs for the 15% of consumers who use the most power, as the government tries to reduce the $2.6 billion worth of subsidies for the sector.



The head of the Nigerian electricity regulator, Musiliu Oseni, defended the tariff increase saying it will mean an end to grid collapses and bring investment into the sector.



National supply data showed the supply of power via the grid fell to around 50MW early on Monday from 4,020MW the previous day.



The Transmission Company of Nigeria, which oversees the grid, has not yet issued a statement on the cause of the latest near complete halt to the supply of power via the grid and did not immediately reply to an inquiry by Reuters.



Gas shortages and vandalism have triggered grid collapses in the past.



The new rate raises the tariff to 225 naira per kilowatt hour from a maximum of 68 naira for about 15% of customers, who will enjoy a maximum of 20 hours of supply daily.



Some analysts have criticised the tariff increase because it pushes more power to wealthier consumers from the meagre 4,000MW available for distribution to over 200 million Nigerians from the grid.



Nigeria, Africa&#8217;s most populous nation, faces perennial power shortages that have contributed to years of weak economic growth.



Its electricity sector faces a myriad of problems, including a failing grid, gas shortages, high debt and vandalism. The country has 12,500 megawatts of installed capacity, but produces only about a quarter of that, leaving many Nigerians reliant on expensive diesel-powered generators.



(Reporting by Isaac Anyaogu; Editing by David Holmes)

TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled-1

Nigeria’s grid collapses weeks after tariffs raised for wealthier consumers

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-820x547.jpg" alt="" class="wp-image-476698" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/TNUFZSJVAFIWBGPJVBHQEIKI3Q-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People walk in front of closed shops as traders lock up their stores in protest of Ghana&#8217;s worsening economic conditions in Accra, Ghana October 19, 2022. REUTERS/Francis Kokoroko</figcaption></figure>



JOHANNESBURG/ACCRA, April 15 (Reuters)&nbsp;&#8211;&nbsp;Ghana has failed to strike a deal with two bondholder groups to restructure $13 billion of international bonds, the government said on Monday, in a blow to its efforts to swiftly emerge from default and economic crisis.



Talks were derailed for now after the International Monetary Fund (IMF) indicated that the deal would not fit its debt sustainability parameters, which set out how much debt it thinks a country can afford, the government said in a statement.



Ghana had been in formal talks with two groups holding its international bonds since March 16 &#8211; one &#8220;international&#8221; group of Western asset managers and hedge funds and another one including regional African banks.



The regional African bondholder group had also rejected part of the proposed rework, including an option to retain the original value of the bonds with a longer maturity and lower coupon.



In December 2022, Ghana defaulted on most of its external debt of about $30 billion as it fell into economic crisis. Debt costs and inflation surged, reserves dwindled and the government found itself unable to access international bond markets.



Growth in the world&#8217;s second biggest cocoa producer has since started to recover, with the economy growing 2.9% in 2023, better than the 2.3% the IMF predicted in January.



&#8220;The Government is actively working on solutions that it believes would be consistent with IMF program parameters under the set of policies currently being discussed, with the objective of reaching a mutual agreement acceptable to all parties,&#8221; the government said in the regulatory statement.



The dollar-denominated bonds, known as eurobonds, fell between 2.6 and 3.2 cents, with most of the maturities trading between the 46 and 48 cents in the dollar mark, according to Tradeweb data.&nbsp;XS1968714540=TE



Regional bondholders believe the Ghanaian economy&#8217;s strong performance compared to the IMF&#8217;s original analysis of its debt sustainability could a pave the way to a deal by the end of 2024, Samuel Sule, Chief Executive Officer at Renaissance Capital Africa and financial advisor to the group, told Reuters.



The IMF approved a $3 billion, three-year loan program to Ghana in May 2023, contingent on Ghana undergoing reforms and finishing a debt restructuring that the fund deems sustainable.



Ghana&#8217;s government said the IMF had assessed the proposed bondholder deal against debt sustainability thresholds from the first review of the loan program, which was finished in January. The second review, in which thresholds could change, is ongoing.



An advisor to the international bondholder committee said in a statement that restructuring discussions would continue this week.



<h2 class="wp-block-heading" id="h-at-some-point">&#8216;AT SOME POINT&#8217;</h2>



Ghana &#8211; together with Zambia and Ethiopia &#8211; is reworking debt under the G20 Common Framework, a process set up during the COVID-19 pandemic to speed up debt overhauls.



However, progress has been slow.



Zambia struggled to get its bond restructuring deal over the line amid objections from official creditors, though it eventually reached an agreement in principle in late March.



Ghana is &#8220;confident&#8230; at some point&#8221; it will reach an agreement with bondholders, Finance Minister Mohammed Amin Adam told a press conference on Saturday.



The IMF&#8217;s Ghana mission chief Stephane Roudet told the joint news briefing, held to coincide with a staff-level agreement on the IMF&#8217;s second review of its $3 billion loan programme, that the Fund needed to continue to see progress in talks with bondholders.



Ghana is aiming to cut $10.5 billion from its external debt repayments and interest costs due from 2023 to 2026. It reached an agreement in principle in January to rework $5.4 billion of loans with official creditors, which will need to confirm that the bondholder deal is comparable to what they offered.



The bondholder deal that had been proposed would have included a heavily discounted option of three bonds maturing between 2030 and 2038 with coupons of 5% until 2027 and 6.5% after. Another &#8220;PAR option&#8221; offering no principal reduction would have matured in 2043, with a 1.5% coupon.



Bondholders who signed up for either option would have also received a separate bond representing accrued &#8220;Past Due Interest&#8221;. This bond and the discounted options would have had a nominal, face value haircut of 33%.



Some bondholders had favoured the use of so-called state-contingent debt instruments, which could increase payouts if Ghana&#8217;s economy performs better on agreed metrics, as a way of bridging differences in their outlook.



Bondholders had also pushed for a number of extra conditions to be included. IMF spokespeople did not immediately respond to a request for comment.



(Reporting by Rachel Savage and Maxwell Akalaare Adombila; Additional reporting by Bhargav Acharya in Johannesburg and Mrinmay Dey in Bangalore, Editing by Karin Strohecker, Lincoln Feast and Ros Russell)

Ghana traders close shops to protest worsening economy

Ghana fails to reach debt deal with international bondholders

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2Y6XTVFSZVPOPO5NVBOIEAEKKY-1-820x615.jpg" alt="" class="wp-image-475886" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2Y6XTVFSZVPOPO5NVBOIEAEKKY-1-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2Y6XTVFSZVPOPO5NVBOIEAEKKY-1-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2Y6XTVFSZVPOPO5NVBOIEAEKKY-1-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2Y6XTVFSZVPOPO5NVBOIEAEKKY-1-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2Y6XTVFSZVPOPO5NVBOIEAEKKY-1-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/2Y6XTVFSZVPOPO5NVBOIEAEKKY-1-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People carry bags of relief grains at a camp for the Internally Displaced People in Adadle district in the Somali region, Ethiopia, January 22, 2022. Picture taken January 22, 2022. Claire Nevill/World Food Programme/Handout via REUTERS/File Photo</figcaption></figure>



DAKAR, April 12 (Reuters)&nbsp;&#8211;&nbsp;Soaring prices have helped fuel a food crisis in West and Central Africa, where nearly 55 million people will struggle to feed themselves in the coming months, U.N. humanitarian agencies warned on Friday.



The number facing hunger during the June-August lean season has quadrupled over the last five years, they said, noting that economic challenges such as double-digit inflation and stagnating local production had become major drivers of the crisis, beyond recurrent conflicts in the region.



Among the worst-affected countries are Nigeria, Ghana, Sierra Leone, and Mali, where around 2,600 people in northern areas are likely to experience catastrophic hunger, said the World Food Programme, U.N. children&#8217;s agency UNICEF, and the Food and Agriculture Organization in a joint statement.



&#8220;The time to act is now. We need all partners to step up &#8230; to prevent the situation from getting out of control,&#8221; said Margot Vandervelden, WFP&#8217;s acting regional director for West Africa.



Due to the food shortages, malnutrition is alarmingly high, the agencies said, estimating that 16.7 million children under the age of five are acutely malnourished across West and Central Africa.



The region&#8217;s heavy dependence on food imports has tightened the squeeze, particularly for countries battling high inflation such as Ghana, Nigeria, and Sierra Leone.



Policies should be introduced to boost and diversify local food production &#8220;to respond to the unprecedented food and nutrition insecurity,&#8221; said Robert Guei, the FAO&#8217;s Sub-regional Coordinator for West Africa.



(Writing by Alessandra Prentice; Editing by Peter Graff)

WFP warns millions facing hunger as driest weather in decades ravages Horn of Africa

Nearly 55 million people face hunger in West and Central Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, April 12 (Reuters) &#8211; South Africa&#8217;s rand weakened in early trade on Friday against the U.S. dollar, which hovered near a five-month high as traders heavily scaled back bets for a slew of U.S. rate cuts this year.



At 0715 GMT, the rand traded at 18.7550 against the dollar&nbsp;ZAR=D3, about 0.2% weaker than its previous close.



The dollar&nbsp;=USD&nbsp;was trading up almost 0.4% against a basket of global currencies.



&#8220;The geopolitical risks in the Middle East remain high, and this is spurring further demand for the dollar,&#8221; said Andre Cilliers, Currency Strategist at TreasuryONE, estimating that the rand would trade in an 18.65/18.90 range for the day.



There was some positive economic data this week to support the local currency, which has been battered by power cuts and political uncertainty ahead of a May election. South Africa&#8217;s mining and manufacturing output rose in February, and business confidence held steady at an improved level.



On the stock market, the Top-40&nbsp;.JTOPI&nbsp;index was up 0.88% while the broader all-share&nbsp;.JALSH&nbsp;was up 0.78% in early trade.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was weaker in early deals, with the yield up 2.5 basis points to 10.715%.



(Reporting by Nellie Peyton; Editing by Tomasz Janowski)

Illustration photo of South African rand

South African rand weakens against strong dollar

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-820x547.jpg" alt="" class="wp-image-423316" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks past the International Monetary Fund (IMF) logo at its headquarters in Washington, U.S., May 10, 2018. REUTERS/Yuri Gripas/</figcaption></figure>



WASHINGTON, April 11 (Reuters)&nbsp;&#8211;&nbsp;IMF chief Kristalina Georgieva on Thursday said higher U.S. interest rates were not great news for the rest of the world and could become a worry if they continued for a long time, but she thought the U.S. Federal Reserve was acting prudently.



Georgieva, speaking at an event hosted by the Atlantic Council, said the U.S. government could also look at taking other measures to ensure that the U.S. economy was not overheating, but gave no details.



&#8220;Higher interest rates for the rest of the world is not great news. Higher interest rates make the U.S. more attractive so financial flows come here and that leaves the rest of the world somewhat struggling,&#8221; she said.



Higher rates also drove the value of the dollar higher, which meant other countries&#8217; currencies were weaker.



&#8220;If it continues for a long time, it could become a bit of a worry in terms of financial stability,&#8221; she said.



Consumer level inflation data for March released on Wednesday was unexpectedly strong, casting further doubt on the Fed’s current forecast of rate cuts at some point later this year.



The unfavorable price pressure data comes as other reports also pointed to sturdier inflation over the start of the year, challenging the Fed’s most recent projections that penciled in three rate cuts this year.



Minutes from the U.S. Federal Reserve showed officials worried that progress on inflation may have stalled, and a longer period of tight monetary policy would be needed to tame it in the world&#8217;s largest economy.



Investors who had earlier expected a rate cut in June now see September as a likelier timing for the easing cycle to begin, following a third consecutive stronger-than-forecast reading on consumer inflation.



Georgieva said the U.S. economy had been successful because it was more innovative, opening space for entrepreneurship at a time of accelerating technological change.



The U.S. labor market had also held up well, with labor supply boosted by immigration, which in turn helped keep wage growth under control, she said.



The Biden administration&#8217;s Inflation Reduction Act and earlier COVID aid had helped support growth, she said, adding that the International Monetary Fund saw some scope for the U.S. government to address lingering inflation and work toward a soft landing for the economy.



&#8220;So fasten your belts,&#8221; she said. &#8220;At some point we will be landing.&#8221;



(Reporting by Andrea Shalal; Editing by Bill Berkrot)

FILE PHOTO: Man walks past the IMF logo at HQ in Washington

IMF head says higher US rates could become a worry if they persist

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



ADDIS ABABA, April 11 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia may have to decide on a big currency devaluation sooner rather than later to secure a rescue loan from the International Monetary Fund (IMF), which left the country last week without reaching a much-needed deal with authorities.



East Africa&#8217;s most populous country, already struggling with high inflation, became the third African state in as many years to default on its debt in December.



Ethiopia hasn&#8217;t received any IMF funds since 2020 and its last lending arrangement with the fund went off track in 2021. The federal government and a rebellious regional authority signed a deal in late 2022 to end a two-year civil war.



The IMF, which said progress was made during its latest visit, has not said that currency reform is necessary for its support. But the Fund usually favours flexible, market-determined exchange rates. Ethiopia has requested $3.5 billion of support from the IMF, sources told Reuters last year.



Chronic foreign currency shortages and a tightly controlled exchange rate has allowed a black market to flourish, on which the birr currently trades at between 117 and 120 per dollar, more than double the official rate of around 56.7&nbsp;ETB=.



&#8220;It seems that the Ethiopian authorities have found accepting the demands of the IMF hard,&#8221; said Abdulmenan Mohammed, an Ethiopian economic analyst based in Britain.



&#8220;The Ethiopian authorities are worried about devaluation of the birr, (which) would have serious negative economic repercussions, including soaring inflation&#8230; and surging foreign currency denominated debts in terms of birr.&#8221;



<h2 class="wp-block-heading" id="h-playing-hardball">&#8216;PLAYING HARDBALL&#8217;</h2>



In early 2021, Ethiopia requested a debt restructuring under the G20&#8217;s Common Framework, a process established in response to the COVID-19 pandemic to bring in newer creditor countries like China and India. But progress was initially delayed by the civil war.



The country&#8217;s external debt was $28.2 billion at the end of March, based on government data.



In August 2023, it secured a debt payments suspension from its largest bilateral creditor China, which from 2006 to 2022 committed to lending the country $14 billion, according to Boston University&#8217;s Chinese Loans to Africa Database.



The rest of Ethiopia&#8217;s bilateral creditors followed suit in December, but said they could cancel the relief if Ethiopia did not get an IMF deal by March 31. When the deadline lapsed, it was extended to June 30.



There are widely varying estimates of the size of currency devaluation the IMF would accept, that could pave the way for a deal.



Irmgard Erasmus of research firm Oxford Economics said that she expects a weakening of 15% to coincide with an IMF staff-level deal on a bailout loan, a prerequisite for its external debt restructuring moving forwards.



&#8220;We retain the view that the IMF will require a good faith measure that solidifies Ethiopia&#8217;s intent to implement a more flexible FX (foreign exchange) regime,&#8221; she said in a note to clients. &#8220;(This) will set the scene for a series of stepwise devaluations on the path to FX liberalisation and monetary policy reform.&#8221;



More than one currency adjustment is likely, the first between 30-50%, said Connor Vasey, a consultant at J.S. Held, pointing to Egypt, which devalued its pound 38% and secured a larger IMF loan in March.



The Ethiopians probably prefer a more gradual devaluation but have a weak negotiating position, Vasey said, after a previous IMF loan programme expired in 2021, amid the conflict and concerns about the country&#8217;s ability to pay its debts.



&#8220;Ethiopia is coming into the meeting room with the IMF that is playing hardball and saying, &#8216;You don&#8217;t really have a foot to stand on, in terms of negotiating down our position,'&#8221; he said.



Nonetheless, Vasey said he expected Ethiopia to secure an IMF deal soon.



&#8220;There&#8217;s an international push to get this all lined up. It&#8217;s just a question of sequencing of the reforms,&#8221; he said.



An IMF spokesperson pointed to comments made earlier this month by spokesperson Julie Kozack, who responded to direct questions on why Ethiopia did not secure a loan during the visit and whether it is likely to get one at the Fund&#8217;s Spring Meetings next week in Washington DC.



&#8220;The team made substantial progress,&#8221; she said. &#8220;These discussions are continuing and will continue at the upcoming Spring Meetings.&#8221;



Ethiopian government officials did not respond to requests for comment. Authorities are committed to FX reform, state finance minister Eyob Tekalign told Reuters in October 2022.



&#8220;The exchange rate unification remains one important policy goal,&#8221; he said at that time. &#8220;But we are just doing it gradually.&#8221;



(Reporting by Rachel Savage in Johannesburg and Dawit Endeshaw in Addis Ababa; Additional reporting by Duncan Miriri in Nairobi, Editing by Karin Strohecker and Jane Merriman)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

Ethiopia faces tough devaluation decision to secure IMF bailout

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/54OZJBBSHVOAZPY7PBW3ZKRWYU-820x573.jpg" alt="" class="wp-image-475533" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/54OZJBBSHVOAZPY7PBW3ZKRWYU-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/54OZJBBSHVOAZPY7PBW3ZKRWYU-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/54OZJBBSHVOAZPY7PBW3ZKRWYU-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/54OZJBBSHVOAZPY7PBW3ZKRWYU-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/54OZJBBSHVOAZPY7PBW3ZKRWYU-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/54OZJBBSHVOAZPY7PBW3ZKRWYU-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A seagull flies past a second-hand vehicle trader WeBuyCars Buying Pod in Cape Town, South Africa, April 10, 2024. REUTERS/Esa Alexander/FILE PHOTO</figcaption></figure>



JOHANNESBURG, April 11 (Reuters)&nbsp;&#8211;&nbsp;WeBuyCars made its market debut on Thursday, giving the South African secondhand vehicle trader a market capitalisation of 8.3 billion rand ($441 million) on the Johannesburg Stock Exchange.



Chief Executive Faan van der Walt, standing next to his brother and co-founder Dirk, blew into the African kudu horn as the opening share price of 20 rand was announced on the JSE.



WeBuyCars marks the second JSE listing of 2024, with others including Pick n Pay&#8217;s PIKJ.J discount grocery retailer Boxer, and food producer RCL&#8217;s RCLJ.JRainbow Chicken expressing interest to list at some point.



Shares in WeBuyCars traded as high as 20.85 rand, up from its initial public offering (IPO) price of 18.75 rand.



Van der Walt said the brothers had never imagined listing the family-owned business when they started it in 2001, but now that WeBuyCars was big enough, the time was right.



&#8220;There is still a lot of space for us to grow,&#8221; Van der Walt told Reuters. &#8220;We&#8217;re well positioned, we have the tech, we have the people, we have the footprint so we strongly believe that we can double up again in the next five years,&#8221; he added.



WeBuyCars, which has a market share of 10% to 12% in South Africa is targeting about 23% by 2028, and also aiming to sell 22,000 cars per month, up from 14,000 currently.



With 15 branches and 74 buying pods or kiosks at shopping centres, WeBuyCars plans to open in Rustenburg, Bloemfontein and East London in the near future, Van der Walt said.



WeBuyCars was unbundled from Transaction Capital&nbsp;TCPJ.J&nbsp;and listed separately in order to unlock value and give an option to invest directly in the secondhand car retailer.



Transaction Capital will use the proceeds from various capital raisings to settle holding company level debt.



($1 = 18.8293 rand)



(Reporting by Nqobile Dludla; Editing by Alexander Smith)

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Reuters

Sub-Saharan Africa incomes falling further behind rest of world, says IMF

Risk sensitive South African rand weakens as geopolitical tensions bite

Battle for development cash heats up at IMF/World Bank meetings

S.Africa contingency reserves won’t be spent on Eskom, Transnet, finance minister says

Vivendi’s Canal+ increases stake in South Africa’s MultiChoice to 40.83%

Deadly heat in West Africa warns of climate change-driven scorchers to come, says report

IMF Board backs key change to lending-into-official-arrears policy

South Africa inflation slows slightly more than expected in March

Tanzania, Rwanda, Zimbabwe join African recall of J&J cough syrup

World Bank sounds alarm on ‘historical reversal’ of development for poorest nations

Nigeria’s grid collapses weeks after tariffs raised for wealthier consumers

Ghana fails to reach debt deal with international bondholders

Nearly 55 million people face hunger in West and Central Africa

South African rand weakens against strong dollar

IMF head says higher US rates could become a worry if they persist

Ethiopia faces tough devaluation decision to secure IMF bailout

WeBuyCars marks South African market debut with share price rise

News Tips

Advertise With Us

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