<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="572" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-820x572.jpg" alt="" class="wp-image-532434" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-820x572.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-1536x1071.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A vendor shows a ten Zimbabwe gold-backed (ZiG) note along a street in Harare, Zimbabwe, July 17, 2024. REUTERS/Philimon Bulawayo</figcaption></figure>



April 25 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s annual inflation rate was at 85.7% in April in local currency terms, statistics agency data showed.



Friday&#8217;s release is the first time Zimstat has given a year-on-year local currency inflation rate since authorities launched the Zimbabwe Gold (ZiG) currency in April 2024.



The ZiG is Zimbabwe&#8217;s sixth attempt at a stable currency in less than two decades after a bout of hyperinflation under former leader Robert Mugabe.



But the ZiG is down almost 50% since its launch, according to Friday&#8217;s exchange rate on the central bank website.



(Reporting by Tannur Anders; Editing by Alexander Winning)

A vendor shows a ten Zimbabwe gold-backed (ZiG) note along a street in Harare

Zimbabwe’s local currency inflation at over 85% y/y in April

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="474" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/INJ7YSACHNMCJGVADGR3LX4GQA.avif" alt="" class="wp-image-613563"/><figcaption class="wp-element-caption">Members of the M23 rebel group mount their vehicles after the opening ceremony of Caisse Generale d&#8217;epargne du Congo (CADECO) which will serve as the bank for the city of Goma where all banks have closed since the city was taken by the M23 rebels, in Goma, North Kivu province in the East of the Democratic Republic of Congo, April 7, 2025. REUTERS/Arlette Bashizi/File Photo</figcaption></figure>



April 25 (Reuters)&nbsp;&#8211;&nbsp;Congo and Rwanda plan to sign an agreement in Washington on Friday to promote peace and economic development, sources told Reuters, part of a diplomatic push to end violence after an advance by Rwandan-backed rebels in eastern Congo.



The agreement, expected to be signed by the two countries&#8217; foreign ministers at a ceremony with U.S. Secretary of State Marco Rubio, comes as Washington is in talks to invest billions of dollars in mineral-rich Congo. Rwanda said this week it was also speaking to Washington about a possible minerals deal.



Congo has seen a surge in violence after Rwandan-backed M23 rebels launched a major offensive in January that led to the capture of the two largest cities in the east.



The United Nations and Western governments say Rwanda has provided arms and troops to M23. Rwanda denies backing M23 and says its military has acted in self-defence against Congo&#8217;s army and a militia founded by perpetrators of the 1994 genocide.



Both Qatar and the U.S. have shown an interest in mediating a resolution. The Gulf state has long positioned itself as a peacemaker, while Washington is interested in accessing a greater share of Congo&#8217;s mineral wealth.



A diplomatic source said the agreement to be signed on Friday aims to foster a &#8220;pathway to peace, stability, and integrated economic development&#8221; in eastern Congo and &#8220;the resumption of normal bilateral relations&#8221;.



Another source briefed on the agreement said it was intended to build investor confidence.



The Trump administration has taken a special interest in Congo since a Congolese senator contacted U.S. officials to pitch a minerals-for-security deal this year.



Washington wants greater access to minerals like copper, cobalt and lithium, which are used in mobile phones and electric cars, and are currently exploited predominantly by China and its mining companies.



(Reporting by Sonia Rolley and Jessica Donati; Editing by Robbie Corey-Boulet, Alison Williams, Alexandra Hudson)

INJ7YSACHNMCJGVADGR3LX4GQA

Congo and Rwanda to sign agreement in US on peace, economic development, sources say

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1.jpg" alt="" class="wp-image-568119" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/rand2-1-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, April 25 (Reuters) &#8211; South Africa&#8217;s rand was steady on Friday as investors awaited clarity on a disputed national budget which has roiled domestic markets.



At 1236 GMT, the rand traded at 18.8125 against the dollar, near its Wednesday closing level of 18.81.



South Africa&#8217;s biggest political parties have clashed over a proposal to raise the value-added tax rate by 1 percentage point over the next two years.



The VAT increase was withdrawn on Thursday and domestic-focused investors are awaiting details on the next steps in the budget process.



&#8220;The scrapping of the VAT increase and the subsequent questions on where Treasury is going to find the shortfall in the budget has put the rand under some renewed pressure,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



Like other risk-sensitive currencies, the rand often takes its cue from global factors and domestic drivers.



In addition to the budget dispute, the rand has experienced bouts of volatility linked to uncertainty over U.S. President Donald Trump&#8217;s tariff plans.



South Africa&#8217;s President Cyril Ramaphosa said on Thursday he had spoken to Trump and discussed fostering good relations between the two countries, which have soured since Trump took office in January.



On the stock market, both the Top-40 index and the broader all-share index were last trading about 0.7% higher.



South Africa&#8217;s benchmark 2030 government bond was also stronger, with the yield down 4 basis points at 8.83%.



(Reporting by Tannur Anders, Sfundo Parakozov and Bhargav Acharya; Editing by Jacqueline Wong and Susan Fenton)

rand2 (1)

South African rand stable as investors await budget clarity

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/PEXAU525ZRMAJIXP4TMU7ODMZE.avif" alt="" class="wp-image-613524"/><figcaption class="wp-element-caption">Lesetja Kganyago, the governor of the South African Reserve Bank, speaks during an interview on the sidelines of the G20 Finance Ministers meeting at the Cape Town International Convention Centre, Cape Town, South Africa, February 25, 2025. REUTERS/Nic Bothma/File Photo</figcaption></figure>



WASHINGTON, April 24 (Reuters)&nbsp;&#8211;&nbsp;Emerging economies will have to grapple with tighter global financing conditions for longer while the future of risk-free assets is very much in focus, the head of South Africa&#8217;s central bank told Reuters.



Speaking on the sidelines of the IMF and World Bank spring meetings in Washington, South African Reserve Bank Governor Lesetja Kganyago said it was too early to know the impact on global disinflation of the trade tensions triggered by U.S. President Donald Trump&#8217;s imports tariffs.



&#8220;We know &#8230; that tariffs are negative for economic growth &#8211; it&#8217;s a no-win game,&#8221; Kganyago said in an interview late on Wednesday.



&#8220;And for many of us who are from small, open economies, the impact on sentiment is such that global financing conditions remain tight or tighter for longer than what we had expected them to be.&#8221;



As part of the broad tariffs he announced in early April, Trump slapped a 31% levy on imports from South Africa. Many of the higher U.S. levies on dozens of countries have been put on hold.



The back and forth on tariffs also rocked U.S. Treasury markets, which form the bedrock of global fixed income markets and a baseline for global borrowing costs.



&#8220;If financial conditions tighten &#8230; then countries that are having external financing needs would have to meet those financing needs at higher cost, and that has got implications for capital flows, which would then have implications for exchange rates,&#8221; Kganyago said.



The future of risk-free assets, which traditionally include U.S. government bonds and the dollar, was one of the main issues at the meetings in Washington this week, he said.



&#8220;One of the puzzles of the past few weeks had been risk-free assets being sold and the dollar depreciating,&#8221; he said.



It was asked whether this was a structural break or simply people having too much cash riding on risk-free assets, he said.



&#8220;It&#8217;s too early to tell and we can&#8217;t quite say what the impact would be, but previous correlations that we knew had been that when you have got this amount of uncertainty, people run to the safe haven of the safe assets, and the safe assets behaved differently.&#8221;



(Reporting by Karin Strohecker and David Lawder; Editing by Paul Simao)

PEXAU525ZRMAJIXP4TMU7ODMZE

Emerging economies face longer period of tighter financing, South African central banker says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2713" height="1897" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/MF7YJCVU2JJNLNHDA33ALMRGHM.avif" alt="" class="wp-image-613520"/><figcaption class="wp-element-caption">South Africa&#8217;s Finance Minister Enoch Godongwana speaks at a press conference ahead of his 2025 budget speech in Cape Town, South Africa March 12, 2025. REUTERS/Esa Alexander/File Photo </figcaption></figure>



WASHINGTON, (Reuters) &#8211; South African Finance Minister Enoch Godongwana said on Thursday he will not resign after the government&#8217;s U-turn on a planned value-added tax hike, despite opposition calls for him to quit.



&#8220;My job is to introduce money bills &#8211; nothing says they must be popular,&#8221; he told Reuters on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington.



Godongwana,&nbsp;who&nbsp;landed in the U.S. capital this week already grappling with the worst rift in U.S.–South African relations in&nbsp;decades, was forced on Thursday&nbsp;to scrap a rise in&nbsp;the value-added tax that&nbsp;threatened the stability of the ruling coalition government.



The proposal to raise the VAT by 1 percentage point over two years, which was intended to boost state revenue, met resistance as Africa&#8217;s most industrialized economy grapples with sluggish growth and public discontent over rising living costs.



The about-turn blows a 75 billion rand ($4 billion)&nbsp;hole in the medium-term budget&nbsp;and leaves Godongwana with the task of drawing up what he said was &#8220;a different fiscal framework in line with the new realities of revenue and spending.&#8221;



&#8220;I still maintain that if the purpose for which the VAT was raised is taken into account, its reversal will have a negative impact on those issues&nbsp;&#8211;&nbsp;that cannot be disputed,&#8221;&nbsp;he&nbsp;said.



The revamped fiscal framework will be keenly watched by S&amp;P Global Ratings, which currently has a positive outlook on South Africa.



A credible outcome could secure the first credit rating upgrade for South Africa in two decades, while the opposite could raise future borrowing costs and dent investor appetite for the country.



&#8220;If you ask me, I don&#8217;t think what will inform them is the noise,&#8221; Godongwana said. &#8220;What will trigger them is whether the final product is a sustainable budget.&#8221;



($1 = 18.7792 rand)



(Reporting by Karin Strohecker in Washington and Colleen Goko in Johannesburg; Editing by Leslie Adler and Paul Simao)

MF7YJCVU2JJNLNHDA33ALMRGHM

South Africa’s finance minister says he won’t resign after VAT U-turn

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/VZZUZJG5MVPPXDITWKEDW2SOB4.avif" alt="" class="wp-image-613502"/><figcaption class="wp-element-caption">Chinese Finance Minister Lan Foan attends a press conference about a bill on raising ceilings on local government debt, at the Great Hall of the People in Beijing, China November 8, 2024. REUTERS/Josh Arslan</figcaption></figure>



BEIJING, April 25 (Reuters)&nbsp;&#8211;&nbsp;China warned a G20 meeting that world economic growth was &#8220;insufficient&#8221; as tariff and trade wars exacerbated economic and financial instability and sapped growth momentum, its finance ministry and central bank said.



Speaking at the group&#8217;s meeting in Washington, Finance Minister Lan Foan called on all parties to strengthen multilateral cooperation, saying that China supported dialogue and consultation &#8220;on equal footing&#8221; to settle trade and tariff disputes.



Meanwhile, People&#8217;s Bank of China Governor Pan Gongsheng said that economic fragmentation and trade tensions had disrupted supply chains, weakening the momentum of global economic growth, the central bank said in a separate readout on Friday.



Pan also told the meeting, which took place on Wednesday and Thursday, that the world&#8217;s major economies should strengthen their participation in international macroeconomic and financial policy coordination.



Other participants at the finance ministers and central bank governors meeting also flagged the significant increase in risks to global growth from trade tensions, tighter financing conditions and long-term structural challenges, according to the PBOC statement.



They also called for strengthening dialogue and policy coordination, the statement said without referring to the United States.



The Group of 20 major economies were meeting in the wake of U.S. President Donald Trump&#8217;s announcement of hefty tariffs on imports that have triggered turmoil in financial markets and prompted the International Monetary Fund to cut its growth forecasts for most countries around the world.



While Trump later put some of the tariffs on hold, he raised China levies to 145%, and maintained a universal import tariff of 10% as well as 25% duties on cars, steel and aluminium.



The U.S. indicated talks were taking place with China on tariffs but Beijing on Thursday denied that, demanding the U.S. drop the levies.



Lan also urged for better implementation of the debt treatment mechanism under the G20&#8217;s Common Framework, and said all parties should pool more resources for Africa&#8217;s development and strengthen Africa&#8217;s capacity-building.



The finance ministry said Lan held bilateral meetings and exchanges with representatives from countries and organisations including South Africa, the European Commission, Pakistan, Germany, South Korea, Indonesia, Britain, Japan and the World Bank.



The meetings were mainly to discuss the macroeconomic situation, key issues of the G20 fiscal channels and bilateral cooperation, the readout said.



(Reporting by Liz Lee and Beijing newsroom; Editing by Himani Sarkar, Shri Navaratnam and Kate Mayberry)

VZZUZJG5MVPPXDITWKEDW2SOB4

China warns G20 global economic growth ‘insufficient’, trade tensions weaken momentum

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="505" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/BDK6EWDJAVI5TEOXLL66Y3L4OI-820x505.jpg" alt="" class="wp-image-613227" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/BDK6EWDJAVI5TEOXLL66Y3L4OI-820x505.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/BDK6EWDJAVI5TEOXLL66Y3L4OI-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/BDK6EWDJAVI5TEOXLL66Y3L4OI-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/BDK6EWDJAVI5TEOXLL66Y3L4OI-768x473.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/BDK6EWDJAVI5TEOXLL66Y3L4OI.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man walks beneath electricity pylons during frequent power outages from South African utility Eskom, caused by its ageing coal-fired plants, in Orlando, Soweto, South Africa, January 16, 2023. REUTERS/Siphiwe Sibeko </figcaption></figure>



JOHANNESBURG, April 24 (Reuters)&nbsp;&#8211;&nbsp;South African state power utility Eskom said on Thursday that it would implement &#8220;Stage 2&#8221; scheduled power cuts from 1600 local time (1400 GMT) until Friday morning.



&#8220;Higher-than-expected electricity demand, the loss of generation units, and extensive planned maintenance have placed strain on the system,&#8221; Eskom said in a statement.



(Reporting by Bhargav Acharya; Writing by Sfundo Parakozov; Editing by Alexander Winning)

BDK6EWDJAVI5TEOXLL66Y3L4OI

South African power utility to implement ‘Stage 2’ power cuts

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GettyImages-2191254056-820x615.jpg" alt="" class="wp-image-613204" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GettyImages-2191254056-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GettyImages-2191254056-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GettyImages-2191254056-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GettyImages-2191254056-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GettyImages-2191254056-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GettyImages-2191254056-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ZANZIBAR, TANZANIA &#8211; DECEMBER 14: A view of the Rock Restaurant, located on famous Paje Beach in Zanzibar, Tanzania, stands out for its unique location and atmosphere on December 14, 2024. Built on a rock in the middle of the Indian Ocean, this iconic restaurant offers its visitors an unforgettable experience with a landscape that changes with the tides. Known for its seafood menu and natural beauty, the restaurant is not only a popular dining spot but also one of Zanzibar&#8217;s landmarks, attracting both local and international tourists. (Photo by Mehmet Aslan/Anadolu via Getty Images)</figcaption></figure>



DAR ES SALAAM, April 24 (Reuters)&nbsp;&#8211;&nbsp;Tanzania has banned the importation of agricultural products from Malawi and South Africa, saying it was retaliation for similar hostile trade measures from both countries.



The three countries all belong to a regional economic bloc, the Southern African Development Community, SADC.



Tanzania had demanded that both countries rescind bans on imports of agricultural goods from Tanzania by Wednesday, but they had not done so, agriculture minister Hussein Bashe said in a video posted on his X account late on Wednesday.



Malawi had recently banned imports of Tanzanian commodities like maize flour, rice, ginger, and bananas, among others, while South Africa has also proscribed the import of bananas shipped by Dar es Salaam.



&#8220;I would like to officially announce that from this night&#8230; we won&#8217;t allow any agricultural products from South Africa in our country,&#8221; Bashe said, adding a similar ban was being imposed on Malawi.



Talks to resolve the trade impasse, however, would continue with both countries, he said.



He said Tanzania will start prohibiting the transit of agricultural goods from other countries through its territory to land-locked Malawi, and will also ban the export of Tanzanian fertilizer to Malawi.



&#8220;We are taking this measure to protect our business. This is business, and we should all respect each other,&#8221; Bashe said.



(Reporting by Nuzulack Dausen; Writing by Elias Biryabarema; Editing by William Maclean)

The Rock Restaurant on Zanzibar’s Paje Beach

Tanzania bans agriculture imports from South Africa, Malawi

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4630" height="2675" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/I626AAIJRJP7DJDRYXCYV56KLA-1.avif" alt="" class="wp-image-613046"/><figcaption class="wp-element-caption">The Hillbrow Tower, an iconic tower used to identify the Johannesburg skyline, is seen as the sun rises, in Johannesburg, South Africa, June 20, 2019. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, April 24 (Reuters)&nbsp;&#8211;&nbsp;South Africa on Thursday scrapped plans to raise value-added tax after a political backlash that threatened the stability of the ruling coalition government.



The proposal to raise VAT by 1 percentage point over two years, intended to boost state revenue, met resistance as Africa&#8217;s biggest economy grapples with sluggish growth and public discontent over rising living costs.



The dominant African National Congress backed the hike, saying there were no other sustainable revenue sources, while the second largest coalition party, the Democratic Alliance, said the move would pile more pressure on struggling households.



As the DA celebrated the decision, announced by the finance ministry, senior party official Helen Zille said there was a lack of trust between the two groups, leaving the future of the coalition uncertain.



ANC Secretary-General Fikile Mbalula described the differences over the VAT hike as a learning experience for the former liberation movement.



&#8220;If we had a wealth of experience, we may have approached this differently, meaning negotiations and engagement with political parties, with Treasury and parliament oversight prior the passing of the budget,&#8221; Mbalula told a media briefing.



VAT will be maintained at 15%,&nbsp;the finance ministry said.&nbsp;Finance Minister Enoch Godongwana will introduce a revised version of the Appropriation Bill and Division of Revenue Bill within the next few weeks,&nbsp;it added.



&#8220;Political flip-flopping about tax proposals has created confusion, which sends the wrong message to foreign investors,&#8221; Jee-A van der Linde, a senior economist at Oxford Economics Africa, said.



<h2 class="wp-block-heading" id="h-lost-revenue">LOST REVENUE</h2>



Without the VAT increase, estimated revenue is expected to fall short by around 75 billion rand ($4.02 billion) over the medium term,&nbsp;the ministry said.



&#8220;Parliament will be requested to adjust expenditure in a manner that ensures that the loss of revenue does not harm South Africa&#8217;s fiscal sustainability,&#8221;&nbsp;the finance ministry said.



The withdrawn tax hike was a significant retreat from an initial proposal by the National Treasury in February to raise VAT by 2 percentage points to fund spending on health, transport and education.



The DA had challenged the planned tax hike in court and voted against the budget&#8217;s fiscal framework in parliament because of it.



Finance Minister Godongwana had argued in court papers that failure to raise the VAT would cause severe harm to state finances.



The DA had argued the government should cut expenditure instead and some smaller political parties had also proposed deeper expenditure cuts.



The finance ministry said while some suggestions were worthwhile, they &#8220;would not provide an immediate avenue for further revenue in the short term to replace a VAT increase&#8221;.



($1 = 18.6741 rand)



(Reporting by Olivia Kumwenda-Mtambo; Additional reporting by Sfundo Parakozov, Alexander Winning and Kopano Gumbi; Editing by Kim Coghill, Alison Williams and Andrew Heavens)

I626AAIJRJP7DJDRYXCYV56KLA

South Africa abandons planned VAT hike after pushback

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, April 24 (Reuters) &#8211; The South African rand was stable on Thursday after the finance ministry said it was withdrawing a contentious increase in value-added tax (VAT) that was due to take effect next month and as investors awaited clarity on the budget plans.



The country&#8217;s biggest parties have clashed over the budget&#8217;s proposal to raise VAT by 0.5 percentage points on May 1 and another 0.5 points next year, which threatened the stability of the coalition government and roiled South African markets over recent weeks.



At 1303 GMT, the rand traded at 18.68 against the dollar, near its closing level of 18.6875 on Wednesday.



Danny Greeff, co-head of Africa at ETM Analytics, said that he believed the scrapping of the VAT hike was yet to be fully priced into the market.



&#8220;With a long weekend approaching, we expect the USD-ZAR to trade in a range-bound manner today and tomorrow, absent any major new developments,&#8221; Greeff added.



The VAT hike has caused political wrangling for weeks, exposing deep rifts between coalition government heavyweights, the African National Congress (ANC) and the Democratic Alliance (DA).



The DA, which is the second-biggest party in the Government of National Unity (GNU) stoked fears that it could leave the coalition after challenging the tax increase in court and voting against the fiscal framework in parliament.



&#8220;While the move (to withdraw the VAT hike) suggests the GNU is likely to remain intact, providing a measure of stability, uncertainty persists,&#8221; said Zain Vawda, market analyst at MarketPulse by OANDA.



Vawda said the currency remains under pressure until the government outlines plans for alternative funding or potential budget cuts, leaving room for potential setbacks in the rand&#8217;s recent gains.



The rand hit an all-time low this month on the VAT dispute and risk aversion over U.S. President Donald Trump&#8217;s tariffs.



It has since staged a recovery, but is still down about 2% since the start of the month.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded about 0.7% higher.



The benchmark 2030 government bond was stronger, as the yield fell 15 basis points to 8.89%.



(Additional reporting by Sfundo Parakozov, Alexander Winning and Bhargav Acharya; Editing by Kate Mayberry, Sharon Singleton and David Evans)

South African Economy As Inflation Rate Rises For First Time In 2017

South African rand stable after VAT hike withdrawn, markets await budget clarity

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3186" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/M2ZI6JYVCRIEJFPLEKGFTIN3BA.avif" alt="" class="wp-image-613097"/><figcaption class="wp-element-caption">South Africa&#8217;s Minister of International Relations and Cooperation Ronald Lamola greets Ukraine&#8217;s President Volodymyr Zelenskiy on his arrival ahead of talks with South African president Cyril Ramaphosa in Pretoria, South Africa April 24, 2025. Jacoline Schoonees/DIRCO/Handout via REUTERS</figcaption></figure>



KYIV, April 24 (Reuters) &#8211; Ukrainian President Volodymyr Zelenskiy said he would cut short a trip to South Africa on Thursday and return to Kyiv following a Russian missile attack on the Ukrainian capital.



Zelenskiy, who has been trying to shore up international support for Ukraine&#8217;s defence against Russia&#8217;s invasion, said he would immediately travel back to Ukraine after meeting South African President Cyril Ramaphosa.



&#8220;The Minister of Foreign Affairs of Ukraine will hold all necessary meetings in South Africa to fully inform the country&#8217;s political and public leaders about the situation,&#8221; Zelenskiy wrote on the Telegram app.



Russia pounded Kyiv with missiles and drones overnight, killing at least eight people, wounding more than 70 and smashing buildings in the biggest attack on the Ukrainian capital this year.



(Reporting by Olena Harmash and Tom Balmforth; Editing by)

M2ZI6JYVCRIEJFPLEKGFTIN3BA

Zelenskiy cuts short S.Africa trip after Russian strike on Kyiv

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="720" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/HZRODE5UBVK35L6PSBZDHSBEBI.avif" alt="" class="wp-image-613079"/><figcaption class="wp-element-caption">Chinese President Xi Jinping and Kenyan President William Ruto attend a welcome ceremony at The Great Hall of The People on April 24, 2025 in Beijing, China. IORI SAGISAWA/Pool via REUTERS</figcaption></figure>



BEIJING, April 24 (Reuters)&nbsp;&#8211;&nbsp;China and Kenya announced they had upgraded ties to a &#8220;new level&#8221; on Thursday during a meeting between President Xi Jinping and Kenyan President William Ruto in Beijing, as they both pledged to create an &#8220;all weather&#8221; China-Africa community.



In a joint China-Kenya statement, both leaders said they were &#8220;committed to injecting more stability into the world with the certainty of China-Africa solidarity and cooperation&#8221;.



This would provide a backbone to safeguard the &#8220;common interests of developing countries&#8221;, it said, and defend the multilateral system, via &#8220;inclusive economic globalisation&#8221;.



The decision to upgrade China-Kenya relations was made &#8220;in the face of a turbulent international situation&#8221;, the Chinese president was quoted as saying in a separate media pool report.



Africa is a key focus of Xi&#8217;s ambitious Belt and Road Initiative, launched in 2013 to extend China&#8217;s geopolitical and economic influence through global infrastructure development.



Kenya has been a key BRI recipient, and Nairobi has taken a slew of loans from China to finance infrastructure construction projects that have made China the east African nation&#8217;s biggest bilateral lender.



Among the projects, China is helping fund the development of a modern railway line from the port of Mombasa into the hinterland.



Xi and Ruto signed 20 documents together on Thursday, according to a media pool report. These included agreements on science and technology cooperation, vocational education, water resources, ecommerce, intelligent transport systems and the railway sector.



Kenyan officials have been engaging with their Chinese counterparts to secure funds for more projects, including the extension of a railway line to the border with Uganda.



The country has been struggling with a heavy debt load and the accompanying cost of servicing it.



Ruto, who took office in September 2022, has promised that his government will not default on its external debt, pledging to cut waste and boost revenue to tackle the challenge.



It is Ruto&#8217;s first state visit to China as president of Kenya.



<h2 class="wp-block-heading" id="h-increased-cooperation">INCREASED COOPERATION</h2>



Ruto and Xi&#8217;s joint statement said both countries would continue to uphold the World Trade Organisation&#8217;s values and basic principles and &#8220;resolutely oppose new hegemonic tactics such as illegal unilateral sanctions, &#8216;decoupling and chain breaking&#8217;, tariff barriers and technological blockades&#8221;.



The two sides said they would deepen peace and security exchanges by strengthening cooperation in personnel training, the military industry, counter-terrorism, joint exercises and training.



Chinese companies can cooperate with Kenya in building a local medical and health industry according to Kenya&#8217;s needs, the statement said.



Both sides are also willing to rely on major projects such as the Mombasa-Nairobi railway to enhance infrastructure construction and connectivity within Africa.



The opening of direct flights between Beijing and Nairobi was also being &#8220;actively explored&#8221; it said.



(Reporting by Farah Master in Hong Kong, Liz Lee and Beijing newsroom; Editing by Himani Sarkar, Kate Mayberry and Michael Perry)

HZRODE5UBVK35L6PSBZDHSBEBI

China, Kenya upgrade ties amid ‘turbulent international situation’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-820x536.jpg" alt="" class="wp-image-529745" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-1536x1005.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/34VAE6NZTJLMTNUVKTT6O3FWY4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Shoppers look for items as they shop at an outlet of retailer Checkers in Sandton City mall, in Sandton, South Africa, August 28, 2024. REUTERS/Lelethu Madikane</figcaption></figure>



JOHANNESBURG, April 23 (Reuters) &#8211; South Africa&#8217;s annual inflation rate fell for the first time in five months in March to its lowest level since June 2020, due to a drop in fuel costs and softer price rises for tuition.



Headline consumer inflation eased to 2.7% year-on-year from 3.2% in February, below the 2.9% expected by economists polled by Reuters, and outside the South African Reserve Bank&#8217;s (SARB) 3% to 6% target range.



A breakdown by Statistics South Africa showed the fuel index was down 8.8% last month.



Education fees, which are surveyed once a year in March, increased 4.5%, slower than the previous year&#8217;s 6.4% rise.



Some analysts thought the latest inflation numbers gave the central bank scope to cut interest rates at its next monetary policy meeting in May.



&#8220;There is ample room for the (central bank) to cut rates further to support the economy, to soften the hit from the global trade war,&#8221; Elize Kruger, a South Africa-based independent economist,&nbsp;said.



The SARB left its key lending rate unchanged at its last meeting in March after three consecutive cuts, citing risks from U.S. President Donald Trump&#8217;stariffs and the country&#8217;s disputed national budget.



It stuck to that cautious tone in a biannual review of its monetary policy last week.



Elna Moolman at Standard Bank saw signs of weakness in the residential rental market in Wednesday&#8217;s release, which she said was helping keep inflationary pressures benign.



However, the SARB&#8217;s concerns around global tariffs and a weaker local currency meant further rate cuts may not necessarily happen soon, she said.



(Additional reporting by Bhargav Acharya; Editing by Alexander Winning and Rachna Uppal)

Shoppers look for items as they shop at an outlet of retailer Checkers

South African inflation falls to five-year low in March as fuel, education costs ease

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



April 23 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Wednesday.



<h2 class="wp-block-heading" id="h-events">EVENTS:</h2>



Kenya&#8217;s President William Ruto makes a state visit to Beijing where he is set to meet his Chinese counterpart Xi Jinping.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Stock markets were enjoying a much-needed relief rally in Asia on Wednesday after President Donald Trump said he had no plans to fire the head of the Federal Reserve, and hinted at lower tariffs for China.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices rose on Wednesday, extending the prior day&#8217;s gains, as investors weighed a fresh round of U.S. sanctions on Iran, a drop in U.S. crude stocks and a softer tone from President Donald Trump toward the Federal Reserve.



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



The South African rand jumped on Tuesday as gold prices rose after U.S. President Donald Trump criticised Federal Reserve Chair Jerome Powell, rattling markets and boosting demand for the safe-haven asset.



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



Kenya&#8217;s shilling was broadly stable against the dollar on Tuesday with foreign exchange supply and demand evenly matched, traders said.



<h2 class="wp-block-heading" id="h-ethiopia-aid">ETHIOPIA AID</h2>



The World Food Programme suspended malnutrition treatment for 650,000 malnourished women and children in Ethiopia this week due to severe funding shortages, the U.N. agency said, with millions more at risk of losing access to aid.



<h2 class="wp-block-heading" id="h-ghana-politics">GHANA POLITICS</h2>



Ghana&#8217;s President John Dramani Mahama suspended Chief Justice Gertrude Torkornoo with immediate effect and initiated an investigation in response to three petitions filed against her, a statement said.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on April 23

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-820x547.jpg" alt="" class="wp-image-564339" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/GettyImages-1251784454-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters during the spring meetings of the International Monetary Fund (IMF) and World Bank in Washington, DC, US, on Thursday, April 13, 2023. The IMF trimmed its global-growth projections, warning of high uncertainty and risks as financial-sector stress adds to pressures emanating from tighter monetary policy. Photographer: Samuel Corum/Bloomberg via Getty Images</figcaption></figure>



WASHINGTON, April 22 (Reuters)&nbsp;&#8211;&nbsp;Given big cuts in development aid by Europe and the United States, think tanks and other groups are urging the World Bank to reduce the equity-to-lending ratio of its main lending arm to free up billions in additional lending capacity.



Reducing the equity to lending ratio of the International Bank for Reconstruction and Development to 17% from 18% would allow the bank to boost its lending capacity by $30 billion to $40 billion without burdening taxpayers or shareholders, or jeopardizing its capital reserves, said Eric Pelofsky, vice president of the Rockefeller Foundation.



He said a large portion of these new resources could be used to provide loans to help governments rapidly address actual or anticipated budget gaps and shore up health-care networks, water and sanitation systems, or other critical public systems impacted by foreign aid cuts.



The bank could also offer short-term, low-interest loans to non-governmental organizations facing program cancellations, layoffs, and even bankruptcy that would help them bridge to new long-term funding models, Pelofsky said.



The World Bank voted last year to change its internal lending guidelines and lower its equity-to-lending ratio by 1 percentage point as part of reforms recommended by an independent commission for the Group of 20 major economies. It took a similar step in 2023, dropping the ratio to 19% from 20%.



Since U.S. President Donald Trump returned to office in January for a second term, his administration has cut billions of dollars in foreign assistance in a review that aimed to ensure programs align with his &#8220;America First&#8221; foreign policy. European governments have also cut their foreign aid budgets.



&#8220;Inaction will have concrete consequences,&#8221; Pelofsky said, citing studies which say U.S. foreign aid cuts could put millions of lives at risk.



Jubilee USA Network, a religious development group, said it backs the push, and it urged the World Bank to act quickly.



&#8220;The World Bank can and should make this decision as soon as possible,&#8221; said Eric LeCompte, the group&#8217;s executive director and a United Nations adviser. &#8220;With the significant cuts we&#8217;ve seen from the U.S. and Europe on development aid, this action by the World Bank can fill this aid gap.&#8221;



(Reporting by Andrea Shalal; Editing by Leslie Adler)

Spring Meetings Of The International Monetary Fund And World Bank

World Bank urged to reduce equity-to-loan ratio to free up funds for poor countries

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3483" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/XFBSMRNLQVND3AANHME4FQBHPQ.avif" alt="" class="wp-image-612391"/><figcaption class="wp-element-caption">A severely malnourished child drinks from a bottle, at a camp for internally displaced people in Afdera town, Afar region, Ethiopia, February 23, 2022. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



GENEVA, April 22 (Reuters)&nbsp;&#8211;&nbsp;The World Food Programme suspended malnutrition treatment for 650,000 malnourished women and children in Ethiopia this week due to severe funding shortages, the U.N. agency said, with millions more at risk of losing access to aid.



WFP gets financing from 15-20 donors including the United States but many of them have cut funding this year, said Zlatan Milisic, WFP Country Director in Ethiopia. The agency has received exemptions from U.S. President Donald Trump&#8217;s aid freeze that has disrupted humanitarian work around the world, he added, but little for 2025 so far.



More than 10 million people in Ethiopia are gravely short of food, including 3 million displaced by conflict and extreme weather conditions as well as refugees from war-torn neighbouring Sudan, according to WFP.



Milisic said WFP had already reduced rations in recent months but that its operations were now at &#8220;breaking point&#8221; due to severe underfunding, forcing more drastic measures.



&#8220;We&#8217;ve been left no choice but to this week suspend treatment for 650,000 malnourished women and children — simply because we&#8217;ve run out of commodities and funding,&#8221; he told a Geneva press briefing by video from Addis Ababa.



A&nbsp;WFP&nbsp;spokesperson later added that those cut off were in various locations including the northern regions of Tigray and Afar, and that the U.N. agency is actively seeking funding to purchase more supplies to resume treatments.



Around 3.6 million people could lose access to assistance, including some being treated for malnutrition, if more funding is not received by June, Milisic added.



&#8220;I would hope that we will get the resources and put in place measures to really do our best to assist them. But if they don&#8217;t receive assistance, we will have serious consequences.&#8221;



Ethiopia&#8217;s food crisis has worsened in recent years as a result of a 2020-22 civil war in Tigray. The country also faced the Horn of Africa&#8217;s worst drought in decades in 2022.



WFP previously warned of a return of drought conditions to the region this year.



(Reporting by Emma Farge; editing by Mark Heinrich)

XFBSMRNLQVND3AANHME4FQBHPQ

Malnutrition treatments halted in Ethiopia due to underfunding, WFP says

<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="auto, (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 22 (Reuters)&nbsp;&#8211;&nbsp;The South African rand firmed early on Tuesday, ahead of the release of a key economic indicator by the country&#8217;s central bank.



At 0636 GMT the rand traded at 18.70 against the dollar, roughly 0.3% stronger than its previous close on Monday.



The central bank will publish its composite leading business cycle indicator around 0700 GMT, providing data that includes vehicle sales, business confidence and money supply in Africa&#8217;s most industrialised nation.



The risk-sensitive rand has endured bouts of volatility, hurt by political disputes between the two biggest parties in the coalition government &#8211; the African National Congress (ANC) and the Democratic Alliance (DA) &#8211; over a proposed increase to value-added tax on May 1.



The DA and other smaller parties have publicly rejected the proposal and filed a court case challenging the legality of the budget process. The case will be heard at on Tuesday.



South Africa&#8217;s benchmark 2030 government bond was weaker in early deals, with the yield up 4.5 basis points at 9.215%.



(Reporting by Sfundo Parakozov; Editing by Bhargav Acharya and David Goodman)

Reuters

Zimbabwe’s local currency inflation at over 85% y/y in April

Congo and Rwanda to sign agreement in US on peace, economic development, sources say

South African rand stable as investors await budget clarity

Emerging economies face longer period of tighter financing, South African central banker says

South Africa’s finance minister says he won’t resign after VAT U-turn

China warns G20 global economic growth ‘insufficient’, trade tensions weaken momentum

South African power utility to implement ‘Stage 2’ power cuts

Tanzania bans agriculture imports from South Africa, Malawi

South Africa abandons planned VAT hike after pushback

South African rand stable after VAT hike withdrawn, markets await budget clarity

Zelenskiy cuts short S.Africa trip after Russian strike on Kyiv

China, Kenya upgrade ties amid ‘turbulent international situation’

South African inflation falls to five-year low in March as fuel, education costs ease

African Markets – Factors to watch on April 23

World Bank urged to reduce equity-to-loan ratio to free up funds for poor countries

Malnutrition treatments halted in Ethiopia due to underfunding, WFP says

South African rand firms ahead of economic data

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Reuters

Zimbabwe’s local currency inflation at over 85% y/y in April

Congo and Rwanda to sign agreement in US on peace, economic development, sources say

South African rand stable as investors await budget clarity

Emerging economies face longer period of tighter financing, South African central banker says

South Africa’s finance minister says he won’t resign after VAT U-turn

China warns G20 global economic growth ‘insufficient’, trade tensions weaken momentum

South African power utility to implement ‘Stage 2’ power cuts

Tanzania bans agriculture imports from South Africa, Malawi

South Africa abandons planned VAT hike after pushback

South African rand stable after VAT hike withdrawn, markets await budget clarity

Zelenskiy cuts short S.Africa trip after Russian strike on Kyiv

China, Kenya upgrade ties amid ‘turbulent international situation’

South African inflation falls to five-year low in March as fuel, education costs ease

African Markets – Factors to watch on April 23

World Bank urged to reduce equity-to-loan ratio to free up funds for poor countries

Malnutrition treatments halted in Ethiopia due to underfunding, WFP says

South African rand firms ahead of economic data

News Tips

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