<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 10 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.



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



Rwanda&#8217;s statistics office releases consumer inflation data for March.



Mozambique statistics office releases consumer inflation data for March.



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



Asian shares climbed and a manic bond selloff stabilised on Thursday after U.S. President Donald Trump said he would temporarily lower the hefty duties he had just imposed on dozens of countries.



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



Oil prices retreated on Thursday as U.S. President Donald Trump ramped up a trade war with China, even as he announced a 90-day pause on tariffs aimed at other countries.



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



The rand struck an all-time low in jittery trade on Wednesday, as U.S. President Donald Trump&#8217;s trade war and the risk that South Africa&#8217;s market-friendly coalition government could split unnerved investors.



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



Kenya&#8217;s shilling was broadly stable against the dollar on Wednesday, data from the London Stock Exchange Group showed.



<h2 class="wp-block-heading" id="h-central-africa-oil">CENTRAL AFRICA OIL</h2>



U.S. lawmakers have introduced legislation that could block International Monetary Fund support for some Central African countries, in an effort to guard billions of dollars that oil companies must set aside for environmental restoration.



<h2 class="wp-block-heading" id="h-us-aid">US AID</h2>



President Donald Trump&#8217;s administration wants the U.N. World Food Programme to modify operations backed by the U.S. in six countries, a State Department spokesperson said on Wednesday, after Washington terminated and then reinstated the assistance.



<h2 class="wp-block-heading" id="h-congo-coup">CONGO COUP</h2>



The U.S. Department of Justice has charged four Americans for their role in an attempted coup in the Democratic Republic of Congo after three of the men were returned to U.S. custody this week, according to a criminal complaint unsealed on Wednesday.



<h2 class="wp-block-heading" id="h-nigeria-cenbank">NIGERIA CENBANK</h2>



Nigeria recorded a balance of payments surplus of $6.83 billion in 2024, driven by the impact of reforms, a stronger trade performance and renewed investor confidence in the economy, the Central Bank of Nigeria said on Monday.



<h2 class="wp-block-heading" id="h-gabon-election">GABON ELECTION</h2>



The top opposition candidate in Gabon&#8217;s presidential election challenged the eligibility of Brice Oligui Nguema in an interview with Reuters, saying the putschist-turned-frontrunner posed a threat to democracy.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on April 10

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="463" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/2PLENK7UEVP6LHO27XU5VACMUU.avif" alt="" class="wp-image-590509"/><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 30, 2020. REUTERS/Mike Hutchings/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, April 10 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand firmed in early trade on Thursday, recouping some of its recent loss as investors took a breather after U.S. President Donald Trump announced an immediate 90-day tariff pause for many countries.



At 0631 GMT, the rand traded at 19.25 against the U.S. dollar, about 0.4% stronger than its previous close.



The local currency hit a record low of 19.9325 on Wednesday, the day Trump&#8217;s country-specific import tariffs kicked in.



Trump said he would temporarily lower tariffs imposed on dozens of countries including South Africa but kept a 10% blanket duty on almost all U.S. imports.



In addition to Trump&#8217;s tariffs, local politics have also weighed on the risk-sensitive rand, after a contentious budget vote last week threatened the future of the ruling coalition.



The second-biggest party in the coalition, the pro-business Democratic Alliance, voted against key legislation in the budget and challenged the budget process in court.



South Africa-focused investors on Thursday will look out for February domestic manufacturing data due at 1100 GMT for clues on the health of the economy.



Benchmark 2030 government bonds were stronger in early deals, with the yield down 15.5 basis points at 9.15%.



(Reporting by Sfundo Parakozov; Editing by Bhargav Acharya and Christopher Cushing)

2PLENK7UEVP6LHO27XU5VACMUU

South African rand regains some ground after US pauses tariffs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="507" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-820x507.jpg" alt="" class="wp-image-533970" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-820x507.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-300x186.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-145x90.jpg 145w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-768x475.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-1536x950.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg August 13 2014. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, April 9 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand touched a new all-time low against the U.S. dollar on Wednesday, under pressure from global risk aversion over U.S. President Donald Trump&#8217;s tariffs and uncertainty about the future of the local coalition government.



The rand fell as low as 19.9325 to the dollar, weaker than the previous record low of 19.9075 struck in June 2023, data from the London Stock Exchange Group showed.



This is a developing story&#8230;



(Reporting by Tannur Anders; Editing by Alexander Winning)

Photo illustration of South African bank notes displayed next to the American dollar notes in Johannesburg

South Africa’s rand touches new record low against dollar

<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 9 (Reuters) &#8211; The South African rand traded near an all-time low against the dollar on Wednesday, bruised by global risk aversion linked to U.S. President Donald Trump&#8217;s tariffs and uncertainty over the future of the country&#8217;s ruling coalition.



The rand fell as low as 19.83 to the dollar in choppy trade, not far from the weakest it has ever traded at 19.9075 in June 2023.



At 1305 GMT it was at 19.8050, down 0.2% on the day and more than 3% weaker so far this week.



&#8220;The past few trading sessions have been a wild ride, and there are no indications as yet that the volatility is about to end,&#8221; said Danny Greeff, co-head of Africa at ETM Analytics.



The South African currency is highly susceptible to shifts in financial market sentiment, which has soured badly over Trump&#8217;s&nbsp;global tariff&nbsp;war.



U.S. tariffs on dozens of countries kicked in on Wednesday, while China was hit with 104% duties. China said it will impose 84% tariffs on U.S. goods from Thursday, up from the 34% previously announced.



Another important factor behind the rand&#8217;s recent slide is local politics,&nbsp;which some analysts think has outweighed global developments.



The two biggest parties in the broad coalition government have disagreed sharply over the budget, with the junior partner voting against it in parliament and going to court.



Despite both parties saying on Tuesday that they are not yet walking away from the Government of National Unity (GNU), investors are still worried at the prospect that the pro-business Democratic Alliance could exit government.



&#8220;Optimism around the GNU&#8217;s ability to implement much-needed reforms is fading quickly. That being said, as more time passes with the coalition still intact, the market may begin to view current trading levels as attractive,&#8221; said Greeff at ETM Analytics.



On the Johannesburg Stock Exchange, the Top-40 index last traded down 1.8%.



The benchmark 2030 government bond also dropped, as the yield rose 10.5 basis points to 9.305%.



(Reporting by Sfundo Parakozov and Tannur Anders; Editing by Alexander Winning and Sharon Singleton)

rand2 (1)

South African rand near record low on tariff war, coalition friction

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3834" height="2402" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/5OMVZV4VZBNBNI3UP6TQZXKT2M.avif" alt="" class="wp-image-583183"/><figcaption class="wp-element-caption">A general view shows people walking past the Central Bank of Kenya headquarters building along Haile Selassie avenue in Nairobi, Kenya October 9, 2017. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, April 9 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank expects economic growth to accelerate slightly to 5.6% next year from 5.4% this year, the bank&#8217;s governor said on Wednesday.



&#8220;The economy is projected to pick up in 2025 and in 2026 supported by resilience of key service sectors and agriculture, expected recovery in growth of credit to the private sector and also because of improved exports,&#8221; Governor Kamau Thugge told a press conference.



&#8220;The growth outlook is subject to both external and domestic risks, including the trade tensions&#8230; and the geopolitical conflicts.&#8221;



Thugge was speaking a day after the Central Bank of Kenya cut its benchmark lending rate for the fifth monetary policy meeting in a row.



(Reporting by George Obulutsa; Editing by Alexander Winning)

5OMVZV4VZBNBNI3UP6TQZXKT2M

Kenya’s central bank sees economic growth rising to 5.6% next year

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="390" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/Z7OUSBHECZMJVEHQT7G2AZVSQU.avif" alt="" class="wp-image-605558"/><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration/File photo</figcaption></figure>



JOHANNESBURG, April 9 (Reuters) &#8211; The South African rand neared an all-time low against the dollar in early trade on Wednesday, bruised by global risk aversion linked to U.S. President Donald Trump&#8217;s tariffs and uncertainty over the future of the country&#8217;s ruling coalition.



The rand fell as low as 19.8225 to the dollar, not far from the weakest it has ever traded at 19.9075 in June 2023.



By 0655 GMT, it had recovered some ground to reach 19.73, up 0.2% on the day, but it is still down over 3% so far this week.



The South African currency is highly susceptible to shifts in financial market sentiment, which has soured badly over Trump&#8217;s tariff war. U.S. tariffs on dozens of countries kicked in on Wednesday, while China was hit with 104% duties.



Another important factor behind the rand&#8217;s recent slide is local politics.



The two biggest parties in the broad coalition government have disagreed sharply over the budget, with the junior partner voting against it in parliament and going to court.



Despite both parties saying on Tuesday that they are not yet walking away from the Government of National Unity (GNU), investors are still worried about the prospect that the pro-business Democratic Alliance could exit government.



&#8220;Local developments concerning the GNU have intensified the shift away from the rand,&#8221; ETM Analytics said in a note.



The benchmark 2030 government bond dropped in early deals, as the yield rose 13 basis points to 9.33%.



(Reporting by Sfundo Parakozov; Editing by Alexander Winning and Sharon Singleton)

Z7OUSBHECZMJVEHQT7G2AZVSQU

South African rand nears all-time low on tariff turmoil and coalition tension

<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 9 (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 central bank governor holds a news conference a day after announcing the latest lending rate decision.



The African Development Bank will host a press conference on its upcoming annual meeting in the last week of May.



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



Stocks in Asia extended a slide on Wall Street on Wednesday as President Donald Trump looked set to press ahead with whopping 104% tariffs on Chinese goods, pummelling oil prices to four-year lows as global recession fears gripped financial markets.



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



Oil prices dropped to their lowest in more than four years in early trade on Wednesday on looming demand concerns fuelled by an escalating tariff war between the U.S. and China, the world&#8217;s two biggest economies, and a rising supply outlook.



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



South Africa&#8217;s rand strengthened on Tuesday as the country&#8217;s two biggest political parties said they were not walking away from the coalition government and were open to further talks to try to resolve a bitter dispute over the budget.



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



Kenya&#8217;s shilling strengthened slightly against the dollar on Tuesday, data from the London Stock Exchange Group showed.



<h2 class="wp-block-heading" id="h-us-aid">US AID</h2>



President Donald Trump&#8217;s administration on Tuesday moved to reinstate at least six recently canceled U.S. foreign aid programs for emergency food assistance, six sources familiar with the matter told Reuters.



<h2 class="wp-block-heading" id="h-kenya-rates">KENYA RATES</h2>



Kenya&#8217;s central bank cut its policy rate on Tuesday for the fifth meeting in a row, a surprise move aimed at further stimulating private sector lending.



<h2 class="wp-block-heading" id="h-congo-justice">CONGO JUSTICE</h2>



Three American citizens jailed over a failed coup attempt in Democratic Republic of Congo were handed over to U.S. custody on Tuesday, officials said, following high-level talks between the two countries on security and mining deals, the Congolese presidency told Reuters on Tuesday.



<h2 class="wp-block-heading" id="h-ethiopia-politics">ETHIOPIA POLITICS</h2>



Ethiopia&#8217;s Prime Minister Abiy Ahmed on Tuesday appointed Tadesse Worede to lead the interim administration in the northern Tigray region, where divisions in the ruling party have sparked fears of a renewed war between Ethiopia and Eritrea.



((Compiled by Nairobi Newsroom))

African Markets – Factors to watch on April 9

<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/WSODY4AV2JNYNIDLTPZFGGWEU4.avif" alt="" class="wp-image-607487"/><figcaption class="wp-element-caption">Labour MP Bambos Charalambous speaks at the House of Commons in London, Britain, November 16, 2022. UK Parliament/Jessica Taylor/Handout via REUTERS/File Photo</figcaption></figure>



LONDON, April 9 (Reuters)&nbsp;&#8211;&nbsp;A British lawmaker has introduced a private member&#8217;s bill that would set new rules around debt restructurings in a push to speed up negotiations for poor countries struggling with unsustainable debt.



Bambos Charalambous, who introduced the bill late last year, said support from other members of parliament had grown since the UK and the United States slashed aid spending. He represents the ruling Labour party in parliament, but neither it nor the opposition conservatives have thrown their support behind the bill.



Charalambous said his party may be persuaded to back it and it was being studied by some in governmemt. His effort follows similar proposals in New York state, which supporters say would enable poor nations to emerge faster and stronger from debt distress, while opponents warn they could make future borrowing more expensive.



Lawyers and investors following the debate on both sides of the Atlantic expect debt campaigners to keep pushing until some iteration of the proposals becomes law.



Trillions of dollars in bonds &#8211; accounting for nearly all tradeable sovereign debt issued by developing governments and companies on international capital markets &#8211; are issued under the laws of either New York state or England.



English law governs a disproportionate share &#8211; estimated at up to 90% &#8211; of those bonds issued by the poorest nations, such as Ethiopia and Ghana.



&#8220;It would, number one, compel private creditors to negotiate in good faith, and quickly, with the debt-distressed countries,&#8221; Charalambous told Reuters regarding the bill.



&#8220;And it could be worth billions to (the countries), and that money could be reinvested into health and education projects.&#8221;



Charalambous&#8217;s bill would allow countries to seek debt payment freezes while restructuring negotiations are underway, and also enable a stay on legal proceedings during the process.



It would also cap the claims that private creditors can make via lawsuits after restructurings are concluded, aiming to prevent holdout creditors from blocking or slowing debt deals.



<h2 class="wp-block-heading" id="h-states-vulnerable">STATES VULNERABLE</h2>



Currently, if a country defaults on its bonds, creditors can go to court in the jurisdiction governing the contract to force repayment; some of Ethiopia&#8217;s bondholders have said they could undertake legal proceedings.



Such court cases typically spark lengthy legal proceedings that can delay or complicate a broader restructuring.



A wave of developing countries, from Ghana to Sri Lanka, have defaulted since 2020, weakened by the COVID-19 pandemic and a global interest rate hiking cycle.



The G20 created an initiative called the Common Framework to try to bring together diverse lenders &#8211; from China to New York investors &#8211; to speed up poor countries&#8217; debt reworks.



But it took Zambia more than three years to restructure its primary debts, and critics say the debt relief it and other nations have secured leaves them vulnerable to future crises.



No iteration of the New York bill has made it to the governor&#8217;s desk, but emerging market bond investors have begun to include clauses in bond deals that would allow them to switch jurisdictions to avoid potential curbs.



(Reporting by Libby GeorgeEditing by Alexandra Hudson)

WSODY4AV2JNYNIDLTPZFGGWEU4

UK bill aims to speed debt restructuring for poor countries

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4000" height="2667" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/4RI6JH2DCRIBTOTEG67K23A2OM.avif" alt="" class="wp-image-591756"/><figcaption class="wp-element-caption">An American flag and USAID flag fly outside the USAID building in Washington, D.C., U.S., February 1, 2025. REUTERS/Annabelle Gordon/File Photo</figcaption></figure>



WASHINGTON, April 8 (Reuters)&nbsp;&#8211;&nbsp;President Donald Trump&#8217;s administration on Tuesday moved to reinstate at least six recently canceled U.S. foreign aid programs for emergency food assistance, six sources familiar with the matter told Reuters.



The quick reversal of decisions made just days ago underscored the rapid-fire nature of Trump&#8217;s cuts to foreign aid. That has led to programs being cut, restored then cut again, disrupting international humanitarian operations.



USAID Acting Deputy Administrator Jeremy Lewin, who has previously been identified as a member of billionaire Elon Musk&#8217;s Department of Government Efficiency, asked staff in an internal email to reverse the terminations.



He asked to restore awards to the World Food Programme in Lebanon, Syria, Somalia, Jordan, Iraq and Ecuador, five sources familiar with the matter said.



The administration has also resumed four awards to the International Organization for Migration in the Pacific region, two sources familiar with the matter said.



&#8220;Sorry for all the back and forth on awards,&#8221; Lewin said on Tuesday in the internal email seen by Reuters. &#8220;There are a lot of stakeholders and we need to do better about balancing these competing interests — that’s my fault and I take responsibility,&#8221; he added.



Reuters reported on Monday that the Trump administration had ended life-saving aid programs for more than a dozen countries including Afghanistan, Yemen, Somalia and Syria, totaling over $1.3 billion.



According to Stand Up For Aid, an advocacy group of current and former U.S. officials, WFP contracts canceled on Lewin’s orders last weekend for Lebanon, Syria, Somalia and Jordan totaled more than $463 million.



Many of the terminated programs had been granted waivers by U.S. Secretary of State Marco Rubio following an initial round of cuts to foreign aid programs. The State Department said those did not reflect a final decision.



The State Department did not immediately respond to a request for comment about restoring the awards.



<h2 class="wp-block-heading" id="h-a-death-sentence">A &#8216;DEATH SENTENCE&#8217;</h2>



The decision to restore some aid followed pressure from inside the administration and from Congress, two sources said.



The World Food Programme said on Monday that the U.S. notified the organization it was eliminating emergency food assistance funding in 14 countries, warning: &#8220;If implemented, this could amount to a death sentence for millions of people facing extreme hunger and starvation.&#8221;



The U.S. did not restore aid to Taliban-ruled Afghanistan and to Yemen, most of which is controlled by Islamist militants of the Iran-backed Houthi movement. Washington has been the largest aid donor to both countries, which have suffered years of devastating war.



State Department spokesperson Tammy Bruce on Tuesday told reporters that the United States had concerns that WFP funding for Yemen and Afghanistan was benefiting the Houthis and the Taliban.



&#8220;There were a few programs that were cut in other countries that were not meant to be cut that have been rolled back and put into place,&#8221; Bruce said, adding that the administration remains committed to foreign aid.



Among the cuts over the weekend were $169.8 million for the WFP in Somalia, covering food assistance, nutrition for malnourished babies and children and humanitarian air support. In Syria, $111 million was cut from WFP food assistance.



The cuts have been the latest piece of the Trump administration&#8217;s&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N3QF0Q8&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">drive to dismantle</a>&nbsp;USAID, the main U.S. humanitarian aid agency.



The administration has canceled billions of dollars in foreign aid since the Republican president began his second term on January 20 in an overhaul that officials described as marked by&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL6N3OZ00X&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">chaos and confusion</a>.



Senate Foreign Relations Committee Democrats on Tuesday wrote a letter to Rubio regarding plans to restructure the State Department, including by folding in USAID, which they said was &#8220;unconstitutional, illegal, unjustified, damaging, and inefficient.&#8221;



(Reporting by Jonathan Landay, Daphne Psaledakis and Humeyra Pamuk; Additional reporting by Patricia Zengerle and Michelle Nichols; Editing by Don Durfee and Cynthia Osterman)

4RI6JH2DCRIBTOTEG67K23A2OM

Trump administration moves to restore some terminated foreign aid programs, sources say

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3319" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/RZR3NS7JLNNQHIVFPVXPTMNINE.avif" alt="" class="wp-image-607197"/><figcaption class="wp-element-caption">Ethiopia&#8217;s Prime Minister Abiy Ahmed addresses parliament members on the current situation of the country at the parliament building in Addis Ababa, Ethiopia, March 20, 2025. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, April 8 (Reuters) &#8211; Ethiopia&#8217;s Prime Minister Abiy Ahmed on Tuesday appointed Tadesse Worede to lead the interim administration in the northern Tigray region, where divisions in the ruling party have sparked fears of a renewed war between Ethiopia and Eritrea.



Tadesse, the administration&#8217;s deputy president for the last two years, was a top commander in the Tigray People&#8217;s Liberation Front (TPLF) during the 2020-2022 war with Ethiopia&#8217;s federal government, which killed tens of thousands of people and forced millions from their homes.



Eritrean forces fought in support of Ethiopia&#8217;s federal army during that conflict, but relations between the longtime rivals have since soured over an agreement ending the conflict signed in November 2022.



Analysts say Ethiopia&#8217;s neighbour Eritrea was unhappy at being excluded from the deal, which allowed the TPLF, with which it remains deeply hostile, to govern Tigray.



Last year the TPLF split into two factions, with a dissident group led by Debretsion Gebremichael accusing Tigray&#8217;s interim administration &#8211; led initially by TPLF spokesperson Getachew Reda, whose two-year term has now expired &#8211; of selling out Tigrayan interests.



Debretsion&#8217;s faction, which seized the town of Adigrat last month, has denied administration accusations of allying with Eritrea, heightening the risk of a regional war.



In February, Eritrea ordered a nationwide military mobilisation, according to a human rights group. Ethiopia deployed troops toward their shared border, although Abiy has sought to downplay the prospect of conflict.



Tadesse, who analysts say has stayed largely neutral over the TPLF split, has agreed to eight commitments including the return of people displaced by the war and demobilisation of combatants, according to a letter shared by Abiy&#8217;s spokesperson Billene Seyoum.



&#8220;(Tadesse) has a clear understanding of both the strengths and shortcomings of the previous administration, and many believe he is well-positioned to guide Tigray through this critical transition,&#8221; Abiy wrote on X.



&#8220;It is my hope that (Tadesse) will seize this historic opportunity to help the people of Tigray realize their aspirations for peace and development,&#8221; he added.



(Reporting by Dawit Endeshaw; Writing by Hereward Holland; Editing by George Obulutsa, Jan Harvey)

RZR3NS7JLNNQHIVFPVXPTMNINE

Ethiopia’s PM Abiy appoints new leader of Tigray administration

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4500" height="3000" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/S6AZUG3GPJNWBFZDG42JBIMG74.avif" alt="" class="wp-image-607180"/><figcaption class="wp-element-caption">Fikile Mbalula, the Secretary-General of the African National Congress addresses the media during a press conference at Chief Albert Luthuli House, the headquarters of the African National Congress in Johannesburg, South Africa, April 1, 2025. REUTERS/Ihsaan Haffejee/File Photo</figcaption></figure>



JOHANNESBURG, April 8 (Reuters)&nbsp;&#8211;&nbsp;The African National Congress&nbsp;remains&nbsp;committed to South Africa&#8217;s multiparty government, it said on Tuesday, after its main coalition partner, the Democratic Alliance, voted against the budget and went to court to try to block it.



The deepening schism between the ANC and DA &#8211; South Africa&#8217;s biggest and second-biggest parties &#8211; threatens to sink the country&#8217;s first attempt at coalition rule in its 30-year democratic era and has left investors rattled.



The ANC and DA held separate meetings of their top officials on Monday to discuss how to move on from last week&#8217;s fractious budget vote, which followed weeks of failed negotiations over the bill.



The DA had pushed for a bigger say in economic policymaking during the talks after not getting its way in earlier disagreements over health insurance and education laws.



The ANC, however, did not cede to the DA&#8217;s demands and instead secured the backing of a small party outside the coalition to pass the budget&#8217;s first piece of legislation.



ANC Secretary General Fikile Mbalula told a press conference that the DA had acted as an opposition force by seeking to block several high-profile legislative projects.



&#8220;This dishonesty undermines the very essence of collective governance,&#8221; he said.



But he stopped short of saying the ANC wanted to force the DA out of government&nbsp;and said the ANC&nbsp;would continue talks with the DA.



&#8220;We remain committed to the (coalition government) as a tactical element,&#8221; Mbalula said. &#8220;We remain committed, but its integrity cannot be compromised.&#8221;



Mbalula said that, in addition to the DA, the ANC would talk to its other coalition partners and parties outside the government to try to resolve any remaining disagreements over the budget, whose most contentious element is a plan to&nbsp;increase value-added tax.



DA leader John Steenhuisen said in a statement on Tuesday that his party wanted to discuss power-sharing with the ANC, which he called a natural consequence of the 2024 election&nbsp;in which&nbsp;no single party secured a majority.



&#8220;The electorate sent a clear message: single party rule is over, and no one party gets to dictate our policy direction,&#8221; he said.



The prospect that the pro-business DA could exit the coalition with the former liberation movement of Nelson Mandela and a host of other smaller parties&nbsp;has contributed&nbsp;to a steep fall in the rand&nbsp;ZAR=D3&nbsp;in recent days.



(Additional reporting by Bhargav Acharya and Sfundo Parakozov; Writing by Alexander Winning; Editing by Joe Bavier)

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South Africa’s ANC committed to coalition despite budget disagreements

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/JYIBRDLI4ZIFRIFK2GBOCQLY3Y.avif" alt="" class="wp-image-607146"/><figcaption class="wp-element-caption">U.S. President Donald Trump in the Oval Office at the White House in Washington, U.S., April 7, 2025. REUTERS/Kevin Mohat</figcaption></figure>



April 8 (Reuters)&nbsp;&#8211;&nbsp;Tariffs announced by U.S. President Donald Trump will hurt South African citrus farms and could potentially affect 35,000 jobs, a farmers&#8217; association said on Tuesday.



Trump imposed a 31% tariff on U.S. imports from South Africa on April 2, when he announced a 10% baseline tariff on all imports and higher targeted duties on dozens of countries.



South Africa, the world&#8217;s second largest citrus exporter after Spain, ships between 5%-6% of its produce to the U.S., earning more than $100 million annually.



The new tariff would place an additional $4.50 cost on each carton, making South Africa&#8217;s fruit less competitive in the U.S. market, the Citrus Growers&#8217; Association of Southern Africa (CGA) said in a statement.



Towns such as Citrusdal in the Western Cape, which are heavily dependent on citrus exports to the U.S., could be hit especially hard, CGA chairperson Gerrit van der Merwe said.



&#8220;The severity and immediate nature of the impending tariffs could mean that towns like it now face either increased unemployment or maybe even total economic collapse,&#8221; van der Merwe said. &#8220;There is immense anxiety in our communities.&#8221;



A total of 35,000 jobs are directly connected to South Africa&#8217;s citrus exports, he added.



With South African farmers starting to pack citrus destined for the U.S. market this week, growers have called on the government &#8220;to prioritise immediate negotiations with the U.S on tariff reductions or exemptions on citrus&#8221;.



Africa&#8217;s most advanced economy has said it will not retaliate against the U.S., its second largest bilateral trading partner after China. Instead, South Africa says it will seek to negotiate exemptions and quota agreements.



South Africa has also said Trump&#8217;s tariffs effectively nullified the benefits African countries have enjoyed under the African Growth and Opportunity Act, which grants qualifying states duty-free access to the U.S. market. The 25-year-old trade initiative is set to expire in September.



(Reporting by Nelson Banya; Editing by Alex Richardson)

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US tariffs threaten 35,000 citrus jobs in South Africa, farmers 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 8 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand strengthened in early trade on Tuesday, recovering some of the ground it lost a day earlier, with the future of the country&#8217;s multi-party government the main focus.



At 0706 GMT, the rand traded at 19.44 against the dollar, 1% firmer on the day after falling about 2.7% on Monday.



The two biggest political parties in the ruling coalition, the African National Congress (ANC) and Democratic Alliance (DA), held meetings of their senior officials on Monday to discuss the way forward after disagreements over the budget.



Despite weeks of negotiations the two parties could not agree a common strategy on the budget, leading to the pro-business DA voting against the fiscal framework in parliament and some ANC figures pushing for the DA to leave the government.



At 0900 GMT, the ANC will brief reporters on the outcome of its discussions on Monday.



A DA spokesperson confirmed the party&#8217;s Federal Executive met on Monday, but said it had not yet taken a decision on its position in the coalition, referred to locally as the Government of National Unity.



Local news website Eyewitness News reported that the ANC had resolved to continue negotiations with coalition partners, including the DA, and had reached out for talks.



The benchmark 2030 government bond was slightly stronger in early deals, as the yield fell 5 basis points to 9.325%.



(Reporting by Sfundo Parakozov and Wendell Roelf; Editing by Alexander Winning and Alex Richardson)

South African rand recovers some ground with coalition’s future the focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="410" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/AFREXIMBANK-HQ-scaled-1-820x410.jpg" alt="" class="wp-image-497710" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/AFREXIMBANK-HQ-scaled-1-820x410.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/AFREXIMBANK-HQ-scaled-1-300x150.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/AFREXIMBANK-HQ-scaled-1-160x80.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/AFREXIMBANK-HQ-scaled-1-768x384.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/AFREXIMBANK-HQ-scaled-1.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



CAPE TOWN, April 7 (Reuters)&nbsp;&#8211;&nbsp;The African Export–Import Bank (Afreximbank), a key investor in oil and gas projects, has earmarked $3 billion to finance the purchase of refined products within Africa as part of broader plans to boost refining capacity, a senior executive said.



Africa exports around 80% of its crude oil, and 45% of the natural gas it produces, leaving the fast-growing continent heavily-reliant on imported refined products, according to the bank and analysts.



A lack of storage infrastructure and older refineries with relatively small output capacity characterise the&nbsp;energy&nbsp;landscape of sub-Saharan Africa.



&#8220;The time has come for Africa to take control of its energy destiny,&#8221; Kanayo Awani, executive vice-president at Afreximbank told an energy conference in Cape Town, South Africa, on Monday.



Awani said the $3 billion revolving intra-African oil importing financing initiative will be used for products including premium motor spirit, automotive gas oil, heavy fuel oil, jet fuel, and kerosene, among others.



Afreximbank, which has invested in the 650,000 barrels per day (bpd) Dangote refinery in Nigeria, and the Lobito and Cabinda refineries in Angola, has traditionally helped finance imports of refined products from outside the continent.



Africa spends an estimated $30 billion in annual petroleum import costs due to inadequate refining capacity, Awani said.



In Nigeria, for example, increased investments have helped create 1.3 million bpd of refining capacity, helping make the Gulf of Guinea a key refining hub for the continent.



&#8220;Our goal is to support 3 million barrels per day of refining capacity in the near to medium term, that is our ambition,&#8221; Awani told Reuters.



A joint report last year by energy consultancy CITAC and Puma Energy found that the demand for cleaner fuels was set to rise by 56% from 2022 levels to reach 142 million metric tons by 2040.



(Reporting by Wendell Roelf; Editing by Rachna Uppal)

AFREXIMBANK-HQ-scaled-1

Oil and gas investor Afreximbank earmarks $3 bln to support locally-refined products

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



April 7 (Reuters)&nbsp;&#8211;&nbsp;The emerging market stocks index on Monday was heading for its biggest one-day selloff since the 2008 global financial crisis, as U.S. President Donald Trump remained determined to upend the global trade order that markets worry could trigger a recession.



Investors started the week parsing Trump&#8217;s comments that signaled they would have to endure more pain and he would not do a deal with China until the U.S. trade deficit was sorted out, which drove MSCI&#8217;s EM stocks index down by 7.9%.



A currencies gauge weakened 0.4% to the dollar and was set for its largest daily drop since November, with those of China, India dipping 0.4% each, while South Africa&#8217;s rand and Mexico&#8217;s peso weakened over 1% each.



Financial assets in the developed, developing and the frontier world along with commodity prices were extending last week&#8217;s rout after the U.S. President&#8217;s restrictive trade policies was met with quick retaliation from Beijing, fanning worries that a global trade war could weigh on economic performance.



Investors are also anticipating a response from Europe this week, while other trade-reliant economies in south east Asia are hoping to strike trade deals with the U.S.



&#8220;Investors had assumed Trump&#8217;s trade taxes were a bargaining tool, as during the first term. If the competence of policymaking is questioned, markets will worry that economic damage will be lasting,&#8221; said from Paul Donovan, chief economist at UBS Global Wealth Management.



On Monday, equities in China slid 7% and those in Hong Kong tanked 13.2% &#8211; its steepest decline since 1997. Brokerage Goldman Sachs said it expects Chinese policymakers to accelerate fiscal easing measures significantly to offset the repercussions of higher tariffs.



MSCI&#8217;s index tracking Asia-Pacific shares outside Japan slid 8.4% and a plunge in Korean shares triggered a trading curb for the first time in eight months.



Investors also began to bet on the increasing likelihood of corporate and sovereign credit defaults, as the five-year credit default swap spread on the Markit Itraxx Asia ex-Japan index, widening to its highest since August last year, according to S&amp;P Global Market Intelligence data.



The default swaps on China jumped 82 basis points, while that of South Africa climbed seven bps.



International sovereign bonds of a number of frontier markets also suffered sharp selloffs with those of Sri Lanka, Egypt and Kenya falling over 4 cents on the dollar.



Markets were pricing in that a stronger dollar against weaker emerging market currencies, combined with a weak global trade environment could increase the risk of a debt spiral in emerging markets.



Some economies such as Sri Lanka and Pakistan were just regaining their footing after defaults triggered by the COVID pandemic.



Pakistan&#8217;s hard-currency bonds lost over 10 cents putting it below the 70 mark, widely perceived as distressed debt.



Worries of a global recession also had markets pencilling in the likelihood that the U.S. Federal Reserve could lower borrowing costs by at least five 25 basis points by December, according to data compiled by LSEG.



Markets are also expecting sluggish economic performance to also speed up interest rate cuts by central banks in developing economies at their upcoming monetary policy meets, such as India and Singapore.



The market rout continued, with equities in South Africa Indian .NSEI, .BSESN and Turkey falling about 2% to 4% each.



An index tracking central and eastern European stocks tumbled 4.7%, with those of more open economies such as Czech Republic and Hungary falling 5.4% and 6.9%, respectively.



Hungary&#8217;s forint depreciated 0.5% against the euro and Poland&#8217;s zloty dropped 0.8%.



Currencies such as the euro and Swiss franc outperformed the dollar as markets priced in the likelihood that the U.S. economy could also be hit with a recession, in the face of tighter trade.



(Reporting by Johann M Cherian in Bengaluru; Editing by Shailesh Kuber)

Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering

EMERGING MARKETS-Trade war, recession fears put stocks on path for biggest daily drop since 2008

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="463" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/2PLENK7UEVP6LHO27XU5VACMUU.avif" alt="" class="wp-image-590509"/><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 30, 2020. REUTERS/Mike Hutchings/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, April 7 (Reuters) &#8211; South Africa&#8217;s rand slumped to its weakest in 18 months on Monday, while local stocks plunged before staging a recovery as U.S. President Donald Trump&#8217;s sweeping tariffs and global recession fears rocked financial markets.



At 1025 GMT, the rand traded at 19.31 against the dollar, down 1% from Friday&#8217;s close, after earlier touching its weakest since October 2023.



Trump showed no sign of backing away from his tariff plans on Sunday, and investors worldwide poured into safe-haven currencies like the yen and Swiss franc on Monday. An emerging market stock index was heading for its biggest one-day selloff since the 2008 global financial crisis.



Local politics also weighed on the risk-sensitive rand, which lost more than 3% against the dollar last week.



The two biggest parties in South Africa&#8217;s government have clashed over the national budget, and investors are worried the pro-business Democratic Alliance could quit or be forced out of the coalition with the bigger African National Congress.



&#8220;Any removal of the DA from the (coalition) would have a significantly negative effect on South Africa&#8217;s outlook. It is the partnership between the ANC and DA that created a sense of stability and progress,&#8221; said Casey Sprake, economist at Anchor Capital.



On the Johannesburg Stock Exchange, the Top-40 index slumped 5% in early trade to strike a nine-and-a-half-month low, before paring losses to trade down 0.3%.



Beermaker Anheuser-Busch was down 4.2%, Cartier owner Richemont down 3.2%, Anglo American down 1.6% and technology investor Naspers down 3.5%, among the decliners.



&#8220;The market is concerned that tariffs may cause an economic contraction and that they may be disruptive to the global supply chain,&#8221; said Roy Topol, portfolio manager at Cratos Asset Management.



Naspers&#8217; fall was partly linked to weaknesses in China, where its European subsidiary Prosus holds a 24.1% stake in Tencent 0700.HK, analysts said.



South Africa&#8217;s benchmark 2030 government bond rose slightly, as the yield fell 2 basis points to 9.39%.



(Reporting by Sfundo Parakozov, Nqobile Dludla and Siyanda Mthwethwa. Editing by Joe Bavier and Mark Potter)

South African rand hits 18-month low, stocks recover from plunge

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-820x540.jpg" alt="" class="wp-image-606791" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-1536x1011.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows shipping containers arranged from different shipping companies within the Kenya Ports Authority (KPA) container terminal at the port of Mombasa, Kenya January 9, 2025. REUTERS/Laban Walloga/File Photo</figcaption></figure>



NAIROBI, April 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya is among those exporters hoping a smaller Trump tariff blow vis-a-vis competitors might help them emerge as winners in the nascent global trade war, but translating the disparity into an advantage will be an uphill struggle.



As governments around the world reeled from U.S. President Donald Trump&#8217;s new tariffs, Kenya voiced optimism about potential advantages over rival textile manufacturers in Asia.



Imports from the East African nation, which sent goods worth $737 million to the United States last year, will be charged the minimum 10% compared with 46% for Vietnam, 44% for Sri Lanka and 37% for Bangladesh.



&#8220;With other textile-exporting countries facing much higher tariffs, Kenya could position itself as an alternative sourcing hub for buyers,&#8221; Trade Minister Lee Kinyanjui said last week.



Economists said up-and-coming manufacturers in East Africa like Tanzania and Ethiopia could also benefit, as could Latin American countries like Brazil, which also received the baseline 10% tariff.



Any gains for Kenya, however, could be offset by the damage from tariffs to the global economy plus deep-seated weaknesses in its domestic business environment.



J.P. Morgan raised its odds of global recession by year-end to 60% from 40% on Friday after China retaliated against the U.S. tariffs, while Goldman Sachs has raised the odds of a U.S. recession in the next 12 months to 45% from 35%.



The chairman of Kenya&#8217;s biggest garments manufacturer said the tariffs would pile expenses on companies already facing costs roughly 20% higher than global competitors because of steep electricity prices and taxes, and questioned whether international brands would rush to shift operations.



&#8220;A temporary tariff disparity does not create real competitiveness,&#8221; said Pankaj Bedi, whose United Aryan Ltd. supplies U.S. retailers including Target, Walmart and Levi&#8217;s.



Stresses for manufacturers are compounded by the grim outlook for the African Growth and Opportunity Act (AGOA), a U.S. trade initiative passed in 2000 that allows duty-free exports for thousands of products from Africa.



Trade experts said the U.S. tariffs were likely to signal the end of AGOA, which expires in September and had been widely expected to be renewed in some form.



<h2 class="wp-block-heading" id="h-negotiations-with-washington">NEGOTIATIONS WITH WASHINGTON</h2>



The tariffs sent chills through the global economy, affecting nearly all of Kenya&#8217;s trading partners.



Most African countries have relatively small export balances with the U.S. but more significant trade relations with the European Union and China, J.P. Morgan said in a note on Monday.



Kenya exported $1.35 billion in goods to the EU and $228 million to China in 2023, according to U.N. data.



&#8220;While the direct impact with the U.S. might be limited, the indirect impact from potential growth slowdown in the EU and China, depending on the veracity of the impact from U.S. tariffs, could yet weigh on these economies,&#8221; J.P. Morgan said.



As well as his bullish initial assessment, Kenya&#8217;s trade minister Kinyanjui did also take sober note on Monday of the havoc on global markets.



&#8220;We anticipate there will be a serious impact across all sectors and I think the fears of recession become a very clear challenge, especially for third world countries,&#8221; he said.



Some manufacturers said Kenya would struggle to take advantage of any opening provided by the tariffs because their higher costs largely cancel out the edge from U.S. tariff rate differentials versus competitors.



&#8220;Kenya&#8217;s exports to the USA, previously duty-free under AGOA, will now be subject to additional costs, reducing their market competitiveness,&#8221; the Kenya Association of Manufacturers said in a statement.



Other manufacturers were nevertheless looking on the bright side. Jaswinder Bedi, whose company makes clothes for American wholesalers, said he planned to press ahead with a new factory that would triple his employees to more than 3,000.



&#8220;Our comparative advantage has actually increased,&#8221; he said. &#8220;Look at our competing countries &#8230; those tariffs are very high.&#8221;



Much will depend on the ability of Kenya &#8211; and its competitors &#8211; to secure better terms through direct negotiations with Washington.



U.S. Treasury Secretary Scott Bessent said on Sunday that more than 50 nations had started negotiations with the U.S. since Trump announced the tariffs last Wednesday.



It was not known if Kenya was among them. At least one textile manufacturing competitor was moving aggressively to try to roll back the tariffs, with Vietnam&#8217;s leader To Lam agreeing during a phone call on Friday with Trump to discuss a deal.



Kenya opened trade deal negotiations with the first Trump administration in 2020.



New talks were opened under President Joe Biden&#8217;s administration on a trade and investment partnership aimed at lifting non-tariff barriers to trade but were not completed before Trump returned to office.



(Reporting by Duncan Miriri; Editing by Aaron Ross and Andrew Cawthorne)

A general view shows shipping containers arranged from different shipping companies within the Kenya Ports Authority (KPA) container terminal at the port of Mombasa

Reuters

African Markets – Factors to watch on April 10

South African rand regains some ground after US pauses tariffs

South Africa’s rand touches new record low against dollar

South African rand near record low on tariff war, coalition friction

Kenya’s central bank sees economic growth rising to 5.6% next year

South African rand nears all-time low on tariff turmoil and coalition tension

African Markets – Factors to watch on April 9

UK bill aims to speed debt restructuring for poor countries

Trump administration moves to restore some terminated foreign aid programs, sources say

Ethiopia’s PM Abiy appoints new leader of Tigray administration

South Africa’s ANC committed to coalition despite budget disagreements

US tariffs threaten 35,000 citrus jobs in South Africa, farmers say

South African rand recovers some ground with coalition’s future the focus

Oil and gas investor Afreximbank earmarks $3 bln to support locally-refined products

EMERGING MARKETS-Trade war, recession fears put stocks on path for biggest daily drop since 2008

South African rand hits 18-month low, stocks recover from plunge

Kenya thinks it can win from U.S. tariffs, but global recession risk looms

News Tips

Advertise With Us

Reuters

African Markets – Factors to watch on April 10

South African rand regains some ground after US pauses tariffs

South Africa’s rand touches new record low against dollar

South African rand near record low on tariff war, coalition friction

Kenya’s central bank sees economic growth rising to 5.6% next year

South African rand nears all-time low on tariff turmoil and coalition tension

African Markets – Factors to watch on April 9

UK bill aims to speed debt restructuring for poor countries

Trump administration moves to restore some terminated foreign aid programs, sources say

Ethiopia’s PM Abiy appoints new leader of Tigray administration

South Africa’s ANC committed to coalition despite budget disagreements

US tariffs threaten 35,000 citrus jobs in South Africa, farmers say

South African rand recovers some ground with coalition’s future the focus

Oil and gas investor Afreximbank earmarks $3 bln to support locally-refined products

EMERGING MARKETS-Trade war, recession fears put stocks on path for biggest daily drop since 2008

South African rand hits 18-month low, stocks recover from plunge

Kenya thinks it can win from U.S. tariffs, but global recession risk looms

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