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



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



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



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



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



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



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



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



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



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



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



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



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



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



(Reporting by Andrea Shalal; Editing by Bill Berkrot)

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

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

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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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

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

Ethiopia faces tough devaluation decision to secure IMF bailout

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



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



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



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



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



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



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



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



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



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



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



($1 = 18.8293 rand)



(Reporting by Nqobile Dludla; Editing by Alexander Smith)

South Africa’s second-hand vehicle trader WeBuyCars lists on the Johannesburg Stock Exchange

WeBuyCars marks South African market debut with share price rise

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VYRWOXIFAFINVMT3XJTBLOGTZQ-820x547.jpg" alt="" class="wp-image-475173" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VYRWOXIFAFINVMT3XJTBLOGTZQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VYRWOXIFAFINVMT3XJTBLOGTZQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VYRWOXIFAFINVMT3XJTBLOGTZQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VYRWOXIFAFINVMT3XJTBLOGTZQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VYRWOXIFAFINVMT3XJTBLOGTZQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/VYRWOXIFAFINVMT3XJTBLOGTZQ-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Anna Bjerde, Managing Director for Operations of The World Bank, attends the Asia-Pacific Economic Cooperation (APEC) CEO Summit in San Francisco, California, U.S., November 15, 2023. REUTERS/Carlos Barria/File Photo</figcaption></figure>



WASHINGTON, April 9 (Reuters)&nbsp;&#8211;&nbsp;The World Bank Group&nbsp;unveiled a&nbsp;framework&nbsp;on Tuesday&nbsp;for measuring the results of its development work with 22&nbsp;indicators&nbsp;in what a top official called an important advance in the bank&#8217;s push to increase transparency and accountability.



Anna Bjerde, the World Bank&#8217;s managing director of operations, said&nbsp;the&nbsp;scorecard would allow its shareholders and the people it serves&nbsp;to better&nbsp;see, measure and track the impact of the bank&#8217;s lending and grants.



&#8220;A vision and mission are really great, but unless you can translate it into actions and measure it, then it&#8217;s quite aspirational, and we also want it to be operational,&#8221; Bjerde told&nbsp;Reuters.



The&nbsp;U.S.&nbsp;and other major shareholders have pushed the World Bank&nbsp;to improve how it helps&nbsp;countries address issues such as climate change and pandemic preparedness.



It has already added the phrase &#8220;livable planet&#8221; to its mission statement and reduced the number of its projects to focus on more programmatic and transformational projects.



The scorecard includes 22 global indicators &#8211; down from 150 on a previous instrument &#8211; for poverty, prosperity and a livable planet, as well as themes such as gender equality, inclusion of youth, and how people live in fragile, conflict-affected areas.



It will enable a closer look at development outcomes by adopting a more &#8220;people-centric&#8221; approach, Bjerde said.



For the first time, the work of all World Bank institutions &#8211; including the International Finance Corp and the International Bank for Reconstruction and Development &#8211; will be tracked through the same set of indicators.



“It’s a real game changer, providing a new guidepost that our teams can rally around, and provides full visibility on how well we are tackling the most difficult challenges like poverty, climate change, fragility and food insecurity,&#8221; Bjerde said.



The bank sees the scorecard as part of its push to focus on outcomes, not inputs, for instance by measuring the number of people that actually use financial services, not just how many have access.



The bank is still working out the detailed methodologies to calculate the scores in each of the 22 indicators, she said, with half to be released in June and the rest in October.



The first batch will include data on how many people have access to electricity worldwide, and social safety net programs.



The data will include transparent data broken down by gender, regions, age and whether people are in fragile and conflicted-affected countries.



Drilling in like that will allow the bank, its shareholders and clients to &#8220;see how we&#8217;re doing but also where we need to double down,&#8221; she said.



(Reporting by Andrea Shalal; Editing by Josie Kao)

FILE PHOTO: APEC Summit in San Francisco

World Bank unveils new scorecard to measure accountability

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-820x547.jpg" alt="" class="wp-image-474957" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: An aerial view shows the headquarters of the Central Bank of Brazil (C) in Brasilia January 20, 2014. REUTERS/Ueslei Marcelino/File Photo</figcaption></figure>



KAMPALA, April 9 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s foreign exchange reserves fell by about 12% between June 2023 and January this year because of external debt payments and the central bank&#8217;s inability to buy foreign currency due to a slide in the Ugandan shilling&nbsp;UGX=.



Reserves dropped from $4.07 billion in June to about $3.58 billion at the end of January, reaching 3.4 months of import cover excluding oil project-related imports, the central bank said on Tuesday in its State of the Economy report.



The Bank of Uganda targets foreign exchange cover of 4 months of imports, excluding oil projects, an International Monetary Fund staff report published in March said.



Uganda&#8217;s rising public debt, more than half of which is external, has been eating up a growing share of revenues and hitting other spending priorities like education and health.



Total public debt stood at $24.7 billion, 60% of which was external, at the end of 2023, finance ministry figures show.



The Bank of Uganda said foreign reserves could rise due to expected inflows from budget support loans, but that the outlook for the country&#8217;s balance of payments was fragile.



&#8220;Delayed disbursement of expected budget support loans, higher-than-projected government expenditure on imports, and &#8230; tight global and domestic financial market conditions may disrupt the reserve build-up programme,&#8221; it said.



(Reporting by Elias Biryabarema; Editing by Alexander Winning and Alexander Smith)

FILE PHOTO: Aerial view shows the headquarters of the Central Bank of Brazil in Brasilia

Ugandan foreign exchange reserves drop 12% due to debt payments

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="571" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/YNH43WBRZBKVHDDQ3KLQGQUX2E-820x571.jpg" alt="" class="wp-image-474865" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/YNH43WBRZBKVHDDQ3KLQGQUX2E-820x571.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/YNH43WBRZBKVHDDQ3KLQGQUX2E-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/YNH43WBRZBKVHDDQ3KLQGQUX2E-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/YNH43WBRZBKVHDDQ3KLQGQUX2E-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/YNH43WBRZBKVHDDQ3KLQGQUX2E-1536x1070.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/YNH43WBRZBKVHDDQ3KLQGQUX2E-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A girl carries a container of water at a coltan mine in Kamatare, Masisi territory, North Kivu Province of Democratic Republic of Congo, December 1, 2018. REUTERS/Goran Tomasevic/File Photo</figcaption></figure>



JOHANNESBURG/WASHINGTON, April 9 (Reuters)&nbsp;&#8211;&nbsp;The U.S. must boost commercial ties with African countries to curb reliance on China for supplies of critical minerals, a Washington-based think tank said on Tuesday.



&#8220;U.S. economic and national security depend on securing a reliable supply of critical minerals, including from Africa,&#8221; the United States Institute of Peace said in a report.



The U.S. is almost 100% reliant on &#8220;foreign entities of concern,&#8221; mainly China, for key critical minerals, it said, and must come up with own sources of supply to avoid being shorthanded and vulnerable to China&#8217;s export curbs.



Western mining companies are lagging Chinese rivals in the race to tap Africa&#8217;s abundant mineral resources, key to sectors from electric vehicle manufacturing to defence industries.



To counter China&#8217;s head start in Africa, Washington must roll out &#8220;more vigorous commercial diplomacy with a keen eye toward building critical minerals partnership in Africa,&#8221; the 76-page report said.



One option for the U.S. would be to increase commercial diplomacy in countries such as Democratic Republic of Congo, the world&#8217;s No. 1 cobalt supplier, and Zambia, Africa&#8217;s second-largest copper producer, it said.



The competition for securing minerals in Africa is heating up as cash-rich Middle East firms join the race.



While Western mining companies still see hurdles in investing in countries such as Congo, which lacks vital infrastructure such as roads and adequate electricity, Chinese miners have strengthened their grip in the country and are broadening investment throughout Africa.



The International Development Finance Corporation said in February it could scale up project financing in Africa to help reduce the risk of investing in countries including Congo that some investors still perceive as high risk.



Unlocking U.S. investment in Congo could be helped by reopening its consulate in Lubumbashi that closed in the 1990s after the end of the Cold War, Tuesday&#8217;s USIP report said.



The government also needs to prioritize full development of a memorandum of understanding with Congo and Zambia which could help guide U.S. private investors across the battery metals supply chain, it said.



The U.S. has stepped in to back the Lobito Corridor, a rail link from the central African copper belt that&#8217;s key to export of metals through Angola&#8217;s Lobito port.



The U.S. is &#8220;simply not on, or even near, par in competing with China&#8221; for critical minerals investment and diplomacy in Africa, and needs to take a vigorous approach, USIP said.



Jose Fernandez, the U.S. State Department&#8217;s under secretary for economic growth, energy, and the environment said last month the U.S. holds regular talks with Congo state miner Gecamines.



Still, the U.S. government is unlikely to match the resource levels and the mining ecosystem that China wields in winning mining contracts, USIP said, though &#8220;concerted U.S. efforts to land U.S. mining investment in Africa can succeed.&#8221;



(Reporting by Felix Njini in Johannesburg, Ernest Scheyder in Houston and Daphne Psaledakis in WashingtonEditing by Peter Graff)

FILE PHOTO: A girl carries a container of water at a coltan mine in Kamatare, Masisi territory, North Kivu Province of Democratic Republic of Congo

US must boost Africa ties to secure key minerals, report says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="595" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/5XI6ICZ6JRKC7A43NJRHTXVLBI-820x595.jpg" alt="" class="wp-image-474665" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/5XI6ICZ6JRKC7A43NJRHTXVLBI-820x595.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/5XI6ICZ6JRKC7A43NJRHTXVLBI-300x218.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/5XI6ICZ6JRKC7A43NJRHTXVLBI-124x90.jpg 124w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/5XI6ICZ6JRKC7A43NJRHTXVLBI-768x557.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/5XI6ICZ6JRKC7A43NJRHTXVLBI-1536x1114.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/5XI6ICZ6JRKC7A43NJRHTXVLBI-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A wilted maize crop is seen in Mumijo, Buhera district east of the capital Harare, Zimbabwe, March 16, 2024. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, April 8 (Reuters)&nbsp;&#8211;&nbsp;Mandisireyi Mbirinyu, 70, and her 13-year-old grandson Tinotenda sit in the blistering sun, shelling the few maize cobs they managed to retrieve from land parched by a drought ravaging southern Africa.



&#8220;The grain I have is only enough for the next two months. It is going to be hunger from here on,&#8221; Mbirinyu told Reuters at her farm in Shamva, 90 km (56 miles) north of Zimbabwe&#8217;s capital Harare.



Mbirinyu considers herself lucky. She at least managed to harvest a few bags of maize from her sparsely irrigated plot &#8211; most crops around this area were a write-off.



Southern Africa is reeling from its worst drought in years, owing to a combination of naturally occurring El Nino &#8211; when an abnormal warming of the waters in the eastern Pacific radiates heat into the air leading to hotter weather across the world &#8211; and higher average temperatures produced by greenhouse gas emissions.



Weather across the world produced record-breaking extremes in 2023 as climate change amplified the impacts of El Nino.



A study in October last year even suggested that climate change may now be as significant a factor in triggering El Nino conditions as natural causes like sun rays.



Aid agency Oxfam warned last week that more than 24 million people in southern Africa face hunger, malnutrition and water scarcity because of the drought.



Last season Mbirinyu harvested 14 tonnes of maize and sold some to the national grain company; this year she&#8217;s wondering whether there will be enough to feed her own family.



In neighbouring Malawi, crop theft has become a problem as food sources dry up. In Kuntaja village, near the airport of the commercial capital Blantyre, Osten James makes a living for his family of five by guarding other people&#8217;s maize gardens, after his own were torched by heat.



&#8220;The owners are trying to save the little maize that survived the heat from thieves,&#8221; said James.



Zambia, Malawi and Zimbabwe have all declared a state of disaster.



&#8220;The maize has failed,&#8221; Ulaliya Radson, a Malawian farmer said. &#8220;Last year I harvested 10 bags and as you can see in this field, I won&#8217;t even manage half of that,&#8221; she added, gesturing towards a parched patch.



(Reporting by Nyasha Chingono in Shamva and Frank Phiri in Blantyre; Editing by Tim Cocks, William Maclean)

FILE PHOTO: Villagers collecting food aid in rural Zimbabwe

Southern Africa faces hunger as el Nino drought kills crops

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-820x547.jpg" alt="" class="wp-image-474646" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/OEPY2GFC6ZM3LM7MKO3LBMCKVU-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Central Bank of Nigeria&#8217;s logo is seen on the headquarters building in Abuja, Nigeria January 22, 2018. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, April 8 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank has barred commercial lenders from accepting foreign currency-denominated collateral to grant naira loans, a move that could protect the banking system against a strengthening of the local currency, it said on Monday.



The regulator said in a circular that the practice it had observed of bank customers using foreign currency as collateral for naira loans was &#8220;prohibited&#8221;.



The central bank on Monday said it approved Eurobonds issued by the government or letters of credit issued by an offshore bank as eligible foreign currency collateral.



It told lenders to wind down all loans currently secured with dollar-denominated collateral within 90 days or face sanctions.



The naira has gained sharply against the dollar on both the official and parallel markets after suffering its second devaluation in less than a year in January.



The currency strengthened after the central bank raised interest rates in February and March, and lifted restrictions on foreign participation at its fixed-income auctions.



The bank now allows foreign investors to pre-fund their accounts and get naira at the prevailing exchange rate for bill auctions, analysts said.



In the past, lenders faced constraints in fulfilling foreign investors&#8217; bids as they incurred extra costs on settlement day if they borrowed from the central bank&#8217;s discount window to pay for bills.



(Reporting by Chijioke Ohuocha; Editing by Alison Williams and Jan Harvey)

Central Bank of Nigeria’s logo is seen on the headquarters building in Abuja

Nigeria bars lenders from using FX-denominated collateral for naira loans

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="600" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-820x600.jpg" alt="" class="wp-image-474643" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-820x600.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-300x220.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-123x90.jpg 123w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-768x562.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-1536x1124.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/7EUCZ6RKSVIQDGLZGVKYD2BO74-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A woman walks past the Reserve Bank of Zimbabwe building in Harare, Zimbabwe March 1, 2024. REUTERS/Philimon Bulawayo/FILE PHOTO</figcaption></figure>



HARARE, April 8 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s new gold-backed currency started trading on Monday amid doubts that the country&#8217;s third such re-launch in a decade will have any more success in ending repeated, crippling bouts of high inflation.



The Zimbabwe Gold (ZiG) was announced on Friday by the central bank with an initial rate of 13.56 to $1, replacing the Real Time Gross Settlement Dollar (RTGS), which had lost about 80% of its value this year and had been trading at 28,720 to $1 before the change.



Bank balances were transferred into the new currency over the weekend while their customers will have 21 days to do so, and the new banknotes will enter circulation at the end of this month, according to the Reserve Bank of Zimbabwe.



The RTGS, also known as the Zimdollar&nbsp;ZWL=, was launched in 2019 after a decade of dollarisation, which included so-called bond coins and bond notes, notionally pegged to the U.S. dollar and introduced in 2014 and 2016 respectively.



However, the Zimdollar struggled to gain trust and this year&#8217;s precipitous slide pushed annual inflation above 55% in March&nbsp;ZMBCPY=ECI, raising fears of a return to the 2007-2009 era of hyperinflation under former president Robert Mugabe.



&#8220;There was dire need for drastic change in the Zimbabwean monetary system,&#8221; Jacques Nel at research firm Oxford Economics said in a note to clients.



The central bank statement on Friday correctly identified the most pressing problems, said Nel.



&#8220;A lack of credibility in both the domestic currency and the framework that governed it &#8211; but it is that same lack of credibility that casts doubt over the effectiveness of these new measures,&#8221; he added.



Commercial banks were using the new official exchange rate on Monday, according to Reuters enquiries. It was not immediately clear whether the currency, which the central bank described as &#8220;structured&#8221; and &#8220;anchored by a composite basket of foreign currency and precious metals (mainly gold) held as reserves&#8221;, would be able to retain this value.



Nor was it given that companies and citizens would accept it as a form of payment and a store of value. Some 80% to 85% of transactions are currently carried out in foreign currencies, according to the central bank.



&#8220;Zimbabwe has an insufficient $285 million of hard currency and gold reserves,&#8221; Hasnain Malaik of research firm Tellimer said in a note. &#8220;To fix the economy, Zimbabwe needs to address these root causes of its problems.&#8221;



These problems include central bank funding of government, unsustainable fiscal deficits, debt arrears and Western sanctions, and Malaik said it was not clear whether any would be addressed under the current ruling ZANU-PF party.



(Reporting by Nyasha Chingono and Rachel Savage, Editing by Karin Strohecker and Tomasz Janowski)

A woman walks past the Reserve Bank of Zimbabwe building in Harare

Zimbabwe’s new ZiG currency starts trading, credibility doubts linger

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/DIWUE6H53FK55N7IANRDIEK5BA-820x540.jpg" alt="" class="wp-image-474616" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/DIWUE6H53FK55N7IANRDIEK5BA-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/DIWUE6H53FK55N7IANRDIEK5BA-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/DIWUE6H53FK55N7IANRDIEK5BA-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/DIWUE6H53FK55N7IANRDIEK5BA-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/DIWUE6H53FK55N7IANRDIEK5BA-1536x1011.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/DIWUE6H53FK55N7IANRDIEK5BA-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Street vendors are seen serving customers in Camama, on the outskirts of the capital Luanda, in Angola, August 20, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, April 8 (Reuters)&nbsp;&#8211;&nbsp;Economic growth is set to rise for the next two years in Sub-Saharan Africa, but not enough to make a significant dent in poverty on the continent, the World Bank said in a report on Monday.



The region&#8217;s economy is set to expand 3.4% this year and 3.8% in 2024 as falling inflation boosts private consumption, up from 2.4% in 2023, the World Bank said in its biannual Africa&#8217;s Pulse report.



Many countries in Sub-Saharan Africa were hit hard by the shocks of COVID-19 and Russia&#8217;s war in Ukraine, which pushed up inflation at the same time as rising global interest rates made borrowing prohibitively expensive. Drought and conflict have also affected swathes of the region.



&#8220;Growth is set to bounce back in Sub-Saharan Africa but the recovery is still fragile,&#8221; the report said. &#8220;The pace of economic expansion in the region remains slow and insufficient to have a significant effect on poverty reduction.&#8221;



&#8220;Per capita GDP growth of 1% is associated with poverty reduction of only 1% in the region, compared to 2.5% in the rest of the world.&#8221;



South Africa&#8217;s growth rate is forecast to double in 2024, but just to 1.2%, while Angola&#8217;s is set to pick up to 2.8% from 0.8% last year, driven mainly by the non-oil sector amid falling oil production.



The East African Community region, in contrast, is expected to grow 5.3% this year, due to strong growth in Kenya, Rwanda, Uganda and the Democratic Republic of Congo.



West Africa&#8217;s biggest economy, Nigeria, is forecast to grow 3.3% this year, below its long-term average.



Zambia defaulted on its external debt in 2020, followed by Ghana in 2022 and Ethiopia late last year.



Sub-Saharan Africa&#8217;s public debt-to-GDP ratio is forecast to fall from 61% in 2023 to 57% this year, but more than half of countries are still in or at high risk of debt distress, the report said.



It noted that external borrowing was still more expensive than before the pandemic, despite costs starting to fall.



&#8220;Typically when countries are in these situations, another big shock could send a lot of these countries into these types of financial crises and therefore default,&#8221; Andrew Dabalen, the World Bank&#8217;s chief Africa economist, said in a press briefing, but added, &#8220;We can&#8217;t tell if there&#8217;s going to be another default or not.&#8221;



(Reporting by Rachel Savage; Editing by Sharon Singleton)

FILE PHOTO: Street vendors are seen serving customers in Luanda

Sub-Saharan Africa growth not enough to dent poverty, says World Bank

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



JOHANNESBURG, April 8 (Reuters)&nbsp;&#8211;&nbsp;French media group Vivendi&#8217;s&nbsp;VIV.PA&nbsp;Canal+ made an all-cash mandatory offer on Monday to buy all the shares of South African broadcaster MultiChoice&nbsp;MCGJ.J&nbsp;it does not already own for 35 billion rand ($1.9 billion), both companies said.



That offer at 125 rand per share follows an indicative offer of 105 rand made by Canal+ on Feb. 1, which MultiChoice rejected as significantly undervaluing the company.



The need to make a mandatory offer was triggered by Canal+, MultiChoice&#8217;s biggest shareholder, subsequently raising its holding in the firm above the 35% threshold. Its new offer values MultiChoice, in which it now owns a 36.6% stake, at about 55 billion rand, according to Reuters calculations.



By 0759 GMT, shares in MultiChoice were up 3.7% at 116 rand.



The deal would create a pan-African broadcasting powerhouse with about 31.5 million subscribers across over 50 countries, able to put African content to global audiences as well as compete on an international scale.



The French media company has broad reach in French-speaking African nations, while MultiChoice has a stronger presence in English-speaking countries, including South Africa, Nigeria and Kenya.



Canal+ said it believes the competitive landscape for Africa&#8217;s media and entertainment industry will undergo further profound changes as the continent rapidly adopts broadband and mobile internet. Smartphone adoption is also rising.



&#8220;A combined group would be better positioned to address key structural challenges and opportunities resulting from the progressive digitalisation and globalisation of the media and entertainment sector,&#8221; the companies said.



MultiChoice&#8217;s independent board constituted for the deal will now consider the bid.



Canal+ reserves the right to buy more MultiChoice shares in the market during the course of the offer. Should the French company buy these shares at more than 125 rand each, it is obliged to increase the offer price, according to the statement.



<h2 class="wp-block-heading" id="h-regulatory-hurdle">REGULATORY HURDLE</h2>



For the deal to be successful, the French broadcaster will need to navigate the country&#8217;s stringent Black economic ownership requirements and restrictions on foreign media ownership, which caps voting rights at 20%.



Maxime Saada, chairman and CEO of Canal+ Group, told Reuters there are workable solutions around that which &#8220;of course will require us to have local partners&#8221;.



Last month Bloomberg reported that billionaire Patrice Motsepe could join Canal+&#8217;s bid.



The companies said they intend to comply with all applicable laws and will provide further details in this regard.



($1 = 18.7119 rand)



(Reporting by Nqobile Dludla; Editing by Tom Hogue, Miral Fahmy and Jan Harvey)

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

Vivendi’s Canal+ makes mandatory buyout offer for South Africa’s MultiChoice

<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="(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 5 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks dipped on Friday, tracking overnight weakness on Wall Street, as hawkish commentary from Federal Reserve officials dampened risk sentiment and tensions in the Middle East kept investors on edge.



The MSCI&#8217;s index for emerging market stocks&nbsp;.MSCIEF&nbsp;fell 0.3% but was still on track for marginal weekly gains.



Emerging market debt saw its first weekly inflow for eight weeks and EM stocks saw inflows of $3.8 billion in the week ended on Wednesday, according to a note by BofA Global Research.



The currencies index&nbsp;.MIEM00000CUS&nbsp;was flat by 0900 GMT.



&#8220;The risk-reward profile of global risk assets is not attractive,&#8221; Arthur Budaghyan, chief emerging market and China strategist for BCA Research, said in a note.



&#8220;Higher U.S. bond yields and rising oil prices might spoil the party.&#8221;



Minneapolis Fed Bank President Neel Kashkari said that at the U.S. central bank&#8217;s meeting last month he pencilled in two interest rate cuts this year &#8211; but if inflation continues to stall, none may be required by year-end.



Traders were also hesitant to take on new positions ahead of Friday&#8217;s closely-watched U.S. nonfarm payrolls report, while rising geopolitical tensions added to worries.



Prime Minister Benjamin Netanyahu&#8217;s comments that Israel would harm &#8220;whoever harms us or plans to harm us&#8221; stoked fears of a wider war, after its presumed air strike on Iran&#8217;s embassy in Damascus earlier this week.



The Israeli shekel&nbsp;ILS=&nbsp;jumped 0.7% against the dollar, while stocks in Tel Aviv&nbsp;.TA125&nbsp;shed 1.6%.



Meanwhile, the Hungarian forint&nbsp;EURHUF=&nbsp;led gains against the euro among Central and Eastern European peers, up 0.4% after a raft of economic data.



Hungary&#8217;s industrial output rose by an annual 1.8% in February, based on preliminary unadjusted data, compared with a 3.6% fall in January, while another survey showed calendar-adjusted retail sales rose by an annual 1.1% in February following a 0.6% rise in January.



The forint and Poland&#8217;s zloty&nbsp;EURPLN=&nbsp;were on track for their second straight week of gains.



Hong Kong&#8217;s Hang Seng index&nbsp;.HSI&nbsp;closed nearly flat, while stocks in mainland China were closed and will resume trade on April 8.



In India, stocks were range-bound after the central bank kept its key interest rate unchanged for a seventh straight policy meeting as growth is expected to remain robust while inflation stays above the 4% target.



(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Kevin Liffey)

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

Stocks slip on Fed rate caution and geopolitical woes, currencies flat

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg" alt="" class="wp-image-419915" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters in Washington, D.C., U.S., on Tuesday, April 19, 2022. The International Monetary Fund (IMF) slashed its world growth forecast by the most since the early months of the Covid-19 pandemic, and projected even faster inflation, after Russia invaded Ukraine and China renewed virus lockdowns. Photographer: Al Drago/Bloomberg via Getty Images</figcaption></figure>



ADDIS ABABA, April 5 (Reuters)&nbsp;&#8211;&nbsp;The World Bank and Ethiopia have signed loan agreements totalling $1.72 billion to enhance electricity and water supply, as well as to facilitate the movement of food to markets, the finance ministry said on Friday.



The bank will allocate $523 million to expand the Horn of Africa nation&#8217;s electricity network and boost renewable energy generation, according to the ministry&#8217;s statement.



An additional $500 million will go towards two projects aimed at boosting access to food markets, including improving road networks in rural areas, the statement said.



Ethiopia, which has also experienced foreign-currency shortages, continues to feel the effects of the COVID-19 pandemic, a two-year war in the northern Tigray region, and droughts, floods, and locust invasions in parts of the country



The remaining World Bank funding will be allocated to improving water supply and supporting programs in towns that employ disadvantaged youths.



Typically, World Bank loans carry low to zero interest rates and have repayment periods of 30 to 40 years.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa; Editing by Bate Felix)

IMF And World Bank Headquarters During Virtual Spring Meetings

World Bank loans Ethiopia $1.72 bln for power, water supply expansion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="567" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY-820x567.jpg" alt="" class="wp-image-473622" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY-820x567.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY-768x531.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY-1536x1062.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY.jpg 1920w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The logo of Swiss Adecco Group is seen at its headquarters in Zurich, Switzerland October 30, 2018. REUTERS/Arnd Wiegmann</figcaption></figure>



ZURICH, April 5 (Reuters)&nbsp;&#8211;&nbsp;Artificial intelligence will lead to many companies employing fewer people in the next five years, staffing provider Adecco Group&nbsp;ADEN.S&nbsp;said on Friday, in a new survey highlighting the upheaval AI will bring to the workplace.



Some 41% of senior executives expect to have smaller workforces because of AI technology, Adecco said in a report based on a survey of executives at 2,000 large companies worldwide.



Generative AI, which can create text, photos and videos in response to open-ended prompts, has spurred both hope it could eliminate repetitive tasks and fear it will make some jobs obsolete.



Tech companies, including global giants Google&nbsp;GOOGL.O&nbsp;and Microsoft&nbsp;MSFT.O, have embarked on a wave of layoffs in recent months as they shift their focus to systems like OpenAI&#8217;s ChatGPT and Google&#8217;s chatbot Gemini.



The Adecco survey is one of the largest into the AI topic, and follows a 2023 World Economic Forum study which said 25% of companies expected AI to trigger job losses, while 50% expected the technology to create new roles.



But while most senior executives surveyed by Adecco say AI is a game changer, the vast majority&nbsp;say they&nbsp;have not made enough progress in adopting the technology.



&#8220;Almost all jobs are going to be impacted by AI one way or another,&#8221; Adecco CEO Denis Machuel told Reuters. &#8220;AI can be a job killer and it can also be a job creator.



&#8220;Ten years ago there was this big fear many jobs are going to be destroyed by digital, when actually lots of jobs have been created by the digital world,&#8221; he said. &#8220;Between jobs created by AI and jobs destroyed, we believe this is going to be balanced.&#8221;



Companies needed to prepare for the disruption by training their staff to work with AI, Machuel said, rather than relying on recruiting specialists from outside.



Adecco polled businesses in the United States, Britain, France, Germany, Japan, Spain, Canada, Australia and Singapore. Sectors covered included defence, pharma, healthcare, industry and logistics.



The Swiss company, which uses AI itself, for example in helping create resumes for clients, also sees the technology offering &#8220;massive opportunity&#8221; in its work with customers.



&#8220;We already engaged in training and up-skilling people on behalf of our clients,&#8221; Machuel said. &#8220;We&#8217;ve sold a lot of consulting projects and the ramp-up that we see on that is quite interesting.&#8221;



(Reporting by John Revill; Editing by Tomasz Janowski)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_UZOWVLNZ2ZLYVEQLY5SBKO4ZIY

AI seen cutting worker numbers, survey by staffing company Adecco shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-820x549.jpg" alt="" class="wp-image-473605" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-1536x1029.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/KDI6GFUK7NPKRJPN5JH5FCFIX4-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo</figcaption></figure>



April 4 (Reuters)&nbsp;&#8211;&nbsp;A South African antitrust agency is set to investigate Microsoft&nbsp;MSFT.O&nbsp;over its cloud computing licensing practices, a source with direct knowledge of the matter told Reuters on Thursday.



The South African case against Microsoft is likely to mirror the European Union antitrust case, according to the source.



Microsoft is not aware of any complaint filed by the South African competition authority, the company said in an emailed statement.



South Africa&#8217;s competition agency did not immediately respond to a Reuters request for comment.



The U.S. software giant faces a EU complaint by rivals over its cloud computing licensing practices in the region.



Industry group CISPE, which includes members such as Amazon.com&nbsp;AMZN.O&nbsp;and 26 small EU cloud providers, filed a complaint in late 2022 alleging Microsoft&#8217;s new contractual terms were harming Europe&#8217;s cloud computing ecosystem.



Microsoft amended its licensing terms in mid-2022 after rivals in Germany, Italy, Denmark and France took their grievances to the EU competition watchdog.



(Reporting by Foo Yun Chee and Nilutpal Timsina; Additional reporting by Yuvraj Malik, Priyanka.G Editing by Anil D&#8217;Silva)

FILE PHOTO: A Microsoft logo is seen in Issy-les-Moulineaux near Paris

South Africa to investigate Microsoft over cloud computing licensing practices, source says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="553" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-820x553.jpg" alt="" class="wp-image-473324" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-1536x1036.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/D74XRUJPWFKUDPO6JC6YAB4D3I-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A worker collects trolleys at South African retailer Woolworths, in Johannesburg, South Africa, November 21, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, April 4 (Reuters)&nbsp;&#8211;&nbsp;Consumer spending growth in South Africa steadied in 2023 after the previous year&#8217;s post-pandemic surge, but expected interest rate cuts will encourage more purchases in 2024, executives from Visa&nbsp;V.N&nbsp;and Discovery Bank said on Thursday.



Recent retail results show that consumers are under financial pressure as high interest rates increase the cost of debt and inflation pushes food prices higher.



Releasing their latest SpendTrend24 report, Discovery&#8217;s&nbsp;DSYJ.J&nbsp;banking unit and Visa said that while consumer spending in South Africa outpaced inflation by 19 percentage points in 2022, the two measures were closely matched last year.



Spending on food, including groceries, takeout and dining out, increased in most South African cities, by an average of 8% in 2023 compared to a 16% increase the year before, the report said.



More broadly, in South Africa and four other emerging market countries that were part of the survey &#8211; Nigeria, Ghana, Brazil and Vietnam &#8211; a larger part of household budgets went on essentials like groceries and fuel, with less spent on non-essentials like travel.



The report also showed that spending is rising among affluent and high net worth consumers, with a slight decrease in the mass segment due to rising living costs.



&#8220;Our latest research highlights that throughout 2023, global economies navigated a complex path of post-pandemic revival, framed by persistent inflation and high interest rates,&#8221; Discovery Bank&#8217;s Chief Executive Officer Hylton Kallner said.



&#8220;These challenges pushed up the cost of living, prompting consumers to adjust their spending habits.&#8221;



South Africans are increasingly using their mobile phones to pay for goods instead of physical cards, according to the report, with adoption rates matching or surpassing those of international cities.



The country&#8217;s central bank paused its tightening cycle in July for the first time since November 2021 and economists expect rates to fall from the second half of this year.



Kallner said the expected interest rate reductions would result in higher disposable income for consumers, although they will continue to prioritise getting the most value for their money.



(Reporting by Nqobile Dludla and Sfundo Parakozov; Editing by Kirsten Donovan)

A worker collects trolleys at South African retailer Woolworths

Consumer spending growth in South Africa steadied in 2023, report shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, April 4 (Reuters)&nbsp;&#8211;&nbsp;Kenya plans to increase the capital requirements for commercial banks to account for emerging risks in areas like information communication technology and climate change, its central bank governor said on Thursday.



Although the East African nation has a robust financial sector, with its banks expanding around the region in the past two decades, it has seen the capital adequacy ratios of some institutions come under pressure in recent years.



&#8220;The capital requirements for banks need to be increased. We have seen increased risks whether it is from climate change or cybersecurity,&#8221; Kamau Thugge, the central banker, told a news conference, without mentioning the potential size of the increment.



The central bank was concerned about rising non-performing loans in the banking sector, which increased to 15.5% of total loans in February this year, from 14.8% at the end of last year, he said.



The proposal to raise the capital will be published in the next one month for a public discussion, Thugge said, in line with the legal requirements.



Kenya requires a minimum capital of 1 billion shillings ($7.69 million) for those who wish to start a bank.



Banks that are already operating are required to maintain 10.5% core capital to total risk-weighted assets, and 14.5% total capital to risk-weighted assets.



&#8220;We need strong banks,&#8221; Thugge said.



($1 = 130.0000 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Devika Syamnath)

Reuters

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

Ethiopia faces tough devaluation decision to secure IMF bailout

WeBuyCars marks South African market debut with share price rise

World Bank unveils new scorecard to measure accountability

Ugandan foreign exchange reserves drop 12% due to debt payments

US must boost Africa ties to secure key minerals, report says

Southern Africa faces hunger as el Nino drought kills crops

Nigeria bars lenders from using FX-denominated collateral for naira loans

Zimbabwe’s new ZiG currency starts trading, credibility doubts linger

Sub-Saharan Africa growth not enough to dent poverty, says World Bank

Vivendi’s Canal+ makes mandatory buyout offer for South Africa’s MultiChoice

Stocks slip on Fed rate caution and geopolitical woes, currencies flat

World Bank loans Ethiopia $1.72 bln for power, water supply expansion

AI seen cutting worker numbers, survey by staffing company Adecco shows

South Africa to investigate Microsoft over cloud computing licensing practices, source says

Consumer spending growth in South Africa steadied in 2023, report shows

Kenya to raise capital requirements for banks, central banker says

News Tips

Advertise With Us

Reuters

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

Ethiopia faces tough devaluation decision to secure IMF bailout

WeBuyCars marks South African market debut with share price rise

World Bank unveils new scorecard to measure accountability

Ugandan foreign exchange reserves drop 12% due to debt payments

US must boost Africa ties to secure key minerals, report says

Southern Africa faces hunger as el Nino drought kills crops

Nigeria bars lenders from using FX-denominated collateral for naira loans

Zimbabwe’s new ZiG currency starts trading, credibility doubts linger

Sub-Saharan Africa growth not enough to dent poverty, says World Bank

Vivendi’s Canal+ makes mandatory buyout offer for South Africa’s MultiChoice

Stocks slip on Fed rate caution and geopolitical woes, currencies flat

World Bank loans Ethiopia $1.72 bln for power, water supply expansion

AI seen cutting worker numbers, survey by staffing company Adecco shows

South Africa to investigate Microsoft over cloud computing licensing practices, source says

Consumer spending growth in South Africa steadied in 2023, report shows

Kenya to raise capital requirements for banks, central banker says

News Tips

Advertise With Us

Newsletters