<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-55.jpg" alt="" class="wp-image-421584" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-55.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-55-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-55-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-55-768x527.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption>FILE PHOTO: South Africa&#8217;s Reserve Bank Governor Lesetja Kganyago, who is also International Monetary Finance Committee (IMFC) chairman, makes remarks at a closing news conference for the IMFC, during the IMF and World Bank&#8217;s 2019 Annual Meetings of finance ministers and bank governors, in Washington, U.S., October 19, 2019. REUTERS/Mike Theiler/File Photo</figcaption></figure>



JOHANNESBURG, Nov 24 (Reuters) &#8211; Below are some quotes from South African Reserve Bank Governor Lesetja Kganyago as he announced the central bank&#8217;s latest interest rate decision on Thursday.



<h2 class="wp-block-heading">INFLATION</h2>



Globally, economic growth is slowing and prices have fallen for some goods and transport services. However, price pressures continue to spread from goods to services and wages.



Inflation expectations increased strongly over this year and remain high. Expectations of future inflation surveyed in the third quarter of this year had earlier increased to 6.5% for 2022 and 5.9% for 2023.



For 2024, the BER survey of inflation expectations in Q3 moderated to 5.3% (from 5.4%). The Q3 survey had 2022 expected inflation at 6.5% and 5.9% for 2023. Surveys have increased to 6.8%.



By contrast, long-term inflation expectations derived from the 5-year break-even rates in the bond market have moderated to 5.27%.



In the second quarter of this year, headline inflation breached the upper end of the target range, and is forecast to remain above it until the second quarter of 2023.



Headline inflation is only expected to sustainably revert to the mid-point of the target range by around the second quarter of 2024. The forecast takes into account the policy rate trajectory indicated by the Bank’s Quarterly Projection Model (QPM).



As usual, the repo rate projection from the QPM remains a broad policy guide, changing from meeting to meeting in response to new data and risks.



<h2 class="wp-block-heading" id="h-growth">GROWTH</h2>



As a result of these factors, the economy is forecast to expand by 1.1% in 2023 (from 1.4%) and by 1.4% in 2024 (from 1.7%), below previous projections.



GDP growth of 1.5% is forecast for 2025.



With a low rate of potential, our current growth forecast leaves the output gap slightly larger in the near term, before closing in the third quarter of 2023.



Global growth in the QPM model is a trade-weighted average of South Africa’s trading partners. Global growth in 2024 is forecast unchanged at 2.4%, before rising to 3.1% in 2025.



The growth forecast includes expected changes in the policy rate as given by the QPM.



Potential growth for 2022 is revised lower at 0.4%, 0.5% in 2023 and unchanged at 1.1% in 2024. For 2025, potential growth is forecast at 1.5%.



After revisions, the risks to the medium-term domestic growth outlook are assessed to the downside.



Commodity price movements in recent months have been mixed, with oil prices relatively stable and export prices lower.



Compared to September, our oil price forecast is broadly unchanged, averaging US$102 per barrel for 2022 and US$92 per barrel in 2023.



South Africa&#8217;s export commodity price basket has come down from earlier peaks.



As a result of weaker export developments, the current account balance is expected to be -0.2% of GDP this year, falling to -1.5% in 2023 and -1.9% in 2024.



The current account balance in 2025 is expected to be -2.1% of GDP. 



(Compiled by Nellie Peyton; Editing by James Macharia Chege)

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South African central bank governor’s comments on rate decision

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-820x547.jpg" alt="" class="wp-image-414305" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



ACCRA, Nov 24 (Reuters)&nbsp;&#8211;&nbsp;Ghana is in high risk of debt distress and has agreed on a debt management strategy with the International Monetary Fund (IMF), finance minister Ken Ofori-Atta said on Thursday.



Ofori-Atta is in the midst of negotiating a relief package with the IMF as the West African country faces its worst economic crisis in a generation.



&#8220;The current debt sustainability analysis conducted reveals that Ghana is now considered to be in high risk of debt distress,&#8221; the minister told lawmakers during his presentation of the 2023 budget.



&#8220;Government and the IMF have agreed on programme objectives, a preliminary fiscal adjustment path, debt strategy and financing required for the programme,&#8221; he said,&nbsp;adding he hopes to reach a deal &#8220;very soon&#8221;.



He said the depreciation of the cedi&nbsp;GHS=&nbsp;was &#8220;seriously affecting&#8221; Ghana&#8217;s ability to manage its public debt, which has increased to $48.9 billion this year.



Ghana will implement a debt exchange programme to address the challenges, he said.



Economic growth is expected to slow to 3.7% of GDP in 2022 from 6.7% last year, and to slow further to 2.8% in 2023, he said.



Ofori-Atta has faced calls for dismissal from both the ruling party and opposition who accuse him of economic mismanagement. Last week he apologized for the country&#8217;s economic hardship but&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N32E2PR&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">defended himself</a>&nbsp;against their claims.



Ghana will impose a debt limit on non-concessional financing among other reforms, and will focus on using monetary policy to control inflation, which has exceeded 40%, the minister said.



The government will freeze new tax waivers for foreign companies and review tax exemptions for mining, oil and gas companies. It will also freeze hiring for civil and public servants, he said.



However, Ofori-Atta did not offer any cuts to spending on flagship programmes, and detailed a swath of infrastructure project expansions such as road expansion.



($1 = 14.0000 Ghanian cedi)



(Reporting by Cooper Inveen and Christian Akorlie in Accra; Additional reporting by Bate Felix in Dakar; Writing by Nellie Peyton; Editing by James Macharia Chege)

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Ghana in high risk of debt distress, finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/LYKJGW3CZJNTHPH4HH3FM6QUY4-820x542.jpg" alt="" class="wp-image-421571" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/LYKJGW3CZJNTHPH4HH3FM6QUY4-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/LYKJGW3CZJNTHPH4HH3FM6QUY4-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/LYKJGW3CZJNTHPH4HH3FM6QUY4-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/LYKJGW3CZJNTHPH4HH3FM6QUY4-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/LYKJGW3CZJNTHPH4HH3FM6QUY4-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/LYKJGW3CZJNTHPH4HH3FM6QUY4-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: United Nations Organization Stabilization Mission in the Democratic Republic of the Congo (MONUSCO) peacekeepers patrol areas affected by the recent attacks by M23 rebels fighters near Rangira in North Kivu in the east of the Democratic Republic of Congo, March 29, 2022. REUTERS/Djaffar Sabiti/File Photo</figcaption></figure>



KINSHASA, Nov 23 (Reuters)&nbsp;&#8211;&nbsp;African leaders have declared a ceasefire in eastern Democratic Republic of Congo starting Friday, which is aimed in particular at stopping attacks by the M23 rebel group, they said in a statement.



The declaration was issued by the leaders of Congo, Rwanda, Burundi and Angola, and former Kenyan president Uhuru Kenyatta, after a summit in Luanda on Wednesday aimed at finding solutions to the east Congo crisis.



Eastern Congo is facing an insurgency by the M23, a Tutsi-led rebel group which the Congolese government claims is supported by neighbouring Rwanda. Rwanda denies this, but the M23&#8217;s resurgence this year has caused a major diplomatic crisis.



In addition to the ceasefire, the statement said the M23 must withdraw from its occupied territories or face intervention by regional forces.



&#8220;If M23 does not withdraw the East African Community (EAC) heads of states shall authorize use of force to compel the group to comply,&#8221; it said.



The M23&#8217;s military spokesperson was not immediately available for comment.



Despite billions of dollars spent on one of the United Nations&#8217; largest peacekeeping forces, more than 120 armed groups continue to operate across large swathes of eastern Congo.



The seven countries of the EAC, which Congo joined this year, agreed in April to set up a regional force to help fight the militias. Uganda will be the third country&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N32H0TT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">to deploy troops</a>&nbsp;after&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31Y2PK&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Kenya and Burundi</a>.



Rwandan President Paul Kagame and his Congolese counterpart Felix Tshisekedi also met in Luanda in July and agreed on an immediate cessation of hostilities and the withdrawal of M23 fighters from Congo.



But the M23 did not respect that agreement, saying only it could sign a ceasefire with the government. Fighting has continued since, forcing thousands of people to flee their homes.



A group of U.N. experts said this year it had&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2ZG5GO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">&#8220;solid evidence&#8221;</a>&nbsp;that Rwandan troops were fighting alongside the M23 and providing it with weapons and support. Rwanda denied the claims.



The statement issued on Wednesday included an agreement to cease all politico-military support to the M23 and all other local and foreign armed groups in the region.



(Reporting by Fiston Mahamba and Sonia Rolley; Writing by Nellie Peyton; editing by Jonathan Oatis and Sandra Maler)

FILE PHOTO: Resurgent M23 rebels attack displace hundreds in eastern Congo

African leaders agree on ceasefire in east Congo from Friday

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/U6XEPJ5LPFNENFWW2QHIXFYA5U-820x547.jpg" alt="" class="wp-image-421552" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/U6XEPJ5LPFNENFWW2QHIXFYA5U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/U6XEPJ5LPFNENFWW2QHIXFYA5U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/U6XEPJ5LPFNENFWW2QHIXFYA5U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/U6XEPJ5LPFNENFWW2QHIXFYA5U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/U6XEPJ5LPFNENFWW2QHIXFYA5U.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>President of South Africa Cyril Ramaphosa, right, tours the Temporate House with Britain&#8217;s Prince Edward, the Earl of Wessex, at the Royal Botanic Gardens, Kew in London, Nov. 23, 2022. The President, accompanied by Britain&#8217;s Prince Edward, the Earl of Wessex, visited the Royal Botanic Gardens, Kew. South Africa is one of the most biodiverse countries on Earth, and the visit will focus on the longstanding scientific and conservation partnerships between South Africa and the UK. Kirsty Wigglesworth/Pool via REUTERS</figcaption></figure>



LONDON, Nov 23 (Reuters)&nbsp;&#8211;&nbsp;Britain and South Africa on Wednesday announced a new health and science partnership to mark the second day of President Cyril Ramaphosa&#8217;s state visit to London, the first such official guest hosted by Britain&#8217;s King Charles.



Charles, 74, had rolled out traditional pomp and ceremony to welcome Ramaphosa, hosted a banquet in his honour on Tuesday. Ramaphosa also addressed lawmakers at the Houses of Parliament.



On Wednesday, Britain announced a new set of research collaborations as Ramaphosa toured the Crick Institute, the biggest biomedical research facility in Europe, and Kew Gardens, with Charles&#8217; brother Edward.



British foreign minister James Cleverly said the partnerships, on areas such as vaccine manufacturing, genome sequencing and climate change, will &#8220;benefit us all&#8221;.



&#8220;The UK and South Africa have shown global leadership in joining together to protect people by preventing the spread of dangerous diseases, and by working to halt climate change.&#8221;



Ramaphosa will meet Prime Minister Rishi Sunak later in the day, and attend a UK-South Africa business forum to discuss trade and investment. South Africa is Britain&#8217;s biggest trading partner in Africa.



Ramaphosa had highlighted the role that industrialised nations had to play in helping other countries cut emissions in his speech on Tuesday, and welcomed Britain&#8217;s involvement in initiatives helping South Africa to decarbonise.



Britain will support genome sequencing at South Africa&#8217;s National Institute for Communicable Diseases (NICD), which played a key role in detecting COVID-19 variants such as beta and omicron, in a push improve antimicrobial resistance surveillance in Africa.



Kew Gardens &#8211; a botanical garden in west London &#8211; will also work with South Africa&#8217;s National Biodiversity Institute on preserving South Africa&#8217;s plant diversity.



(Reporting by Alistair Smout, Editing by William Maclean)

U6XEPJ5LPFNENFWW2QHIXFYA5U

Britain and South Africa agree health partnership on second day of state visit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/HHRN6EYWJNJIFFBMR6FTKHPIV4-820x562.jpg" alt="" class="wp-image-413623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/HHRN6EYWJNJIFFBMR6FTKHPIV4-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/HHRN6EYWJNJIFFBMR6FTKHPIV4-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/HHRN6EYWJNJIFFBMR6FTKHPIV4-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/HHRN6EYWJNJIFFBMR6FTKHPIV4-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/HHRN6EYWJNJIFFBMR6FTKHPIV4.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>
A shopper walks past a Foschini store at a shopping centre in Lenasia, south of Johannesburg, file. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



Nov 23 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s business confidence inched down in the fourth quarter as a rebound in building confidence was offset by the first significant falls in wholesale and retail confidence since the COVID-19 pandemic, data showed on Wednesday.



A survey by the Rand Merchant Bank (RMB) compiled by the Bureau for Economic Research showed that the business confidence index dropped one point to 38 in the fourth quarter, compared with the prior three months.



The drop was limited by regained momentum in the residential building sector thanks to seasonal factors. The survey of more than 1,000 executives showed that building confidence continued its upward trend to climb 17 points to 46.



However, wholesale confidence fell from 50 to 37 points and retail confidence dropped nine points to 42.



Surging inflation has curtailed consumer spending, while measures to counter longer load-shedding hours have raised operating costs in the retail space.



&#8220;There is no denying the fact that the economy would be doing so much better were it not for the slow pace that continues to describe the government&#8217;s efforts in addressing growth-damaging constraints such as insufficient electricity, poorly functioning ports and a failing railway network,&#8221; RMB chief economist Ettienne Le Roux said.



The survey showed that the recovery in residential building activity and increased spending on renewable energy projects and capital goods, among others, revealed higher fixed investment in some sectors.



Also, employment seemed to be expanding again in service sectors such as hotels and hospitality as an ongoing recovery in international tourism drove up demand.



(Reporting by Aby Jose Koilparambil and Amna Karimi in Bengaluru; Editing by Devika Syamnath)

HHRN6EYWJNJIFFBMR6FTKHPIV4

South Africa’s business confidence drops slightly in fourth quarter – survey

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="780" height="520" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-54.jpg" alt="" class="wp-image-421539" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-54.jpg 780w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-54-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-54-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-54-768x512.jpg 768w" sizes="(max-width: 780px) 100vw, 780px" /><figcaption>Britain&#8217;s King Charles and South African President Cyril Ramaphosa attend a ceremonial welcome, during the President&#8217;s state visit, at Horse Guards Parade, in London, Britain, November 22, 2022. REUTERS/Henry Nicholls</figcaption></figure>



LONDON, Nov 22 (Reuters)&nbsp;&#8211;&nbsp;King Charles hosted his first state visit since becoming British monarch on Tuesday, welcoming Cyril Ramaphosa to Buckingham Palace, where the South African president invoked Nelson Mandela as he paid tribute to the close ties between the two countries.



Charles, 74, rolled out the traditional pomp and ceremony as Britain sought to bolster its relations with its biggest trading partner in Africa.



&#8220;South Africa, like the Commonwealth, has always been a part of my life. My mother often recalled her visit in 1947, the year before I was born, when, from Cape Town on Her 21st birthday, she pledged her life to the service of the people of the Commonwealth,&#8221; Charles said in a speech at the banquet held in the president&#8217;s honour



&#8220;It is therefore particularly moving and special that you are our guest on this, the first State Visit we have hosted.&#8221; he added.



Addressing lawmakers in parliament, Ramaphosa lauded the two nations&#8217; close ties, forged in the wake of a difficult legacy of colonialism and apartheid.



He later said he had discussed over lunch at Buckingham Palace &#8220;initiatives that can be embarked upon by the Commonwealth under the leadership of his majesty the king&#8221;.



Ramaphosa said he would raise the idea of allowing more South African students to study in Britain when he meets Prime Minister Rishi Sunak on Wednesday, and added that the restructuring of South Africa&#8217;s energy market to battle power shortages could provide opportunities for British companies.



&#8220;By pursuing these and other avenues for cooperation, I believe that we will define the relationship between South Africa and the United Kingdom in new and exciting ways,&#8221; Ramaphosa said.



Britain hopes the visit, which had been planned before the death of Queen Elizabeth in September, will strengthen trade and investment ties between the two nations, and show the importance of links with the Commonwealth of Nations, the international organisation that Charles now heads.



&#8220;This is a reinforcement of the strong bilateral relationship that we have with South Africa, a real opportunity to build on that close working relationship and discuss some of the issues that affect us all,&#8221; British foreign minister James Cleverly told Reuters.



<h2 class="wp-block-heading" id="h-first-state-visit-since-2019">FIRST STATE VISIT SINCE 2019</h2>



Ramaphosa was officially greeted by Charles&#8217; eldest son and heir Prince William and his wife Kate at a central London hotel to mark the start of his two-day trip, the first state visit to the UK by a world leader since that of then-U.S. President Donald Trump and his wife Melania in 2019.



The last state visit to Britain by a South African leader was made by President Jacob Zuma in 2010.



Gun salutes and a ceremonial welcome from the king and his wife Camilla, the queen consort, followed before a grand carriage procession along The Mall to Buckingham Palace, where the banquet is held.



Ramaphosa was scheduled to visit Westminster Abbey to lay a wreath at the Tomb of the Unknown Warrior and see the memorial stone for former South African President Nelson Mandela.



&#8220;The late Queen had the great pleasure of hosting Presidents Mandela, Mbeki and Zuma for State Visits to the United Kingdom, at all of which I was present,&#8221; Charles said, adding that she had expressed her admiration to the country.



Ramaphosa said Britain had stood with South Africa to help free Mandela and end apartheid, and he now urged Britain to support the calls of lower income countries for a reformed global institutional order and climate justice.



&#8220;Let us rekindle the moral purpose of the global fight against apartheid to confront the discrimination, inequality and injustice that divides humanity and that stifles the progress of all,&#8221; he said.



(Reporting by Michael Holden and Alistair Smout, Editing by William Maclean, Bernadette Baum and Bill Berkrot)

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King Charles welcomes President Ramaphosa for first state visit

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="522" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/E7CXSWAQLVPF7JGCMFFLY35F7Q.jpg" alt="" class="wp-image-421523" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/E7CXSWAQLVPF7JGCMFFLY35F7Q.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/E7CXSWAQLVPF7JGCMFFLY35F7Q-300x215.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/E7CXSWAQLVPF7JGCMFFLY35F7Q-126x90.jpg 126w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption>Cyril Ramaphosa, President of South Africa and of the African National Congress (ANC) party, gives closing remarks as South Africa&#8217;s governing ANC party concludes a national policy conference at the Nasrec Expo Centre in Johannesburg, South Africa, July 31, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



CAPE TOWN, Nov 22 (Reuters)&nbsp;&#8211;&nbsp;South African president Cyril Ramaphosa received the most votes from branches of the ruling African National Congress heading into the party&#8217;s December elective conference, boosting his chances of securing a second five-year term as state president.



The ANC on Tuesday released the final list of nominees for its top six positions &#8211; among them party president, deputy president and secretary general &#8211; for its powerful national executive committee (NEC) ahead of the national conference to be held between Dec. 16 and Dec. 20.



Whoever emerges as party president would become state president, should the ANC secure majority in a general election due in 2024.



The ANC said 3,543 out of a total 3,982 branches in good standing held meetings to select its top six candidates.



Ramaphosa, who replaced his predecessor Jacob Zuma as state president in 2018 by pledging to overcome rampant state corruption, got 2,037 votes from branches but can still face challengers nominated from the floor, officials said.



&#8220;As you know at conference there will be an opportunity for delegates to nominate from the floor &#8230; of course any candidate that musters 25% of voting delegates will then also be included on the ballot paper,&#8221; said Kgalema Motlanthe, the ANC electoral head told a media briefing.



According to the ANC, Ramaphosa comfortably beat Zweli Mkhize, former health minister who resigned after being implicated in corruption allegations linked to departmental work during the COVID-19 pandemic. Mkhize has denied any wrongdoing.



A union leader turned businessman, Ramaphosa is widely viewed as the ANC&#8217;s best chance to improve its performance at the 2024 general elections, and arrest a decline in electoral support that sank below 50% in last year&#8217;s municipal polls for the first time since South Africa&#8217;s first democratic elections in 1994.



(Reporting by Wendell Roelf; Editing by Olivia Kumwenda-Mtambo; Editing by Tomasz Janowski)

FILE PHOTO: South Africa’s ANC party concludes national policy conference

President Ramaphosa leads ANC presidency race ahead of conference

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/101397653-94635311-820x461.jpg" alt="" class="wp-image-421516" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/101397653-94635311-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/101397653-94635311-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/101397653-94635311-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/101397653-94635311-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/101397653-94635311-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/101397653-94635311.jpg 1600w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>The Nigerian Central Bank is seen in Abuja, Nigeria, Monday, December 11, 2006. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



ABUJA, Nov 22 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank raised its benchmark lending rate to 16.50% from 15.50%&nbsp;NGCBIR=ECI&nbsp;on Tuesday,&nbsp;as policymakers attempted to rein in inflation&nbsp;that was slowing down economic growth.



Inflation and the state of Africa&#8217;s biggest economy and top oil producer are major issues for voters as the country heads for a national election in February, when incumbent President Muhammadu Buhari will step down.



Annual inflation quickened to 21.09%&nbsp;NGCPIY=ECI&nbsp;in October, its ninth straight monthly rise, driven by rising prices of staples like bread, rice and maize and the cost of diesel, which is widely used to generate power.



&#8220;We believe that at 21.09% inflation is already hurting growth,&#8221; central bank governor Godwin Emefiele told a news conference.



He said 9 members of the 11-member monetary policy committee (MPC) voted for a 100 basis points increase, while 2 voted for 50 basis points.



Nigeria&#8217;s third quarter gross domestic product is expected later this week. Nigeria&#8217;s&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3022WB&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">GDP</a>&nbsp;grew 3.54% in the second quarter this year, down from 5.01% in the same period last year



The International Monetary Fund&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N32E1H0&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">cut</a>&nbsp;Nigeria&#8217;s growth forecast for 2022 to 3% from 3.4% earlier last week, citing lower oil production and the impact of recent floods in food producing regions of the country.



The IMF also said monetary conditions in Nigeria were accommodative despite tightening measures undertaken by the central bank because the main interest rate was still below inflation in October.



Emefiele switched in May from a loose monetary policy to support weak economic growth to a tight policy after inflation hit its highest level since 2005.



The bank has raised rates by a total of 500 basis points so far this year.



At the last MPC meeting in September, the bank raised its benchmark rate by 150 basis points, its highest level ever.



(Reporting by Chijioke Ohuocha and Camillus Eboh in Abuja and MacDonald Dzirutwe in Lagos; Additional reporting by Bhargav Acharya; Editing by James Macharia Chege)

101397653-94635311

Nigeria hikes rates as c.bank warns inflation hurting economic growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-820x547.jpg" alt="" class="wp-image-417697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>The seal for the International Monetary Fund is seen near the World Bank headquarters (R) in Washington, DC on January 10, 2022. (Photo by Stefani Reynolds / AFP) (Photo by STEFANI REYNOLDS/AFP via Getty Images)</figcaption></figure>



WASHINGTON, Nov 21 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said its executive board on Monday completed its first review of Mozambique&#8217;s three-year loan program, allowing for an immediate disbursement to Maputo of about $59.26 million.



The review brings total disbursements under the $456 million Extended Credit Facility program&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS0N2V6048&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">approved in May</a>&nbsp;to about $150 million to date, the IMF said.



The IMF said Mozambique&#8217;s implementation of the loan program&#8217;s policy requirements was &#8220;strong,&#8221; despite a challenging global environment that has pushed inflation into the double digits due to high food and fuel prices.



It cited completion of government commitments in the areas of fiscal governance and anti-corruption.



The IMF projected Mozambique&#8217;s real GDP growth would accelerate to 5.0% in 2023 from a projected 3.8% in 2022 and 2.3% in 2021, driven by large liquefied natural gas project investments and a strong vaccination program that led to the full lifting of COVID-19 restrictions in July 2022.



The first liquefied natural gas project in Mozambique started production this month and is expected to improve Mozambique&#8217;s current account balance, the IMF said.



&#8220;Program performance has been strong, with all quantitative targets and the structural benchmark met at end-June,&#8221; IMF Deputy Managing Director Bo Li said in a statement.



&#8220;While the outlook remains positive, driven by large liquefied natural gas projects, significant risks remain, including from adverse climate events and fragile security situation. Governance weaknesses and debt vulnerabilities also pose challenges,&#8221; Li said, adding Mozambique still needed donor support and continued governance capacity development.



(Reporting by David Lawder; Editing by Chris Reese)

US-ECONOMY-FINANCE-IMF-WORLD BANK

IMF to disburse $59 mln to Mozambique after loan review

<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>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>



WASHINGTON, Nov 21 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said its executive board on Monday approved an $88.3 million disbursement to Malawi under the new &#8220;food shock window&#8221; emergency lending facility launched in response to food price spikes and shortages caused by Russia&#8217;s war in Ukraine.



The IMF also said the executive board assessed that a previously approved staff-monitored policy program for Malawi linked to the food shock loan is &#8220;sufficiently robust to meet the stated objectives&#8221; and was expected to build a track record&nbsp;of policy implementation that could lead to a more&nbsp;formal IMF &#8220;upper credit tranche-quality&#8221;&nbsp;loan arrangement.



The IMF said the food shock loan, part of the IMF&#8217;s Rapid Credit Facility, would help the east African country address urgent balance-of-payments needs brought on by rising food import and fertilizer costs and a falling currency.



&#8220;Malawi is facing a challenging economic and humanitarian situation, with foreign exchange shortages and an exchange rate misalignment leading to a sharp decline in imports including fuel, fertilizer, medicine, and food,&#8221; IMF Deputy Managing Director Bo Li said in a statement.



Li said that while debt is sustainable on a forward-looking basis, risks to the program are high and it was important to swiftly implement a debt restructuring strategy.



&#8220;The credible process underway to restructure the authorities’ debt to commercial creditors, which in itself would restore debt sustainability albeit with high risk, is welcome,&#8221; Li said. &#8220;Swift progress is also needed on the reprofiling of official bilateral debt.&#8221;



(Reporting by David Lawder; Editing by Chris Reese)

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

IMF approves $88.3 mln for Malawi under ‘food shock’ loan window

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="515" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-53.jpg" alt="" class="wp-image-421500" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-53.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-53-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-53-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/download-53-768x494.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption>FILE PHOTO: A local walks past electricity pylons during frequent power outages from South African utility Eskom, caused by its aging coal-fired plants, in Orlando, Soweto, South Africa, September 28, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



LITTLETON, Colo Nov 22 (Reuters)&nbsp;&#8211;&nbsp;African nations made clear at last week&#8217;s United Nations climate summit that the region would develop its fossil fuel resources to alleviate fuel shortages, help lift local populations out of poverty and spur vital economic growth.



Africa&#8217;s electricity consumption growth since 2017 was second only to top power consumer Asia, according to Enerdata, and is home to several countries that are expected to see favourable demographic changes and robust economic growth this decade, including Egypt, host of the latest COP27 climate talks.



This combination of a planned expansion in fossil fuel use and increased economic momentum and will raise fears among climate trackers that the region is set to accelerate pollution levels that may undermine climate change targets.



Yet the extent of any actual emissions increase will depend greatly on the source of power used to generate electricity in each country.



<h2 class="wp-block-heading">BENCHMARKS</h2>



In 2021, Africa as a whole generated 39% of its electricity from gas, 29% from coal, 8% from other fossil fuels, 17% from hydro, and 4% from renewable sources, according to data from Ember.



However, the power mix varies greatly by country depending on locally available power sources, legacy power production infrastructure, and proximity to energy exporters.



This wide variance in power mix is clear when comparing the electricity source profiles of Africa&#8217;s two largest electricity producers, South Africa and Egypt.



South Africa &#8211; Africa&#8217;s second largest economy after Nigeria &#8211; is primarily powered by locally-mined coal, which generated nearly 90% of the country&#8217;s total electricity supply of 224.63 terawatt hours (TWh) in 2021.



In contrast, Egypt uses natural gas for 77% of its electricity, and uses no coal in electricity generation at all. Egypt&#8217;s total electricity supply was 174.88 TWh in 2021, 28.4% less than South Africa&#8217;s total.



The two countries&#8217; electricity systems have starkly divergent emissions footprints as a result of their different primary fuels.



South Africa emits more than twice the amount of carbon dioxide and equivalent gases than Egypt, and was the 12th largest CO2 polluter from energy in 2021, according to the latest BP Statistical review of World Energy. Egypt ranked 28th.



<h2 class="wp-block-heading">WIDE RANGE</h2>



With more than 50 countries in total, Africa&#8217;s power mix trajectory is hard to predict and will be determined by a slew of local and international factors including government spending levels, private investment and foreign aid.



However, the energy systems of the continent&#8217;s five largest economies &#8211; Nigeria, South Africa, Egypt, Algeria and Morocco &#8211; can provide clues as to what may be expected in different parts of the continent.



Across southern Africa, coal&#8217;s footprint in the power mix may be hard to dislodge over the near term.



Beyond South Africa, local economies including Botswana, Zimbabwe and Zambia are all heavy coal users, and boast significant coal mining sectors that are large employers and tax payers.



However, given the international support for helping countries transition away from dirty coal towards cleaner energy sources, several nations that currently rely on coal are expected to receive funding for efforts to switch to other fuels, which may serve to cap coal&#8217;s market share in the region.



A potential candidate to replace coal in several parts of Africa is hydro power, which has expanded by 50% across all of Africa since 2010 and is the primary source of electricity in both Zimbabwe and Zambia as well as Mozambique and Namibia.



New projects are in development in Ethiopia, Uganda, Tanzania, Zambia and Angola that will expand power supplies across several parts of eastern, central and southern Africa, according to the International Hydropower Association.



<h2 class="wp-block-heading" id="h-gas-switch">GAS SWITCH?</h2>



Across Northern Africa, natural gas is making rapid inroads into energy systems, primarily from the abundant local supplies in Algeria and Egypt.



In Western Africa, Nigeria is playing a pivotal role in expanding gas consumption after boosting production by roughly 50% since 2010 and signing deals for pipelined exports to other countries in the region.



One major potential customer of Nigerian gas is Morocco, Africa&#8217;s 5th largest economy which has grown by 20% since 2017.



Morocco currently relies on imported coal for nearly 60% of electricity production, but recently signed a pipeline deal with Nigeria which has the potential to allow Morocco&#8217;s energy producers to switch out high-emitting coal for cleaner-burning natural gas.



If this pivot away from coal can be replicated elsewhere along the proposed pipeline&#8217;s route through Ghana, Cote d&#8217;Ivoire and Sierra Leone, then Africa&#8217;s higher use of fossil fuels may not necessarily equate to the higher emissions feared by climate advocates.



Indeed, greater production and distribution of natural gas &#8211; along with the expansion of renewable energy sources &#8211; could allow some coal-dependent economies in Africa to actually cut use of the world&#8217;s dirtiest fuel, even as they increase overall energy consumption.



Electricity use by region<a href="https://tmsnrt.rs/3gttLur" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3gttLur</a>



Electricity generation by source in key African economies<a href="https://tmsnrt.rs/3XzYCX5" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3XzYCX5</a>



Top 5 African economies<a href="https://tmsnrt.rs/3Vk5DZN" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3Vk5DZN</a>



(Reporting By Gavin Maguire)

download-53

Key African nations set off on energy & emissions growth paths: Maguire

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="509" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/7N34SY7FNJOV5EJPS3K5DVJJIY.jpg" alt="" class="wp-image-421488" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/7N34SY7FNJOV5EJPS3K5DVJJIY.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/7N34SY7FNJOV5EJPS3K5DVJJIY-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/7N34SY7FNJOV5EJPS3K5DVJJIY-129x90.jpg 129w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption>People walk past a torched bus during a two-day strike by taxi operators over a number of grievances against traffic authorities in Cape Town, South Africa, November 21, 2022. REUTERS/Esa Alexander</figcaption></figure>



CAPE TOWN, Nov 21 (Reuters)&nbsp;&#8211;&nbsp;Two buses were set on fire on Monday in South Africa&#8217;s Cape Town as local taxi associations embarked on a two-day strike to protest against a termination of an incentive program.



The Western Cape provincial government, home to legislative capital Cape Town, recently announced it would terminate an incentive scheme for taxi drivers which encouraged safe driving practises and curtailed illegal operations.



But due to a lack of funding it had to cancel the programme after a little more than a year, triggering an uproar from the taxi associations who called for a two-day strike in the city from Monday.



There were long queues by 6 a.m.&nbsp;(0400 GMT) at bus stops as people waited for transport to go to work and to school, a Reuters witness said.



The associations were not immediately available for comment.



A bus was attacked by an unidentified person, who shot at the tyres to stop it from operating, the witness said, adding people jumped from the windows with a woman suffering injuries.



&#8220;No passengers or drivers were injured,&#8221; Bronwen Dyke-Beyer, a spokesperson of Golden Arrow Bus Services, which runs a fleet of 1,100 buses in Cape Town, told Reuters, confirming that a one of its buses was set alight.



She said the company did not know who was responsible.



JP Smith, manager of safety and security of Cape Town, confirmed there had been several incidents during the morning involving buses operated by Golden Arrow and MyCiTi, the city&#8217;s rapid transit system, but the situation was under control.



&#8220;The buses are running and they are being escorted by the police,&#8221; he said.



(Reporting by Esa Alexander and Anait Miridzhanian; Writing by Anait Miridzhanian; Editing by Promit Mukherjee and Mike Harrison)

South African taxi operators embark on a two-day strike over a number of grievances against traffic authorities, in Cape Town

Buses set on fire in Cape Town as taxi strike starts

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VPDWAXG4A5JG3BGGOM7ZNKSVUI-820x547.jpg" alt="" class="wp-image-421484" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VPDWAXG4A5JG3BGGOM7ZNKSVUI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VPDWAXG4A5JG3BGGOM7ZNKSVUI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VPDWAXG4A5JG3BGGOM7ZNKSVUI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VPDWAXG4A5JG3BGGOM7ZNKSVUI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/VPDWAXG4A5JG3BGGOM7ZNKSVUI.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Former South African president Jacob Zuma gestures during his visit to the African National Congress Youth League political education meeting in Philippi in Cape Town, South Africa, November 19, 2022. REUTERS/Esa Alexander</figcaption></figure>



CAPE TOWN, Nov 21 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Supreme Court of Appeal ruled on Monday that the decision to release former President Jacob Zuma on early medical parole was &#8220;unlawful&#8221; and that he should return to prison to finish his sentence for contempt of court.



Zuma was sentenced last year to 15 months imprisonment after ignoring a court order to testify at a government inquiry into widespread corruption during his almost decade as president that ended in 2018 when incumbent Cyril Ramaphosa replaced him.



Zuma was&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3182A8&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">released</a>&nbsp;on medical parole in September 2021 after only serving a fraction of the sentence. But in December, the high court set aside the parole decision and ordered him to return to jail.



Zuma appealed that ruling and judgement was delivered on Monday after the department of correctional services said in October that his prison sentence&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AB8N2Y200O&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">has finished</a>.



&#8220;In other words, Mr Zuma, in law, has not finished serving his sentence. He must return to the Escourt Correctional centre to do so,&#8221; the Supreme Court of Appeal judgement read.



The court took issue with the department&#8217;s claim that Zuma&#8217;s sentence had ended when the appeal was still being heard.



It also found that the decision by the former national commissioner of correctional services to grant Zuma medical parole against the advice of the Medical Parole Advisory Board, a specialist body, was unlawful.



&#8220;On any conceivable basis, the commissioner&#8217;s decision was unlawful and unconstitutional. The high court was correct to set it aside,&#8221; the judgement said.



The Jacob Zuma Foundation did not immediately respond to a request for comment, while a spokesperson for the department of correctional services said the judgement was being studied and it would likely respond later.



(Reporting by Wendell Roelf; Editing by Mike Harrison)

VPDWAXG4A5JG3BGGOM7ZNKSVUI

Court orders Zuma back to jail after ruling medical parole was unlawful

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/QAKTZWGDZZPPVESQB4WGXSJF6U-820x549.jpg" alt="" class="wp-image-421449" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/QAKTZWGDZZPPVESQB4WGXSJF6U-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/QAKTZWGDZZPPVESQB4WGXSJF6U-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/QAKTZWGDZZPPVESQB4WGXSJF6U-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/QAKTZWGDZZPPVESQB4WGXSJF6U-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/QAKTZWGDZZPPVESQB4WGXSJF6U.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Egyptian Foreign Minister and Egypt&#8217;s COP27 President Sameh Shoukry attends an informal stocktaking session during the COP27 climate summit, in Sharm el-Sheikh, Egypt, November 18, 2022. REUTERS/Mohamed Abd El Ghany</figcaption></figure>



SHARM EL-SHEIKH, Egypt, Nov 18 (Reuters)&nbsp;&#8211;&nbsp;A European Union proposal buoyed hopes of progress at the COP27 climate summit on Friday, its final scheduled day, as the 27-country EU said it would back one of the toughest agenda items – financing for countries wracked by climate-fuelled disasters.



But with several other sticking points dogging this year&#8217;s U.N. climate talks, host country Egypt said a final deal was still not expected before the weekend.



&#8220;I remain committed to bring this conference to a close tomorrow in an orderly manner, with the adoption of a series of consensus decisions that will be comprehensive, ambitious, and balanced,&#8221; COP27 President Sameh Shoukry told reporters.



The two-week conference at the Red Sea resort of Sharm el-Sheikh is a test of global resolve to combat planetary warming at a time that climate-driven storms, floods, droughts and wildfire compete for governments&#8217; attention with a war in Europe and soaring inflation.



Negotiations were energized after the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N32D3X8&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">European Union</a>&nbsp;said late on Thursday that it would back the demand of the G77 group of 134 developing countries to set up a fund to help countries cope with&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3202C4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">&#8220;loss and damage&#8221;,</a>&nbsp;the irreparable damage being wrought by climate change.



But it was unclear Friday if all of those countries would accept the EU&#8217;s offer of a fund to aid only &#8220;the most vulnerable countries&#8221;, rather than all developing countries as they had requested.



The climate minister for the Maldives, which faces inundation from rising seas, welcomed the proposal for establishing a fund &#8211; which did have strings attached, including that it would be paid into by a &#8220;broad donor base&#8221; of countries including China.



&#8220;As the lowest-lying country in the world, we are heartened by the goodwill in this room,&#8221; Shauna Aminath said. &#8220;We&#8217;re very close to an agreement, and let&#8217;s engage with one another and make this happen.&#8221;



<h2 class="wp-block-heading">LOSS AND DAMAGE</h2>



The loss and damage issue has dominated this year&#8217;s summit, and talks had stuttered until Thursday as the United States and EU resisted a new fund over fears that it could open the door to spiralling liabilities to pay.



EU climate policy chief Frans Timmermans stipulated that the bloc would only back the fund if countries agreed to other measures to slow climate change &#8211; specifically, phasing down all fossil fuels along with unabated coal-fuelled power generation, while submitting progress reports to make sure this gets done.



Delegates were eagerly awaiting news of how the United States and China &#8211; the world&#8217;s two biggest economies and two biggest polluters &#8211; would respond to the offer by the EU, the third biggest economy and greenhouse gas emitter.



Neither China nor the United States have so far formally responded to the EU&#8217;s proposal. Deals at COP27 must be made with support from all of the nearly 200 countries present.



<h2 class="wp-block-heading" id="h-final-deal-in-sight">FINAL DEAL IN SIGHT?</h2>



On Friday morning, the U.N. climate agency published a first official draft of the final summit deal. The aim is for a global agreement that progresses towards fighting climate change on a range of fronts &#8211; from more funding, to guarantees that countries will act faster to slash planet-heating emissions.



The draft text left a placeholder for &#8216;loss and damage&#8217; &#8211; to be filled in if countries can thrash out a deal on that issue.



Other elements of the document repeated commitments from last year&#8217;s climate summit, for example reiterating the 2015 Paris Agreement&#8217;s goals of limiting the rise in global temperatures to 2C, while aiming for 1.5C &#8211; the limit that would avoid its worst impacts, and on which small island states say their future depends.



Some countries, including the EU and Britain, have pushed for the overall deal in Egypt to lock in country commitments for more ambitious climate action.



Ireland&#8217;s environment minister, Eamon Ryan, said countries needed to ratchet up their emissions-cutting efforts to avoid spending more later on recovery from disasters turbo-charged by climate change.



&#8220;It&#8217;s important that we get a strong cover text,&#8221; he told Reuters. &#8220;The responsibility very much will lie now with the Egyptian presidency in trying to get something that we can rally behind.&#8221;



COP27 host Egypt, meanwhile, said too much pressure was being put on the final, political deal, with a senior official saying the document needed to &#8220;be a reflection of the negotiations&#8221; that have taken place since the summit began on Nov. 6.



The draft text also repeated a pledge from last year&#8217;s summit to phase down the use of coal-fuelled power &#8211; but did not include the call backed by India, the EU and Britain to expand this to cover all fossil fuels.



Some delegates expressed irritation over an alleged lack of focus in the proceedings as well as an inconsistent supply of refreshments and wi-fi connectivity.



&#8220;There is a lack of collective focus in this COP, and that is why we don&#8217;t know how to channel all the energy we are feeling here inside into a political force that can move us in the right direction,” said Manuel Pulgar-Vidal, head of climate at the non-profit World Wildlife Fund and the president of the COP20 climate summit in Lima, Peru, in 2014.



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COP27 climate talks seen as key to success at next month&#8217;s U.N. nature summit&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N32B2XF&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



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Fossil carbon dioxide emissions<a href="https://tmsnrt.rs/3UlWfVD" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3UlWfVD</a>



(Reporting by Kate Abnett and Aidan Lewis in Sharm el-Sheikh, and Sarah McFarlane in London; Additional reporting by Valerie Volcovici, Gloria Dickie, Dominic Evans and William James in Sharm el-Sheikh. Writing by Katy Daigle; Editing by Frank Jack Daniel)

QAKTZWGDZZPPVESQB4WGXSJF6U

COP27 climate talks hurtle towards overtime, countries mull EU offer of fund

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/RHMMHOWJPBPR7BGBBHS2X2D2FI-820x546.jpg" alt="" class="wp-image-421441" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/RHMMHOWJPBPR7BGBBHS2X2D2FI-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/RHMMHOWJPBPR7BGBBHS2X2D2FI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/RHMMHOWJPBPR7BGBBHS2X2D2FI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/RHMMHOWJPBPR7BGBBHS2X2D2FI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/RHMMHOWJPBPR7BGBBHS2X2D2FI-1536x1023.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/RHMMHOWJPBPR7BGBBHS2X2D2FI-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: A truck is seen at a grain terminal during barley harvesting in Ukraine on June 23, 2022. REUTERS/Igor Tkachenko/File Photo</figcaption></figure>



GENEVA, Nov 18 (Reuters)&nbsp;&#8211;&nbsp;A U.N. official on Friday said she hoped that a shipment of Russian fertiliser exports to Malawi would lead to a further easing of a 300,000 tonne backlog in European ports, as the global body works to address Russian concerns that have threatened a Black Sea grains export deal.



A deal aimed at addressing global food shortages by helping Ukraine export its agricultural products from Black Sea ports was&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N32D1ZT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">extended</a>&nbsp;for four months on Thursday, though Russia said its demands were yet to be addressed.



&#8220;We are really very pleased on the extension of the Black Sea grains initiative&#8230;.,&#8221; Rebeca Grynspan, secretary-general of the U.N. Conference on Trade and Development (UNCTAD) told a Geneva press briefing. &#8220;But we have said very clearly that we are still not where we want to be, there is still work to be done and especially on fertilisers.&#8221;



Moscow won guarantees for its own grain and fertiliser exports as part of the July agreement brokered by the United Nations and Turkey. But it has complained that its shipments, though not directly targeted, are constrained by sanctions.



Grynspan, who is in charge of the fertiliser negotiations, said that she hoped a shipment set to sail from the Netherlands on Nov. 21 to Malawi via Mozambique would serve as a model for future exports and that work was going on for another humanitarian cargo to be sent to West Africa.



In the same briefing, she voiced optimism that Russia and Ukraine could agree to the terms for resuming exports of Russian&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AG8N2NC017&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">ammonia</a>&nbsp;via a pipeline to the Black Sea. The export of ammonia, a key ingredient in fertiliser, was not part of Thursday&#8217;s renewal.



Grynspan also said that the U.N. would be aiming for a longer renewal period of the Black Sea Grains deal, beyond the 120 days agreed on Thursday.



(Reporting by Emma Farge and Paul Carrel, Editing by William Maclean)

FILE PHOTO: A truck is seen at a grain terminal during barley harvesting in Ukraine

UN plans further Russian fertiliser exports to Africa, upbeat on ammonia pipeline

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-820x547.jpg" alt="" class="wp-image-421437" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/TP5R6HBNPZIGTOANNA35PFUUUM.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, September 28, 2022. REUTERS/Yves Herman</figcaption></figure>



SHARM EL-SHEIKH, Egypt, Nov 18 (Reuters)&nbsp;&#8211;&nbsp;Climate negotiators on Friday were mulling a European Union proposal aimed at resolving an impasse over financing for countries hit by climate-fuelled disasters and pushing the&nbsp;<a href="https://www.reuters.com/business/cop/" target="_blank" rel="noreferrer noopener">U.N. climate summit</a>&nbsp;in Egypt closer to a final deal.



The EU proposal agreed to set up a special fund for covering loss and damage in the most vulnerable countries &#8211; but funded from a &#8220;broad donor base&#8221;.



That suggests high-emitting emerging economies like China would have to contribute, rather than having the fund financed only by rich nations that have historically contributed the most to global warming.



&#8220;What we would propose is to establish a loss and damage response fund for the most vulnerable countries,&#8221; EU climate policy chief Frans Timmermans told the COP27 summit.



The&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3202C4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">loss and damage</a>&nbsp;issue has dominated this year&#8217;s summit, with more than 130 developing countries demanding that the meeting deliver a deal on a new fund to help them cope with the irreparable damage of floods, drought and other climate impacts.



The United States and European Union had previously resisted the idea, fearing it could open the door to spiralling liabilities for countries whose historical emissions fuelled climate change.



The climate minister for the Maldives, which faces inundation from climate-driven sea-level rise, said the new EU offer had buoyed hopes among climate-vulnerable nations for a deal.



&#8220;On loss and damage, we welcome the interventions and openness and the will to forge an agreement,&#8221; Shauna Aminath said. &#8220;We&#8217;re very close to an agreement, and let&#8217;s engage with one another and make this happen.&#8221;



The EU attached conditions to its offer &#8211; including that countries agree to step up their ambition to cut planet-warming emissions. The 27-country EU has among the most ambitious climate targets of major greenhouse gas emitters, and has urged China to upgrade its own.



Asked by Reuters about the EU proposal, Chinese foreign ministry spokesperson Mao Ning said developed countries should fulfil their obligation to provide finance to developing countries, and all countries should translate their climate targets into &#8220;concrete actions&#8221;.



&#8220;The Chinese side hopes that COP27 will focus on the full and accurate implementation of the principles and objectives of the Paris Agreement,&#8221; Mao said.



<h2 class="wp-block-heading" id="h-empty-bank-account">&#8216;EMPTY BANK ACCOUNT&#8217;</h2>



The United States has not responded publicly to the new proposal.



&#8220;The U.S. seems cornered,&#8221; one observer in the negotiations said.



The EU said countries must agree to phase down all fossil fuels, and phase down unabated coal-fuelled power generation as soon as possible &#8211; with countries submitting progress reports to make sure this gets done.



A senior Egyptian official said the conditions the EU attached would not be accepted by some countries, without specifying which.



&#8220;It seems there is a broad agreement on having a fund or facility,&#8221; the official said. &#8220;The different views are the sequencing and the timing.&#8221;



The Alliance of Small Island States and the G77 club of 134 developing countries, who have both pushed for a new fund, were consulting on their response.



Pakistan&#8217;s Ambassador to South Korea Nabeel Munir said Timmermans&#8217; proposal was &#8220;positive news&#8221; but some divisions remained.



&#8220;For us, the success of COP27 depends on what we get on loss and damage.&#8221;



Deals at U.N. climate talks must be made with support from all of the nearly 200 countries involved.



The EU offer is at odds with a proposal by developing countries and China that had said all developing countries should have access to the fund. That proposal used a U.N. definition that would have allowed China to receive, not contribute, money.



The U.N. climate agency published a draft proposal for a loss and damage deal late on Thursday. While published before the EU made its proposal, the text laid out three options for a possible deal.



The first suggests establishing a new fund for climate-vulnerable countries. The second, delaying the decision on a fund until next year&#8217;s COP28 summit. The third calls for deciding on funding arrangements at COP28, with no mention of a new fund.



Henry Kokofu, Special Envoy representing the Climate Vulnerable Forum of 58 countries, said the group supported the first option for setting up a fund &#8211; which appeared to align most closely with what the EU had proposed &#8211; but wanted a firm commitment that countries would add money to it.



&#8220;Without an actual commitment to funding, we may well just end up with an empty bank account,&#8221; Kokofu said.



(Reporting by Kate Abnett, William James, Aidan Lewis; additional reporting by Eduardo Baptista; Editing by Katy Daigle and Janet Lawrence)

TP5R6HBNPZIGTOANNA35PFUUUM

EU agrees to climate damage fund, energizing bogged-down COP27 talks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/S76BW3Z2BBMIHKBVMFRZZLYJUQ-820x547.jpg" alt="" class="wp-image-421431" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/S76BW3Z2BBMIHKBVMFRZZLYJUQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/S76BW3Z2BBMIHKBVMFRZZLYJUQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/S76BW3Z2BBMIHKBVMFRZZLYJUQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/S76BW3Z2BBMIHKBVMFRZZLYJUQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/S76BW3Z2BBMIHKBVMFRZZLYJUQ.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>A Kenyan farmer uproots a field where he was growing maize that failed because of a drought, in Kilifi county, Kenya, February 16, 2022. Picture taken February 16, 2022. REUTERS/Baz Ratner</figcaption></figure>



NAIROBI, Nov 18 (Reuters)&nbsp;&#8211;&nbsp;Kenya is set to import its first genetically modified maize, the trade cabinet secretary has said, as the government seeks to ease food shortages caused by the country&#8217;s worst drought in 40 years.



Local media reported that Kenya will on Friday authorise the duty-free importation of 10 million bags of maize over the next six months, and for the first time it will include genetically modified maize.



The imports will be the first since President William Ruto&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3151WH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">lifted a decade-long ban</a>&nbsp;last month on the cultivation and importation of genetically modified crops, which authorities hope will improve crop yields and food security as millions face hunger.



&#8220;In view of the food situation in the country, I shall be signing instruments to allow duty free imports of GMO (genetically modified) and non GMO Maize for the next 6 months,&#8221; secretary Moses Kuria said on Twitter.



Annual&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3101MB&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">rains have failed</a>&nbsp;across Kenya, Ethiopia and Somalia for the last four seasons, forcing 1.5 million people out of their homes in search of water and food elsewhere.



(Reporting by Bhargav Acharya in Johannesburg and George Obulutsa in Nairobi; Editing by Tommy Reggiori Wilkes, William Maclean)

Reuters

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COP27 climate talks hurtle towards overtime, countries mull EU offer of fund

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EU agrees to climate damage fund, energizing bogged-down COP27 talks

Kenya to import first genetically modified maize as drought ravages food supply

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Reuters

South African central bank governor’s comments on rate decision

Ghana in high risk of debt distress, finance minister says

African leaders agree on ceasefire in east Congo from Friday

Britain and South Africa agree health partnership on second day of state visit

South Africa’s business confidence drops slightly in fourth quarter – survey

King Charles welcomes President Ramaphosa for first state visit

President Ramaphosa leads ANC presidency race ahead of conference

Nigeria hikes rates as c.bank warns inflation hurting economic growth

IMF to disburse $59 mln to Mozambique after loan review

IMF approves $88.3 mln for Malawi under ‘food shock’ loan window

Key African nations set off on energy & emissions growth paths: Maguire

Buses set on fire in Cape Town as taxi strike starts

Court orders Zuma back to jail after ruling medical parole was unlawful

COP27 climate talks hurtle towards overtime, countries mull EU offer of fund

UN plans further Russian fertiliser exports to Africa, upbeat on ammonia pipeline

EU agrees to climate damage fund, energizing bogged-down COP27 talks

Kenya to import first genetically modified maize as drought ravages food supply

News Tips

Advertise With Us

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