<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KPE2GK5ZVJJHZB57EL2JIIY7FU-820x542.jpg" alt="" class="wp-image-420459" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KPE2GK5ZVJJHZB57EL2JIIY7FU-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KPE2GK5ZVJJHZB57EL2JIIY7FU-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KPE2GK5ZVJJHZB57EL2JIIY7FU-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KPE2GK5ZVJJHZB57EL2JIIY7FU-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KPE2GK5ZVJJHZB57EL2JIIY7FU.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Economic Counsellor and Director of the Research Department at the International Monetary Fund (IMF) Gita Gopinath speaks during an interview with Reuters in the Alpine resort of Davos, Switzerland May 23, 2022. REUTERS/Arnd Wiegmann/File Photo</figcaption></figure>



LONDON, Oct 11 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets do not face a systemic sovereign debt crisis, though many poorer nations do face big challenges, Gita Gopinath, the International Monetary Fund&#8217;s (IMF) first deputy managing director told a panel in Washington on Tuesday.



Speaking at an event during the annual IMF World Bank meeting, Gopinath said some 60% of low income countries were either already in debt distress or in high risk of debt distress.



&#8220;To be clear, it&#8217;s not as though we have a systemic sovereign debt crises there,&#8221; Gopinath said.



&#8220;The vast majority of emerging market economies are nowhere near there, but on the other side, we do have many countries, several of whom, for instance, are in Sub-Saharan Africa, where this is a major challenge.&#8221;



Speaking at the same event, Elena Duggar, managing director of credit strategy &amp; research at ratings agency Moody&#8217;s, also said she did not expect a widespread debt crisis across emerging economies, but predicted more countries would have to overhaul their debt burdens.



&#8220;Emerging markets are looking at a less supportive, external environment in terms of tighter financial conditions and slower growth,&#8221; said Duggar. &#8220;And we&#8217;re looking at high uncertainty and high risks in the economic environment and the possibilities of much deeper economic contractions, which normally translates into financial market volatility and episodes of stop and go market access &#8211; so this will mean an elevated default rates.&#8221;



(Reporting by Karin Strohecker; editing by David Evans)

KPE2GK5ZVJJHZB57EL2JIIY7FU

IMF’s Gopinath: Poorer nations do face big debt challenges

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="522" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/INYUHPBFGNKZXKQPFHFOUAU264-820x522.jpg" alt="" class="wp-image-420453" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/INYUHPBFGNKZXKQPFHFOUAU264-820x522.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/INYUHPBFGNKZXKQPFHFOUAU264-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/INYUHPBFGNKZXKQPFHFOUAU264-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/INYUHPBFGNKZXKQPFHFOUAU264-768x489.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/INYUHPBFGNKZXKQPFHFOUAU264-1536x977.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/INYUHPBFGNKZXKQPFHFOUAU264-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO &#8211; Sam Matekane, leader of Lesotho&#8217;s Revolution For Prosperity (RFP) political party addresses his supporters as counting of votes continues, following the Lesotho&#8217;s parliamentary election in the capital Maseru, Lesotho, October 8, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



MASERU, Oct 11 (Reuters)&nbsp;&#8211;&nbsp;Lesotho&#8217;s newly formed party Revolution for Prosperity (RFP), which won the most seats in last week&#8217;s election but fell short of an overall majority, has formed a coalition government with two other opposition parties, its leader said on Tuesday.



The kingdom of Lesotho in southern Africa has been marred by years of political instability under the outgoing All Basotho Convention (ABC) party, which had been in power since 2017.



RFP founder Sam Matekane told a media briefing he had formed an alliance with two other parties &#8211; the Alliance of Democrats (AD) and the Movement for Economic Change (MEC) &#8211; after securing 56 seats in the election and needing to court other parties to control Lesotho&#8217;s 120-member parliament.<a href="https://www.reutersconnect.com/all?search=all%3AL8N31B3QG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Formed in March this year, the populist RFP has promised to do away with rampant corruption and focus on economic growth.



<h3 class="wp-block-heading" id="h-read-more-lesotho-populist-party-wins-most-seats-in-election-falls-short-of-majority">Read more: <a href="https://www.cnbcafrica.com/2022/lesotho-populist-party-wins-most-seats-in-election-falls-short-of-majority/">Lesotho populist party wins most seats in election, falls short of majority</a></h3>



&#8220;One thing for sure of the many things that we are going to do is to downsize the cabinet, and all our members will declare their assets, including myself,&#8221; Matekane, the wealthy businessman who created the party, told reporters.



He said the parties were also working on a coalition agreement, which will be made public after the approval. The coalition would tackle &#8220;crime and eradicating corruption within the (first) 100 days in office,&#8221; Matekane said.



&#8220;We are taking over a bankrupt government and we will be using our personal cars and staying in our homes until things have gone back to normalcy.&#8221;



The election&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3180CZ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">went ahead</a>&nbsp;despite a deadlock in parliament on constitutional reforms meant to be enacted ahead of the vote to bring order to Lesotho&#8217;s fractious politics.



(Reporting by Marafaele Mohloboli; Writing by Anait Miridzhanian; Editing by James Macharia Chege and Raissa Kasolowsky)

FILE PHOTO – Lesotho elects new parliament amid unresolved political crisis

Lesotho’s RFP party forms coalition government with other opposition after election win

<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>



ACCRA, Oct 11 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s finance ministry has formed a five-member committee with the Bank of Ghana to lead discussions with the financial services industry concerning an International Monetary Fund (IMF) programme, it said in a statement on Tuesday.



The goal of the committee is to &#8220;ensure orderliness and confidence in the government&#8217;s ongoing negotiations with the IMF,&#8221; the statement said.



A similar engagement will be undertaken with external bondholders, it added.



An IMF team visited Ghana last week for talks about a potential loan programme after the West African country requested support. It said discussions were constructive but that more work was needed on a debt-sustainability analysis.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3184P0&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Christian Akorlie; Writing by Nellie Peyton; Editing by Estelle Shirbon)

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

Ghana finance ministry, central bank form committee for talks on IMF programme

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="580" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-820x580.jpg" alt="" class="wp-image-420439" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-820x580.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-300x212.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-768x544.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-1536x1087.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/WCZPBBHVQVN7XDXOEYM5ASUOUE-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>David Malpass, president of the World Bank Group, arrives for a meeting with Japan&#8217;s Prime Minister Fumio Kishida (not in picture) at Kishida&#8217;s official residence in Tokyo, Japan September 13, 2022. REUTERS/Issei Kato/Pool</figcaption></figure>



WASHINGTON, Oct 10 (Reuters) &#8211; World Bank President David Malpass and International Monetary Fund Managing Director Kristalina Georgieva warned on Monday of a growing risk of global recession and said inflation remained a continuing problem after Russia&#8217;s invasion of Ukraine.



&#8220;There&#8217;s a risk and real danger of a world recession next year,&#8221; Malpass said in a dialogue with Georgieva at the start of the first in-person meetings of the two institutions since the COVID-19 pandemic.



He cited slowing growth in advanced economies and currency depreciation in many developing countries, as well as ongoing inflation concerns.



The IMF chief last week said the global lender would <a href="https://www.reuters.com/markets/us/imfs-georgieva-sees-darkening-outlook-global-economy-rising-recession-risks-2022-10-06/">downgrade its forecast</a> for 2.9% global growth in 2023 when it releases its World Economic Outlook on Tuesday, citing the shocks caused by the COVID-19 pandemic, Russia&#8217;s invasion of Ukraine and climate disasters on all continents.



On Monday, she noted that economic activity is slowing down in all three major economies &#8211; Europe, which has been hit hard by high natural gas prices, China, where housing volatility and COVID-19 disruptions are dragging down growth, and the United States, where interest rate hikes &#8220;are starting to bite.&#8221;



Slowing growth in advanced economies, rising interest rates, climate risks and continuing high food and energy prices are hitting developing countries particularly hard, both leaders said, calling for concerted action to help emerging markets.



Georgieva, the first IMF chief from an emerging market economy, said advanced economies needed to &#8220;get the big, scary danger of debt crisis under control&#8221; because it would affect all countries, not just those with high debt burdens.



&#8220;Not the rosy picture. But if we joined forces, if we act together, we can reduce the pain that is ahead of us in 2023.&#8221;



Georgieva said the IMF will be advocating this week for central banks to continue their efforts to contain inflation, despite the negative impact on growth.



If they don&#8217;t do enough, she said, &#8220;we are in trouble. &#8230; We cannot afford inflation to be a runaway train.&#8221;



Fiscal measures should be &#8220;well targeted&#8221; to ensure they did not add more &#8220;fuel to the flames of inflation.&#8221;



Malpass, who&nbsp;<a href="https://www.reuters.com/business/environment/world-banks-malpass-faces-calls-resign-after-climate-change-doubts-2022-09-21/">came under fire</a>&nbsp;last month for declining to say whether he accepts the scientific consensus on global warming, said officials at the bank were working hard to free up more funds to address climate problems facing so many developing countries.



Georgieva said the world needed a staggering $3 to $6 trillion to address climate change and it was essential to increase collaboration with the private sector and leverage funds &#8220;on scale&#8221; to help meet the needs.



Reporting by David Lawder and Andrea Shalal; Editing by Chizu Nomiyama and Andrea Ricci

David Malpass, president of the World Bank Group, arrives for a meeting with Japan’s Prime Minister Fumio Kishida in Tokyo

World Bank’s Malpass, IMF’s Georgieva see rising risks of global recession

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3K3NVNLH6RKVLH3MJ6MSQ7DGRI-820x547.jpg" alt="" class="wp-image-420429" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3K3NVNLH6RKVLH3MJ6MSQ7DGRI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3K3NVNLH6RKVLH3MJ6MSQ7DGRI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3K3NVNLH6RKVLH3MJ6MSQ7DGRI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3K3NVNLH6RKVLH3MJ6MSQ7DGRI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/3K3NVNLH6RKVLH3MJ6MSQ7DGRI.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>The International Monetary Fund Managing Director, Kristalina Georgieva, speaks at a conference in Riyadh, Saudi Arabia, October 3, 2022. REUTERS/Ahmed Yosri</figcaption></figure>



WASHINGTON, Oct 10 (Reuters)&nbsp;&#8211;&nbsp;International Monetary Fund Managing Director Kristalina Georgieva on Monday said she hoped debt restructuring efforts for Zambia and Chad could be completed by the end of the year, which would pave the way for more countries to seek help.



Georgieva,&nbsp;speaking with&nbsp;civil society groups&nbsp;at the start of the annual IMF and World Bank meetings, said&nbsp;a Group of 20&nbsp;initiative launched in late 2020 had been&nbsp;slow to become operational, but she was upbeat about the cases of Chad and Zambia, who together with Ethiopia were the first to request help.



Georgieva said the IMF was pressing for more predictability and timely resolution of requests for help under the G20 Common Framework. It was also critical to expand the framework to include middle-income countries, she said.



The IMF was also working on how to include collective action clauses in debt contracts being signed today that would allow immediate suspension of debt service payments if a country experienced a climate shock, she said.



IMF and World Bank officials have repeatedly singled out China, the biggest creditor to many African countries, and private sector creditors for dragging their feet on reducing countries&#8217; debt burdens.



The&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3183N3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Zambian government</a>&nbsp;on Friday told investors it hoped it would agree debt relief terms with official creditors by the end of the year or early 2023.



Zambia was the first African country to default during the COVID-19 era as it struggled with debt that reached 133% of GDP at the end of 2021. The IMF estimates that Zambia needs $8.4 billion of &#8220;cash debt relief&#8221; &#8211; cutting both interest payments and loan repayments &#8211; from 2022 to 2025.



The fund in late August approved a $1.3 billion, three-year loan to Zambia, a crucial step in the southern African country&#8217;s quest to restructure its debts.



<a href="https://www.reutersconnect.com/all?search=all%3AL1N31B0LR&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Chad&#8217;s creditors</a>&nbsp;are close to reaching a debt relief agreement, a French Finance Ministry source said on Monday.



(Reporting by Andrea Shalal; Editing by Andrea Ricci)

3K3NVNLH6RKVLH3MJ6MSQ7DGRI

IMF chief Georgieva aims to complete Zambia, Chad debt restructuring by year-end

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="490" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/ZRNAMFULKBMOFPMJMW7O6Y5JEI-820x490.jpg" alt="" class="wp-image-420425" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/ZRNAMFULKBMOFPMJMW7O6Y5JEI-820x490.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/ZRNAMFULKBMOFPMJMW7O6Y5JEI-300x179.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/ZRNAMFULKBMOFPMJMW7O6Y5JEI-151x90.jpg 151w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/ZRNAMFULKBMOFPMJMW7O6Y5JEI-768x459.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/ZRNAMFULKBMOFPMJMW7O6Y5JEI-1536x918.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/ZRNAMFULKBMOFPMJMW7O6Y5JEI-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Supporters of Lesotho&#8217;s Revolution For Prosperity (RFP), a recently founded party led by Sam Matekane, react following Lesotho&#8217;s parliamentary election in the capital Maseru, Lesotho, October 8, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



MASERU, Oct 10 (Reuters)&nbsp;&#8211;&nbsp;A Lesotho party led by a diamond magnate won the most seats in last week&#8217;s election,butfell short of an overall majority, the election commission said on Monday, raising the prospect of more&nbsp;political gridlock.



The populist Revolution for Prosperity (RFP) party emerged as the single biggest party&nbsp;with 56 seats,&nbsp;but now needs to court other&nbsp;groups to&nbsp;control&nbsp;the&nbsp;southern African mountain kingdom&#8217;s 120-member parliament.



Should RFP, formed by wealthy businessman Sam Matekane in March, secure control of a majority in parliament through coalitions, it would pave the way for&nbsp;the first&nbsp;change in government&nbsp;there in more than five years.



Lesotho has been marred by years of political instability under the current governing party, the All Basotho Convention (ABC), which has run the country of 2.14 million people since 2017. Divisions within the party have given it two prime ministers over that time. <a href="https://www.reutersconnect.com/all?search=all%3AL1N3180CZ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



<h3 class="wp-block-heading" id="h-read-more-lesotho-s-new-party-set-for-election-win-early-results-show">Read more: <a href="https://www.cnbcafrica.com/2022/lesothos-new-party-set-for-election-win-early-results-show/">Lesotho’s new party set for election win, early results show</a></h3>



RFP has promised to do away with rampant corruption and nepotism and focus on economic growth by levelling the&nbsp;playing field for&nbsp;businesses.



&#8220;Matekane&#8217;s victory is a clear picture that Basotho&nbsp;(the people of Lesotho)&nbsp;are tired of people who do not deliver when in power,&#8221; political analyst Lefu Thaela said as the votes were being counted on Sunday night with the RFP taking a strong lead.



The election went ahead despite a deadlock in parliament on a whole gamut of major constitutional reforms that were meant to be enacted ahead of the vote in order to bring order to the country&#8217;s fractious politics.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3180CZ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



In&nbsp;Lesotho&#8217;s national&nbsp;assembly,&nbsp;80 seats&nbsp;are won through &#8220;first-past-the-post&#8221; voting&nbsp;and the rest&nbsp;allocated using proportional representation, under which parties get seats based on their total national votes.



(Reporting by Marafaele Mohloboli; Writing by Bhargav Acharya and Anait Miridzhanian; Editing by Olivia Kumwenda-Mtambo, James Macharia Chege and Andrew Heavens)

Lesotho’s parliamentary election in the capital Maseru

Lesotho populist party wins most seats in election, falls short of majority

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1041348292-820x547.jpg" alt="" class="wp-image-420419" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1041348292-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1041348292-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1041348292-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1041348292-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1041348292-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1041348292-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>NEW YORK, NY &#8211; SEPTEMBER 26: Emmerson Dambudzo Mnangagwa, President, Republic of Zimbabwe delivers a speech at the United Nations during the United Nations General Assembly on September 26, 2018 in New York City. World leaders are gathered for the 73rd annual meeting at the UN headquarters in Manhattan. (Photo by Stephanie Keith/Getty Images)</figcaption></figure>



Oct 10 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s miners do not expect any significant impact from the government&#8217;s proposal to collect royalties in the form of refined minerals, the country&#8217;s Chamber of Mines said on Monday.



President Emmerson Mnangagwa&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N31A06W&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">announced</a>&nbsp;on Sunday that Zimbabwe would require companies mining gold, diamonds, lithium and platinum group metals (PGMs) to pay part of their royalties in refined metal rather than cash.



The Chamber of Mines, which represents major mining companies, said it was not worried about the pronouncement because it would not increase existing royalty rates.



&#8220;We respect the government&#8217;s position. It&#8217;s their prerogative. All they are saying is they are changing payment modalities,&#8221; Chamber of Mines Chief Executive Isaac Kwesu told Reuters.



Zimbabwe has significant reserves of gold, lithium and PGMs, but an uncertain policy environment, power shortages and currency volatility have hobbled the country&#8217;s mining industry.



Foreign companies with operations in Zimbabwe include Anglo American Platinum&nbsp;AMSJ.J, Impala Platinum&nbsp;IMPJ.J, Sibanye Stillwater&nbsp;SSWJ.J, Alrosa&nbsp;ALRS.MM&nbsp;and Caledonia Corporation&nbsp;CALq.L.



Impala said it was working with the Chamber of Mines to understand and respond to the new policy.



&#8220;Paying royalties in U.S. dollars and or partly paying in equivalent metal product, on face value, does not materially alter the cost burden in Zimbabwe,&#8221; Impala spokesperson Johan Theron said in an emailed response to Reuters.



Caledonia, one of the largest gold producers in Zimbabwe, said it does not expect any significant impact from the change.



&#8220;We have not seen the detailed mechanisms whereby this proposal may be implemented, but I do not think it would have any financial or operational effect on our business,&#8221; Caledonia Chief Executive Mark Learmonth said in an emailed response to Reuters.



Mineral royalties accounted for 2.8% of Zimbabwe&#8217;s tax revenue in 2021, Zimbabwe Revenue Authority data shows.



(Reporting by Nelson Banya; Editing by David Goodman)

World Leaders Address The United Nations General Assembly

Zimbabwe miners unfazed by new royalties proposal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-820x546.jpg" alt="" class="wp-image-420402" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-522825460-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Traders and clerks at work at the London Metal Exchange on July 22nd 2011 in London, United Kingdom. Benchmark copper on the London Metal Exchange traded at $9,719 a tonne in official rings from $9,685 a tonne on Thursday, when the metal used in power and construction fell to its lowest level this week. (photo by Paul Hackett/In Pictures via Getty Images Images)</figcaption></figure>



Oct 10 (Reuters)&nbsp;&#8211;&nbsp;Prices of most base metals in London fell on Monday, as better-than-expected U.S. jobs data raised concerns the Federal Reserve would stick&nbsp;to its&nbsp;rate-hike narrative to tackle inflation.



U.S. employers hired more workers than expected in September and the unemployment rate dropped, giving the Fed more ammunition to continue with its aggressive monetary policy tightening path.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3ARR:2050&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Rising interest rates in the United States are likely to strengthen the dollar and could hurt global economic growth and metals demand. A stronger dollar makes greenback-priced metals more expensive to holders of other currencies.



&#8220;NFP (nonfarm payrolls) were still ahead of expectations so the market sold off &#8230; We should get more relief rally after this NFP sell off is over,&#8221; said a metals trader, adding that the Chinese market is likely to be supported ahead of the country&#8217;s party congress later this month.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N30T14Q&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Three-month aluminium on the London Metal Exchange&nbsp;CMAL3&nbsp;was down 1.2%&nbsp;at $2,272 a tonne, as of 0716&nbsp;GMT, lead&nbsp;CMPB3&nbsp;lost 2% to $2,029&nbsp;a tonne and zinc&nbsp;CMZN3&nbsp;declined 0.2% to $2,986.50&nbsp;a tonne.



The most-traded November nickel contract on the Shanghai Futures Exchange&nbsp;SNIcv1&nbsp;dropped 3.1% to 179,200 yuan ($25,183.39) a tonne and tin&nbsp;SSNcv1&nbsp;shed 1.4%&nbsp;to 175,160&nbsp;yuan a tonne.



Meanwhile, copper prices rose after Chile, the world&#8217;s top producer of the metal, announced the permanent closure of copper mining stopes related to a giant sinkhole in the northern part of the country.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3182UZ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



LME copper&nbsp;CMCU3&nbsp;rose 0.8% to $7,518.50&nbsp;a tonne and ShFE copper&nbsp;SCFcv1&nbsp;advanced 0.3% to 61,260&nbsp;yuan a tonne.



Other metals on the ShFE rose to catch up with gains in the London market as Chinese traders returned from a one-week holiday.



ShFE aluminium&nbsp;SAFcv1&nbsp;rose 1.6% to 18,565 yuan a tonne, zinc&nbsp;SZNcv1&nbsp;increased 1.8% to 24,305&nbsp;yuan a tonne and lead&nbsp;SPBcv1&nbsp;was up 1.5% at 15,245 yuan a tonne.



For the top stories in metals and other news, click



TOP/MTL&nbsp;or&nbsp;MET/L



($1 = 7.1158 yuan)



(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu, Sherry Jacob-Phillips and Louise Heavens)

Traders At London Metal Exchange In City Of London

Base metals fall as U.S. jobs data asserts rate-hike concerns

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/F4CJI5S3TZIDVGTSKUXLYO5WBM-820x562.jpg" alt="" class="wp-image-420398" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/F4CJI5S3TZIDVGTSKUXLYO5WBM-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/F4CJI5S3TZIDVGTSKUXLYO5WBM-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/F4CJI5S3TZIDVGTSKUXLYO5WBM-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/F4CJI5S3TZIDVGTSKUXLYO5WBM-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/F4CJI5S3TZIDVGTSKUXLYO5WBM.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Sam Matekane, a millionaire diamond magnate and leader of Lesotho&#8217;s Revolution For Prosperity (RFP), gestures before addressing his supporters following the Lesotho&#8217;s parliamentary election in the capital Maseru, Lesotho, October 8, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



MASERU, Oct 9 (Reuters)&nbsp;&#8211;&nbsp;A recently founded party led by a millionaire diamond magnate looked set on Sunday to win Lesotho&#8217;s parliamentary election, having secured enough for a simple majority, according to preliminary results from the election commission.



By Sunday afternoon, results from the Oct. 7 vote were in for 49 out of a total of 80 constituencies. The Revolution for Prosperity (RFP) party, formed by Sam Matekane in March, had secured 41 seats, the minimum required to reach a simple majority.



The current ruling party All Basotho Convention (ABC), which has run the country of 2.14 million people since 2017, was faring badly with no seats won so far, the tally showed.



The Democratic Congress (DC), the main opposition party and member of the coalition government, is running a distant second to the RFP in the race, having secured at least six seats.



A victory for the RFP paves the way for a change in government in a southern African country marred by political upheaval, stalled reforms under the ABC and widespread exasperation of people over political wrangling, corruption and policy paralysis.



<h3 class="wp-block-heading" id="h-read-more-lesotho-to-hold-election-after-years-of-instability">Read more: <a href="https://www.cnbcafrica.com/2022/lesotho-to-hold-election-after-years-of-instability/">Lesotho to hold election after years of instability</a></h3>



RFP has promised to usher in a new era of governance and prosperity in the country by exploiting its natural resources and its commercial competitiveness, drawing from its founder&#8217;s experience in running businesses.



The party has also promised to strengthen the state institutions.



Lesotho is a small land-locked mountain kingdom that is ringfenced by South African Drakensberg range on all sides. It has close ties with its neighbour commercially and has often relied for its military support to quell coups and political unrest.



Lesotho&#8217;s national assembly comprises a total of 120 seats, of which 80 are subject to &#8216;first-past-the-post&#8217; voting, meaning whoever gets the maximum number of seats wins the election.



The remaining 40 seats are allocated using the proportional representative system, under which voters cast vote for a party instead of a candidate and the party is assigned seats in the parliament in proportion to the votes won.



(Reporting by Marafaele Mohloboli and Promit Mukherjee; Writing by Promit Mukherjee; Editing by Raissa Kasolowsky)

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Lesotho’s new party set for election win, early results show

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="501" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/CUS4P52NF5KXTNK7JQTWJ64Z3Q.jpg" alt="" class="wp-image-420382" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/CUS4P52NF5KXTNK7JQTWJ64Z3Q.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/CUS4P52NF5KXTNK7JQTWJ64Z3Q-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/CUS4P52NF5KXTNK7JQTWJ64Z3Q-131x90.jpg 131w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption>Safaricom Ethiopia employees walk past a billboard during the Safaricom ceremony to officially launch its operations in Ethiopia, in Addis Ababa, Ethiopia, October 6, 2022. REUTERS/Tiksa Negeri</figcaption></figure>



NAIROBI, Oct 7 (Reuters)&nbsp;&#8211;&nbsp;Shares of Kenyan telecoms operator Safaricom&nbsp;SCOM.NR&nbsp;surged more than 9% on Friday after it secured a mobile financial services licence in Ethiopia, market participants said.



Ethiopia&#8217;s Finance Minister Ahmed Shide said on Thursday his country had given Safaricom the licence in one of Africa&#8217;s largest telecoms markets as the company formally switched on the first privately-operated network in the country.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3171JI&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;It (licence) will bring the break-even period forward by approximately two years,&#8221; said Lisa Kimathi, an investment analyst at Standard Investment Bank.



It would have taken Safaricom, whose partners include South Africa&#8217;s Vodacom&nbsp;VODJ.J&nbsp;and Britain&#8217;s Vodafone&nbsp;VOD.L, five years to break even without a mobile money licence, but now it could take three years, Kimathi said.



Safaricom&#8217;s main competitor, the state-run Ethio Telecom, launched a mobile phone-based financial service called Telebirr last year, to boost growth by offering cashless transactions.



Telebirr is now used by millions of subscribers but Kimathi said Safaricom&#8217;s M-Pesa financial services platform could seize the lead.



M-Pesa was among the world&#8217;s first mobile transfer services in 2007. It has since evolved to a fully fledged financial service offering payments services, savings and credit in several African nations.



Safaricom executives said they also see huge opportunities in Ethiopia to provide internet access.



Ethiopia&#8217;s telecoms industry is considered the big prize in Prime Minister Abiy Ahmed&#8217;s push to liberalise the economy after he took over in 2018, thanks to a large population of 110 million.



Abiy&#8217;s efforts to attract investment have, however, been damaged by a war in the northern region of Tigray, which has killed thousands and displaced millions.



(Reporting by Duncan Miriri; editing by Jason Neely, James Macharia Chege and Louise Heavens)

Safaricom Ethiopia employees walk past a billboard during the Safaricom ceremony to officially launch its operations in Ethiopia, in Addis Ababa

Safaricom surges after securing Ethiopia mobile financial services licence

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/CHPGQPUYKZPTLAGLVJQZZINT4A.jpg" alt="" class="wp-image-420375" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/CHPGQPUYKZPTLAGLVJQZZINT4A.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/CHPGQPUYKZPTLAGLVJQZZINT4A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/CHPGQPUYKZPTLAGLVJQZZINT4A-135x90.jpg 135w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption>U.S. Ambassador to the United Nations Linda Thomas-Greenfield speaks with delegates during a meeting of the United Nations Security Council after North Korea fired a ballistic missile over Japan for the first time in five years, at U.N. headquarters in New York, U.S., October 5, 2022. REUTERS/Eduardo Munoz</figcaption></figure>



UNITED NATIONS, Oct 6 (Reuters)&nbsp;&#8211;&nbsp;The United States accused Russian mercenaries on Thursday of exploiting natural resources in the Central African Republic, Mali, Sudan and elsewhere to help fund Moscow&#8217;s war in Ukraine, a charge Russia rejected as &#8220;anti-Russian rage.&#8221;



U.S. Ambassador to the United Nations, Linda Thomas-Greenfield, said the Wagner Group of mercenaries are exploiting natural resources and &#8220;these ill-gotten gains are used to fund Moscow&#8217;s war machine in Africa, the Middle East, and Ukraine.&#8221;



&#8220;Make no mistake: people across Africa are paying a heavy price for the Wagner Group&#8217;s exploitative practices and human rights violations,&#8221; Thomas-Greenfield told a U.N. Security Council meeting on the financing of armed groups through illicit trafficking of natural resources in Africa.



Wagner, staffed by veterans of the Russian armed forces, has fought in Libya, Syria, the Central African Republic, Mali and other countries. It was founded in 2014 after Russia annexed Ukraine&#8217;s Crimea peninsula and started supporting pro-Russia separatists in Ukraine&#8217;s eastern Donbas region.



Russian U.N. Ambassador Vassily Nebenzia said he regretted that Thomas-Greenfield raised the issue of &#8220;Russian support to African partners.&#8221;



&#8220;This exposes their real plans and aims &#8211; what they really need from African countries,&#8221; said Nebenzia, without elaborating.



Russia&#8217;s Feb. 24 invasion of Ukraine came at a time of heightened rivalry between the West, China and Russia over Africa&#8217;s natural resources, trade and security ties. Some states worry about being squeezed in the middle of an intense geopolitical rivalry.



Russia has been trying to chip away at its international isolation after nearly three-quarters of the General Assembly voted to reprimand Moscow and demand it withdraw its troops within a week of its Feb. 24 invasion of neighboring Ukraine.



Next week, the 193-member General Assembly is due to vote on whether to condemn Moscow&#8217;s move to annex four partially occupied regions in Ukraine after staging what it called referendums.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N31624G&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Michelle Nichols, additional reporting by Ronald Popeski; Editing by David Gregorio)

CHPGQPUYKZPTLAGLVJQZZINT4A

U.S. accuses Russia of exploiting Africa resources to fund Ukraine war

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HLXGRMHU4VKVTLO4NJ2ACBNGF4-820x541.jpg" alt="" class="wp-image-420369" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HLXGRMHU4VKVTLO4NJ2ACBNGF4-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HLXGRMHU4VKVTLO4NJ2ACBNGF4-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HLXGRMHU4VKVTLO4NJ2ACBNGF4-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HLXGRMHU4VKVTLO4NJ2ACBNGF4-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HLXGRMHU4VKVTLO4NJ2ACBNGF4.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Children play on a damaged pedestrian bridge ahead of the general elections after five years of political instability, at a township outside the capital Maseru in Lesotho, October 6, 2022.REUTERS/Siphiwe Sibeko</figcaption></figure>



MASERU, Oct 7 (Reuters)&nbsp;&#8211;&nbsp;Lesotho citizens were due to vote in an election on Friday, after years of political instability that the southern African mountain kingdom&#8217;s lawmakers have yet to resolve.



The election will go ahead despite a deadlock in parliament on a whole gamut of major constitutional reforms that were meant to be enacted ahead of the vote so as to bring order to Lesotho&#8217;s fractious politics.



The All Basotho Convention (ABC) has run the country, with a population of 2.14 million, since 2017, but divisions within the party have given it two prime ministers over five years.



Defections have meanwhile left the party vulnerable to opposition rivals Democratic Congress (DC) or the new Revolution for Prosperity (RFP), led by businessman Sam Matekane.



&#8220;These elections will be highly contested and by the look of things the DC and RFP will be neck-and-neck,&#8221; said Lesotho political analyst Lefu Thaela. He added that DC are likely to get the most votes but if they don&#8217;t win an outright majority, the outgoing ABC will find themselves kingmakers.



Surrounded on all sides by South African mountains, Lesotho&#8217;s high-altitude springs provide vital freshwater to its parched neighbour, supplying its commercial hub, Johannesburg.



In 2020, ABC leader Thomas Thabane stepped down as prime minister after being charged with the murder of his ex-wife. He denied any wrongdoing, and&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2Z72NH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">the charges were later dropped</a>.



His successor &#8211; Prime Minister Moeketsi Majoro &#8211; declared a state of emergency in August, after legislators failed to pass constitutional reforms to amend everything from the role of political parties, rules over floor-crossing in parliament, to the appointment of senior officials and the PM&#8217;s role.



The reforms were meant to make Lesotho less prone to political logjams, but got stuck in one themselves.



Last month, Lesotho&#8217;s highest court ruled the state of emergency unconstitutional. The ABC has selected another leader, former health minister Nkaku Kabi, to contest its ticket.



Lesotho has seen four military coups since independence from Britain in 1966.



Opposition riots in the capital Maseru in 1998 prompted South Africa to deploy troops to restore order.



In 2014, the then prime minister Thabane temporarily fled the country, accusing the military of overthrowing him, which forced South Africa to mediate to restore order and allow his return.



(Reporting by Marafaele Mohloboli; Writing by Tim Cocks Editing by Alexandra Hudson)

HLXGRMHU4VKVTLO4NJ2ACBNGF4

Lesotho votes in election with political crisis still unresolved

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-820x547.jpg" alt="" class="wp-image-416649" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>IMF managing director Kristalina Georgieva speaks during a panel discussion at the COP26 UN Climate Summit in Glasgow on November 3, 2021. (Photo by Daniel LEAL / AFP) (Photo by DANIEL LEAL/AFP via Getty Images)</figcaption></figure>



WASHINGTON, Oct 6 (Reuters) &#8211; The International Monetary Fund is discussing a lending program with Malawi, which is in a &#8220;very difficult situation,&#8221; IMF Managing Director Kristalina Georgieva said on Thursday.



Georgieva, answering questions from students at Georgetown University, said IMF loans could help bring in other lenders and aid.



In Malawi&#8217;s case, she said, the IMF hoped to see the World Bank and other organizations also provide grants. 



This is a developing story&#8230;



(Reporting by Andrea Shalal; editing by John Stonestreet)

BRITAIN-UN-CLIMATE-COP26

IMF discussing program for Malawi, Georgieva 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/2021/08/ZCBOFJYX45I5NBRJXYE3AUN7VY-820x542.jpg" alt="" class="wp-image-411627" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/08/ZCBOFJYX45I5NBRJXYE3AUN7VY-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/ZCBOFJYX45I5NBRJXYE3AUN7VY-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/ZCBOFJYX45I5NBRJXYE3AUN7VY-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/ZCBOFJYX45I5NBRJXYE3AUN7VY-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/08/ZCBOFJYX45I5NBRJXYE3AUN7VY.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Electricity pylons are seen in front of the cooling towers at the Lethabo Thermal Power Station,an Eskom coal-burning power station near Sasolburg in the northern Free State province, March 2, 2016. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Oct 6 (Reuters) &#8211; South Africa has submitted an investment plan to donors who have pledged $8.5 billion to accelerate the country&#8217;s transition to renewable energy that could serve as a model for other emerging economies, two sources familiar with the matter said.



Presidency spokesman Vincent Magwenya confirmed the proposal was ready, but declined to say whether it had been submitted.



&#8220;A draft of the investment plan, which outlines the investments required to achieve South Africa&#8217;s ambitious climate targets &#8230; has been finalised and will be shared with key stakeholders before it is submitted to cabinet for approval,&#8221; he said on Thursday.



Negotiators are racing to conclude the deal before the COP27 climate talks in Egypt starting on Nov. 6, as a potential model for other emerging economies seeking to wean themselves off coal.



The funds &#8211; promised by Britain, France, Germany, the European Union and the United States at climate talks in Glasgow last year, were to be used to kick-start South Africa&#8217;s shift from polluting coal and were mostly offered in the form of concessional loans.



The sources, who asked not to be named because they were not authorised to speak to the press said it was up to donors to comment on the document that has been submitted to them.



For donors to release the funds, South Africa must demonstrate its plan will reduce its carbon emissions by more than it was planning to do under its existing climate commitments.



South Africa is the world&#8217;s 12th biggest carbon emitter, pumping out 430 megatonnes of CO2 in 2019, according to latest data that put it five places ahead of Britain, an economy eight times its size.



Coal fuels 80% of South Africa&#8217;s power generation, making the transition of state utility Eskom to renewables a priority. South Africa aims to subsequently focus on becoming a hub for green hydrogen and electric vehicle manufacturing.



Moving South Africa&#8217;s economy into greener energy will require vast funds, with some analysts estimating at least&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2XI1B1&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">$250 billion</a>&nbsp;over the next three decades.



Magwenya reiterated the government position a funding shortage in the deal must be addressed but would not say how big it was.



(Reporting by Tim Cocks; Editing by Simon Cameron-Moore and Barbara Lewis)

ZCBOFJYX45I5NBRJXYE3AUN7VY

South Africa submits plan for $8.5 bln in climate aid, sources say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MAYTHJVQABORJKORIVGBMJGKNE-820x541.jpg" alt="" class="wp-image-420345" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MAYTHJVQABORJKORIVGBMJGKNE-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MAYTHJVQABORJKORIVGBMJGKNE-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MAYTHJVQABORJKORIVGBMJGKNE-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MAYTHJVQABORJKORIVGBMJGKNE-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MAYTHJVQABORJKORIVGBMJGKNE.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>U.S. one dollar banknotes are seen in front of displayed stock graph in this illustration taken February 8, 2021. REUTERS/Dado Ruvic/Illustration</figcaption></figure>



JOHANNESBURG/BENGALURU, Oct 6 (Reuters)&nbsp;&#8211;&nbsp;Central bank intervention via U.S. dollar sales won&#8217;t strengthen emerging market currencies against an ever-dominant greenback, a Reuters poll found, and many analysts expected authorities to sit this round out or hike rates more aggressively.



Most emerging market currencies have hit their lowest levels in at least a decade and will probably remain around there or sink deeper as the dollar is yet to reach an inflection point, according to currency strategists polled by Reuters Sept. 30-Oct. 5.



After the U.S. Federal Reserve turned to an uber-hawkish stance earlier this year to tame stubbornly high inflation, a few emerging market central banks began selling dollar reserves to stem capital outflows and defend local currencies. However, the sell-off has not abated.



&#8220;Selling the U.S. dollar might help limit the depreciation of emerging market currencies, but it won&#8217;t be enough to stop it as risk aversion will continue to increase,&#8221; said Hendrix Vachon, a senior economist at Desjardins.



In response to an extra question, around one third or 14 of 45 strategists said nothing could be done to strengthen emerging market currencies over the coming six months.



About 40% said hiking interest rates more aggressively was the best approach to stem the downturn, while 13% proposed continuing selling dollars.



The decision by OPEC+ at a Vienna meeting on Wednesday to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3152O3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">cut oil production</a>&nbsp;by the deepest level since the 2020 COVID pandemic is set to steamroll emerging market currencies and intensify the gnawing investor sentiment.



The most traded currency in emerging markets &#8211; the tightly controlled Chinese yuan&nbsp;CNY=&nbsp;&#8211; was expected to hover around 7.13/$ after hitting 7.25/$ last week, a level last seen during the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N30Z054&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">global financial crisis</a>&nbsp;of 2008.



That weakness was despite&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N30Z2C0&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">interventions</a>&nbsp;by Chinese authorities in recent weeks to slow the yuan&#8217;s slide, showing relative success compared with other battered currencies. But analysts said they face long odds against an unstoppable dollar.



The yuan was expected to recover marginally to 7.03 per dollar by end-March.



&#8220;China&#8217;s trade and basic balance&#8230;is expected to deteriorate more sharply going into 2023-24FY at a time when policy rates will remain unchanged and its widening negative rate differentials with the U.S. could continue to exert more depreciation pressure,&#8221; noted Johanna Chua, chief economist for Citi Asia-Pacific.



Like other smaller EM currencies, South Africa&#8217;s rand &#8211; heavily reliant on China&#8217;s appetite for its commodities &#8211; was unlikely to mimic its biggest single country trading partner&#8217;s currency. The rand was expected to lose another 0.5% to 17.92/$ within a month and trade near those levels by year-end.



Mark Cus Babic, macro research analyst at Barclays, noted the rand should remain affected by global risk sentiment.



Terms of trade have deteriorated in Africa&#8217;s biggest economy and the current account was expected to swing to deficit in the coming year, according to a separate&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AKBN2QG0BD&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Reuters poll</a>.



The Russian rouble, which has also been artificially propped up since the invasion of Ukraine was expected to lose 7% to 65.00/$ in six months. Barclays said in a note the rouble no longer seemed to react to economic developments.



Asia&#8217;s third largest economy, India, was likely to see its battered currency&nbsp;INR=IN&nbsp;trading around its current level of 81.5/$ by end-year, vulnerable to a worsening trade balance and aggressive U.S. Federal Reserve rate-hiking.



(For other stories from the October Reuters foreign exchange poll:&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3152FQ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>)



Reuters Poll- Emerging market currency outlook: <a href="https://tmsnrt.rs/3fFOJFE" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3fFOJFE</a>



(Reporting by Vuyani Ndaba and Arsh Tushar Mogre; Polling by Anant Chandak, Devayani Sathyan and Veronica Khongwir; Editing by Elaine Hardcastle)

MAYTHJVQABORJKORIVGBMJGKNE

Aggressive rate hikes best option but unlikely to quell EMFX sell-off

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="360" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1.jpg" alt="" class="wp-image-400524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1-300x169.jpg 300w" sizes="(max-width: 640px) 100vw, 640px" /><figcaption>World Bank on glass building. Mirrored sky and city modern facade. Global capital, business, finance, economy, banking and money concept seamless and loopable 3D rendering animation.</figcaption></figure>



WASHINGTON, Oct 5 (Reuters)&nbsp;&#8211;&nbsp;Shocks related to the COVID-19 pandemic and Russia&#8217;s war against Ukraine mean the world is unlikely to meet a longstanding goal of ending extreme poverty by 2030, the World Bank said in a new report released on Wednesday.



The COVID-19 pandemic marked a historic turning point after decades of poverty reduction, the report said, with 71 million more people living in extreme poverty in 2020.



That meant 719 million people &#8211; or about 9.3% of the world&#8217;s population &#8211; were living on just $2.15 a day, and the ongoing war, reduced growth in China and higher food and energy prices threatened to further stall efforts to reduce poverty, it said.



Barring sharp growth gains, an estimated 574 million people, or about 7% of the world&#8217;s population, would still be subsisting at that same income level by 2030, mostly in Africa, it said.



World Bank President David Malpass said the new Poverty and Shared Prosperity report showed the grim outlook facing tens of million of people, and called for major policy changes to boost growth and help jumpstart efforts to eradicate poverty.



“Progress in reducing extreme poverty has essentially halted in tandem with subdued global economic growth,” he said in a statement, blaming inflation, currency depreciations and broader overlapping crises for the rise in extreme poverty.



To change course, the World Bank said countries should boost cooperation, avoid broad subsidies, focus on long-term growth and adopt measures such as property taxes and carbon taxes that could help raise revenue without hurting the poorest.



It said poverty reduction had already slowed in the five years leading up to the pandemic, and the poorest people clearly bore its steepest costs. The poorest 40% of people saw average income losses of 4% during the pandemic, twice the losses experienced by the wealthiest 20%, it said.



Government spending and emergency support helped avert even bigger increases in poverty rates, the report showed, but the economic recovery had been uneven, with developing economies with fewer resources spending less and achieving less.



Extreme poverty was now concentrated in sub-Saharan Africa, which has a poverty rate of about 35% and accounts for 60% of all people in extreme poverty, the report said.



(Reporting by Andrea Shalal; Editing by Kim Coghill)

istockphoto-1250489640-640×640

World Bank says goal of ending extreme poverty by 2030 won’t be met

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-820x547.jpg" alt="" class="wp-image-420329" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/GettyImages-1243716259-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>People gather during a protest at the Headquarters of African Union in Addis Ababa, Ethiopia, on October 04, 2022. &#8211; Tigrayan residents in Addis Ababa attended a rally organized by the office of the mayor of Addis Ababa to protest against the renewal of the hostilities. Fighting erupted between government forces and Tigrayan rebels in northern Ethiopia, shattering a five-month truce and dealing a blow to peace efforts. (Photo by Amanuel Sileshi / AFP) (Photo by AMANUEL SILESHI/AFP via Getty Images)</figcaption></figure>



NAIROBI, Oct 5 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s government has accepted an invitation by the African Union to participate in peace talks aimed at ending a two-year conflict with rival Tigray forces, the prime minister&#8217;s national security adviser said on Wednesday.



Tigray forces have has yet to respond to the invitation for talks this weekend in South Africa, which would be the first formal negotiations between the two sides since the outbreak of war in November 2020, two diplomatic sources said.



The conflict&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3090ZV&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">has killed thousands</a>&nbsp;of civilians and uprooted millions. Both sides had previously said&nbsp;they&nbsp;were&nbsp;prepared to participate in AU-mediated talks&nbsp;but intense fighting has continued to rage across Tigray.



The Ethiopian government &#8220;has accepted this invitation which is in line with our principled position regarding the peaceful resolution of the conflict and the need to have talks without preconditions,&#8221; Redwan Hussein, the national security adviser to Prime Minister Abiy Ahmed, said on Twitter.



AU Commission Chair Moussa Faki also invited Debretsion Gebremichael, who leads Tigray&#8217;s ruling political party, to the talks in a letter seen by Reuters.



The letter was dated Oct. 1, but Getachew Reda, a spokesman for Debretsion&#8217;s Tigray People&#8217;s Liberation Front (TPLF), said on Tuesday that he was not aware of any imminent talks.



Getachew did not immediately respond to a request for comment on Wednesday about the Ethiopian government accepting the AU invitation.



The TPLF&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30I0DY&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">said last month</a>it was&nbsp;ready for a ceasefire and would accept an AU-led peace process after previously raising objections to AU proposals.



Olusegun Obasanjo, the AU High Representative for the Horn of Africa, will lead the negotiations with support from former Kenyan President Uhuru Kenyatta and former South African deputy president Phumzile Mlambo-Ngcuka, according to the AU letter.



No formal talks between the two sides were held during a five-month ceasefire between March and August. Fighting resumed on Aug. 24.



Prime Minister Abiy&#8217;s government accuses the TPLF, which dominated Ethiopia&#8217;s ruling coalition until Abiy came to power in 2018, of trying to reassert Tigrayan dominance over Ethiopia.



The TPLF accuses Abiy of over-centralising power and oppressing Tigrayans. Both dismiss each other&#8217;s accusations.



(Reporting by Giulia Paravicini; Editing by Clarence Fernandez, John Stonestreet and Toby Chopra)

Reuters

IMF’s Gopinath: Poorer nations do face big debt challenges

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Lesotho’s new party set for election win, early results show

Safaricom surges after securing Ethiopia mobile financial services licence

U.S. accuses Russia of exploiting Africa resources to fund Ukraine war

Lesotho votes in election with political crisis still unresolved

IMF discussing program for Malawi, Georgieva says

South Africa submits plan for $8.5 bln in climate aid, sources say

Aggressive rate hikes best option but unlikely to quell EMFX sell-off

World Bank says goal of ending extreme poverty by 2030 won’t be met

Ethiopia accepts African Union invitation to peace talks

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Reuters

IMF’s Gopinath: Poorer nations do face big debt challenges

Lesotho’s RFP party forms coalition government with other opposition after election win

Ghana finance ministry, central bank form committee for talks on IMF programme

World Bank’s Malpass, IMF’s Georgieva see rising risks of global recession

IMF chief Georgieva aims to complete Zambia, Chad debt restructuring by year-end

Lesotho populist party wins most seats in election, falls short of majority

Zimbabwe miners unfazed by new royalties proposal

Base metals fall as U.S. jobs data asserts rate-hike concerns

Lesotho’s new party set for election win, early results show

Safaricom surges after securing Ethiopia mobile financial services licence

U.S. accuses Russia of exploiting Africa resources to fund Ukraine war

Lesotho votes in election with political crisis still unresolved

IMF discussing program for Malawi, Georgieva says

South Africa submits plan for $8.5 bln in climate aid, sources say

Aggressive rate hikes best option but unlikely to quell EMFX sell-off

World Bank says goal of ending extreme poverty by 2030 won’t be met

Ethiopia accepts African Union invitation to peace talks

News Tips

Advertise With Us

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