<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="509" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/ACFTUDROEBJG5DDI36RYFJFZGI-1.jpg" alt="" class="wp-image-420316" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/ACFTUDROEBJG5DDI36RYFJFZGI-1.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/ACFTUDROEBJG5DDI36RYFJFZGI-1-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/ACFTUDROEBJG5DDI36RYFJFZGI-1-129x90.jpg 129w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption>Commissioner for Infrastructure and Energy- African Union Commission Amani Abou-Zeid speaks at the Africa Oil Week 2022 conference at the Cape Town International Convention Centre 2, Cape Town, South Africa, October 4, 2022. REUTERS/Shelley Christian</figcaption></figure>



CAPE TOWN, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;African countries will use the COP27 climate talks in Egypt next month to advocate for a common energy position that recognises fossil fuels are necessary in the short term to expand economies and electricity access, the continent’s top energy official said on Tuesday.



The African position, criticised by environmental groups, could overshadow global climate talks in Sharm El-Sheikh seeking to build on the previous Glasgow summit and make good on financing targets by rich nations to poorer countries that have fallen far short of the promised $100 billion a year by 2020.



&#8220;We recognize that some countries may have to use fossil fuels for now, but it’s not one solution fits all,&#8221; said Amani Abou-Zeid, the African Union (AU) Commissioner for Infrastructure and Energy.



&#8220;It is not time to exclude, but it is the time to tailor solutions for a context, for a country and we cannot treat a city like a village because we have to tailor our sources of energy,&#8221; she told Reuters on the sidelines of an oil and gas conference.



An AU technical study attended by 45 African countries on 16 June seen by Reuters outlined that oil and coal will play a &#8220;crucial role&#8221; in expanding modern energy access over the short to medium term.



<h3 class="wp-block-heading" id="h-read-more-lack-of-funding-in-focus-as-congo-hosts-pre-cop27-climate-talks">Read more: <a href="https://www.cnbcafrica.com/2022/lack-of-funding-in-focus-as-congo-hosts-pre-cop27-climate-talks/">Lack of funding in focus as Congo hosts pre-COP27 climate talks</a></h3>



In tandem with renewable sources, Africa also sees key roles for natural gas and nuclear energy while the continent focuses on new technology and decarbonisation measures to reduce harmful emissions from its fossil fuels industry.



&#8220;Our ambition is to have fast-growing economies, competitive and industrialised,&#8221; Abou-Zeid said.



Seen as a global renewable hub given its vast solar, wind and hydrogen potential, Africa also has around 600 million people in its sub-Sahara region living without electricity and almost 1 billion citizens without access to clean energy for cooking.



&#8220;As far as we are concerned, the first obligation we have as governments is to our people and to bring them out of energy poverty and poverty in general and to do this you need energy. There is no way you can develop any economy, any society without energy,&#8221; said Omar Farouk Ibrahim, secretary general of the African Petroleum Producers&#8217; Organisation.



&#8220;We are talking about coal, we are talking oil and we are talking about gas. At this time we are not discriminating,&#8221; he told Reuters.



(Reporting by Wendell Roelf; Editing by Bernadette Baum)

ACFTUDROEBJG5DDI36RYFJFZGI-1

African countries to push common energy position at COP27

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



JOHANNESBURG, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;Sub-Saharan Africa&#8217;s economy is set to grow 3.3% this year, down from 4.1% in 2021, the World Bank said on Tuesday, due to slowing global growth, drought, increased risk of debt distress and rising inflation made worse by Russia&#8217;s war in Ukraine.



The 2022 forecast was cut from a prediction of 3.6% made in its last biannual update&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2W92MW&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">in April</a>, as the bank slashed projections for Nigeria and South Africa, two of Africa&#8217;s largest economies, plus Ghana, which is battling an economic crisis.



Chinese lockdowns disrupting supply chains and depressing demand for African commodities, the war in Ukraine and wealthy countries hiking interest rates were all to blame for the forecast downgrade, the bank said.



&#8220;Elevated food prices are causing hardships with severe consequences in one of the world&#8217;s most food-insecure regions,&#8221; the World Bank said in a statement accompanying its latest Africa Pulse report.



&#8220;The interconnected crises come at a time when the fiscal space required to mount effective government responses is all but gone.&#8221;



Of 33 countries with available data, 29 had inflation of over 5% in July, while in 17 it was in double digits. The number of countries in debt distress was little changed, the World Bank said, but noted that borrowing costs were rising.



In Ghana, which has sought help from the International Monetary Fund, amid inflation hitting 33.9% in August and the cedi weakening, growth is forecast to slow to 3.5% this year, compared to a prediction of 5.5% in April.



The World Bank also cut its growth forecasts for Nigeria and South Africa, from 3.8% and 2.1% to 1.9% and 3.3% respectively. The outlook for Angola, which has benefited from high oil prices, was upgraded to 3.1%, from 2.9% in April.



It said Ivory Coast would be west Africa&#8217;s fastest-growing economy this year at 5.7%, but that Senegal is set to overtake it &#8211; expanding 4.8% year before speeding up to 8% in 2023 and 10.5% in 2024.



The forecast for Kenya, east Arica&#8217;s largest economy, was kept the same as in April, at 5%.



(Reporting by Rachel Savage, Editing by William Maclean)

IMF And World Bank Headquarters During Virtual Spring Meetings

Sub-Saharan Africa’s growth to drop to 3.3% this year, World Bank says

<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/T4DS7YV6WNJ5JEQSRB4HEUXYCU.jpg" alt="" class="wp-image-420300" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/T4DS7YV6WNJ5JEQSRB4HEUXYCU.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/T4DS7YV6WNJ5JEQSRB4HEUXYCU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/T4DS7YV6WNJ5JEQSRB4HEUXYCU-135x90.jpg 135w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption>A staff member works at the reception of the paystack online payment company in the government reserved area in Ikeja, in Lagos, Nigeria, June 21, 2018. REUTERS/Akintunde Akinleye</figcaption></figure>



JOHANNESBURG, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;African startups attracted a record $3.5 billion in venture capital investment in the first half of this year, bucking a global decline in dealmaking linked to worldwide economic turmoil, data released by an industry group showed on Tuesday.



The funding, raised by 300 different companies, represents growth of 133% compared to the same period last year, according to the African Private Equity and Venture Capital Association (AVCA), which promotes private investment on the continent.



&#8220;This impressive growth in startup funding, which goes against the grain of global trends this year, demonstrates the depth of opportunity as well as the potential the continent has to offer,&#8221; the AVCA said.



The financials sector continued to dominate the African startup space in the first half of 2022, accounting for 44% of total deal value.



Payments platform MFS Africa, Kenyan fintech and solar firm M-Kopa and e-commerce company Wasoko all secured funding of $75 million to $125 million during the period.



The success of companies like Nigeria&#8217;s Paystack, acquired in 2020 by U.S. payments firm Stripe, and fellow fintech unicorn&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2UQ313&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Flutterwave</a>&nbsp;has fuelled international interest in up-and-coming businesses on the continent.



Startups bounced back from a pandemic-induced dip in 2020 with a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2WH0NG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">nearly five-fold increase</a>&nbsp;in venture capital investments in 2021, though Africa still attracts a fraction of the funding levels destined for more developed markets.



Globally, after hitting record levels last year, venture capital funding contracted in the second quarter of this year, with Latin America, Europe and North America hardest hit by the exodus of spooked investors.



While venture capital funding in Africa increased during the second quarter, the rate of growth was slashed by more than half to 78% from a first quarter increase of 171%, according to the AVCA data.



(Reporting by Joe Bavier; editing by David Evans)

A staff member works at the reception of the paystack online payment company in the government reserved area in Ikeja, in Lagos

Africa sees record venture capital investment, bucking global decline

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="558" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MXQSVTCLU5M6HMLRP6UKWHFKBQ-820x558.jpg" alt="" class="wp-image-420295" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MXQSVTCLU5M6HMLRP6UKWHFKBQ-820x558.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MXQSVTCLU5M6HMLRP6UKWHFKBQ-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MXQSVTCLU5M6HMLRP6UKWHFKBQ-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MXQSVTCLU5M6HMLRP6UKWHFKBQ-768x522.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MXQSVTCLU5M6HMLRP6UKWHFKBQ-1536x1045.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/MXQSVTCLU5M6HMLRP6UKWHFKBQ-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: fA woman looks on as locals queue to cast their ballots during the national elections at Hatimo Village, outside the capital Maseru, in Lesotho June 3,2017. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;Lesotho will hold a parliamentary election on Friday, amid failures by its politicians to pass constitutional reforms meant to end years of political instability in the southern African mountain kingdom.



The All Basotho Convention (ABC) has run the country since 2017, but divisions within the party have given it two prime ministers over five years &#8211; one of whom, Thomas Thabane, stepped down in 2020 after being charged the murder of his ex-wife.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2CM4IA&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



He denied any wrongdoing, and the charges were later dropped.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2Z72NH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



His successor &#8211;&nbsp;Prime Minister Moeketsi Majoro &#8211; declared a state of emergency in August, after legislators failed to pass two bills meant to end political volatility in parliament. Last month, Lesotho&#8217;s highest court ruled the declaration unconstitutional.



The ABC has selected another leader, former health minister Nkaku Kabi, to contest the ticket, after he defeated Majoro in a party vote in February.



Surrounded on all sides by a South African mountain range, Lesotho&#8217;s cool lakes and springs are a vital source of freshwater for its giant and parched neighbour, supplying the taps of its commercial capital, Johannesburg.



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, gunshots were heard in the capital, Maseru.



Then prime minister Thabane temporarily fled the country, accusing the military of overthrowing him, which forced South Africa&nbsp;to mediate to restore order and allow his return.



The proposed constitutional reforms&nbsp;would have&nbsp;amended everything from the role of political parties, to rules over floor-crossing in parliament, the appointment of senior officials and the role of the prime minister.



The aim was to make Lesotho less prone to political logjams when disagrememnts occur. But lawmakers failed to agree on them in August and they failed to pass.



(Reporting by Tim Cocks; Editing by Andrew Heavens)

Woman looks on as locals queue to cast their ballots during the national elections at Hatimo Village

Lesotho to hold election after years of instability

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KB5CW7IVQZNELP32JLJSIRY7TQ-820x429.jpg" alt="" class="wp-image-420291" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KB5CW7IVQZNELP32JLJSIRY7TQ-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KB5CW7IVQZNELP32JLJSIRY7TQ-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KB5CW7IVQZNELP32JLJSIRY7TQ-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KB5CW7IVQZNELP32JLJSIRY7TQ-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/KB5CW7IVQZNELP32JLJSIRY7TQ.jpg 1200w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Eve Bazaiba, Deputy Prime Minister for the Environment and Sustainable Development of Democratic Republic of Congo poses Amina Mohammed, Deputy Secretary General of the UN, during a informal ministerial meeting ahead of COP27 climate summit in Kinshassa, Democratic Republic of Congo October 03, 2022. REUTERS/Justin Makangara</figcaption></figure>



KINSHASA, Oct 3 (Reuters)&nbsp;&#8211;&nbsp;High-level speakers at climate talks in Kinshasa called out rich nations on Monday for failing to honour a $100 billion per year funding pledge to developing countries, warning that fair finance was needed to avert the worst of the climate crisis.



Dozens of ministers and senior delegates are in Democratic Republic of Congo this week for a final meeting before the COP27 climate summit in November, where more vulnerable countries hope to push for compensation for economic losses linked to climate catastrophes.



&#8220;The finance currently available is a pittance with respect to the magnitude of disasters vulnerable nations and people are facing and will face,&#8221; U.N. Deputy Secretary-General Amina Mohammed said at the start of the three-day event.



Egypt, which is hosting COP27, is working on how to include this kind of compensation for so-called&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N30Z2E9&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">loss and damage</a>&nbsp;on the formal agenda &#8211; a task complicated by industrialized nations&#8217; wariness of the liabilities they may face.



Mohammed and Egyptian Foreign Minister Sameh Shoukry also highlighted the failure to deliver on an existing $100 billion per-year pledge to developing countries, which has only ever been partially met and is due to expire in 2025.



Mohammed also criticised an over 50% shortfall in the $356 million pledged to a climate adaptation fund at COP26 last year.



The pre-summit is meant to be a forum for countries to shape the agenda for negotiations in Egypt and improve the chance of progress.



Welcoming delegates, Congo&#8217;s Environment Minister Eve Bazaiba said she was concerned that countries&#8217; ongoing failure to fulfil commitments had become a matter of course.



Earlier Bazaiba told Reuters the focus of talks would be how the richest and most industrialised nations should take financial responsibility for their role in the climate crisis.



&#8220;The G20 is responsible for 80% of the pollution in the world,&#8221; she said in an interview on Saturday. &#8220;The real debate of this pre-COP and COP27 is the responsibility of the polluting countries.&#8221;



Around a dozen young activists protesting outside the venue called on Congolese authorities to cancel plans to drill for oil and gas in its share of the world&#8217;s second-biggest rainforest and in peatlands that store billions of tonnes of carbon.



&#8220;We cannot sacrifice them at the altar of fossil fuel,&#8221; said activist Bonaventure Bondo.



Congo, like other African nations, has insisted on its right to develop its economy by exploiting its vast natural resources, pledging to minimise the potentially devastating&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2Z90XT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">environmental impact</a>&nbsp;by using modern drilling methods and tight regulation.



U.S. climate envoy John Kerry is due to meet Congolese President Felix Tshisekedi on Tuesday. The two countries have set up a working group to help protect Congo&#8217;s rainforests and peatlands.



(Writing by Alessandra Prentice; Editing by Andrea Ricci)

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Lack of funding in focus as Congo hosts pre-COP27 climate talks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="516" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/PX47AV3OGVODBAQQ2I46RGINQA-820x516.jpg" alt="" class="wp-image-420282" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/PX47AV3OGVODBAQQ2I46RGINQA-820x516.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/PX47AV3OGVODBAQQ2I46RGINQA-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/PX47AV3OGVODBAQQ2I46RGINQA-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/PX47AV3OGVODBAQQ2I46RGINQA-768x483.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/PX47AV3OGVODBAQQ2I46RGINQA-1536x966.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/PX47AV3OGVODBAQQ2I46RGINQA-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: Prosus&#8217; logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration</figcaption></figure>



AMSTERDAM, Oct 3 (Reuters) &#8211; Investor Prosus NV PRX.ASsaid on Monday a $4.7 billion deal to buy BillDesk, which would have been one of the largest in India&#8217;s financial technology sector,was &#8220;terminated&#8221;, saying conditions of the deal had not been met.



Indian antitrust regulator had approved the acquisition on Sept. 5, more than a year after it was announced, despite&nbsp;concerns BillDesk&#8217;s combination with Prosus-owned PayU would lead to concentration on India&#8217;s payments market.<a href="https://www.reutersconnect.com/all?search=all%3AL1N2Q20CB&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



But in&nbsp;a short statement, Prosus said &#8220;certain conditions were not fulfilled&#8221; by a Sept. 30 deadline and &#8220;the agreement has terminated automatically in accordance with its terms.&#8221;



BillDesk could not immediately be reached for comment.



A spokesperson for Prosus said there was no break fee associated with the deal, but declined to comment on reasons for the cancellation.



&#8220;The consistent pushback from investors had been around the valuation and price being paid for BillDesk,&#8221; said Citi analysts in a note.



&#8220;With no further details &#8230; what we don’t know is whether Prosus’ PayU could make another offer for BillDesk at a lower price.&#8221;



Fintech valuations have fallen sharply since Prosus announced plans to buy BillDesk.



Prosus CEO Bob van Dijk said in the company&#8217;s annual report in June that the merger of PayU with BillDesk would create a &#8220;top-10 online payments company globally&#8221;, substantially increasing the company&#8217;s scale in India and strengthening its digital banking arm &#8212; &#8220;pending regulatory approval.&#8221;



BillDesk processed $92 billion of payments in the year ended March 31, 2021 and had a net profit of 2.71 billion Indian rupees ($37.05 million) for that period.



Prosus shares were down 0.9% at 53.51 euros at 0955 GMT in Amsterdam.



(Reporting by Toby Sterling, Editing by Louise Heavens and Bernadette Baum)

Illustration shows smartphone with Prosus’ logo displayed

Prosus scraps $4.7 bln BillDesk deal, one of India’s biggest

<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/SOJVNC5KKRNHTAAEO63PT7EBEE.jpg" alt="" class="wp-image-420255" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/SOJVNC5KKRNHTAAEO63PT7EBEE.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/SOJVNC5KKRNHTAAEO63PT7EBEE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/SOJVNC5KKRNHTAAEO63PT7EBEE-135x90.jpg 135w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption>Supporters of Burkina Faso&#8217;s self-declared new leader Ibrahim Traore demonstrate holding a Burkina Faso and Russian flags in Ouagadougou, Burkina Faso October 2, 2022. REUTERS/Vincent Bado</figcaption></figure>



OUAGADOUGOU, Oct 2 (Reuters)&nbsp;&#8211;&nbsp;Burkina Faso&#8217;s self-declared military leader Captain Ibrahim Traore has accepted a conditional resignation offered by President Paul-Henri Damiba to avoid further violence after Friday&#8217;s coup, religious and traditional leaders said on Sunday.



According to the deal, announced at a press conference, Traore had agreed to seven conditions, including a guarantee of Damiba&#8217;s safety and the security of soldiers who backed him, and the honouring of promises made to the West Africa regional bloc to return to constitutional rule by July 2024.



Damiba could not be reached for comment. A close family member told Reuters he left the country on Sunday.



Traore said earlier that&nbsp;order was being restored after violent protests against the French embassy and days of fighting as his faction moved to topple the government.



Splits have emerged within the army, with many soldiers appearing to seek Russian support as the influence of former colonial power France wanes.



At least three separate videos shared on online on Saturday and Sunday showed soldiers atop armoured personnel carriers, waving Russian flags, while the crowd around chanted &#8220;Russia! Russia!&#8221;. Reuters has not verified the videos.



Traore&#8217;s team urged people to halt attacks on the French embassy, targeted by protesters after an officer said France had sheltered Damiba at a French military base in the West African country and that he was planning a counter-offensive.



The French foreign ministry denied the base had hosted Damiba after his ouster on Friday. Damiba also denied he was at the base, saying the reports were a deliberate manipulation of public opinion.



&#8220;We want to inform the population that the situation is under control and order is being restored,&#8221; an army officer said in a statement broadcast on national television.



Another statement said Traore would continue to act as president until a transitional civilian or military president&nbsp;is designated in the coming&nbsp;weeks.



Ouagadougou was mostly calm on Sunday&nbsp;after&nbsp;sporadic gunfire across the capital throughout Saturday between opposing army factions.



&#8220;We invite you to continue with your activities and refrain from all acts of violence and vandalism&#8230; notably that against the French embassy and the French military base,&#8221; the officer loyal to Traore said, urging people to remain calm.



<h2 class="wp-block-heading" id="h-russian-flags">RUSSIAN FLAGS</h2>



Damiba himself led a coup earlier this year against a civilian government that had lost support over rising violence by Islamist extremists. Damiba&#8217;s failure to stop&nbsp;the militant&nbsp;groups had led to anger in the ranks of the armed forces in the former French protectorate.



Divisions have emerged within the army also over whether to seek help from other international partners to combat the militants.



The soldiers who ousted Damiba said the former leader, whom they had helped to seize power in January, reneged on a plan to seek other partners.



They did not name the partners, but observers and supporters said the soldiers want closer partnership with Russia, as did the soldiers who seized power in neighbouring Mali in August 2020.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2U457Z&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Hundreds of people, some waving Russian flags and supporting Traore&#8217;s takeover, gathered in protest in front of the French embassy on Saturday and Sunday, throwing stones and burning tires and debris on Saturday and early on Sunday.



&#8220;We want cooperation with Russia. We want the departure of Damiba and France,&#8221; said Alassane Thiemtore who was among the protesters.



Anti-French demonstrators also gathered and stoned the French Cultural Centre in the Southern town of Bobo-Dioulasso. French business interests were also vandalised on Sunday morning.



Burkina Faso has become the epicentre of attacks carried out by groups linked to al Qaeda and Islamic State, after violence that began in neighbouring Mali in 2012 spread to other countries south of the Sahara Desert.



Thousands have been killed in raids on rural communities and millions have been forced to flee despite Damiba&#8217;s promise to tackle insecurity following his coup in January.



This week, at least 11 soldiers died in an attack in northern Burkina Faso. Dozens of civilians are missing following the attack.



(Reporting by Thiam Ndiaga and Anne Mimault Writing by Bate Felix; Editing by Kirsten Donovan, Frank Jack Daniel and Nick Macfie)

SOJVNC5KKRNHTAAEO63PT7EBEE

Burkina Faso president resigns on condition coup leader guarantees his safety

<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. Image: Flickr</figcaption></figure>



The World Bank said it has approved a $750 million credit line for Nigeria to help the country&#8217;s 36 states push through reforms to attract investment and create jobs.



Several states in Nigeria struggle to pay salaries due to low revenues and resort to borrowing from the domestic bond market and banks to fund infrastructure projects.



The World Bank said Nigeria had made progress in improving the ease of doing business but the country&#8217;s ability to attract domestic and foreign investment remained low compared with others.



&#8220;Private sector investments remain the major vehicle to create more jobs, increase revenues to the states and improve social and economic outcomes for citizens,&#8221; the World Bank&#8217;s country director for Nigeria, Shubham Chaudhuri, said in a statement late on Thursday.



The $750 million credit would improve land administration, telecommunications infrastructure, public-private partnerships, investment promotion and the business regulatory environment, the World Bank said.

istockphoto-1250489640-640×640

World Bank approves $750 mln credit to boost Nigerian reforms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="443" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/image-4-820x443.png" alt="" class="wp-image-420187" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/image-4-820x443.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/image-4-300x162.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/image-4-160x86.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/image-4-768x415.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/image-4.png 877w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Finance Minister Prof. Njuguna Ndung&#8217;u and CA DG Francis Wangusi Image via: Reuters</figcaption></figure>



Kenya&#8217;s new President William Ruto instructed the finance ministry on Thursday to cut 300 billion shillings ($2.5 billion) from annual government spending this year, to bring the country &#8220;back to sanity&#8221;.



Ruto, sworn in on Sept. 13, appointed his cabinet on Tuesday, naming&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30Y3ZF&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">former central bank governor Njuguna Ndung&#8217;u</a>&nbsp;as finance minister to navigate the economy through rising inflation, a heavy debt burden and drought.



Ruto also said he aimed to bring the recurrent expenditure down further next year by an undisclosed amount, in a bid to achieve a recurrent budget surplus by the third year.



The president did not give details on the expenditure to be cut. Recurrent expenditure usually includes civil servant salaries, domestic and foreign interest payments, pensions and fuel costs for the government fleet of vehicles.



&#8220;I have instructed Treasury to work with ministries to find savings of 300 billion shillings in this year&#8217;s budget,&#8221; Ruto said in his first speech as president to parliament.



The 2022/23 budget was presented in April.



&#8220;Next year, we will bring it further down so that, by the third year, we have a recurrent budget surplus.&#8221;



The president said the government should never borrow to finance recurrent expenditure, adding, &#8220;the market cannot sustain the kind of borrowing we are doing as a government&#8221;.



&#8220;We must bring ourselves back to sanity.&#8221;



A finance ministry document issued earlier this month showed&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30L4H7&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">recurrent expenditures</a>&nbsp;were projected at 2.27 trillion shillings or 16.2 percent of Gross Domestic Product in the 2022/23 (July-June) fiscal year.



Ruto became president after winning a closely contested election last month, with campaign pledges to create economic opportunities for the poor.



He faces a very&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2Z644Z&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">narrow fiscal space</a>&nbsp;to roll out his policies, after his predecessor Uhuru Kenyatta increased public borrowing to fund infrastructure projects.



The finance ministry has forecast economic growth of 5.5% this year compared with 7.5% in 2021, a continuation of recovery from the COVID-19 pandemic, which led to a contraction of 0.3 percent in 2020.

image-4

Kenya’s Ruto vows to cut spending, borrowing in move ‘back to sanity’

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/thumbnail_world-map-with-focus-federal-republic-nigeria-with-capital-city-abuja-820x615.jpg" alt="" class="wp-image-420179" width="648" height="486" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/thumbnail_world-map-with-focus-federal-republic-nigeria-with-capital-city-abuja-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/thumbnail_world-map-with-focus-federal-republic-nigeria-with-capital-city-abuja-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/thumbnail_world-map-with-focus-federal-republic-nigeria-with-capital-city-abuja-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/thumbnail_world-map-with-focus-federal-republic-nigeria-with-capital-city-abuja-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/thumbnail_world-map-with-focus-federal-republic-nigeria-with-capital-city-abuja.jpg 1280w" sizes="(max-width: 648px) 100vw, 648px" /><figcaption>Map of Nigeria Source: freepik.com</figcaption></figure>



Japan&#8217;s Daikin Industries Ltd&nbsp;6367.T&nbsp;will begin assembling air conditioners in Nigeria as it renews a push into Africa that had been delayed by the COVID-19 pandemic, a regional head said on Thursday.



&#8220;We are very soon going to have a factory in Nigeria,&#8221; Kanwal Jeet Jawa, the head of Daikin&#8217;s operations in India and East Africa, told Reuters.



Rather than building a plant, Daikin is using space in a facility provided by a local distributor in the West African nation, he said.



In East African countries, including Tanzania and Kenya, Daikin is aiming to become the leading seller of air conditioners, chillers and other cooling equipment by 2025.



The company is looking to replicate its success in India, where it has beaten the likes of South Korea&#8217;s LG Electronics Inc&nbsp;066570.KS&nbsp;to take top market share amid rapid market expansion driven by the country&#8217;s economic growth, Jawa said.



Daikin&#8217;s production capacity in India is set to almost double in 2023 with the opening of a new factory, allowing it to ship equipment to Africa that is more affordable and better suited to local conditions than air conditioners the Japanese company makes elsewhere, Jawa said.



&#8220;For East Africa, we will continue to supply finished products produced in India,&#8221; a Daikin spokesperson said.

thumbnail_world-map-with-focus-federal-republic-nigeria-with-capital-city-abuja

Japan’s Daikin to build air conditioners in Nigeria in renewed push

By Julia Payne



LONDON, Sept 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria has failed to capitalise on an oil price boom that has helped cushion other exporters from the impact of inflation, with millions more Nigerians now facing poverty.



Data from Nigeria&#8217;s state oil company NNPC shows that it did not contribute anything to state coffers in the first eight months of 2022, despite crude prices averaging $94 a barrel so far this year, a rise of 42% from last year.



At the heart of Nigeria&#8217;s problem is that despite being Africa&#8217;s biggest oil and gas producer, the country depends almost entirely on imports to cover its gasoline needs.



It then subsidises the cost to consumers, which has created a disparity between the price at the pump and what people pay to fill their tanks in neighbouring countries, such as Benin.



This has led to widespread smuggling, which has in turn driven up the amount of costly gasoline Nigeria imports and wiped out the gains that it should have made from crude exports because it ends up buying far more than it needs.



&#8220;Hundreds of thousands of people (in Benin) organize their survival around this traffic,&#8221; Boris Houenou, a Beninois economist said of the smuggling of Nigerian gasoline.



&#8220;A litre of Nigerian petrol worth $0.45 (per litre) can be passed to Benin for $0.70,&#8221; he added.



Estimates of the amount of gasoline smuggled abroad vary, with some independent researchers putting it at around 15 million litres a day, while NNPC&#8217;s own assessment is 42 million.



Nigerian National Petroleum Co (NNPC) said this month that gasoline smuggling was distorting supplies, adding that it was working to crack down on it.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30633R&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The NNPC&#8217;s federal account allocation (FAAC) shows it remitted just over $3 billion from oil and gas sales to Nigeria&#8217;s federal account in 2020, falling to about $1.4 billion in 2021 and dropping to zero in 2022.



Nigerian oil production has fallen to 1-1.2 million bpd from pre-pandemic levels of 1.8 million bpd after decades of under-investment in upstream assets, while pipeline theft is at its highest level in years, at an estimated at 200,000 barrels per day (bpd).&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2WW3WT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a><a href="https://www.reutersconnect.com/all?search=all%3AL1N30G0SQ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Gasoline imports, meanwhile, have ballooned to more than double Nigeria&#8217;s estimated needs this year, Reuters calculations based on the FAAC data indicate.



&#8220;We&#8217;ve moved from 30 million litres a day to 90 million during this administration without anything to show that consumption has actually increased,&#8221; said Cheta Nwanze, lead partner at Lagos-based risk consultancy SBM Intelligence.



NNPC recorded gasoline deliveries of 90 million litres a day in March and 83 million in April, Reuters calculations showed. In the same months last year, imports were 64 and 63 million litres respectively, well above national demand.



Nigeria&#8217;s reliance on imported oil products looks set to continue, two industry sources with knowledge of the matter said, with a new refinery near Lagos unlikely to come online until the end of 2023 and a revamp of the 210,000 barrel-per-day Port Harcourt facility expected to take several years.



NNPC and Nigeria&#8217;s finance ministry did not respond to multiple Reuters requests for comment.



&#8216;CURIOUS CASE&#8217;



Although the Nigerian government announced plans to remove the gasoline subsidy last year, it then backtracked in July, citing concerns over potential social unrest.



The World Bank estimates inflationary pressures will tip 7 million more Nigerians into poverty this year, bringing the total to 45% of the population of 200 million.



&#8220;Despite the better-than-expected performance of the services and agriculture sectors and higher oil prices &#8230; Nigeria is experiencing a curious case of lower fiscal revenues,&#8221; Marco Hernandez, World Bank Lead Economist for Nigeria, said in a June development Report.



&#8220;This is limiting the government&#8217;s ability to expand basic services, support the economic recovery, and protect the poor during this difficult time,&#8221; Hernandez added in the report.



Nigeria&#8217;s Finance Minister Zainab Ahmed has repeatedly warned about the high cost of gasoline subsidies, saying the bill could reach $16.2 billion in 2023.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2UI5G7&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a><a href="https://www.reutersconnect.com/all?search=all%3AL1N2Z223X&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



And the World Bank estimated that foregone oil revenues would total 5 trillion naira ($12.04 billion) this year due to the subsidy, equivalent to 30% of Nigeria&#8217;s entire budget.



In 2020, NNPC retained 4% of oil and gas sales to cover gasoline subsidies. This rose to 45% last year and in 2022 it has reached 83% of sales.



The increasing fuel subsidy is taking away money from capital expenditure and is a &#8220;major drainer to overall government revenues and fiscal position,&#8221; Nigeria&#8217;s finance ministry said in its latest budget projection in August.



&#8220;The subsidy on Petroleum Motor Spirit (PMS) supply has had significant adverse impact on government revenues,&#8221; it added.



Nwanze of SBM Intelligence said: &#8220;The subsidy is a complete waste at this point, but it&#8217;s politically explosive.&#8221;



Nigeria holds presidential elections in February against a backdrop of price rises as a result of the Ukraine crisis and post-pandemic supply chain bottlenecks.



As well as the higher cost of gasoline purchases, a more costly swap contract has also come at a bad time.



Until the end of last year, NNPC covered domestic gasoline needs via Direct Sale Direct Purchase (DSDP) contracts.



Now NNPC is also buying ad hoc cargoes and through a Crude Oil Refining and Direct Partnership Agreement (CORDPA), which involves paying higher premiums and a trader waiting longer to receive its crude delivery as payment.



In May, for example, the DSDP premium was around $10 per tonne of gasoline, while the premium paid under a CORDPA was $22, according to NNPC&#8217;s spreadsheets. Rates vary seasonally and for most of the year these levels had been $35 to about $50 a tonne. NNPC paid up $80 and $100 for some ad hoc cargoes.



And although gasoline is subsidised, the amount ordinary Nigerians pay at the pump remains higher than the set price.



In its FAAC reports for 2021 and 2022, NNPC set its subsidised price at 124 naira ($0.30) per litre, but the average pump price is closer to 200 naira per litre across many states.



&#8220;We should be reaping a bumper harvest but alas we are not,&#8221; lamented one Nigerian official.

Africas Richest Man Builds Nigerias $15 Billion Oil Refinery

ANALYSIS- Nigeria squanders oil price bonanza as gasoline subsidies soar￼

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU.jpg" alt="" class="wp-image-420130" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GRWCSJKK3NKH7M3COMPN5L5GGU-135x90.jpg 135w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption>The International Monetary Fund logo is seen at IMF headquarters in Washington, U.S., October 14, 2017. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



ACCRA, Sept 28 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s negotiations with the International Monetary Fund over a rescue package will be fast-tracked, the country&#8217;s Finance Minister Ken Ofori-Atta said on Wednesday.



Ghana began talks with the Fund on Monday&nbsp;for an IMF-supported lending programme in a bid to reduce economic hardship that spurred street protests.



&#8220;Negotiations will be fast-tracked to ensure the key aspects of the programme are reflected in the 2023 annual budget statement in November 2022,&#8221; Ofori-Atta said at a news briefing.



The IMF staff team is discussing policies and reforms with officials in Ghana after the West African country requested a loan from the Fund in July.



The IMF mission is scheduled to last until Oct. 7 and will include a full assessment of the sustainability of Ghana&#8217;s debt burden. If that debt is deemed unsustainable, the Fund will be unable to provide support without some sort of restructuring.



Reports that the government may be considering a plan to restructure it&#8217;s local currency debt gained steam last week, prompting credit ratings agency Fitch to downgrade Ghana to &#8220;CC&#8221; from &#8220;CCC&#8221;.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AFWN30U1AR&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



A Fitch senior director said domestic debt restructuring would be &#8220;highly unusual&#8221;, and warned it could spell disaster for local financial institutions. A brief from Oxford Economics on Monday said it would risk sending Ghana into a recession.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30S47A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Ofori-Atta said on Wednesday that government had not come to any agreement with the Fund on the parameters of debt operations, but that a committee would be formed in the coming days to engage financial sector stakeholders on how to proceed.



&#8220;We welcome all contributions to this great public debate, but we must be careful to build and not to tear down our nation,&#8221; he said.



(Reporting by Bate Felix and Sofia Christensen; Writing by Sofia Christensen and Cooper Inveen; Editing by Estelle Shirbon and Jon Boyle)

FILE PHOTO: The International Monetary Fund logo is seen at IMF headquarters in Washington

Ghana negotiations with IMF to be fast-tracked : finance minister

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b-820x549.jpg" alt="" class="wp-image-403037" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/2770193028_68edc662a9_b.jpg 1023w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Photo: via Flickr</figcaption></figure>



KAMPALA, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Uganda will hold its third oil block licensing round next year, its energy minister said on Tuesday, as it seeks to develop its petroleum sector in a bid to expand its economy.



Uganda discovered crude oil reserves in the Albertine rift basin near the border with Democratic Republic of Congo in 2006 and has previously held two licensing rounds but a large portion of the basin remains unexplored.



Government geologists estimate the country&#8217;s confirmed reserves at 6.5 billion barrels of oil, of which 2.2 billion is recoverable.



&#8220;As part of the strategies to exploit the oil and gas resources in a sustainable manner the country is announcing the third licensing round in 2023,&#8221; Minister of Energy and Mineral Development Ruth Nankabirwa Ssentamu told an oil and gas conference in the capital Kampala.



In February TotalEnergies&nbsp;TTEF.PA&nbsp;and its partner China National Offshore Oil Corporation&nbsp;0883.HK&nbsp;signed a final investment decision (FID) with Uganda and Tanzania to kick-start investments worth more than $10 billion to produce and export Uganda&#8217;s crude.



Part of that investment will involve a $3.5 billion pipeline that will help ship landlocked Uganda&#8217;s crude to the world markets via a port on Tanzania&#8217;s Indian Ocean coast.



At the same conference, Uganda&#8217;s President Yoweri Museveni criticised the European Union parliament after it&nbsp;<a href="https://www.europarl.europa.eu/doceo/document/TA-9-2022-0321_EN.html" target="_blank" rel="noreferrer noopener">passed a resolution</a>&nbsp;this month urging TotalEnergies to delay development of the pipeline by a year to explore an alternative route or alternative renewable energy projects.



Museveni said the European Parliament&#8217;s move was &#8220;a wrong battleground for them. We don&#8217;t take kindly to arrogance.&#8221;



&#8220;So the plan will be implemented according to the schedule.&#8221;



&#8220;You&#8217;re lecturing me what to do in Uganda?,&#8221; he said. &#8220;Some of these people are insufferable.&#8221;



The EU resolution warns that the pipeline and associated infrastructure would displace about 100,000 people, jeopardise water resources and endanger protected marine areas in Tanzania.



Museveni had&nbsp;<a href="https://twitter.com/KagutaMuseveni/status/1570827102999687174" target="_blank" rel="noreferrer noopener">previously warned</a>&nbsp;TotalEnergies, that if it heeded the EU resolution, Uganda would find another partner to develop the project.



The EU did not immediately respond to a request for comment.



TotalEnergies said in a statement the company would ensure the project achieves &#8220;sustainable development including the environment and respect for human rights.&#8221;



(Reporting by Elias Biryabarema; Writing by George Obulutsa; Editing by James Macharia Chege and David Evans)

2770193028_68edc662a9_b

Uganda announces oil block licensing round, criticises EU over pipeline

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="489" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/27KAMOMRO5JWJP4KFLXAY5LKSI.jpg" alt="" class="wp-image-420101" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/27KAMOMRO5JWJP4KFLXAY5LKSI.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/27KAMOMRO5JWJP4KFLXAY5LKSI-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/27KAMOMRO5JWJP4KFLXAY5LKSI-134x90.jpg 134w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption>Kenya&#8217;s former Central Bank Governor Njuguna Ndung&#8217;u speaks to Reuters during an interview at his office in Nairobi. File REUTERS/ Antony Njuguna</figcaption></figure>



NAIROBI, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Kenyan&nbsp;President William Ruto&nbsp;on Tuesday appointed&nbsp;former central bank governor Njuguna Ndung&#8217;u as finance minister&nbsp;to steer the economy through rising inflation, a heavy debt burden and drought.



Ndung&#8217;u,&nbsp;an economics professor,&nbsp;led the central bankbetween&nbsp;2007 and&nbsp;2015, winning praise for presiding over the expansion of the financial sector and condemnation for prioritising growth over price stability in 2011.



Ruto was sworn in this month after a hard fought electoral contest, in which he promised that he would create economic opportunities for the poor.



But he faces a very narrow fiscal space to implement his policies, after the government of predecessor Uhuru Kenyatta ramped up public borrowing to fund infrastructure projects.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2Z644Z&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The country is also facing its worst drought in 40 years as cattle farmers lose their herds.



&#8220;We appreciate that we have a difficult economic situation on our hands,&#8221; the president said as he unveiled his cabinet.



<h3 class="wp-block-heading" id="h-read-more-hustler-ruto-becomes-kenya-s-fifth-president-after-close-election">Read more: <a href="https://www.cnbcafrica.com/2022/william-ruto-to-be-sworn-in-as-kenyas-president/">“Hustler” Ruto becomes Kenya’s fifth president after close election</a></h3>



He urged parliament to swiftly approve his cabinet choices, so the government can start work on the economy.



Ruto also appointed a former vice president and deputy prime minister, Musalia Mudavadi, as his chief minister, a newly created post, to coordinate government business.



He appointed Alfred Mutua, a former government spokesman and county governor, as minister of foreign affairs, and lawmaker Aden Duale as his defence minister.



But all eyes will be focused on Ndung&#8217;u due to the state of the economy.



Ndung&#8217;u, who earned his doctorate from a Swedish university, weathered a political storm in 2012 as parliament tried to oust him over currency turmoil the previous year, when the shilling weakened sharply and inflation soared.



A Reuters poll ranked him as the worst performing African policymaker after the shilling plunged to its weakest-ever level while inflation soared.



He restored his reputation as a central banker in the following years, containing inflation after raising interest rates before gradually stabilising them.



The tenure of the current central bank governor, Patrick Njoroge, is set to end in June next year.



(Reporting by George Obulutsa and Duncan Miriri Editing by James Macharia Chege and Nick Macfie)

Kenya’s Central Bank Governor Njuguna Ndung’u speaks to Reuters during an interview at his office in Nairobi

Ex-central bank chief named Kenyan finance minister amid rising inflation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-496939132-820x547.jpg" alt="" class="wp-image-399686" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-496939132-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-496939132-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-496939132-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-496939132-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-496939132-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>An Eskom sign stands outside the headquarters for Eskom Holdings SOC Ltd., South Africas state-owned electricity utility at Megawatt Park in Sandton, near Johannesburg, South Africa, on Wednesday, Nov. 11, 2015. A plan to reform state-owned power company Eskom Holdings SOC Ltd. and bring South Africa and its economy out of the dark is starting to show results, according to Chief Executive Officer Brian Molefe. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



Sept 27 (Reuters)&nbsp;&#8211;&nbsp;The South African government will make changes to state power utility Eskom&#8217;s board of directors, the Department of Public Enterprises&nbsp;(DPE)&nbsp;said on Tuesday,&nbsp;after electricity outages reached record levels this year.



Saddled with unreliable coal-fired power stations and a mountain of debt, Eskom has struggled to meet electricity demand for more than a decade, constraining economic growth in Africa&#8217;s most industrialised nation.



&#8220;On Tuesday, the Minister (Pravin Gordhan) informed the board that a review has been finalised and that the Board will soon be reconstituted and restructured,&#8221; the department said in a statement.



The members of the board will be informed of the outcome of the process and the government will soon deliberate on the restructuring, it said.



Eskom did not immediately comment on the DPE statement.



It was not clear whether Eskom&#8217;s board would be entirely replaced or whether some board members would keep their positions in the planned shake-up.



It is currently headed by chairman Malegapuru William Makgoba, who took up the post in January 2020 after the previous chairman resigned after another period of major power cuts.



President Cyril Ramaphosa&#8217;s government has been trying to reform the struggling company to make it more efficient, but progress has been slow.



This year the most electricity has been shed from the national grid to date, fuelling public frustration and leading to calls for heads to roll.



(Reporting by Bhargav Acharya in Bengaluru; Editing by Alexander Winning)

Eskom Holdings SOC Ltd Chief Executive Officer Brian Molefe Interview

South Africa to overhaul power utility Eskom’s board amid record outages

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107098672-1659606797135-gettyimages-1239915338-UAE_ABU_DHABI-820x462.jpeg" alt="" class="wp-image-420086" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107098672-1659606797135-gettyimages-1239915338-UAE_ABU_DHABI-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107098672-1659606797135-gettyimages-1239915338-UAE_ABU_DHABI-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107098672-1659606797135-gettyimages-1239915338-UAE_ABU_DHABI-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107098672-1659606797135-gettyimages-1239915338-UAE_ABU_DHABI-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107098672-1659606797135-gettyimages-1239915338-UAE_ABU_DHABI.jpeg 929w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Photo: via CNBC</figcaption></figure>



DUBAI, Sept 22 (Reuters)&nbsp;&#8211;&nbsp;Abu Dhabi-based hospital operator Burjeel Holdings is seeking local investors for its planned initial public offering, two sources said, scrapping plans to seek foreign investors after Abu Dhabi&#8217;s International Holding Company (IHC) took a 15% stake this week.



Egypt-listed EFG-Hermes&nbsp;HRHO.CA&nbsp;and JPMorgan&nbsp;JPM.N&nbsp;are no longer involved in the deal, said the sources, declining to be named as the matter is not public.



The transaction was expected to be authorised for marketing to U.S. investors, but the company will instead focus on its domestic market.



Burjeel, which has a network of 39 hospitals and clinics across the Middle East and India, declined to comment when contacted by Reuters on Thursday. JPMorgan also declined to comment, while EFG-Hermes did not immediately respond to requests for comment.



IHC&nbsp;IHC.AD&nbsp;said on Monday in a regulatory disclosure that its acquisition of a stake in Burjeel would help diversify its healthcare investments both locally and regionally.



The company had previously planned to go public with a listing in London, but in 2019 was forced to reconsider because of uncertainty surrounding Britain&#8217;s departure from the European Union.



(Reporting by Hadeel Al Sayegh; editing by Jason Neely, Kirsten Donovan)

107098672-1659606797135-gettyimages-1239915338-UAE_ABU_DHABI

UAE healthcare firm Burjeel Holdings seeks local investors for IPO -sources

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/TD7QUJR4U5NX7IGFIXM2KWAA5A-820x547.jpg" alt="" class="wp-image-420069" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/TD7QUJR4U5NX7IGFIXM2KWAA5A-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/TD7QUJR4U5NX7IGFIXM2KWAA5A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/TD7QUJR4U5NX7IGFIXM2KWAA5A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/TD7QUJR4U5NX7IGFIXM2KWAA5A-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/TD7QUJR4U5NX7IGFIXM2KWAA5A-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/TD7QUJR4U5NX7IGFIXM2KWAA5A-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: Electric wires are pictured in Ojuelegba district in Nigeria&#8217;s commercial capital Lagos, Nigeria June 18, 2018. REUTERS/Akintunde Akinleye/File Photo</figcaption></figure>



LAGOS, Sept 26 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s national electricity grid collapsed on Monday leaving many parts of the country without power, electricity distribution companies said.



The grid has collapsed at least four times this year, which authorities blame on technical problems. Last month workers from the Transmission Company of Nigeria (TCN) went on strike and temporarily shut the grid.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2ZS4PD&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Electricity distribution firms, known as Discos, said the outage happened earlier on Monday and they were working with TCN to restore supplies. They did not state the cause of the outage.



Nigeria has installed capacity of 12,500 megawatts but produces about a quarter of that, leaving many Nigerians and businesses reliant on diesel-powered generators. Diesel prices have soared since the start of the year.



The nation&#8217;s sclerotic power grid, and its precarious energy supply, are often cited by businesses as a key issue hindering growth in Africa&#8217;s most populous country.



(Reporting by MacDonald Dzirutwe; Editing by Toby Chopra)

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Reuters

African countries to push common energy position at COP27

Sub-Saharan Africa’s growth to drop to 3.3% this year, World Bank says

Africa sees record venture capital investment, bucking global decline

Lesotho to hold election after years of instability

Lack of funding in focus as Congo hosts pre-COP27 climate talks

Prosus scraps $4.7 bln BillDesk deal, one of India’s biggest

Burkina Faso president resigns on condition coup leader guarantees his safety

World Bank approves $750 mln credit to boost Nigerian reforms

Kenya’s Ruto vows to cut spending, borrowing in move ‘back to sanity’

Japan’s Daikin to build air conditioners in Nigeria in renewed push

ANALYSIS- Nigeria squanders oil price bonanza as gasoline subsidies soar￼

Ghana negotiations with IMF to be fast-tracked : finance minister

Uganda announces oil block licensing round, criticises EU over pipeline

Ex-central bank chief named Kenyan finance minister amid rising inflation

South Africa to overhaul power utility Eskom’s board amid record outages

UAE healthcare firm Burjeel Holdings seeks local investors for IPO -sources

Nigeria suffers widespread blackouts after electricity grid fails

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Advertise With Us

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ANALYSIS- Nigeria squanders oil price bonanza as gasoline subsidies soar