
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



<p>NAIROBI, June 13 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.</p>



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



<p>*Kenya, Tanzania and Uganda finance ministers present their respective 2024/25 (July-June) fiscal budgets to their parliaments.</p>



<p>*Tanzania&#8217;s finance minister presents to parliament a report giving details of its 2023 economic performance.</p>



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



<p>Asian equities rallied on Thursday, while bond yields slid, as investors weighed cooling U.S. inflation against a more hawkish posture by the Federal Reserve.</p>



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



<p>Oil prices fell in early trade on Thursday as investors digested news that the U.S. Federal Reserve has opted against cutting interest rates in the near future, while ample U.S. crude and fuel stocks further weighed on the market.</p>



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



<p>The South African rand strengthened on Wednesday, as investors waited for collaboration signs between parties trying to form a government of national unity before lawmakers&#8217; swearing in on Friday.</p>



<h2 class="wp-block-heading" id="h-nigeria-economy">NIGERIA ECONOMY</h2>



<p>Nigeria&#8217;s President Bola Tinubu said on Wednesday economic reforms would continue despite increasing hardships that have fuelled public anger, and promised to send an executive bill to parliament soon to set a new minimum wage.</p>



<h2 class="wp-block-heading" id="h-nigeria-petroleum">NIGERIA PETROLEUM</h2>



<p>Singapore, Asia&#8217;s oil hub, will be receiving this week its first low-sulphur straight-run fuel oil (LSSR) cargo exported from Nigeria&#8217;s new Dangote refinery, according to ship-tracking data and market sources.</p>



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



<p>Kenya&#8217;s shilling gained ground on Wednesday, boosted by dollar inflows from tea exporters and low importer hard-currency demand, traders said.</p>



<h2 class="wp-block-heading" id="h-ghana-cocoa">GHANA COCOA</h2>



<p>Ghana&#8217;s cocoa output is expected to rebound strongly next season to over 800,000 metric tons, the cocoa regulator&#8217;s chief executive said on Wednesday.</p>



<h2 class="wp-block-heading" id="h-ghana-debt">GHANA DEBT</h2>



<p>Ghana&#8217;s finance ministry said on Wednesday it has finalised a pact with the official creditor committee to formalise a debt restructuring deal agreed in January, smoothing the path to a new funding tranche from the International Monetary Fund.</p>



<h2 class="wp-block-heading" id="h-zambia-mining">ZAMBIA MINING</h2>



<p>Zambia will set up a new entity for investment and trading in minerals as it seeks to earn more from its natural resources, the Cabinet said on Wednesday after giving its approval.</p>



<h2 class="wp-block-heading" id="h-botswana-mining">BOTSWANA MINING</h2>



<p>Chinese miner MMG Ltd will invest $700 million to double production at Botswana&#8217;s Khoemacau copper mine as part of a growth strategy to secure the critical metal, an official said on Wednesday.</p>



<p>((Compiled by Nairobi Newsroom))</p>


World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on June 13


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-scaled.jpg" alt="" class="wp-image-496201" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Prime Minister of Rwanda Edouard Ngirente addresses Tallinn Digital Summit in Tallinn, Estonia October 10. 2022. REUTERS/Ints Kalnins/File Photo</figcaption></figure>



<p>NAIROBI, June 13 (Reuters)&nbsp;&#8211;&nbsp;Rwanda has named statistics official Yusuf Murangwa as its new finance minister, Prime Minister Edouard Ngirente said, while the foreign minister will be Olivier Nduhungirehe, its ambassador to the Netherlands.</p>



<p>The appointments were unveiled in a statement on Wednesday, along with those of ministers holding the portfolios of public service and labour, gender and family promotion and the environment.</p>



<p>Murangwa, the new finance minister, was director-general of the government statistics office, the National Institute of Statistics of Rwanda, until his appointment.</p>



<p>The statement did not say where the former occupant, Uzziel Ndagijimana, had been reassigned, however, although Nduhungirehe&#8217;s predecessor will go to the interior ministry, Ngirente said in the statement.</p>



<p>Rwanda is set to hold its presidential election on July 15.</p>



<p>(Reporting by George Obulutsa; Editing by Jamie Freed and Clarence Fernandez)</p>


Tallinn Digital Summit in Tallinn

Rwanda appoints new finance, foreign ministers


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/HYOZR4V5OFMSPNBFMBMKEZUGSQ-820x547.jpg" alt="" class="wp-image-495992" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/HYOZR4V5OFMSPNBFMBMKEZUGSQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/HYOZR4V5OFMSPNBFMBMKEZUGSQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/HYOZR4V5OFMSPNBFMBMKEZUGSQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/HYOZR4V5OFMSPNBFMBMKEZUGSQ-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/HYOZR4V5OFMSPNBFMBMKEZUGSQ-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/HYOZR4V5OFMSPNBFMBMKEZUGSQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A girl carries a  jerrycan filled with water at a Tolou Keur garden in the Walalde department of Podor, in the Great Green Wall of the Sahara and the Sahel area, Senegal, July 11, 2021. REUTERS/Zohra Bensemra/File Photo</figcaption></figure>



<p>LONDON/DAKAR, June 12 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s Great Green Wall, which is meant to restore degraded landscapes and boost economies across the continent, is low on cash and unlikely to meet a 2030 completion goal, the president of the most recent UN summit on desertification told Reuters.</p>



<p>Launched in 2007, the project to reinstate 100 million hectares of land is only 30% complete, said Alain Richard Donwahi, president of the 2022 U.N. summit held in the Ivory Coast, who has access to the analysis of how it is progressing.</p>



<p>The project aims to restore an 8,000 kilometre-long (500 mile-long) corridor from the Atlantic to the Red Sea and benefits some of the world&#8217;s poorest countries at the edge of the Sahara Desert, including Ethiopia, Mali and Sudan.</p>



<p>&#8220;It is an understatement to stress that we are not in line with our common objective to complete by 2030,&#8221; Donwahi said on the sidelines of this month&#8217;s Bonn Climate Change Conference, where he was seeking renewed support for the landmark project.</p>



<p>&#8220;The project faces substantial challenges, primarily in terms of financing and implementation,&#8221; said Donwahi, who serves as president of the U.N. summit on desertification until the next one in Riyadh, Saudi Arabia, in December.</p>



<p>With no centralised monitoring entity in charge of the project, coordinating the work across the 11 African countries involved has been especially challenging, Donwahi said.</p>



<p>Meanwhile, some of those countries have been beset by humanitarian crises in recent years fuelled by military coups, war, or Islamist insurgencies.</p>



<p>The project was estimated to need at least $33 billion more funding to achieve its 2030 target, according to a progress review in 2020 by the U.N. Convention to Combat Desertification (UNCCD), which has provided occasional implementation reports.</p>



<p>International donors pledged some $19 billion at a 2021 summit, but by March of last year, only $2.5 billion had come through, with the rest due by end-2025, according to the most recent funding update from the UNCCD.</p>



<p>Those pledged funds are also being spread across different projects that may be dedicated to international development, but not necessarily to the Great Green Wall, Donwahi said.</p>



<p>The difficulty keeping track of funding so far has been a key stumbling block, he added, welcoming the launch in June of an &#8216;observatory&#8217; to monitor financing and progress.</p>



<p>Even so, it is unclear where the project will get the remaining billions needed to get back on track. Donwahi said more investment would be needed from international donors, the private sector and Green Wall countries themselves.</p>



<p>Donwahi noted some progress, including 3 million jobs created in the restoration of the some 30 million hectares (74 million acres) of degraded land, roughly equivalent to the size of the Philippines.</p>



<p>With climate change escalating, though, the issue was increasingly a problem the wider world needs to face, said Donwahi, adding: &#8220;For too long, desertification and drought have been considered African problems&#8221;.</p>



<p>(Editing by Katy Daigle and Alexander Smith)</p>


FILE PHOTO: Senegalese plant circular gardens in Green Wall defence against desert

Africa’s Great Green Wall to miss 2030 goal says UN desertification president


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



<p>ACCRA, June 12 (Reuters)&nbsp;&#8211;&nbsp;Ghana&nbsp;has finalized&nbsp;a&nbsp;pact with its official creditor committee to&nbsp;formalise a debt restructuring deal agreed in January,&nbsp;smoothing the path towards a release of further funding from the International Monetary Fund,&nbsp;its finance ministry said on Wednesday.</p>



<p>The&nbsp;outlines of the agreement&nbsp;pave the way for approval by the&nbsp;IMF&#8217;s executive board for a&nbsp;second review of a $3 billion loan package and release of the next tranche of $360 million.</p>



<p>&#8220;The IMF Board&#8217;s approval should also trigger more financial assistance from our development partners, particularly the World Bank,&#8221; the finance ministry said in a statement.</p>



<p>The announcement confirms a Reuters report last week that a memorandum of agreement was about to be formalised.</p>



<p>Ghana is restructuring its debt to help it emerge from its worst economic crisis in a generation after defaulting on&nbsp;much of&nbsp;its overseas debt in 2022 amid soaring servicing costs.</p>



<p>Each creditor nation is now expected to sign the agreement individually, the ministry said, adding it would&nbsp;also bolster ongoing restructuring discussions with private creditors.</p>



<p>Ghana&#8217;s sovereign dollar bonds were little changed by 0837 GMT, with most issues trading between 50-51 cents on the dollar, a distressed level that suggests the market expects trims on private debt.</p>



<p>The financial terms of the agreement with official creditors remained unchanged from the deal agreed in January, the ministry said, adding it provided &#8220;significant debt service relief&#8221; during the period of the IMF-supported programme.</p>



<p>Ghana, the world&#8217;s second largest cocoa producer, is also facing cocoa delivery delays due to poor harvests, a move that could cut its income and compound debt distress</p>



<p>(Reporting by Maxwell Adombila Akalaare; Additional reporting by Libby George in London; Writing by Sofia Christensen and Duncan Miriri; Editing by Bernadette Baum)</p>


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

Ghana, creditor panel agree on debt restructuring, paving way for IMF cash


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



<p>NAIROBI, June 12 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Wednesday.</p>



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



<p>Asian shares were subdued on Wednesday after data showed China&#8217;s consumer prices still remained soft, while the dollar held firm ahead of a key U.S. inflation report and Federal Reserve policy decision that would set the near-term course for interest rates.</p>



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



<p>Oil prices ticked higher on Wednesday amid upbeat global demand views from the U.S. Energy Information Administration and OPEC, reinforced by industry data showing U.S. crude oil inventories fell more than expected last week.</p>



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



<p>The South African rand gained on Tuesday, as political parties continued talks to try and form a government of national unity in the country, days away from the first sitting of lawmakers.</p>



<h2 class="wp-block-heading" id="h-nigeria-lng">NIGERIA LNG</h2>



<p>Nigeria&#8217;s state firm NNPC has signed an agreement with Golar LNG to deploy a floating liquefied natural gas (LNG) vessel off the coast of its oil-rich Niger Delta, NNPC said on Tuesday.</p>



<h2 class="wp-block-heading" id="h-nigeria-guinness">NIGERIA GUINNESS</h2>



<p>Singapore-based consumer group Tolaram on Tuesday agreed to buy Diageo&#8217;s 58.02% shareholding in Guinness Nigeria and enter into long-term licence and royalty agreements, the Nigerian brewer said in a statement.</p>



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



<p>Kenya&#8217;s shilling was unchanged on Tuesday, with dollar inflows from tea, coffee and horticulture exports expected to strengthen it in the coming days, traders said.</p>



<h2 class="wp-block-heading" id="h-ethiopia-budget">ETHIOPIA BUDGET</h2>



<p>Ethiopia&#8217;s budget deficit is estimated at 2.1% of gross domestic product next fiscal year, the East African country&#8217;s finance minister Ahmed Shide said on Tuesday.</p>



<h2 class="wp-block-heading" id="h-malawi-vice-president">MALAWI VICE PRESIDENT</h2>



<p>Malawi&#8217;s Vice President Saulos Klaus Chilima and nine others, including former first lady Shanil Dzimbiri, were killed when the military plane they were travelling in crashed, President Lazarus Chakwera said on Tuesday.</p>



<p>((Compiled by Nairobi Newsroom))</p>


African Markets – Factors to watch on June 12


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-820x547.jpg" alt="" class="wp-image-495905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



<p>ABUJA, June 12 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s President Bola Tinubu said on Wednesday economic reforms would continue despite increasing hardships that have fuelled public anger, and promised to send an executive bill to parliament soon to set a new minimum wage.</p>



<p>Tinubu, who came to power a year ago, removed a decades-old petrol subsidy that kept prices artificially low and devalued the currency, sending inflation soaring to 33.69% in April, its highest level in nearly three decades and eroding incomes.</p>



<p>In a television broadcast to mark Democracy Day, Tinubu acknowledged hardships caused by the reforms, which also include higher interest rates and the partial removal of electricity subsidies, but he said this would create a stronger foundation for future growth.</p>



<p>&#8220;Our economy has been in desperate need of reform for decades. It has been unbalanced because it was built on the flawed foundation of over-reliance on revenues from the exploitation of oil,&#8221; Tinubu said.</p>



<p>&#8220;As we continue to reform the economy, I shall always listen to the people and will never turn my back on you.&#8221;</p>



<p>Nigeria is grappling with the worst cost-of-living crisis in decades and labour unions last week suspended a strike called to pressure the government to agree a new monthly minimum wage.</p>



<p>The government has offered to double the minimum wage to 62,000 naira ($41.89) a month against labour demands of 250,000 naira, and Tinubu said his government had negotiated in good faith. The last minimum wage was set in 2019.</p>



<p>&#8220;We shall soon send an executive bill to the National Assembly to enshrine what has been agreed upon as part of our law for the next five years or less,&#8221; Tinubu said.</p>



<p>He did not say whether the bill would contain the government minimum wage proposal or a new figure.</p>



<p>Labour union leaders have said they would wait to hear back from Tinubu before deciding on next steps.</p>



<p>($1 = 1,480.0000 naira)</p>



<p>(Writing by MacDonald Dzirutwe; Editing by Jamie Freed)</p>


FILE PHOTO: Nigeria’s President Bola Tinubu looks on after his swearing-in ceremony in Abuja

Nigeria’s president says economic reforms will continue despite hardships


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="459" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/PJCHMVECYFJSHBL6FLC3BX34ZM-1.jpg" alt="" class="wp-image-425605" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/PJCHMVECYFJSHBL6FLC3BX34ZM-1.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/PJCHMVECYFJSHBL6FLC3BX34ZM-1-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/PJCHMVECYFJSHBL6FLC3BX34ZM-1-143x90.jpg 143w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A woman uses a trolley as she shops at a grocery store in East London, in the Eastern Cape province, South Africa, July 7, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



<p>JOHANNESBURG, June 11 (Reuters) &#8211; South African business confidence slipped for the second month in a row in May, dented by a decrease in tourist arrivals and merchandise imports in the leadup to last month&#8217;s election, data showed on Tuesday.</p>



<p>The South African Chamber of Commerce and Industry (SACCI) Business Confidence Index fell to 107.8 in May, down from 108.9 in April and 114.7 in March.</p>



<p>SACCI said the future course of business confidence would be largely determined by the makeup of the new government, after the African National Congress (ANC) lost its parliamentary majority for the first time since coming to power at the end of apartheid 30 years ago.</p>



<p>The ANC is talking to a broad spectrum of political parties about setting up a government of national unity.</p>



<p>&#8220;Political stability and policy certainty will be fundamental assurances that drive business and investor sentiment,&#8221; SACCI said in a statement. </p>



<p>(Reporting by Tannur Anders; Editing by Alexander Winning)</p>


Woman shops at a grocery store, in East London

South African business confidence index falls for second month in May


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="500" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-820x500.jpg" alt="" class="wp-image-495627" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-820x500.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-768x468.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-1536x936.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/J32EXN6PQFNGNFCW2LXA3JCAGE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: South African Rand coins are seen in this illustration picture taken October 28, 2020.  REUTERS/Mike Hutchings/Illustration/File Photo</figcaption></figure>



<p>JOHANNESBURG, June 11 (Reuters)&nbsp;&#8211;&nbsp;The South African rand gained in early trade on Tuesday, as political parties continued talks to try and form a government of national unity in the country, days away from the first sitting of lawmakers.</p>



<p>At 0725 GMT, the rand traded at 18.6450 against the dollar, around 0.44% stronger than its previous close.</p>



<p>The African National Congress (ANC) last week said it would look to form a government of national unity after it lost its parliamentary majority in an election in May, the first time since it came to power at the end of a apartheid 30 years ago.</p>



<p>Potential partners include the pro-business Democratic Alliance (DA) and the leftist Economic Freedom Fighters (EFF).</p>



<p>&#8220;The ongoing talks will remain at the front of investors&#8217; minds ahead of Friday when the National Assembly will hold its first sitting,&#8221; said Rand Merchant Bank analysts in a research note.</p>



<p>New lawmakers will be sworn-in, and the speaker, deputy speaker and next president will be elected.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was stronger in early deals, with the yield down 4.5 basis points to 10.33%.</p>



<p>(Reporting by Tannur Anders; Editing by Rashmi Aich)</p>


FILE PHOTO: South African Rand coins are seen in this illustration picture

South African rand gains as unity government talks continue


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



<p>NAIROBI, June 11 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.</p>



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



<p>Asian stocks traded in a narrow range on Tuesday, as investors pondered fresh political uncertainty in European markets after right-wing gains in elections and a snap poll in France revived concerns about the cohesion of the bloc.</p>



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



<p>Oil prices traded lower on Tuesday, as investors waited for key U.S. inflation data and the outcome of the Federal Reserve&#8217;s policy meeting to glean a clearer picture of where inflation is heading, and how that will affect fuel demand.</p>



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



<p>The South African rand strengthened on Monday, as focus remained on talks between political parties on forming a government of national unity in the country.</p>



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



<p>Kenya&#8217;s shilling was stable on Monday, as importers from the manufacturing sector held off from buying dollars as they anticipate that the local currency will strengthen, traders said.</p>



<h2 class="wp-block-heading" id="h-kenya-imf">KENYA IMF</h2>



<p>Kenya has reached a staff level agreement with the International Monetary Fund on Tuesday, the organisation said, paving the way for the disbursement of about $976 million.</p>



<h2 class="wp-block-heading" id="h-malawi-vice-president">MALAWI VICE PRESIDENT</h2>



<p>Malawi&#8217;s president Lazarus Chakwera said late on Monday that he had ordered that search and rescue operations continue until the plane carrying Vice President Saulos Klaus Chilima was found.</p>



<p>((Compiled by Nairobi Newsroom))</p>


African Markets – Factors to watch on June 11


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., as IMF Managing Director Christine Lagarde meets with Argentine Treasury Minister Nicolas Dujovne September 4, 2018. REUTERS/Yuri Gripas</figcaption></figure>



<p>NAIROBI, June 11 (Reuters)&nbsp;&#8211;&nbsp;Kenya has reached a staff level agreement with the International Monetary Fund on Tuesday, the organisation said, paving the way for the disbursement of about $976 million.</p>



<p>The fund said in a statement that if its Executive Board approves a second review of Kenya&#8217;s Resilience and Sustainability Facility, it would have immediate access to $120 million.</p>



<p>The lender also urged the East African nation to adjust its 2024/25 budget to include more revenue raising measures, as a worsening in the primary fiscal balance in the previous financial year and a tax collection shortfall was expected to keep domestic borrowing needs high.</p>



<p>Although Kenya has been facing liquidity challenges since 2022, it managed to sell a new $1.5 billion Eurobond from international markets in February, albeit at a steep price, to partly buy back another Eurobond that is maturing in June.</p>



<p>The issuance assuaged investor concerns about a potential default, restored foreign investors confidence in the economy and caused the shilling currency to strengthen against the dollar.</p>



<p>The fund said fiscal adjustments for 2024/25 could remedy the situation.</p>



<p>&#8220;Authorities have taken decisive steps towards fiscal consolidation by introducing several measures in the context of the draft 2024/25 Budget and the 2024 Finance Bill,&#8221; it added.</p>



<p>The finance minister is due to present the 2024/25 (July-June) budget to parliament on Thursday.</p>



<p>Parliament approved overall spending for the year at 4 trillion shillings ($31 billion), up from the 3.75 trillion shillings the minister presented last June for the 2023/24 year. That budget was later adjusted to 3.85 trillion shillings.</p>



<p>The 2024/25 budget will be accompanied by the Finance Bill 2024, a separate law outlining revenue-raising proposals which some critics say some could cripple sectors including financial services, transport, manufacturing and retail.</p>



<p>Kenya&#8217;s current IMF deal, which is for a total of $3.6 billion, was agreed in April 2021. The current review is the seventh under the program.</p>



<p>Last week, the central bank governor said Kenya will use part of a $1.2 billion World Bank budget support loan to make a payment of roughly $500 million on a Eurobond maturing this month.</p>



<p>($1 = 129.0000 Kenyan shillings)</p>



<p>(Additional reporting by Gursimran Kaur in Bangalore; Editing by Jacqueline Wong and Miral Fahmy)</p>


IMF logo is seen outside the headquarters building in Washington

IMF reaches staff level agreement with Kenya, urges fiscal consolidation


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-820x550.jpg" alt="" class="wp-image-495374" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows Tata Steel Port Talbot steel production plant, ahead of its planned transition from blast furnace to electric arc furnaces, at Port Talbot, Wales, Britain, March 11, 2024. REUTERS/Toby Melville/File Photo</figcaption></figure>



<p>LONDON, June 5 (Reuters)&nbsp;&#8211;&nbsp;A group of 10 West African countries has weighed into a debate over whether companies around the world should be allowed to use carbon offsets to cut emissions, arguing they are critical to attracting financing for climate and conservation efforts.</p>



<p>While some scientists and technical advisers have criticised offsets as undermining efforts to rein in climate change by permitting continued greenhouse gas emissions, others see them as a necessary tool to boost crucial finance.</p>



<p>In a letter to the Science-Based Targets initiative (SBTi), the world&#8217;s top corporate climate-target verifier, the 10 countries called on its trustees to ensure offsetting is included within net-zero guidance to companies.</p>



<p>The letter, signed by Burkina Faso, Cape Verde, Ivory Coast, Gambia, Guinea-Bissau, Guinea, Liberia, Mali, Senegal and Togo, said recent reports questioning the validity of offsetting emissions were the work of &#8220;misguided activists&#8221;.</p>



<p>There is growing debate over the ethics and efficacy of offsets, also called carbon credits, to excuse some corporate emissions. Offsets are generated by investing in projects that lower or prevent carbon emissions and can be traded.</p>



<p>On Wednesday, U.N. Secretary-General Antonio Guterres weighed into the fray, warning about &#8220;dubious carbon offsets that erode public trust while doing little or nothing to help the climate.&#8221;</p>



<p>&#8220;We need high integrity carbon markets that are credible and with rules consistent with limiting warming to 1.5 degrees. I also encourage scientists and engineers to focus urgently on carbon dioxide removal and storage – to deal safely and sustainably with final emissions from the heavy industries hardest to clean.&#8221;</p>



<p>The letter&#8217;s main author told Reuters that the lack of certainty in the SBTi&#8217;s guidance was damaging corporate confidence and slowing financing.</p>



<p>&#8220;The SBTi is, rightly or wrongly, the gatekeeper that can unlock finance from corporations around the world that wish to contribute to climate action &#8230; at the same time as (and not instead of) taking action to decarbonise their valuation,&#8221; said Ousmane Fall Sarr, coordinator of the West African Alliance on Carbon Markets and Climate Finance.</p>



<p>The SBTi&#8217;s current guidance only allows very limited use of renewable energy certificates which a company can use to reduce so-called Scope 2 emissions, those related directly to the energy it uses.</p>



<p>But SBTi&#8217;s board of trustees said on April 9 that, subject to certain rules and guidance, it would allow them for Scope 3 emissions, those associated with their supply chains, distribution and product use. This was welcomed by both companies and developing countries that are relying on carbon offset projects to generate cash.</p>



<p>Uncertainty remained, however, because the board had not followed SBTi&#8217;s normal procedure for policy-setting. SBTi has said it is reviewing the scientific research and debating the issue before making a final call.</p>



<p>In a statement to Reuters, it said it welcomed feedback from all stakeholders, and would open a public consultation once its research was complete.</p>



<h2 class="wp-block-heading" id="h-no-alternative">&#8216;NO ALTERNATIVE&#8217;</h2>



<p>The SBTi, formed by a coalition of non-profit organisations, is seen as a key player in global efforts to scale up the market for voluntary carbon credits by addressing quality concerns and ensuring they deliver the benefits they claim.</p>



<p>The United States added momentum on&nbsp;May&nbsp;28 by unveiling its own guidelines for voluntary carbon credits.</p>



<p>In their May 24 letter, the West African countries reminded the SBTi board of its pledge in April, which is still on its website. &#8220;To us, carbon markets is climate finance,&#8221; the letter said. &#8220;There is no alternative. We are at a pivotal moment.&#8221;</p>



<p>With climate financing still far below needed levels, the letter said offset revenues were crucial to supporting poor communities, encouraging conservation, making the transition to clean energy and adapting to the conditions of a warmer world.</p>



<p>The OECD has said poor nations&#8217; actual climate investment needs could total $1 trillion per year by 2025.</p>



<p>Ousmane said the lack of clarity on offsets would also hold up country efforts to calculate and update their national climate plans ahead of the COP29 United Nations climate summit in November in Baku, Azerbaijan.</p>



<p>Countries must update these &#8220;nationally determined contributions&#8221; before next year&#8217;s COP30 summit in Brazil, but are being encouraged to submit them this year.</p>



<p>(Reporting by Virginia Furness in London; Editing by Katy Daigle, Simon Jessop, Alexander Smith and Rod Nickel)</p>


FILE PHOTO: Views of Tata Steel Port Talbot steel production plant in Port Talbot, Wales

West African nations call for firms to be able to offset carbon


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



<p>June 10 (Reuters)&nbsp;&#8211;&nbsp;Emerging market assets fell on Monday with political uncertainties preoccupying investors after a spate of elections, while U.S. inflation reports and Federal Reserve policy decisions topped this week&#8217;s watchlist.</p>



<p>The MSCI EM equities index and the currencies gauge slipped 0.3% each after last week&#8217;s gains. The Chinese stock market was shut due to a public holiday.</p>



<p>At the top of investors&#8217; radar is the Fed&#8217;s rate decision due on Wednesday, with a slew of inflation reports throughout the week further shaping the outlook for policy after last week&#8217;s hot&nbsp;jobs data&nbsp;pointed to a robust U.S. economy.</p>



<p>&#8220;High U.S. rates can also exacerbate capital flight out of EMs in favour of the U.S., which will further tighten local financial conditions. A significant number of EMs will be hoping the Fed starts to cut rates soon,&#8221; said Stuart Cole, head macro economist at Equiti Capital.</p>



<p>Mexico&#8217;s ruling Morena party and its allies won a super-majority in the lower house of Congress but not the Senate,&nbsp;falling just short&nbsp;of the two-thirds majority needed in both houses to change the constitution.</p>



<p>The Mexican peso inched up 0.3% against the dollar in early trade after logging its steepest weekly decline since March 2020.</p>



<p>In Central and Eastern Europe, official results reported by the media showed Polish Prime Minister Donald Tusk&#8217;s Civic Coalition (KO)&nbsp;came first in European Parliament elections.</p>



<p>The zloty was up 0.1% against the euro, which fell sharply on political uncertainty after French President Emmanuel Macron called a snap parliamentary election following his party&#8217;s big losses to the far right in the EU vote.</p>



<p>Hungarian Prime Minister Viktor Orban&#8217;s Fidesz party&nbsp;was on track&nbsp;for its worst result in a national vote in nearly two decades, where a political newcomer trounced all other opposition parties.</p>



<p>The forint fell 0.2%, leading losses among CEE peers, after Hungarian inflation spiked less than expected, keeping rate cut expectations alive.</p>



<p>&#8220;In CEE, the far right were kept in check and did not do as well as in some other EU states&#8230;The far right certainly made gains and are now more of a force to be reckoned with, but they did not do quite as well as had been feared,&#8221; Cole added.</p>



<p>Israeli minister&nbsp;Benny Gantz&nbsp;resigned from Prime Minister Benjamin Netanyahu&#8217;s emergency cabinet, withdrawing the only centrist grouping from the otherwise far-right coalition. While this won&#8217;t pose an immediate threat of a government collapse, it could leave Netanyahu reliant on hardliners, with no end in sight to the Gaza war and a possible escalation in tensions.</p>



<p>Narendra Modi was sworn in as India&#8217;s prime minister for a third term. Stocks were muted after recouping steep losses made on June 4 following a shock election setback.</p>



<p>(Reporting by Ankika Biswas in Bengaluru)</p>


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

Emerging markets assets slip after elections, Fed decision in spotlight


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



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



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



<p>*Tanzania&#8217;s and Rwanda&#8217;s statistics offices are expected to release their respective consumer inflation data for May.</p>



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



<p>Asian stocks sank on Monday as traders heavily pared back on bets for Federal Reserve rate cuts this year given a still-tight U.S. labour market, while a snap election call in France sparked wider political concerns and weighed on the euro.</p>



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



<p>Oil prices nudged lower for a second straight session on Monday, weighed down by a firmer dollar as expectations of interest rate cuts were pushed out further following strong U.S. jobs data on Friday.</p>



<p>[O/R]</p>



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



<p>The South African rand gained on Friday, after the African National Congress (ANC) said it would seek to form a government of national unity following its failure to win a majority in last week&#8217;s election.</p>



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



<p>Kenya&#8217;s shilling &lt;KES=> gained ground against the dollar on Friday, as hard-currency demand waned and foreign investors bought the local unit to purchase short-term government debt, traders said.</p>



<h2 class="wp-block-heading" id="h-kenya-budget">KENYA BUDGET</h2>



<p>Kenya&#8217;s parliament has approved government spending of 4.00 trillion shillings ($31.01 billion) in the fiscal year that starts in July, up from the 3.75 trillion shillings it approved last June for the current fiscal year.</p>



<h2 class="wp-block-heading" id="h-african-development-bank">AFRICAN DEVELOPMENT BANK</h2>



<p>Africa needs quicker debt restructurings, more favourable lending terms and some $25 billion for the Africa Development Fund to avoid a lost decade, the head of its development bank said.</p>



<h2 class="wp-block-heading" id="h-mauritius-budget">MAURITIUS BUDGET</h2>



<p>Mauritius forecasts its budget deficit to drop to 3.4% of gross domestic product in 2024/25 from 3.9% in the fiscal year that ends in June, its finance minister said on Friday.</p>



<h2 class="wp-block-heading" id="h-ethiopia-budget">ETHIOPIA BUDGET</h2>



<p>Ethiopia&#8217;s cabinet on Friday approved a roughly 25% increase in its 2024/2025 budget, worth around one trillion birr ($17.51 billion), the Prime Minister&#8217;s office said.</p>



<h2 class="wp-block-heading" id="h-ghana-debt">GHANA DEBT</h2>



<p>Ghana and its official creditors have finalised core issues on a debt rework and will sign a draft memorandum of understanding very soon, two sources told Reuters, a key step required to access more International Monetary Fund financing.</p>



<p>((Compiled by Nairobi Newsroom))</p>


African Markets – Factors to watch on June 10


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-820x543.jpg" alt="" class="wp-image-494654" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-1536x1017.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/3QGF73WMKNLYRANMZD3IX5VW3A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Members of the ANC attend the National Executive Committee (NEC) meeting, looking at options to form a new South African government, its Secretary-General Fikile Mbalula said in Boksburg, in the East of Johannesburg, South Africa, June 6, 2024. REUTERS/Siphiwe Sibeko/ File Photo</figcaption></figure>



<p>JOHANNESBURG, June 7 (Reuters)&nbsp;&#8211;&nbsp;South African opposition parties said on Friday they were waiting for more details on a proposal by the African National Congress to form a government of national unity after it lost its majority for the first time in the democratic era.</p>



<p>The former anti-apartheid liberation movement once led by Nelson Mandela has run South Africa since 1994. But voters, angered by years of economic stagnation, high unemployment and corruption, punished it at the ballot box on May 29.</p>



<p>It remains the biggest party. But the lack of an outright majority means it must now share power &#8211; and President Cyril Ramaphosa said on Thursday the ANC leadership had decided that a broad collaboration was the best way forward for South Africa.</p>



<p>The Democratic Alliance (DA), the largest opposition party, said it was open to talks and was &#8220;committed to the process&#8221;.</p>



<p>&#8220;But the broad invitation to all parties &#8230; rather than limiting it to parties committed to our current constitutional dispensation, the rule of law and a social-market economy, has undoubtedly complicated matters,&#8221; spokesperson Werner Horn said.</p>



<p>&#8220;Our negotiation team will &#8230; have further meetings with other parties to listen to their views and reaction,&#8221; Horn added.</p>



<p>The ANC will have 159 of the 400 seats in the new National Assembly. Its nearest rivals are the pro-business, white-led DA, with 87 seats; the populist uMkhonto we Sizwe (MK) led by former President Jacob Zuma, with 58; and the hard-left Economic Freedom Fighters (EFF) with 39.</p>



<p>Ramaphosa said the ANC had already held constructive discussions with the EFF and DA, as well as with the smaller Inkatha Freedom Party (IFP), the National Freedom Party and the Patriotic Alliance.</p>



<p>Zuma&#8217;s MK said it expected to meet with the ANC soon.</p>



<p>During the election campaign, the DA had called any potential ANC tie-up with the EFF or MK a &#8220;doomsday coalition&#8221; that would tank the economy. Both smaller parties advocate nationalising mines and seizing land without compensation.</p>



<p>The EFF said it would not be part of a government involving the DA.</p>



<p>&#8220;We are not desperate for positions in government,&#8221; its deputy leader Floyd Shivambu told a press conference.</p>



<p>The socially conservative IFP, which has its power base among South Africa&#8217;s Zulu people, said it was not averse to the proposal of a national unity government.</p>



<p>&#8220;However, the devil is in the details, which will become clearer in the coming days,&#8221; it said in a statement.</p>



<p>The powerful COSATU trade union group, a major ANC ally, said it would engage with the ANC and another backer Communist Party in the coming days, including on the various &#8220;permutations and modalities&#8221; that would need to be in such a government.</p>



<p>The new parliament has to convene within two weeks of Sunday&#8217;s results declaration and one of its first acts must be to elect the president.</p>



<p>The constitutional deadline, which will fall on or near June 16, is putting pressure on the ANC and others to reach an agreement quickly.</p>



<p>(Additional reporting by Alexander Winning, Bhargav Acharya, Olivia Kumwenda-Mtambo and Siyabonga Sishi; Writing by Joe Bavier; Editing by Andrew Heavens)</p>


South Africa’s ANC meets to decide on preferred partners to govern

South African parties await details of ANC unity government proposal


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="756" height="426" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/Power-lines-Reuters.png" alt="" class="wp-image-494651" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/Power-lines-Reuters.png 756w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/Power-lines-Reuters-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/Power-lines-Reuters-160x90.png 160w" sizes="auto, (max-width: 756px) 100vw, 756px" /></figure>



<p>KAMPALA, June 7 (Reuters)&nbsp;&#8211;&nbsp;Uganda suffered a rare nationwide electricity blackout for several hours on Friday, its state-run power grid operator said, adding that electricity was gradually being restored late in the afternoon.</p>



<p>The grid shutdown happened during the testing a newly completed, Chinese-built $1.5 billion 600 megawatt hydropower plant on the Nile river in the country&#8217;s north, Uganda Electricity Transmission Company Limited (UETCL) said in a post on X platform.</p>



<p>&#8220;Uganda Electricity Transmission Company Limited informs the general public that a national blackout has been registered following a load rejection test at the Karuma hydro power plant,&#8221; the company posted on X on Friday.</p>



<p>In another post about two hours later, it said the grid had been restored partially.</p>



<p>Uganda has an installed power generation capacity of 2,000 MW, according to the energy ministry. It generates more power than it consumes and has been exploring the possibility of exporting the surplus to neighbours like South Sudan and Kenya.</p>



<p>(Reporting by Elias Biryabarema; Editing George Obulutsa, William Maclean)</p>


Power-lines-Reuters

Uganda hit by nationwide blackout for several hours, grid operator says


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="566" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-820x566.jpg" alt="" class="wp-image-494648" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-820x566.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-768x530.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-1536x1060.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6O6UNTB5OFO33C2TUIUM7RPBLY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Sybil Esth, a Sierra Leonean migrant, repatriated from Algeria six months ago, looks on while holding her child in Agadez, Niger, April 23, 2024. REUTERS/Stringer</figcaption></figure>



<p>NAIROBI, June 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s parliament has approved government spending of 4.00 trillion shillings ($31.01 billion) in the fiscal year that starts in July, up from the 3.75 trillion shillings it approved last June for the current fiscal year.</p>



<p>The finance ministry is due to present the final version of the budget next week, with slight variations expected to the proposed amount of spending.</p>



<p>&#8220;This house &#8230; will be approving a budget &#8230; of 4.006 trillion shillings,&#8221; Ndindi Nyoro, chairperson of parliament&#8217;s Budget and Appropriations Committee, said on Thursday ahead of the approval.</p>



<p>The 2024/25 budget will be presented alongside a highly contested piece of draft legislation, the Finance Bill 2024.</p>



<p>The bill proposes tax changes aimed at increasing revenue collection, but critics say it could cripple sectors ranging from financial services and manufacturing to retail.</p>



<p>President William Ruto defends the tax measures as necessary to curb the country&#8217;s reliance on borrowing and fund spending priorities.</p>



<p>($1 = 129.0000 Kenyan shillings)</p>



<p>(Reporting by George Obulutsa; Editing by Alexander Winning)</p>


Migrants wait for their departure to Libya in Agadez

Kenya parliament approves $31 bln government spending next fiscal year


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



<p>NAIROBI, June 7 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday.</p>



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



<p>A financial sector trade union representing workers in banks, insurance companies and other businesses has called for a two-day protest strike following the arrest of its secretary-general.</p>



<p>Niger court will debate about a possible lifting of ousted President Mohamed Bazoum&#8217;s immunity and his incarceration.</p>



<p>The United States and Kenya are due to hold their sixth in-person negotiating round under the Strategic Trade and Investment Partnership (STIP) in Mombasa, Kenya.</p>



<p>Mauritius&#8217; Finance Minister Renganaden Padayachy is due to present the 2024/25(July-June) budget to parliament.</p>



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



<p>Asian stocks are set to snap a two-week losing streak on Friday after major central banks kick-started their rate easing cycle this week, adding to expectations the U.S. Federal Reserve could soon follow suit.</p>



<p>[MKTS/GLOB]</p>



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



<p>Oil prices ticked higher on Friday, as reassurances from OPEC+ members Saudi Arabia and Russia indicating readiness to pause or reverse output agreements, but markets were headed for their third straight weekly losses.</p>



<p>[O/R]</p>



<h2 class="wp-block-heading" id="h-african-markets">AFRICAN MARKETS</h2>



<p>The Nigerian and Kenyan currencies are expected to fall over the next week to Thursday, while Zambia&#8217;s and Ghana&#8217;s are seen trading relatively stable and Uganda&#8217;s could gain, traders said.</p>



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



<p>South Africa&#8217;s rand was steady on Thursday, as markets awaited the outcome of a meeting between senior African National Congress (ANC) leadership figures on the future of the country&#8217;s government.</p>



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



<p>Kenya&#8217;s shilling gained ground on Thursday, helped by commercial banks selling off their long dollar positions, traders said.</p>



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



<p>Kenya&#8217;s central bank held its benchmark lending rate at 13.0% on Wednesday, saying inflation was stable within its near-term target range, and it aimed to keep exchange rate stability.</p>



<h2 class="wp-block-heading" id="h-sudan-politics">SUDAN POLITICS</h2>



<p>Sudan&#8217;s army said on Thursday it would deliver a &#8220;harsh response&#8221; to an attack a day earlier on a village by the Sudanese paramilitary Rapid Support Forces that pro-democracy activists said killed more than 100 people.</p>



<h2 class="wp-block-heading" id="h-climate-change-africa">CLIMATE CHANGE AFRICA</h2>



<p>A group of 10 West African countries has weighed into a debate over whether companies around the world should be allowed to use carbon offsets to cut emissions, arguing they are critical to attracting financing for climate and conservation efforts.</p>



<h2 class="wp-block-heading" id="h-nigeria-fidelity-bank">NIGERIA FIDELITY BANK</h2>



<p>Nigeria&#8217;s Fidelity Bank said on Thursday it would raise up to 127.1 billion naira ($88 million) via a rights issue and a public share offering to comply with a new minimum capital requirement for local lenders introduced by the central bank in March.</p>



<p>((Compiled by Nairobi Newsroom))</p>


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Reuters

African Markets – Factors to watch on June 13

Rwanda appoints new finance, foreign ministers

Africa’s Great Green Wall to miss 2030 goal says UN desertification president

Ghana, creditor panel agree on debt restructuring, paving way for IMF cash

African Markets – Factors to watch on June 12

Nigeria’s president says economic reforms will continue despite hardships

South African business confidence index falls for second month in May

South African rand gains as unity government talks continue

African Markets – Factors to watch on June 11

IMF reaches staff level agreement with Kenya, urges fiscal consolidation

West African nations call for firms to be able to offset carbon

Emerging markets assets slip after elections, Fed decision in spotlight

African Markets – Factors to watch on June 10

South African parties await details of ANC unity government proposal

Uganda hit by nationwide blackout for several hours, grid operator says

Kenya parliament approves $31 bln government spending next fiscal year

African Markets – Factors to watch on June 7

News Tips

Advertise With Us

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