<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/3ILJCW5F2RJVJFNW275DPBOOJE-820x530.jpg" alt="" class="wp-image-414487" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/3ILJCW5F2RJVJFNW275DPBOOJE-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/3ILJCW5F2RJVJFNW275DPBOOJE-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/3ILJCW5F2RJVJFNW275DPBOOJE-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/3ILJCW5F2RJVJFNW275DPBOOJE-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/3ILJCW5F2RJVJFNW275DPBOOJE.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Colonel Assimi Goita, leader of Malian military junta, attends the Economic Community of West African States (ECOWAS) consultative meeting in Accra, Ghana September 15, 2020. REUTERS/ Francis Kokoroko</figcaption></figure>



BAMAKO, June 6 (Reuters) &#8211; Mali&#8217;s military junta will take 24 months from March 2022 to restore civilian rule after an August 2020 coup, its spokesman said on Monday, the latest move in negotiations with regional bloc ECOWAS to lift sanctions crippling the economy



The West African country&#8217;s military leaders have been under pressure to restore democracy since they toppled the government and failed on a promise to hold elections in February, prompting sanctions from the Economic Community of West African States (ECOWAS).&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2TP0CA&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;The duration of the transition is set at 24 months,&#8221; the transitional government spokesman Abdoulaye Maiga said on national television, with a start date of March 26, 2022.



Maiga said the decree followed an &#8220;advanced stage of negotiations with ECOWAS&#8221; and Mali hoped sanctions would be lifted.



&#8220;The adoption of this decree is proof of the willingness of (Malian) authorities to dialogue with ECOWAS,&#8221; he added.



Mali&#8217;s putsch leaders and regional heads of state have been at odds over a proposed five-year election timeline that was then revised to two &#8211; a delay that was previously rejected as too long by ECOWAS.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2VN0NL&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The ECOWAS bloc did not immediately comment on the 24-month decree adopted on Monday.



The length of the transition has also caused a rift with Mali&#8217;s partners including the United States and former colonial power, France.



Maiga said both the ECOWAS mediator on the crisis, former Nigeria President Goodluck Jonathan, and heads of state had been informed of the 24-month decree.



&#8220;We are hopeful&#8230; the sanctions will be lifted imminently,&#8221; he said, adding that an electoral timeline would follow.



West African heads of state met in Ghana&#8217;s capital Accra over the weekend to discuss the situation and agreed not to lift sanctions, which include border closures and restrictions on financial transactions, unless interim leaders proposed a shorter transition.



The leaders are expected to convene for another summit before July 3.



Military governments in neighbouring Burkina Faso and Guinea are also facing similar threats from ECOWAS for dragging their feet on democratic transitions.



(Reporting by Fadimata Kontao and Bate Felix; Writing by Sofia Christensen; Editing by Grant McCool and Richard Pullin)

3ILJCW5F2RJVJFNW275DPBOOJE

Mali junta adopts 24-month transition to democratic rule from March

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/UDJTUDDMDROBPMUGKGPRYGOQAU-820x547.jpg" alt="" class="wp-image-414276" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/UDJTUDDMDROBPMUGKGPRYGOQAU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/UDJTUDDMDROBPMUGKGPRYGOQAU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/UDJTUDDMDROBPMUGKGPRYGOQAU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/UDJTUDDMDROBPMUGKGPRYGOQAU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/UDJTUDDMDROBPMUGKGPRYGOQAU.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Former South African President Jacob Zuma speaks with his legal counsel in court during his corruption trial in Pietermaritzburg, South Africa, October 26, 2021. Jerome Delay/Pool via REUTERS</figcaption></figure>



June 7 (Reuters)&nbsp;&#8211;&nbsp;South Africa&nbsp;said&nbsp;on Monday the&nbsp;United Arab Emirates had arrested Rajesh Gupta and Atul Gupta, brothers who face charges of political corruption under former South African president Jacob Zuma.



Confirming South Africa&#8217;s statement on Tuesday, Dubai police said on Twitter that it had coordinated with South African authorities &#8220;regarding the extradition file to complete the legal procedures&#8221;.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AC6N2VW011&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



South Africa&#8217;s Ministry of Justice and Correctional Services&nbsp;said on Monday there were&nbsp;discussions between various law enforcement agencies in the UAE and South Africa &#8220;on the way forward&#8221;.&nbsp;The two nations agreed an extradition treaty last year.



The brothers are accused of using connections with Zuma, who ruled from 2009 to 2018, to win contracts, misappropriate state assets, influence cabinet appointments and siphon off state funds. Zuma and the Guptas deny any wrongdoing.



The Indian-born brothers left South Africa after Zuma was ousted in 2018. An inquiry was established in 2018 to examine allegations of graft during Zuma&#8217;s years in power.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2TK1G5&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a><a href="https://www.reutersconnect.com/all?search=all%3AL2N2WR19L&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The UAE ratified an extradition treaty with South Africa in April 2021, a move that South African President Cyril Ramaphosa&#8217;s government hoped would lead to the return of the Guptas to face charges.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2NR4A9&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



South Africa&#8217;s largest opposition party welcomed the arrests.



&#8220;We hope that this is indeed the beginning of arrests and prosecution of those who have &#8211; locally and abroad &#8211; looted our country for years and are directly responsible for the hardships that millions of South Africans face today,&#8221; the Democratic Alliance said in a statement.



(Reporting by Bhargav Acharya in Bengaluru, James Macharia Chege in Johannesburg and Nadine Awadalla in Dubai; Editing by Gareth Jones)

UDJTUDDMDROBPMUGKGPRYGOQAU

South Africa says UAE arrests Gupta brothers, wanted on corruption charges

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



BLANTYRE, June 6 (Reuters)&nbsp;&#8211;&nbsp;Malawi has requested a four-year extended credit facility to help with balance of payments difficulties, the International Monetary Fund (IMF) said on Monday.



The donor-dependent southern African country has been experiencing acute foreign currency shortages. Late last month it allowed its kwacha currency to weaken 25% against the dollar.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL3N2XJ100&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;The authorities have requested an arrangement (on) the back of the protracted balance of payments problem,&#8221; the IMF said in a statement after talks with Malawian government officials and private sector representatives.



<h3 class="wp-block-heading" id="h-read-more-imf-cuts-global-growth-forecasts-on-russia-ukraine-war-says-risks-to-economy-have-risen-sharply">Read more: <a href="https://www.cnbcafrica.com/2022/imf-cuts-global-growth-forecasts-on-russia-ukraine-war-says-risks-to-economy-have-risen-sharply/">IMF cuts global growth forecasts on Russia-Ukraine war, says risks to economy have risen sharply</a></h3>



The fund said restoring debt sustainability and resolving a case involving alleged misreporting of foreign-exchange reserves were pre-requisites for IMF support.



&#8220;While the authorities are addressing these issues, the IMF team conducted a mission to agree on (a) macroeconomic framework, policies and reforms,&#8221; it added.



The IMF said it welcomed the move to normalise the forex market and that Malawi&#8217;s authorities had engaged a debt advisor to suport efforts to address unsustainable public debt.



(Writing by Alexander WinningEditing by James Macharia Chege)

BE2FA7DW6VJP3AYQ5S5CUCMQO4

IMF says Malawi requests four-year credit facility

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1240778474-820x546.jpg" alt="" class="wp-image-417633" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1240778474-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1240778474-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1240778474-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1240778474-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1240778474-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1240778474-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>GDANSK, POLAND &#8211; 2022/05/19: Ryanair planes are seen at the Lech Walesa Airport in Gdansk. (Photo by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



DUBLIN, June 6 (Reuters)&nbsp;&#8211;&nbsp;Ryanair&nbsp;RYA.I&nbsp;is requiring South African passengers to prove their nationality before travelling by completing a test in Afrikaans, a language used by just by 12% of the population that has long been identified with apartheid and the white minority.



Europe&#8217;s largest airline by passenger numbers, which does not operate flights to and from South Africa, said it required any UK-bound passengers from the country to fill in the &#8220;simple questionnaire&#8221; due to what it described as a high prevalence of fraudulent South African passports.



&#8220;If they are unable to complete this questionnaire, they will be refused travel and issued with a full refund,&#8221; a spokesman for the Irish airline said.



The UK High Commission in South Africa said on Twitter that the test was not a British government requirement to enter the United Kingdom.



<h3 class="wp-block-heading" id="h-read-more-south-africa-s-comair-suspends-flights-until-funding-secured">Read more: <a href="https://www.cnbcafrica.com/2022/south-africas-comair-suspends-flights-until-funding-secured/">South Africa’s Comair suspends flights until funding secured</a></h3>



Ryanair said it would apply to any South African passport holder flying to Britain from another part of Europe on the carrier. The airline did not immediately respond to a query about why it would apply to those routes, given Britain says it is not a requirement.



Afrikaans is the third most spoken of 11 official languages in South Africa, used by 12% of the 58 million people in the country. It was considered the official language until the end of apartheid in 1994.



The language was born of Dutch settlement in South Africa in the 17th century, and has long been identified with racial classification and associated with the ideology of apartheid which was primarily enforced and propagated by the white minority National Party from 1948.



Its dominance under apartheid was seen as a symbol of inequality imposed on previous generations by restrictions on where people could live, work, go to school and own land.



(Reporting by Padraic Halpin in Dublin and Promit Mukherjee in Johannesburg; Editing by Alison Williams)

Ryanair planes are seen at the Lech Walesa Airport in Gdansk

Ryanair forces South Africans to prove nationality with Afrikaans test

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="614" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1288637369-820x614.jpg" alt="" class="wp-image-417600" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1288637369-820x614.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1288637369-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1288637369-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1288637369-768x575.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1288637369-1536x1150.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1288637369-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>The United States two-dollar bill ($2) is a current denomination of United States currency. A portrait of Thomas Jefferson, the third President of the United States (1801–09), is featured on the obverse of the note. The reverse features an engraving of the painting Declaration of Independence by John Trumbull. photographed by Peter Dazeley Nov 2020 in his studio in London UK</figcaption></figure>



LAGOS, June 2 (Reuters) &#8211; Capital inflows into Nigeria fell 28% to $1.57 billion in the first quarter of this year compared with the previous quarter, the National Bureau of Statistics (NBS) said on Thursday.



Portfolio investment and foreign direct investment accounted for 70% of the inflows, and the United Kingdom was the biggest source of capital going into Nigeria, the NBS said.



Nearly two-thirds of the inflows went to Lagos, the country&#8217;s commercial capital.



Africa&#8217;s biggest economy and largest oil producer struggles with dollar shortages, putting pressure on the exchange rate.



Record high oil prices have not eased foreign exchange shortages, as the country contends with theft of crude in the Niger Delta and has to import gasoline because none of its major refineries are operating.



(Reporting by MacDonald Dzirutwe; editing by Jonathan Oatis)

Several two US dollar bill sitting in a pile

Capital inflows into Nigeria fell 28% to $1.6 billion in Q1 -stats bureau

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1232837884-820x547.jpg" alt="" class="wp-image-417581" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1232837884-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1232837884-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1232837884-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1232837884-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1232837884-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1232837884-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>A pedestrian wearing a protective face mask passes a Safaricom Plc store in central Nairobi, Kenya, on Tuesday, May 11, 2021. Revenue from M-Pesa, Safaricom&#8217;s mobile-money service, is expected to grow after more customers have adopted cashless transactions during the coronavirus pandemic. Photographer: Patrick Meinhardt/Bloomberg via Getty Images</figcaption></figure>



NANYUKI, Kenya, June 2 (Reuters)&nbsp;&#8211;&nbsp;M-Pesa, the mobile phone-based African money transfer service owned by Kenya&#8217;s Safaricom Plc&nbsp;SCOM.NR, and Visa Inc&nbsp;V.N&nbsp;launched a virtual payment card on Thursday in a bid to capture some of the continent&#8217;s $40 billion-a-year subscriptions market.



The M-Pesa Global Pay Visa Virtual card will allow users to securely pay 100 million foreign merchants like Amazon and Alibaba from their mobile phones, without the need for credit cards or accounts with processors such as PayPal.



The virtual card is also targeted at the fast-growing subscriptions markets in Africa for services like Netflix&nbsp;NFLX.O&nbsp;and Spotify&nbsp;SPOT.N, said M-Pesa Africa Managing Director Sitoyo Lopokoiyit.



The virtual card is initially available to more than 30 million M-Pesa users in Kenya and will be rolled out to Tanzania, where testing is going on, Mozambique, Congo, Lesotho and Ghana by April 2023, Lopokoiyit said.



<h3 class="wp-block-heading" id="h-read-more-kenya-s-central-bank-tests-public-opinion-about-digital-currencies">Read more: <a href="https://www.cnbcafrica.com/2022/kenyas-central-bank-tests-public-opinion-about-digital-currencies/">Kenya’s central bank tests public opinion about digital currencies</a></h3>



M-Pesa launched 15 years ago as a simple money transfer service and now accounts for roughly half of Safaricom&#8217;s revenue as consumers use it for purchases, savings, borrowing and insurance. Safaricom is partly owned by South Africa&#8217;s Vodacom Group&nbsp;VODJ.J.



&#8220;A lot of M-Pesa customers today don’t have bank accounts… it (the virtual card) is a catalyst for e-commerce and digital payments,” said Visa official Alex McCrea.



Transactions will be subject to the M-Pesa platform&#8217;s limits in the local Kenyan currency of 150,000 shillings ($1,285) for a single transaction and a daily limit double that. Users will be able to use the virtual card while travelling abroad.



Transactions on the virtual card will be secured with a unique security code sent to the user&#8217;s mobile phone and the user&#8217;s M-Pesa personal identification number.



($1 = 116.7500 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by David Holmes and Cynthia Osterman)

Safaricom Plc Kiosks Ahead of Full Year Earnings

Safaricom’s M-Pesa, Visa offer virtual card for global transactions

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1239656805-820x573.jpg" alt="" class="wp-image-417570" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1239656805-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1239656805-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1239656805-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1239656805-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1239656805-1536x1073.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1239656805-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>ANKARA, TURKIYE &#8211; APRIL 1: In this photo illustration the logo of &#8220;Meta&#8221; is displayed on computer screen behind the VR headset in Ankara, Turkiye on April 1, 2022. (Photo by Ercin Erturk/Anadolu Agency via Getty Images)</figcaption></figure>



JOHANNESBURG, June 2 (Reuters)&nbsp;&#8211;&nbsp;As South African artist Fhatuwani Mukheli paints a portrait of a woman at his Johannesburg studio, he is creating not only the work before him but also a digital asset destined to adorn a virtual world.



Mukheli uses The Tree, an online marketplace for South African artists to promote and sell their art as non-fungible tokens (NFTs).



&#8220;There&#8217;s a virtual world where people are buying land in it,&#8221; said Mukheli, referring to the metaverse, a three-dimensional digital reality that tech giants like Microsoft and Facebook say is the future of the internet.



&#8220;People have properties there &#8230; and your art can be on those walls.&#8221;



Mukheli&#8217;s customers receive both the actual canvas and the NFT, while other artists on The Tree sell up to five limited edition NFTs for each piece, akin to digital prints. Mukheli has already made thousands of dollars by using the platform.



&#8220;I think it&#8217;s important as an artist and a creative to always play where the ball is going and not necessarily where it&#8217;s at,&#8221; said Trevor Stuurman, one of the four other artists currently showcasing their work on The Tree.



Critics say blockchains, digital ledgers used to store information, are not climate-friendly because they guzzle computing power.



The Tree says it saves energy by running on Polygon, a blockchain that uses a fraction of the power, and offsets each transaction by sending money to Greenpop, an environmental organisation that plants trees across Sub-Saharan Africa.



&#8220;It&#8217;s not just about art and artists and the story, it&#8217;s about making sure that this growth in technology for artists doesn&#8217;t come at a cost to the planet,&#8221; said Dan Portal, co-founder of The Tree.



(Reporting by Sisipho Skweyiya; Writing by Hereward Holland;Editing by Alison Williams)

Metaverse – VR headset – Oculus

South African company helps hang local art in virtual world

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="754" height="452" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/03/Coronavirus_Shutterstock.jpg" alt="Clarification on COVID-19 “hotspots” as SA moves to level 3 lockdown" class="wp-image-361805" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/03/Coronavirus_Shutterstock.jpg 754w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/Coronavirus_Shutterstock-300x180.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/Coronavirus_Shutterstock-696x417.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/Coronavirus_Shutterstock-701x420.jpg 701w" sizes="(max-width: 754px) 100vw, 754px" /><figcaption>Clarification on COVID-19 “hotspots” as SA moves to level 3 lockdown</figcaption></figure>



JOHANNESBURG, June 2 (Reuters)&nbsp;&#8211;&nbsp;Deaths on the African continent from COVID-19 are expected to fall by nearly 94 percent in 2022 compared to last year, modelling by the World Health Organization (WHO) showed on Thursday.



2021 was the pandemic&#8217;s most deadly year in Africa, with COVID-19 the seventh major cause of death, just below malaria.



&#8220;Our latest analysis suggests that estimated deaths in the African region will shrink to around 60 a day in 2022. &#8230; Last year, we lost an average of 970 people every day,&#8221; WHO Africa director Matshidiso Moeti told a virtual news conference.



The gulf in the numbers is due to increased vaccination, improved pandemic response and natural immunity from prior infections, the WHO said.



COVID deaths in Africa have been uneven. Richer countries and southern African nations have had around double the mortality rates of poorer ones in other parts of Africa, partly due to co-morbidities that increase the risk of death, the WHO analysis found.



Around 23,000 deaths are expected by the end of the year, provided current variants and transmission patterns remain the same, according to the analysis.



The findings infer that only one in 71 COVID-19 cases are recorded in Africa and that about one in three deaths have been missed.



Although African countries struggled early in the pandemic to secure COVID vaccines as rich countries hoarded available doses, many are now well-supplied with shots but are having trouble getting them into arms. The reasons include hesitancy and logistics.



As of the end of May, Africa had reported over 11.8 million confirmed COVID cases and more than 250,000 deaths.



&#8220;The job is not yet done. Every time we sit back and relax, COVID-19 flares up again. The threat of new variants remains real, and we need to be ready to cope with this ever-present danger,&#8221; Moeti told the briefing.



(Reporting by Bhargav Acharya in Bengaluru and Alexander Winning in Johannesburg; Editing by James Macharia Chege and Tomasz Janowski)

Clarification on COVID-19 “hotspots” as SA moves to level 3 lockdown

Africa’s COVID deaths to fall by 94% in 2022, WHO analysis shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1215982515-820x547.jpg" alt="" class="wp-image-417557" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1215982515-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1215982515-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1215982515-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1215982515-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1215982515-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1215982515-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Signage for Vedanta Resources Ltd. is displayed at the company&#8217;s office building in Mumbai, India, on Thursday, March 6, 2020. The worlds most&nbsp;expansive lockdown&nbsp;to contain the coronavirus could slow the pace of distressed dealmaking in India, according to Vedanta Head of Mergers and Acquisitions Aarti Raghavan. Photographer: Kanishka Sonthalia/Bloomberg via Getty Images</figcaption></figure>



LUSAKA, June 1 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s decision three years ago to take control of a copper mine in the country&#8217;s north will be subject to an arbitration hearing in January in London, the country&#8217;s mines minister said on Wednesday, amid a lengthy dispute over the mine&#8217;s ownership.



Zambia in May 2019 handed control of Konkola Copper Mines (KCM) to a state-appointed provisional liquidator, triggering a legal battle with its previous owner, India-listed Vedanta&nbsp;VDAN.NS, with arguments heard in Zambia and South Africa and the dispute going to international arbitration.



Zambia&#8217;s government accused Vedanta at the time of failing to honour licence conditions, including promised investment &#8211; which Vedanta has denied.



Mines Minister Paul Kabuswe said the referral to arbitration came after legal rulings.



&#8220;Following the Court of Appeal&#8217;s decision to stay proceedings and refer the matter back to arbitration – a decision supported by the Supreme Court – a hearing is now set for 9th January 2023,&#8221; Kabuswe said in a statement.



<h3 class="wp-block-heading" id="h-read-more-zambian-president-thanks-china-for-help-in-debt-restructuring">Read more: <a href="https://www.cnbcafrica.com/2022/zambian-president-thanks-china-for-help-in-debt-restructuring/">Zambian President thanks China for help in debt restructuring</a></h3>



&#8220;In the interim, efforts are continuing to find a solution that unlocks KCM&#8217;s potential and delivers maximum benefit to the people of Zambia.&#8221;



Kabuswe again denied speculation that the government plans to give KCM back to Vedanta, saying Vedanta had &#8220;sacrificed&#8221; its licence to operate in the country. The company has offered to invest up to $1.5 billion in KCM if it resumes control of the mine.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2X009W&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;We have always stated that we [want to] amicably resolve the issues surrounding KCM without delay as a way of revitalizing the country&#8217;s economy,&#8221; a Vedanta spokesperson said in a statement, adding that the investment Vedanta has promised could help Zambia reach its goal of producing 3 million tonnes of copper a year in the next decade.



Kabuswe also commented on Mopani Copper Mines, another major mining operation for which the government is seeking a new investor. He said &#8220;market-based capital raising solutions should be implemented at Mopani, rather than relying directly or indirectly on the limited public finances&#8221;.



Reuters reported on Tuesday that previous owner Glencore was helping Mopani Copper Mines make ends meet, including through letters of credit, according to sources.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2XN1NA&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Chris Mfula; Additional reporting and writing by Helen Reid; Editing by David Holmes, Aurora Ellis and Sandra Maler)

Vedanta VP Aarti Raghavan Says India Stressed Deals To Slow

Arbitration hearing set for January in Vedanta-Zambia dispute

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



LUANDA, June 1 (Reuters)&nbsp;&#8211;&nbsp;The initial public offering (IPO) of a 10% stake in Angola&#8217;s largest private bank BAI, seen as a test case in a far-reaching privatisation push, has been priced at the top of an indicated range, BAI said on Wednesday.



The southern African country is trying to modernise its economy and attract private investment, and the local stock exchange hopes BAI&#8217;s listing will set the stage for many more.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2X236R&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



BAI said in a statement that the final price of the shares offered by state-owned oil and diamond companies Sonangol and Endiama had been set at 20,640 kwanzas (roughly $50) per share.



A prospectus had earlier indicated the price range was between 17,200 and 20,640 kwanzas.



At 20,640 kwanzas, the 10% stake sale will raise over $97 million, according to a Reuters calculation.



OPEC member Angola plans to privatise more than 60 state assets this year, though the sale of a 30% stake in Sonangol, seen as the crown jewel of the privatisation drive, could take another two years.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2U43AC&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



BAI said more details about the IPO would be disclosed on Thursday, ahead of the listing planned on the BODIVA exchange on June 9.



BODIVA was founded in 2014. But with Angola&#8217;s economy dominated by state-owned companies &#8211; a legacy of its socialist past &#8211; the exchange has mainly served as a market for government bonds, trading debt of around $2 billion in 2020.



($1 = 411.7300 kwanzas)



(Reporting by Miguel Gomes; Writing by Alexander WinningEditing by Barbara Lewis)

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

Test-case Angolan bank IPO prices at top of range

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/YZDL4H7DMZLK3LIV7EKPBTDALY-820x547.jpg" alt="" class="wp-image-414543" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/01/YZDL4H7DMZLK3LIV7EKPBTDALY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/YZDL4H7DMZLK3LIV7EKPBTDALY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/YZDL4H7DMZLK3LIV7EKPBTDALY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/YZDL4H7DMZLK3LIV7EKPBTDALY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/01/YZDL4H7DMZLK3LIV7EKPBTDALY.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Leaders from the Economic Community of West African States (ECOWAS) attend an extraordinary summit to discuss a proposal by transitional authorities in Mali to delay elections and a return of the constitutional rule in Accra, Ghana January 9, 2022. Ange Servais Mahouena/Ivory Coast Presidential Press Service/Handout via REUTERS</figcaption></figure>



ABUJA, June 1 (Reuters)&nbsp;&#8211;&nbsp;The construction of a new gas pipeline from Africa to Europe moved a step closer on Wednesday after Nigeria gave the go ahead to its state-oil firm NNPC to sign a memorandum of understanding with West African regional body ECOWAS.



The nod comes as African gas supplies to Europe grow in importance with the Ukraine crisis casting doubt on Russian energy exports. Algeria has already agreed to raise its supply to Italy.



Nigeria and Morocco signed a joint venture in 2016 to construct the pipeline which will carry gas to 15-West African countries and through Morocco to Spain and Europe, junior oil minister Timipre Sylva said at a cabinet meeting in Abuja while presenting the request for approval.



<h3 class="wp-block-heading" id="h-read-more-west-africa-bloc-chairman-says-mali-s-coup-was-contagious">Read more: <a href="https://www.cnbcafrica.com/2022/west-africa-bloc-chairman-says-malis-coup-was-contagious/">West Africa bloc chairman says Mali’s coup was “contagious”</a></h3>



&#8220;We are still at the front-end engineering design,&#8221; Sylva said, after which the cost and the funding of the pipeline would be determined. He did not say when construction would begin, nor be completed.



Nigeria and Morocco said last year that the pipeline will be 5,660 km (3,517 miles) long, and that construction will be in phases covering 25 years. They have launched feasibility studies with a plan to build the pipeline both onshore and offshore.



The project, which has been touted as conducive to economic integration in West Africa, would also add to the network of existing gas pipelines carrying supplies to Europe via the Mediterranean Sea.



Wednesday&#8217;s cabinet was chaired by Vice President Yemi Osinbajo, who is seeking the ruling party&#8217;s ticket to replace President Muhammadu Buhari, who is due to step down next year after serving two full terms. Buhari is on a visit to Spain.



(Writing by Chijioke Ohuocha; Editing by James Macharia Chege, Kirsten Donovan)

YZDL4H7DMZLK3LIV7EKPBTDALY

Nigeria okays next step for new gas pipeline via Morocco to Europe

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b-820x615.jpg" alt="" class="wp-image-403062" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b.jpg 1024w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



June 1 (Reuters) &#8211; The Turkish lira extended losses on Wednesday after factory activity contracted for a third straight month in May, while emerging market stocks started June lower as Chinese shares remained under pressure on concerns over a economic slowdown.



The lira&nbsp;TRY=&nbsp;fell 0.2% against the dollar, after losing 9.5% in May, as a survey showed Turkey&#8217;s Purchasing Managers&#8217; Index (PMI) for manufacturing stood at 49.2 in May as output and orders slowed amid muted demand and ongoing price pressures.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2XO0BN&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



In central Europe, data showed Poland&#8217;s manufacturing sector contracted for the first time in almost two years in May as supply-side delays, high inflation and market instability linked to the war in Ukraine led to a sharp drop in output and orders. The Polish zloty&nbsp;EURPLN=&nbsp;edged 0.1% lower.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2XO0BI&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;The PMI print from Poland this morning isn&#8217;t necessarily instructive that the central bank will have to end or change its hawkish stance on inflation and it&#8217;s not necessarily suggestive that the Polish economy is in a sharp contraction,&#8221; said Simon Harvey, head of FX analysis at Monex Europe.



&#8220;We&#8217;re looking at a kind of a breakout in the CEE region from macro policy perspective. We&#8217;re not seeing the whole region moving in tandem and we are looking at zloty as the golden child.&#8221;



The Hungarian forint&nbsp;EURHUF=&nbsp;was flat after a fall in its May PMI offset first-quarter growth figures that showed the economy grew by an annual 8.2%, the same as the preliminary figure.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS8N2WO0HB&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a><a href="https://www.reutersconnect.com/all?search=all%3AS8N2VB00X&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Emerging market stocks&nbsp;.MSCIEF&nbsp;fell 0.8%, with the Shanghai Composite Index&nbsp;.SSEC&nbsp;and the Hang Seng Index&nbsp;.HSI&nbsp;down 0.1% and 0.6%, respectively, as excitement faded about Shanghai coming out of its two-month lockdown amid lingering concerns over the economy.&nbsp;.SS



Data showing factory activity in Asia slowed in May, as China&#8217;s COVID-19 curbs continued to disrupt supply chains and dampen demand, also weighed on the region, along with a firm U.S. dollar and rising Treasury yields.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2XO07T&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>EMRG/FRX



The Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;was flat in Moscow trade, lacking momentum but retaining support from capital controls. The dollar-denominated RTS stock index&nbsp;.IRTS&nbsp;and the rouble-based MOEX&nbsp;.IMOEX&nbsp;rose 1% each after the central bank lifted a ban on short selling of securities.&nbsp;RU/RUB



Russian manufacturing activity also expanded in May after three months of contraction and price pressures eased notably, but sanctions continued to dent client demand, a survey showed.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2XO15A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



For GRAPHIC on emerging market FX performance in 2022, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2022, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3ATOPEMRG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Shailesh Kuber)

Turkey Lira, photo via Flickr

Stocks slip in downbeat start to June; Turkish lira extends slide

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/6QK4U5GIVRJNTEK5HLFA2PRVSA-820x547.jpg" alt="" class="wp-image-417491" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/6QK4U5GIVRJNTEK5HLFA2PRVSA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/6QK4U5GIVRJNTEK5HLFA2PRVSA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/6QK4U5GIVRJNTEK5HLFA2PRVSA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/6QK4U5GIVRJNTEK5HLFA2PRVSA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/6QK4U5GIVRJNTEK5HLFA2PRVSA.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Workers walk past storage tanks at Tullow Oil&#8217;s Ngamia 8 drilling site in Lokichar, Turkana County, Kenya, February 8, 2018. REUTERS/Baz Ratner/File Photo</figcaption></figure>



June 1 (Reuters)&nbsp;&#8211;&nbsp;Tullow Oil&nbsp;TLW.L&nbsp;and Capricorn Energy&nbsp;CNE.L&nbsp;agreed to merge in an all-stock deal worth 656.9 million pounds ($826.7 million) that will deliver dividends after a payout drought and improve cash flow to allow investment in higher output.



Investors in Capricorn, formerly known as Cairn Energy, will receive 3.8068 new shares in Tullow, the bigger of the two companies, for each share they hold, the companies said on Wednesday. Reuters calculated the $827 million value of the deal based on Tuesday&#8217;s closing share price.



Tullow boss Rahul Dhir will lead the combined group, which will be majority-owned by Tullow shareholders.



It is expected to have an output of around 100,000 barrels of oil equivalent per day, with reserves of 343 million barrels of oil equivalent.



Oil companies&#8217; earnings have been spurred by high energy prices as demand has returned following COVID-19 lockdowns and markets have surged in response to oil producer Russia&#8217;s invasion of Ukraine on Feb. 24, which prompted sanctions on Moscow and disrupted supplies.



The merged group, which will have a new name that has yet to be announced, is focused on African energy and should be able to invest in expanding production, potentially capitalising on higher energy prices.



&#8220;What would the combined company do that we can&#8217;t do independently? One is we would have a different capital programme, which would&#8230; have acceleration in it,&#8221; Dhir told a conference call.



The merger, backed by the boards of both companies, would result in savings of $50 million and investors in the new group will get an annual base dividend of $60 million. Tullow shareholders last received a dividend in 2019.



Capricorn&#8217;s cash will also help Tullow to cut its leverage ratio of net debt to core profits to less that 1x, allowing the combined group to spend more on increasing output.



&#8220;This fixes Tullow&#8217;s balance sheet problem,&#8221; Stifel analysts said in a note.



Shares in Tullow traded 2.1% higher by 0945 GMT. Capricorn Energy shares were up 3.6%. The wider oil and gas index&nbsp;.SXEP&nbsp;fell 0.6%.



Tullow&#8217;s flagship offshore oilfields in Ghana will make up the biggest share of the new group&#8217;s reserves and production, three-quarters of which will be oil and one quarter gas.



The second biggest will come from Capricorn&#8217;s Egyptian onshore gas fields.



Separately, energy services provider Wood Plc&nbsp;WG.L&nbsp;said on Wednesday, it agreed to sell its consulting unit for $1.9 billion.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2XO180&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



($1 = 0.7946 pounds)



(Reporting by Pushkala Aripaka in Bengaluru and Shadia Nasralla in London; Editing by Shailesh Kuber, Edmund Blair and Barbara Lewis)

6QK4U5GIVRJNTEK5HLFA2PRVSA

Tullow Oil merges with Capricorn in $827 mln all-share deal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="440" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/O5T5OX7HLBIIPFG4KPWOM2DKNM-820x440.jpg" alt="" class="wp-image-417487" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/O5T5OX7HLBIIPFG4KPWOM2DKNM-820x440.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/O5T5OX7HLBIIPFG4KPWOM2DKNM-300x161.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/O5T5OX7HLBIIPFG4KPWOM2DKNM-160x86.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/O5T5OX7HLBIIPFG4KPWOM2DKNM-768x412.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/O5T5OX7HLBIIPFG4KPWOM2DKNM.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>The chimneys of the Total Grandpuits oil refinery are seen just after sunset, southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann/File Photo</figcaption></figure>



CAPE TOWN/LAGOS/DAKAR, June 1 (Reuters)&nbsp;&#8211;&nbsp;A shortage of oil refineries across sub-Saharan Africa coupled with soaring crude prices because of the war in Ukraine has left countries dangerously short of fuel supplies, disrupting airlines and causing queues at filling stations.



The surge in prices comes in tandem with a spike in the cost of food after Russia sent troops into Ukraine, hitting tens of millions of people already living in precarious conditions, as well as government and aid agency budgets.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2XG20K&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Refineries across sub-Saharan Africa combined can process 1.36 million barrels of oil a day (bpd), in theory, but with many out of action, only 30% of that capacity was used last year, according to independent consultancy CITAC.



Refineries in Cameroon, Ghana and Senegal are shut, as are four in South Africa. Africa&#8217;s biggest oil producer, Nigeria, pumps over 1.3 million barrels a day, but the two privately owned plants still running there can only process 1% of that.



The African Export-Import Bank and the African Petroleum Producers&#8217; Organization signed a deal in May to create a multi-billion-dollar &#8220;energy bank&#8221; to boost private investment in the sector but analysts say there a few quick fixes on the horizon.



Fuel shortages are also hitting Western nations, but the impact in Africa is expected to be longer lasting as governments and companies are generally less able to afford the sky-high cost of imported fuel, or come up with the millions of dollars needed to get refineries running again at full tilt.



&#8220;It is likely that the situation may get much worse in the short term,&#8221; Anibor Kragha, head of the African Refiners &amp; Distributors Association (ARDA), told Reuters.



Big Western oil companies have been withdrawing from refinery projects in Africa in recent years and local investors and governments have largely failed to plug the gap, leading to a chronic lack of investment in modernising facilities.



The upshot is that despite the continent&#8217;s estimated 125 billion barrels of oil reserves and 600 trillion cubic feet of natural gas, African countries rely almost exclusively on imported petroleum products to power their economies.



Even major crude oil exporters, Nigeria and Angola, depend on imports for almost 80% of their domestic fuel needs, government officials say.



<h2 class="wp-block-heading" id="h-dangote-refinery">DANGOTE REFINERY</h2>



Governments are now scrambling to get refineries up and running in the face of growing discontent over price spikes.



Ghana&#8217;s 45,000 bpd Tema refinery, for example, has been out of action since an explosion in January 2017. Ghana&#8217;s President Nana Akufo-Addo said &#8220;intense efforts&#8221; were now being made to rehabilitate the refinery to help address soaring fuel prices.



However, getting the refinery online would require $40 million in new investment, industry sources said, which the country can ill afford as it contends with a growing mountain of debt and a double-digit fiscal deficit.



It&#8217;s a similar story in Cameroon.



The 42,000 bpd Limbe refinery has been shut since a fire in 2019, but a directive from the president&#8217;s office seen by Reuters asked the finance minister on April 22 to put plans in place quickly to revamp the heavily indebted plant.



Africa&#8217;s richest man, Aliko Dangote, a businessman who made his fortune in cement, is building a vast refinery in Nigeria that will have a capacity of 650,000 barrels a day, putting it just outside the top five refineries in the world.



But its much-anticipated launch has been pushed back to next year and the overhaul of Nigeria&#8217;s Port Harcourt refinery which will take years has only just started after two decades of discussion.



Angola, which is Africa&#8217;s second-biggest oil producer pumping about 1.1 million bpd, has plans to build more refineries in addition to its sole 65,000 bpd plant in Luanda.



Diesel and jet fuel in particular have been in short supply as refiners drastically scaled back output during the pandemic when travel restrictions grounded planes while Russian diesel volumes have fallen since the Ukraine war began.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2X70BN&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Nigeria&#8217;s airlines threatened to suspend domestic flights due to soaring jet fuel costs before backtracking. The country subsidises gasoline at a high cost, but not diesel or jet fuel.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2X11MY&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Scheduled maintenance is also curtailing supplies.



Senegal&#8217;s 27,000 bpd SAR refinery in Dakar has been offline since November for repairs and the country&#8217;s gasoil supplies were down to just three days at the end of April, triggering long waits for motorists at pumps.



In South Africa, where four refineries are down including one of the region&#8217;s biggest, the 180,000 bpd Sapref plant in Durban, some airlines were forced to re-route away from one of Africa&#8217;s busiest airports due to jet fuel shortages.



While some countries in North Africa are particularly exposed to the slump in grain exports from Ukraine, refineries in the region are in better shape than south of the Sahara, running at 80% capacity last year, CITAC data showed.



<h2 class="wp-block-heading">SANCTIONS NOOSE</h2>



In the absence of refining capacity, oil majors and commodities trading firms have for years sent oil products from the Middle East and Far East to float in large tankers off the shores of Togo in West Africa, where they can then be split up into smaller volumes for last-minute deliveries.



But with prices for immediate delivery so high and the market unusually volatile, big players have pulled back. Higher trade costs and extra outlays due to credit concerns with small, independent African importers are compounding the problem.



In recent tenders to buy diesel or jet fuel, traders said only two or three companies responded, compared with six or more before the Russian invasion of Ukraine, which Moscow calls a &#8220;special military operation&#8221;.



Ghana has so far been spared shortages, but importers say daily price increases mean each purchase is more expensive than the last. Retail diesel prices were up more than 90% year-on-year in April, according to Ghana&#8217;s statistics service.



&#8220;These conditions mean you effectively need double whatever credit you would have needed last year,&#8221; said Senyo Hosi, head of the Ghana Chamber of Bulk Oil Distributors.



With prices for immediate delivery so high compared with future months &#8211; a market phenomenon known as backwardation &#8211; there is little incentive to store products for future sale.



&#8220;High outright prices and steep backwardation reduce the incentives to hold discretionary or unsold inventory, leaving spot or short-notice buyers vulnerable to shortages,&#8221; said Jamie Torrance, head of distillates and biofuels at commodities trading firm Trafigura.



Physical jet fuel prices hit record highs in April in Europe and the United States while stock levels fell to their lowest in two years at Europe&#8217;s key ARA oil hub in the week to May 12.&nbsp;ARA/



Russian diesel, fuel oil and other products were previously stored and re-blended in ARA (Amsterdam-Rotterdam-Antwerp) for transport to Africa, but Russian crude and products can now only be sold to European buyers in certain cases.



&#8220;This is unfortunately likely to further exacerbate the current shortages,&#8221; Trafigura&#8217;s Torrance said.



(Reporting by Bate Felix in Dakar, Julia Payne in Lagos, Cooper Inveen in Accra and Wendell Roelf in Cape Town; Additional reporting by Amindeh Blaise Atabong in Yaounde; Editing by by Mike Collett-White and David Clarke)

O5T5OX7HLBIIPFG4KPWOM2DKNM

Shortage of oil refineries haunts Africa as fuel prices rocket

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="606" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/4AABNXPPZNNODJCRYOE5MFTTOI-820x606.jpg" alt="" class="wp-image-416751" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/4AABNXPPZNNODJCRYOE5MFTTOI-820x606.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/4AABNXPPZNNODJCRYOE5MFTTOI-300x222.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/4AABNXPPZNNODJCRYOE5MFTTOI-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/4AABNXPPZNNODJCRYOE5MFTTOI-768x568.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/4AABNXPPZNNODJCRYOE5MFTTOI-1536x1135.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/4AABNXPPZNNODJCRYOE5MFTTOI.jpg 1920w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Nigeria&#8217;s President Muhammadu Buhari gives a statement on the coronavirus disease (COVID-19) vaccination, during a European Union &#8211; African Union summit, in Brussels, Belgium February 18, 2022. REUTERS/Johanna Geron/Pool/File Photo</figcaption></figure>



ABUJA, May 31 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s President Muhammadu Buhari on Tuesday asked state governors from the ruling All Progressives Congress (APC) party to support him in choosing a successor who would stand for election in a presidential contest in February 2023.



Nigerians will go to the polls to choose a new president as Buhari will step down after leading Africa&#8217;s most populous nation for eight years.



The APC party has set June 6-8 for its special convention to choose a presidential candidate. If the president has his way and the governors, who wield influence with voting delegates, rally behind his candidate, it would force the other contestants to withdraw from the race and avoid a vote



Twenty-three candidates, including Vice President Yemi Osinbajo and Bola Tinubu, a powerful former governor of Lagos state, and some governors have registered to contest.



<h3 class="wp-block-heading" id="h-read-more-nigeria-s-opposition-picks-abubakar-to-run-for-president-again">Read more: <a href="https://www.cnbcafrica.com/2022/nigerias-opposition-picks-abubakar-to-run-for-president-again%ef%bf%bc/">Nigeria’s opposition picks Abubakar to run for president again</a></h3>



In a speech to state governors, Buhari said the APC had established policies that ensure smooth succession at all levels of government, including according governors the privilege to have a say on who succeeded them.



&#8220;In keeping with the established internal policies of the party &#8230; , I wish to solicit the reciprocity and support of the governors and other stakeholders in picking my successor, who would fly the flag of our party for election into the office of the president,&#8221; Buhari said.



Getting governors to rally behind a single candidate may not be easy, as some want to contest the primary. Buhari may also face pus hack from Osinbajo and Tinubu who have campaigned to woo delegates.



The main opposition has chosen former Vice President Atiku Abubakar as its presidential candidate.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2XK0DY&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Additional reporting and writing by MacDonald Dzirutwe in Lagos, Editing by Cynthia Osterman)

4AABNXPPZNNODJCRYOE5MFTTOI

Nigeria’s Buhari seeks state governors’ support on successor

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="480" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/download-47.jpg" alt="" class="wp-image-417470" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/download-47.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/download-47-300x180.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/download-47-150x90.jpg 150w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/download-47-768x461.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption>Kenya&#8217;s Finance Cabinet Secretary Ukur Yatani presents the Government Budget for the 2021/22 fiscal year inside the Parliament buildings in Nairobi, Kenya June 10, 2021. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, June 1 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s finance minister has asked parliament to let the East African economy raise its debt ceiling to 10 trillion shillings ($85.69 billion) from 9 trillion, two newspapers said on Wednesday.



The Business Daily and the Daily Nation said National Treasury Cabinet Secretary Ukur Yatani had asked parliament to change the public finance management law to allow more borrowing to fund the budget in the year through June 2023.



Yatani did not immediately respond to a Reuters request for comment.



The 2022/23 budget of 3.3 trillion shillings has a deficit of 6.2% of gross domestic product.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2W540T&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



In December, Yatani had said the government aimed to replace its nominal public debt ceiling with a debt anchor as a proportion of GDP by the end of June.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2T80AP&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



This year the finance ministry said it wanted to peg the debt ceiling at 55% of GDP, with the requirement of a reasonable explanation to lawmakers if debt needed to go higher.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2VC23E&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Late in 2019, Kenya raised its debt ceiling to 9 trillion shillings from 6 trillion earlier.



President Uhuru Kenyatta stepped up borrowing when he took office in 2013, driving up debt to the current level of more than 60% of GDP, versus just over 40% when he took over.



Political critics accuse Kenyatta&#8217;s government of saddling the country with steep repayment obligations, criticism it has rejected by saying the borrowed funds have funded infrastructure projects such as railways key to ensure economic expansion.



($1=116.7000 Kenyan shillings)



(Reporting by George Obulutsa)

download-47

Kenyan finance minister seeks to raise debt ceiling -media

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/E5AVIIAKNFKKLPZHVWDBUTY734-820x547.jpg" alt="" class="wp-image-417466" width="820" height="547" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/E5AVIIAKNFKKLPZHVWDBUTY734-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/E5AVIIAKNFKKLPZHVWDBUTY734-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/E5AVIIAKNFKKLPZHVWDBUTY734-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/E5AVIIAKNFKKLPZHVWDBUTY734-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/E5AVIIAKNFKKLPZHVWDBUTY734.jpg 960w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>A person uses a petrol pump, as the price of petrol rises, in Lisbon, Portugal, March 7, 2022. REUTERS/Pedro Nunes</figcaption></figure>



May 31 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s government on Tuesday outlined new measures to curb steeply rising domestic fuel prices, easing pressure on consumers as previous relief measures were due to expire.



Since the Ukraine war and its knock-on effects sent oil prices soaring, governments around the world have been considering subsidies to soften the financial strain on their populations.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VD1VB&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The new steps by South Africa include the extension of a 1.5 rand per litre cut in the general fuel levy that was originally announced in March until early July, to be replaced by a 75 cent per litre reduction from early July until early August.



The cost of extending the fuel levy reduction is estimated at 4.5 billion rand ($288 million) in foregone revenue, the National Treasury said in a statement with the Department of Mineral Resources and Energy, adding it remained committed to the 2022 fiscal framework.



From June the energy department will also remove a demand side management levy of 10 cents per litre applied to 95 grade petrol and is proposing that the basic fuel price be decreased by 3 cents per litre in the coming months.



<h3 class="wp-block-heading" id="h-read-more-south-africa-govt-cuts-sharply-rising-fuel-prices-by-a-sliver">Read more: <a href="https://www.cnbcafrica.com/2022/south-africa-govt-cuts-sharply-rising-fuel-prices-by-a-sliver/">South Africa govt cuts sharply rising fuel prices by a sliver</a></h3>



Even with the new measures, it said in a separate statement that the petrol pump price would increase by up to 243 cents a litre from June and the diesel price by up to 110 cents.



South Africa&#8217;s fuel prices are adjusted on a monthly basis due to factors including the strength of the rand currency and global oil prices.



In recent months rising prices have caused public alarm and prompted calls from opposition parties for the government to intervene more decisively. They have also helped push inflation close to the upper limit of the central bank&#8217;s target range.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2X80X4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Earlier this month the central bank unveiled its biggest rate hike in more than six years, citing fuel prices among risks to the inflation outlook.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2XB4IH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



($1 = 15.6088 rand)



(Additional reporting by Bhargav Acharya Editing by Alexander Winning and James Macharia Chege)

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Reuters

Mali junta adopts 24-month transition to democratic rule from March

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Ryanair forces South Africans to prove nationality with Afrikaans test

Capital inflows into Nigeria fell 28% to $1.6 billion in Q1 -stats bureau

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Tullow Oil merges with Capricorn in $827 mln all-share deal

Shortage of oil refineries haunts Africa as fuel prices rocket

Nigeria’s Buhari seeks state governors’ support on successor

Kenyan finance minister seeks to raise debt ceiling -media

South Africa takes new steps to curb rising fuel prices

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