<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-820x547.jpg" alt="" class="wp-image-546353" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KC4JBNQVH5KDFMNHV4IGIF4FRY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: IMF African Department Director Abebe Aemro Selassie listens to a question during an interview with Reuters at the annual meeting of the International Monetary Fund and the World Bank, in Marrakech, Morocco October 9, 2023. REUTERS/Susana Vera/File Photo</figcaption></figure>



April 25 (Reuters)&nbsp;&#8211;&nbsp;Sub-Saharan African economies should work to increase their domestic revenue collection to avoid having to take on debt amid &#8220;turbulent global conditions&#8221;, International Monetary Fund Africa Director Abebe Aemro Selassie said.



The region&#8217;s economy is likely to expand by 3.8% this year, the Fund said in its World Economic Outlook report this week, marking a cut from its previous forecast of 4.2% due to the potential impact of the U.S. administration&#8217;s stance on trade.



&#8220;There is a period where maybe relying on debt financing is not the right way to do development,&#8221; Abebe told Reuters, adding that policymakers have to also identify new sources of cheaper capital.



Investors sold off risky assets after President Donald Trump announced sweeping tariffs on dozens of U.S. trading partners, pushing up the yields of most issuers in sub-Saharan Africa into double digits, a sign that such so-called frontier economies could struggle to access capital markets.



&#8220;You have to look for internal resources to address the development and address social spending needs,&#8221; Abebe said. &#8220;These policies that are to enhance resilience, there is a higher premium on those.&#8221;



The average debt-to-economic-output ratio in the region was steady last year at less than 60% of GDP, the IMF said, but some economies like Kenya have been struggling with high debt-servicing costs.



Although the United States is not a major trading partner for many economies in the region, the knock-on effects from its approach to international trade are also piling pressure on the foreign exchange rates of economies, he said.



&#8220;We have already seen oil prices decline&#8230; Countries like Nigeria and Angola are going to see a mark-down in economic activity, and they are some of the largest economies in sub-Saharan Africa,&#8221; he said.



The projected setback could interrupt a &#8220;hard fought economic recovery&#8221; from the global pandemic, a worldwide inflation spike and an interest rate surge that effectively locked many African economies out of foreign capital markets, the IMF said.



Growth in the region, home to a wide range of economies, including fairly diversified ones like Tanzania and Senegal, reached 4% last year, surpassing the IMF&#8217;s forecast of 3.6%, the Fund said.



Last year&#8217;s robust economic expansion in the region was accompanied by an improvement in macroeconomic imbalances, the IMF said, citing lower average inflation and stable debt levels.



&#8220;We have seen quite a lot of resilience in the region,&#8221; Abebe said, adding that 11 out of the 20 fastest-growing economies in the world will be in sub-Saharan Africa.



(Reporting by Karin Strohecker in Washington DC and Duncan Miriri in Nairobi; Editing by Hugh Lawson)

FILE PHOTO: IMF African Department Director Selassie at interview with Reuters during International Monetary Fund and the World Bank meeting in Marrakech

Sub-Saharan Africa must lift revenue to ride out global turbulence – IMF Africa head

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/JKSKPU3LJRIWNCOF4JQUE5QPHE.avif" alt="" class="wp-image-571113"/><figcaption class="wp-element-caption">Labourers harvest cocoa pods at a farm in Assin Foso, Ghana, November 21, 2024. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



SINGAPORE, Dec 31 (Reuters)&nbsp;&#8211;&nbsp;Cocoa and coffee are poised to close 2024 as the biggest gainers among commodities for a second year on a global supply deficit, while steel-making coal will end as the worst performer, hit by slow growth in China.



Looking ahead, global trade tensions are likely to dominate the commodities landscape in 2025 as Donald Trump returns to the White House threatening hefty tariffs, analysts said.



A strong dollar and gold&#8217;s appeal as a safe haven for investors are likely to support precious metals prices, while ample supply could depress oil for a third year, they added.



In bad news for chocolate lovers, cocoa nearly tripled in price over 2024, far outpacing gains in other commodities. It hit a record high of $12,931 a metric ton in New York earlier this month on forecasts of lower supply for a fourth successive season in West Africa following dry weather.



&#8220;The softs sector, led by cocoa and coffee, has been the main winner amid adverse weather in key growing regions, highlighting the risk to prices when products like these are produced and sourced from relatively small geographical areas,&#8221; said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.



Top cocoa producers Ivory Coast and Ghana have suffered crop losses due to adverse weather, bean disease, smuggling and reduced plantations in favour of illegal gold mining.



Dryness has strained coffee supplies as well. ICE Arabica coffee prices soared to their highest in more than 40 years amid fears that severe drought earlier this year damaged the upcoming crop in top producer Brazil.



<h2 class="wp-block-heading" id="h-china-growth-worries-hit-oil-iron-ore">CHINA GROWTH WORRIES HIT OIL, IRON ORE</h2>



Crude oil and bulk metals faced headwinds in 2024 as China, the world&#8217;s second-biggest economy and top commodities buyer, struggled mainly due to a property crisis.



Brent and West Texas Intermediate crude could post a third consecutive annual decline in 2025 as supply outstrips a rebound in demand growth, analysts said, although Trump&#8217;s policies on major producers Russia and Iran could curb supply.



Spare capacity in the Organization of the Petroleum Exporting Countries (OPEC) reached an unprecedented 5 million barrels per day (bpd), analysts estimated, with the group having extended production cuts to March.



&#8220;The bleak inventory path next year suggests that OPEC+ will be challenged to bring back barrels into the market,&#8221; Harry Tchilinguirian, head of research at Onyx Capital Group, said in a note.



Iron ore prices in China recouped some losses in recent months but are still headed for a 15% decline in 2024. Prices could fall again next year as iron ore supply grows and Chinese steel demand falls, analysts said, despite Beijing&#8217;s stimulus measures.



&#8220;We expect the increase in iron ore supply from major miners will be higher than that in 2024, but steel output in China will likely slide,&#8221; Pei Hao, senior analyst at brokerage Freight Investor Services, said, forecasting an average price of $100 a ton in 2025, down from an average of $110 in 2024.



Gold and silver rose more than 25% in 2024 and could climb further in the year ahead depending on the U.S. Federal Reserve&#8217;s interest rate cuts and Trump&#8217;s tariff, tax and foreign policies, analysts said.



&#8220;Gold is the standout for us in 2025,&#8221; ING&#8217;s head of commodity research Warren Patterson said, adding that strong gold purchases by central banks will support demand.



Copper and aluminium prices are set to end 2024 higher, driven by tight supplies, the energy transition and hopes that China&#8217;s stimulus measures will boost demand.



<h2 class="wp-block-heading" id="h-palm-oil-rubber-and-grains">PALM OIL, RUBBER AND GRAINS</h2>



For agricultural products, Malaysian palm oil futures&nbsp;FCPOc3&nbsp;jumped around 20% in 2024, snapping two consecutive years of losses, lifted by Indonesia&#8217;s biodiesel mandate and adverse weather in Indonesia and Malaysia.



Crop-threatening weather also drove a 42% gain in Tokyo rubber futures&nbsp;JRUc6.



In contrast, soybeans Sv1, corn Cv1 and wheat Wv1 were in plentiful supply, all on track for losses in 2024. However, wheat prices could find some support in 2025 as warmer weather in Russia, the biggest exporter, threatens to reduce output.



Top soybean exporter Brazil is poised to deliver record supplies in 2025, positioning it to meet a rise in Chinese demand if a Washington-Beijing trade war erupts.



(Reporting by Naveen Thukral, Florence Tan and Gabrielle Ng in Singapore; Additional reporting by Amy Lv in Beijing, Violet Li in Shanghai, Ashitha Shivaprasad and Sherin Elizabeth Varghese in Bengaluru and Ashley Tang in Kuala Lumpur; Editing by Sonali Paul)

JKSKPU3LJRIWNCOF4JQUE5QPHE

Cocoa tops global commodities rally for 2nd year, steel ingredients struggle on China demand

<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>



NAIROBI, Dec 11 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets Wednesday.



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



*Ghana&#8217;s statistics agency to release gross domestic product data for the third quarter of 2024.



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



Asian stock markets and the dollar took a breather on Wednesday ahead of an anticipated rate cut in Canada and a U.S. inflation reading expected to leave the Fed on course to cut rates again.



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



Oil prices rose slightly early on Wednesday, with market participants expecting to see demand rising in China next year after Beijing announced a looser monetary policy to stimulate economic growth.



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



South Africa&#8217;s rand weakened against a stronger dollar on Tuesday as investors shifted their focus towards monthly U.S. and local inflation figures.



<h2 class="wp-block-heading" id="h-nigeria-security">NIGERIA SECURITY</h2>



A gang of gunmen kidnapped more than 50 women and children in a raid on Kakin Dawa village in Nigeria&#8217;s northwest Zamfara state, police and residents said.



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



Kenya&#8217;s shilling eased slightly on Tuesday, with little importer demand for dollars outpacing inflows in a session with limited activity ahead of the holidays, traders said.



<h2 class="wp-block-heading" id="h-mauritius-economy">MAURITIUS ECONOMY</h2>



Mauritius&#8217; previous government falsified the country&#8217;s gross domestic product (GDP), budget deficit and public debt figures for years, its new prime minister said on Tuesday, accusing the former administration of practicing &#8220;voodoo economics&#8221;.



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



South Sudan&#8217;s President Salva Kiir has fired the head of the country&#8217;s military, the police chief and the central bank governor, an announcement made on the state-owned broadcaster SSBC said.



<h2 class="wp-block-heading" id="h-somalia-ethiopia-politics">SOMALIA ETHIOPIA POLITICS</h2>



Somali President Hassan Sheikh Mohamud was heading to Ankara, Turkey, to attend the third round of talks aimed at defusing tensions with Ethiopia, the state news agency reported on Tuesday, in a row that threatens to destabilise the region.



<h2 class="wp-block-heading" id="h-mozambique-bonds">MOZAMBIQUE BONDS</h2>



Emirati-Lebanese shipbuilder Privinvest was on Tuesday refused permission to appeal against Mozambique&#8217;s victory in a London lawsuit over the decade-old &#8220;tuna bond&#8221; scandal.



<h2 class="wp-block-heading" id="h-mozambique-mining">MOZAMBIQUE MINING</h2>



South32 has withdrawn its output forecast for its Mozal Aluminium smelter in Mozambique amid post-election civil unrest, the Australian company said on Tuesday.



((Compiled by Nairobi Newsroom))

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

African Markets – Factors to watch on Dec 11

<figure class="wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex">
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" data-id="534062" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107394950-1711983152049-gettyimages-1438254100-asgf02927-820x462.webp" alt="" class="wp-image-534062" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107394950-1711983152049-gettyimages-1438254100-asgf02927-820x462.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107394950-1711983152049-gettyimages-1438254100-asgf02927-300x169.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107394950-1711983152049-gettyimages-1438254100-asgf02927-160x90.webp 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107394950-1711983152049-gettyimages-1438254100-asgf02927-768x432.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/107394950-1711983152049-gettyimages-1438254100-asgf02927.webp 1480w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Westend61 | Westend61 | Getty Images</figcaption></figure>
</figure>



Some young people are splashing out on luxuries like travel and designer clothes instead of saving, in a trend that’s being characterized as&nbsp;<a href="https://www.cnbc.com/2023/11/29/americans-are-doom-spending-heres-why-thats-a-problem.html">“doom spending”</a>&nbsp;on social media.



Doom spending is when a person&nbsp;<a href="https://www.psychologytoday.com/gb/blog/a-funny-bone-to-pick/202312/27-of-americans-are-doom-spending-due-to-stress" target="_blank" rel="noreferrer noopener">mindlessly shops</a>&nbsp;to self-soothe because they feel pessimistic about the economy and their future, according to Psychology Today.



The practice is both “unhealthy and fatalistic,” Ylva Baeckström, a senior lecturer in finance at King’s Business School and a former banker, told CNBC Make It.



It’s happening because young people are chronically online and feel like they’re constantly receiving “bad news,” she said. “It makes them feel like Armageddon.”



These young people are then translating these bad feelings into bad spending habits, Baeckström added.



In fact, 96% of Americans are concerned about the current state of the economy and more than a quarter are doom spending to deal with the stress, an Intuit Credit Karma survey of over 1,000 Americans found in November 2023.



And the phenomenon is not exclusive to America.



Stefania Troncoso Fernández, a 28-year-old publicist based in Colombia who lives with her parents, told CNBC Make It that she’s a recovered doom spender, but that high levels of inflation and political uncertainty make it very difficult to rationalize saving money.



“I know for a fact that food [costs] are getting higher and higher every day, and in my house we can’t afford to eat the same way we did maybe a year ago because things are getting more expensive,” Fernández said.



Two years ago, Fernández said she was spending carelessly on clothes and travel despite the fact that she was earning less money than she does now. It was largely because she felt like she couldn’t afford to buy a house.



“We used to have this program by the government that would lend us money to invest in real estate and at a really low rate, but with the change of government, that is not available for us anymore so we will need to pay more,” she said.



And Fernández said she’s not alone in doom spending. “It’s not just me. It’s something that is happening within my circle.”



<h2 class="wp-block-heading" id="h-first-generation-that-s-going-to-be-poorer"><a></a>‘First generation that’s going to be poorer’</h2>



Only 36.5% of adults globally feel like they’re doing better than their parents financially while 42.8% think they’re actually worse off than their parents, according to&nbsp;<a href="https://www.cnbc.com/2024/04/03/survey-adults-say-theyre-doing-worse-financially-than-their-parents.html">CNBC’s International Your Money Financial Security Survey</a>, conducted by Survey Monkey which questioned 4,342 adults globally.



“The generation growing up now is the first generation that’s going to be poorer than its parents for a very long time,” Baeckström said. “There’s that feeling that you might never be able to achieve what your parents achieved.”



As a result, doom spending creates the illusion of control in what feels like an out-of-control world, according to Baeckström.



“But what happens really, is that it gives you less control in the future, because if you save that money instead and invest it and do all of those things, you might actually be able to buy a house,” she said.



<h2 class="wp-block-heading" id="h-the-sense-of-trying-to-escape"><a></a>‘The sense of trying to escape’</h2>



Daivik Goel, a 25-year-old startup founder living in Silicon Valley, said he was a doom spender when he worked as a product manager at a biotech startup.



The habit originated from a sense of dissatisfaction with his work as well as peer pressure, he said. “It’s just all the sense of trying to escape.”



Goel, who used to spend lavishly on designer clothes, the latest technology products and going out for drinks, says doom spending is very common in Silicon Valley.



He said people will buy two of three brand-new cars, “and the reason why is because they realize that saving up for a house is going to take a very long time &#8230; so they will spend on other different items instead.”



San Francisco has some of the&nbsp;<a href="https://www.cnbc.com/2023/07/11/us-cities-most-million-dollar-homes.html">highest property prices in the U.S.</a>, according to a 2023 analysis by real estate website Point2. It found that 62% of properties listed in San Francisco cost over $1 million. &nbsp;



Goel says that since starting his fintech company Intrepid in 2023, his doom spending habit has “completely gone” because he’s found happiness in his work. “My whole mindset shifted.”



<h2 class="wp-block-heading" id="h-get-to-know-your-relationship-with-money"><a></a>Get to know your relationship with money</h2>



Finance lecturer Baeckström stressed the importance of understanding your relationship with money if you want to overcome doom spending.



She said a relationship with money is like a relationship with people: it starts during childhood and sees people form different types of attachments.



“If you feel like you have a secure attachment with money, you can make a sound evaluation of something. You gather knowledge and you can evaluate [it] &#8230; But if you are insecure, or if you’re avoidant, then you’re more likely to get lured into this unhealthy spending behavior.”



These attitudes stem from a person’s upbringing: whether they were rich or poor, for example, how their family managed money, and who controlled it, Baeckström said.



Fernández said part of the reason she had felt compelled to doom spend was a lack of financial literacy. She said her dad grew up poor and nobody had ever encouraged her to save.



<h2 class="wp-block-heading" id="h-increase-the-pain-of-paying"><a></a>‘Increase the pain of paying’</h2>



Making a transaction more visceral and difficult can make people think twice about doom spending, Samantha Rosenberg, co-founder and COO of Belong, a wealth-building platform, told CNBC Make It.



Rosenberg explained that online shopping aggravates the doom spending issue, but looking at items in-person may prevent impulse purchases.



“The extra decision points like choosing the store, traveling there, evaluating the item in the flesh, and then having to stand in line to buy it will help you slow down and think more critically about your purchases,” she said.



Additionally setting up mobile banking notifications creates an “extra pinch of pain” when you see the transaction authorizations coming through.



Rosenberg also recommended maybe going back to using cash. Seamless payment methods like Apple Pay and Google Pay “increase the risk of mindless spending,” she said, because it’s so quick and easy. &nbsp;



“They bypass the emotion associated with the purchasing decision process. They also eliminate the pain of handing over money,” Rosenberg said. You have to “increase the pain of paying,” she added.

107394950-1711983152049-gettyimages-1438254100-asgf02927

Gen Z and millennials are increasingly ‘doom spending.’ Here’s what it is and how to stop it

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg" alt="" class="wp-image-516586" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-1536x976.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller handles U.S. dollar banknotes and Kenya shilling banknotes inside the cashier&#8217;s booth at a forex exchange bureau in downtown Nairobi, Kenya, February 16, 2024. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Sept 20 (Reuters) &#8211; Kenya&#8217;s shilling was unchanged on Friday, with dollar inflows from companies preparing to pay taxes matching foreign-currency demand from importers, traders said.



At 0752 GMT, commercial banks quoted the shilling at 128.50/129.50 per dollar, the same as Thursday&#8217;s closing rate.



(Reporting by George Obulutsa; Editing by Alexander Winning)

RLVCCF47LVIWPJR4O2PPITYMVI

Kenyan shilling stable as dollar supply matches importer demand

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="482" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-820x482.jpeg" alt="" class="wp-image-462538" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-820x482.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-300x176.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-153x90.jpeg 153w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-768x452.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds-1536x904.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds.jpeg 1700w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A Chinese flag flutters on top of the Great Hall of the People ahead of the opening ceremony of the Belt and Road Forum (BRF), to mark 10th anniversary of the Belt and Road Initiative, in Beijing, China October 18, 2023.
Edgar Su | Reuters</figcaption></figure>



NAIROBI, Aug 29 (Reuters)&nbsp;&#8211;&nbsp;Chinese lenders approved loans worth $4.61 billion to Africa last year, marking the first annual increase since 2016, an independent study showed on Thursday.



Africa secured more than $10 billion in loans a year from China between 2012-2018, thanks to President Xi Jinping&#8217;s Belt and Road Initiative (BRI), but the lending fell precipitously from the start of the COVID-19 pandemic in 2020.



Last year&#8217;s figure, a more than three-fold increase from 2022, shows China is keen to curb risks associated with highly indebted economies, the study by Boston University&#8217;s Global Development Policy Centre found.



&#8220;Beijing appears to be looking for a more sustainable equilibrium level of lending and experimenting with a (new) strategy,&#8221; said the university centre, which runs the Chinese Loans to Africa Database project.



The new data comes as Beijing prepares to host African leaders next week for the Forum on China-Africa Cooperation, which takes place every three years.



There were 13 loan deals last year involving eight African countries and two African multilateral lenders, the study found.



Last year&#8217;s biggest items include a nearly $1 billion loan from China Development Bank to Nigeria for the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS8N362039&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Kaduna-to-Kano</a>&nbsp;Railway and similar size&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AP8N3BH07A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">liquidity facility</a>&nbsp;by the lender to Egypt&#8217;s central bank.



China has vaulted to the top bilateral lender for many African nations like Ethiopia in recent years.



It has lent the continent a total of $182.28 billion between 2000-2023, the Boston University study found, with the bulk of the finances going to Africa&#8217;s energy, transport and ICT sectors.



Africa featured prominently in the initial years of BRI, as China sought to recreate the ancient Silk Road and extend its geopolitical and economic influence through a global infrastructure development push.



China, however, started to turn off the cash spigot in 2019, a shift that was accelerated by the pandemic, leaving a series of incomplete projects around the region, including a modern railway meant to link Kenya with its neighbours.



The reduction in loans was caused by China&#8217;s own domestic pressures and growing debt burdens among African economies. Zambia, Ghana and Ethiopia have gone into protracted debt overhauls since 2021.



More than half of the loans committed last year, or $2.59 billion, were to regional and national lenders, underscoring Beijing&#8217;s new strategy, the study by Boston University found.



&#8220;Chinese lenders&#8217; focus on African financial institutions most likely represent a risk mitigation strategy that avoids exposure to African countries&#8217; debt challenges,&#8221; it said.



Nearly a tenth of 2023 loans were for three solar and hydropower energy projects, the study found, illustrating a desire by China to move into funding renewable energy instead of coal-fired power plants.



Still, the discernible trends in last year&#8217;s figures did not offer a clear direction of China&#8217;s financial engagement with the continent, the study showed, since Chinese institutions also wrote loans to ailing economies like Nigeria and Angola.



&#8220;It remains to be seen whether China&#8217;s partnerships in Africa will retain their quality,&#8221; the Global Development Policy Centre said.



China&#8217;s loans to Africa rise in 2023&nbsp;<a href="https://reut.rs/3yZjZJH" target="_blank" rel="noreferrer noopener">https://reut.rs/3yZjZJH</a>



(Reporting by Duncan Miriri, editing by Karin Strohecker and Angus MacSwan)

107322262-16981550392023-10-24t134236z_46329598_rc2nu3aqwna3_rtrmadp_0_china-economy-bonds

China’s lending to Africa rises for first time in seven years, study shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



JOHANNESBURG, July 23 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcement, equity and currency market moves may affect South African markets on Tuesday.



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



The South African Reserve Bank will publish the country&#8217;s leading indicator for May.



South Africa&#8217;s government will hold its weekly auction of long-term bonds.



<h2 class="wp-block-heading" id="h-companies">COMPANIES</h2>



Anglo American&#8217;s South African iron ore unit published its first-half year results.



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



The South African rand was stable on Monday as investors awaited inflation data due later this week for hints on the country&#8217;s future interest rate path.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed 0.75% higher.



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



Asian stocks bounced from one-month lows on Tuesday, with Taiwan&#8217;s market snapping a five-day losing streak as semiconductor shares took a lead from a Wall Street recovery, while sagging commodity prices weighed on the Aussie dollar.



<h2 class="wp-block-heading" id="h-wall-street">WALL STREET</h2>



Wall Street&#8217;s three benchmarks ended higher on Monday as investors returned to megacap growth stocks, helping both the S&amp;P 500 .SPX and Nasdaq Composite .IXIC recover from their worst weekly performance since April.



<h2 class="wp-block-heading" id="h-gold">GOLD</h2>



Gold prices held steady on Tuesday while investors strapped in for U.S. economic data this week for clarity on the timeline for Federal Reserve&#8217;s interest rate cut.



&#8211; &#8211; &#8211; &#8211;



Some of the main stories out in the South African press:



<h2 class="wp-block-heading" id="h-business-day">BUSINESS DAY</h2>



&#8211; Farmers back Ramaphosa’s strategy to free up 2-million hectares of land



&#8211; Markets price in higher chance of September rate cut



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on July 23

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-scaled.jpg" alt="" class="wp-image-506008" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-1536x1025.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Ugandan shilling and US dollars in the draw at a foreign exchange currency bureau in Kampala, Uganda, on Wednesday, Aug. 16, 2023. Uganda&#8217;s central bank said it stands ready to act if the World Bank&#8217;s decision to halt new funding over the country&#8217;s passage of anti-LGBTQ legislation impacts the currency further. Photographer: Luke Dray/Bloomberg via Getty Images</figcaption></figure>



KAMPALA, July 15 (Reuters) &#8211; The Ugandan shilling was unchanged against the dollar on Monday on the back of a slump in demand as most firms reserved their local currency holdings for mid-month taxes, traders said.



At 0854 GMT commercial banks quoted the shilling at 3,695/3,705, the same level as Friday&#8217;s close.



(Reporting by Elias Biryabarema; Editing by Hereward Holland)

Ugandan shilling stable, draws support from tax payments

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="555" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HJDYMEREYFLQFPCH6PHBFH2UTA-820x555.jpg" alt="" class="wp-image-420644" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HJDYMEREYFLQFPCH6PHBFH2UTA-820x555.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HJDYMEREYFLQFPCH6PHBFH2UTA-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HJDYMEREYFLQFPCH6PHBFH2UTA-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HJDYMEREYFLQFPCH6PHBFH2UTA-768x519.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HJDYMEREYFLQFPCH6PHBFH2UTA-1536x1039.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/10/HJDYMEREYFLQFPCH6PHBFH2UTA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Representations of cryptocurrencies are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration</figcaption></figure>



Cryptocurrencies rose Tuesday amid a late surge in optimism around the U.S. Securities and Exchange Commission’s decisions on spot ether exchange-traded funds applications, the first of which is due this week.



<a href="https://www.cnbc.com/quotes/ETH.CM=/">Ether</a>&nbsp;led the rally, rising 9% to $3,680.98, according to Coin Metrics. On Monday, it rocketed 20%.



Meanwhile,&nbsp;<a href="https://www.cnbc.com/quotes/BTC.CM=/">bitcoin</a>&nbsp;added 2% and was trading at about $71,350, extending an 8% gain from the previous day, when it reclaimed the $70,000 level.



Crypto-related equities rode the wave.&nbsp;<a href="https://www.cnbc.com/quotes/COIN/">Coinbase</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/quotes/MSTR/">Microstrategy</a>&nbsp;each gained about 2% in extended trading, and&nbsp;<a href="https://www.cnbc.com/quotes/HOOD/">Robinhood</a>&nbsp;added 3%. Several bitcoin mining stocks saw gains of 3%, including&nbsp;<a href="https://www.cnbc.com/quotes/MARA/">Marathon Digital</a>,&nbsp;<a href="https://www.cnbc.com/quotes/RIOT/">Riot Platforms</a>,&nbsp;<a href="https://www.cnbc.com/quotes/IREN/">Iren</a>&nbsp;(formerly known as Iris Energy) and&nbsp;<a href="https://www.cnbc.com/quotes/CLSK/">CleanSpark</a>.



Investors are reconsidering the probability that the SEC greenlights spot ether ETF applications amid reports that the SEC has requested document updates from potential ETF issuers and exchanges. The&nbsp;<a href="https://www.cnbc.com/2024/04/09/bitcoin-etf-issuers-sec-wont-approve-ether-eth-exchange-traded-fund-.html">previous consensus</a>&nbsp;was that such funds would likely not be approved.



“ETH spiked upwards shortly after rumors started circulating that the SEC might approve spot ETH ETFs this week after all,” said Bartosz Lipiński, CEO at Cube Exchange.



“Much like with&nbsp;<a href="https://www.cnbc.com/2024/01/10/sec-approves-rule-changes-that-pave-the-way-for-bitcoin-etfs.html">spot bitcoin ETFs being approved earlier</a>&nbsp;in the year, though, this feels to me like a ‘buy the rumor, sell the news’ type situation and I would imagine a rally through this Thursday … and then at least a brief selloff regardless of whether or not the funds are approved,” he added.



Final decisions on applications by VanEck and Ark Invest are due this Thursday and Friday, respectively.



BlackRock, Fidelity, Invesco, Grayscale and Bitwise Asset Management also have applications awaiting decisions this year.

Illustration shows representations of cryptocurrencies

Ether extends its rally following 20% surge on renewed ether ETF optimism

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Chad-prepares-to-vote-in-a-coup-hit-region-wary-allies-look-on-820x547.jpg" alt="" class="wp-image-482530" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Chad-prepares-to-vote-in-a-coup-hit-region-wary-allies-look-on-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Chad-prepares-to-vote-in-a-coup-hit-region-wary-allies-look-on-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Chad-prepares-to-vote-in-a-coup-hit-region-wary-allies-look-on-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Chad-prepares-to-vote-in-a-coup-hit-region-wary-allies-look-on-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Chad-prepares-to-vote-in-a-coup-hit-region-wary-allies-look-on-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Chad-prepares-to-vote-in-a-coup-hit-region-wary-allies-look-on-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Supporters of Chadian interim President Mahamat Idriss Deby attend his presidential campaign rally ahead of the May elections in Moundou, Chad April 25, 2024. REUTERS/ Gilles Chris Namia Rimbarne/File Photo</figcaption></figure>



N&#8217;DJAMENA, May 3 (Reuters)&nbsp;&#8211;&nbsp;Chad will hold presidential elections on Monday, making it the first in a string of coup-hit states across Central and West Africa to use the ballot box to try to emerge from years of military rule.



Opposition groups have already cried foul.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3DR0AN&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">The candidate</a>&nbsp;widely expected to win is Mahamat Idriss Deby &#8211; the man who&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2MF76P&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">seized power</a>&nbsp;the day rebels&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2MD0Q3&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">shot and killed</a>&nbsp;his long-ruling father, Idriss Deby, in April 2021.



But Chad&#8217;s Western allies have largely stayed quiet and kept watch &#8211; hoping, analysts say, that at the very least, the vote will deliver a relatively stable state in a region hit by militant violence where Russia is also pushing for influence.



Among those Western countries is Chad&#8217;s former colonial ruler France which still has war planes and 1,000 troops there, most recently helping Chad and its neighbours combat the Islamist fighters of Boko Haram.



Chad is now the last Sahel country with a substantial French military presence after other junta-led states including neighbouring Niger as well as Burkina Faso and Mali, told Paris and other Western powers to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N3FU0I9&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">remove their troops</a>&nbsp;and turned&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N3GK399&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">to Moscow for backing</a>.



The priorities of regional and Western powers will be to push for stability and shore up their positions in the country, analysts say.



&#8220;Chad is just too strategic at the moment for the West to allow Russia to get an opening,&#8221; Ulf Laessing, head of the Sahel programme at the Konrad Adenauer Foundation, said.



It is not just strategic in terms of security, but also on the hot-button issue of migration.



Chad has accepted a huge influx of refugees from Sudan, where civil war has created the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N3GN0S4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">world&#8217;s largest displacement crisis</a>. Laessing said some refugees have crossed to Niger, which last year repealed a law aimed at slowing migration to Europe.



&#8220;It&#8217;s another reason for Western countries to keep the relationship with Chad despite the dismal human rights record,&#8221; he added.



An election win would bolster Deby&#8217;s credentials as an ally. &#8220;Western policy makers can say at least he was elected,&#8221; Laessing said.



There are fears the turmoil could be testing old ties in the oil-producing country&nbsp;that lies&nbsp;next to the war-torn states of Sudan, Libya and Central African Republic and the economic powerhouse of Nigeria.



Mahamat Idriss Deby, who took on the title of interim president after his takeover, met French President Emmanuel Macron in Paris in October last year. He also met Russian President Vladimir Putin in Moscow&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3EE1YQ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">in January</a>.



In April, Chad&#8217;s air force chief&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N3GY33I&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">ordered the U.S.</a>&nbsp;to halt activities at an air base near the capital N&#8217;Djamena, saying there was a problem with their paperwork.



Weeks later, the U.S. announced a temporary&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N3GY33I&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">withdrawal</a>&nbsp;of at least some of its troops and said it would continue with a review of security operations after the vote.



PROTESTS, RIVALS, VIOLENCE



Concerns about human rights have also mounted since the younger Deby&#8217;s takeover.



He initially promised an 18-month transition after his father&#8217;s death, but his government later adopted resolutions that postponed&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N3FC73Q&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">elections</a>&nbsp;and allowed him to run for president.



The delay triggered protests that security forces violently quelled, killing&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N31L2NU&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">around 50 civilians</a>.



Opposition figure Yaya Dillo was&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N3FE5TP&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">shot and killed</a>&nbsp;in N&#8217;Djamena on Feb. 28, the day the election date was announced. The opposition has called Dillo&#8217;s death an assassination and forensic experts have said he was&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N3FX5DS&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">likely shot at point-blank range</a>.



Chadian authorities said he was killed during an exchange of fire with security forces who had been sent to detain him for alleged involvement in clashes.



One of Deby&#8217;s most prominent challengers on Monday will be Succes Masra &#8211; a political opponent who spent a year in exile from 2022-2023, then shocked Chadians by agreeing to become Deby&#8217;s&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3DR0AN&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">prime minister</a>.



He will also be running against former prime minister Albert Pahimi Padacke and seven other candidates, including Lydie Beassemda, the only woman going for the top job.



&#8220;Masra&#8217;s decision &#8230; was a bit surprising, because, during the demonstrations and the deaths, people were saying they wanted change and they saw Succes Masra as the face of change,&#8221; Babacar Ndiaye, research director at think tank WATHI, said.



Some opposition parties and civil society groups have called for a boycott of the vote, saying Deby and his allies control the main institutions of power and could influence the process.



&#8220;This is an election to consecrate the reign of the current leader of the transition,&#8221; Abderramane Goussoumian, head of the civil society network CSAPR, said.



But for Abakar Moussa Seid, a member of the opposition National Rally for Democracy in Chad party, a boycott would amount to a surrender.



&#8220;The only democratic way to end the perpetuation of the power of the Deby dynasty is through the ballot box,&#8221; he said.



(Editing by Bate Felix and Andrew Heavens)

Chad’s interim President Deby attends his presidential campaign rally in Moundou

Chad prepares to vote in a coup-hit region, wary allies look on

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="960" height="640" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/XXRFTEFP65IXHOOVNQYDKAK3A4.jpg" alt="" class="wp-image-417776" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/XXRFTEFP65IXHOOVNQYDKAK3A4.jpg 960w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/XXRFTEFP65IXHOOVNQYDKAK3A4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/XXRFTEFP65IXHOOVNQYDKAK3A4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/XXRFTEFP65IXHOOVNQYDKAK3A4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/XXRFTEFP65IXHOOVNQYDKAK3A4-768x512.jpg 768w" sizes="auto, (max-width: 960px) 100vw, 960px" /><figcaption class="wp-element-caption">Armed Forces of the Democratic Republic of the Congo (FARDC) soldiers take their position following renewed fighting near the Congolese border with Rwanda, outside Goma in the North Kivu province of the Democratic Republic of Congo May 28, 2022. REUTERS/Djaffar Sabiti/File Photo</figcaption></figure>



KINSHASA, May 2 (Reuters) &#8211; M23 rebels in eastern Democratic Republic of Congo have taken control of Rubaya, a key mining town for the smartphone mineral coltan, following days of intense fighting, a rebel spokesman said.



Congo&#8217;s east has been plagued by violence since the 1990s, killing millions as struggles over national identity, ethnicity, and resources saw neighbouring countries invade and a myriad of armed groups spring up.



Willy Ngoma, the Tutsi-led M23 military spokesman, told Reuters the town, in North Kivu, was under their control after they went after other armed groups in the region including the Forces for the Liberation of Rwanda, which is composed of ethnic Hutus.



Congo&#8217;s army spokesman for its operations against the rebel group, Lieutenant Colonel Guillaume Njike, told Reuters it could not confirm if the rebels had seized the town.



&#8220;We are in the process of cross-checking since yesterday whether or not it has fallen to the hands of the M23 rebels,&#8221; Njike said.



A spokesman for Congo&#8217;s government did not respond to Reuters request for comments.



Most of Congo&#8217;s mineral resources are concentrated in the east, where insecurity has worsened since the M23 made a major comeback in March 2022.



Rubaya holds rich deposits of tantalum, which is extracted from coltan and which is a critical energy transition mineral also used in the manufacture of smartphones, laptops and game consoles.



The M23 have already taken control of Rubaya twice for a few days since their current offensive began.



The Congolese government, U.N. officials and Western powers have accused Rwanda of providing support for M23, which Rwanda has repeatedly denied.



A youth leader in the town told Reuters by telephone that the town was encircled by the rebels.



&#8220;There is a large displacement of the population because the clashes are intense,&#8221; Clovis Mafare said, adding that the town&#8217;s mining quarries were not occupied.



Rubaya was previously under the control of a pro-government militia group known as the Wazalendo.



The United Nations said in December that Wazalendo armed groups controlled sites within main exploitation perimeters, compromising the tin, tantalum and tungsten supply chain.



Conflicts have arisen over the control of the illicit trade in tin and gold as well as in coltan and tantalum &#8211; all mined in Congo before being smuggled out through neighbouring Rwanda, Uganda and Burundi.



Congo&#8217;s government is&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N3GY202&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">currently pushing Apple</a>&nbsp;for more information about its supply chain over concerns it may be tainted with conflict minerals. Apple has said it found no basis to conclude any smelters or refiners in its supply chain financed or benefited armed groups in Congo or an adjoining country.



(Reporting by Sonia Rolley, Erikas Mwisi Kambale and Ange Kasongo; Writing by Bate Felix and Sofia Christensen; Editing by Alison Williams)

XXRFTEFP65IXHOOVNQYDKAK3A4

Congo M23 rebels claim control of smartphone mineral mining town

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Energy2-1-820x461.jpg" alt="" class="wp-image-480314" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Energy2-1-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Energy2-1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Energy2-1-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Energy2-1-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Energy2-1-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Energy2-1.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Africa needs to create a new development model that better connects its businesses with local communities in order to escape the current system which has left as it burdened by high unemployment and underdevelopment.



Current development models are a product of colonization and were designed to extract its resources with the bulk of the value realized abroad, Hippolyte Fofack, a former chief economist and director of research at the African Export-Import Bank, is a research associate at the Harvard University Center for African Studies says in a research paper.



&#8220;Connecting with history and bridging the philosophical and cultural discontinuity between Africa’s past and present is fundamental to closing the gap between actual output and potential and setting the region on the path to lasting prosperity,&#8221; he says. &#8220;More than any other region of the world, political and economic management in Africa has been underpinned by a highly extroverted model of institutional governance, by institutional models that are largely alien.&#8221;



Africa has some of the highest unemployment and poverty rates in the world led by its largest economies, Nigeria and South Africa with rates above 30 percent. Fofack says poverty is now an African problem whereas in the 1970s it was an Asian problem because Asia was able to largely preserve its philosophical and cultural heritage.



While in 1970 over 80% of the world’s poor lived in Asia, by 2000, 75% of the world’s poor lived in Africa, he says. Recent estimates would probably be higher, he adds, citing his own research and that of Tetteh Baah, an economist with the Global Poverty and Inequality Data team at the World Bank.



&#8220;This stickiness of the colonial development model amid shifting geographical patterns of trade raises serious obstacles in the quest for a more prosperous and climate-resilient future for Africa,&#8221; Fofack says.



The International Monetary Fund says sub-Saharan growth will reach 3.8 percent this year, slightly higher than the 3.4 percent attained last year, with nearly two thirds of the region anticipating higher expansion. But it still faces high borrowing costs, climate change and global external shocks it can do little about.



While the fund suggests the continent needs more support from international partners and further implementation of structural reforms to diversify funding sources and economies, Fofack argues should fundamentally rethink its reliance on multinational companies for its development.



&#8220;Only in that way can Africa’s business model be sustainable and find success in resolving our debilitating development paradox, wherein the world’s most resource-rich continent has been made to believe that it is the poorest,&#8221; he says.



&#8220;Insufficient emphasis on philosophy and intellectual leadership in Africa has caused policymaking across the region to be reduced to managing balance of payments crises, aggravated by the colonial development model of resource extraction, far removed from the desired projection into the future shaped by Africa’s history and foundational roots.&#8221;

Energy2-1

African philosophers must create new development model for continent

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-820x551.jpg" alt="" class="wp-image-422104" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-1536x1032.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of IMF at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo</figcaption></figure>



The International Monetary Fund says financing conditions for sub-Saharan African economies are likely to remain constrained for a while amid continued capital outflows from the region.



&#8220;Global financing conditions, even if&nbsp;they&#8217;ve&nbsp;eased a little bit, remained&nbsp;fairly difficult&nbsp;for most countries as&nbsp;evidenced&nbsp;by continued pressure on foreign exchange rates for example,’’ the Washington-based lender’s Africa Department Director Abebe Selassie told reporters. &#8220;Capital flows also&nbsp;remain&nbsp;attenuated,&nbsp;notwithstanding&nbsp;Cote&nbsp;D&#8217;Ivoire&#8217;s&nbsp;recent issuance a couple of weeks ago.’’



The U.S. Federal Reserve and other global central banks are pushing back against expectations of early interest rate cuts, keeping dollar inflows strong. Africa, along with other emerging markets has as a result seen strong outflows while most countries have been unable to access global capital markets in what the IMF has called a funding squeeze.



Resilient U.S. consumer spending, even after 500 basis points in rate increases has anchored higher U.S. rates, pushing bets the U.S. Federal Reserve may begin cutting rates in March to May or the second half the year.



The IMF however says its 2024 forecast for sub-Saharan Africa growth remains unchanged at 3.8% versus the 3.3% percent estimate made last October at its annual meetings in Marrakech, Morocco. Inflation is seen decelerating to 6 percent versus 4 percent in 2023.



&#8220;Also encouraging is that we see both domestic and foreign investment picking up through 2023, which bodes well for activity in 2024,’’ Selassie said. &#8220;On the policy side, also, we have seen governments making a&nbsp;strenuous effort&nbsp;to stabilize public debt, and our estimates now suggest that public debt will have stabilized at around the 60% mark following about a decade of sustained increase in public debt levels.’’



The IMF last week upgraded its global economic growth forecast on the back of stronger than seen expansion in the United States and China, the world’s largest economies, and select large emerging markets.



Chief Economist Pierre-Olivier Gourinchas last week said a so-called soft landing was in sight as global inflation slowed while overall growth and trade reflected resilience though lower than historical averages.



Global trade was expected to expand by&nbsp;3.3% in 2024 and 3.6% in 2025, well below the historical average of 4.9%, with gains weighed down by&nbsp;thousands of fresh trade restrictions.



The tighter financing conditions were also slowing economic reforms needed to boost growth across the region, said Selassie. To counter this, the fund had so far disbursed about $3 billion of $19 billion set aside to back reforms.



The reforms had also been slowed by the lack of more progress on the Common Framework, with Zambia still struggling to finalize its debt restructuring. Concessions would be needed on both sides, he added.

W3TRJMXBPRNATIXO27SFJRC77U

IMF says sub-Saharan Africa financing conditions tough, outflows continue

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nigerian-singer-Ayra-Starr-820x547.jpg" alt="" class="wp-image-438660" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nigerian-singer-Ayra-Starr-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nigerian-singer-Ayra-Starr-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nigerian-singer-Ayra-Starr-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nigerian-singer-Ayra-Starr-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nigerian-singer-Ayra-Starr-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/Nigerian-singer-Ayra-Starr-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NEWARK, NEW JERSEY &#8211; SEPTEMBER 12: Ayra Starr attends the 2023 MTV Video Music Awards at Prudential Center on September 12, 2023 in Newark, New Jersey. (Photo by Jeff Kravitz/Getty Images for MTV)</figcaption></figure>



In recent years, the uptake of African musical talent globally has been extraordinary and 2023 was no exception. With the recent announcement from the Recording Academy on the nominees from Africa for the 2024 Grammy Awards, the continent has entered the global hall of fame.



Although this is not the first time African musicians have graced the Grammys, for 2024, Nigerian Afrobeats stars Damini Ebunoluwa Ogulu (Burna Boy), Ahmed Ololade (Asake), David Adedeji Adeleke (Davido), and Oyinkansola Sarah Aderibigbe (Ayra Starr) have all netted in the nominations.



In a statement released in November, the Academy announced three newly-added categories for the 2024 Grammys, one of which is the Best African Music Performance award, hailed a breakthrough acknowledging the commercial and cultural prowess of African music.



“Giving African music its own category would highlight and celebrate the diversity and richness of Africa,” Shawn Thwaites, project manager at the Recording Academy, said at a roundtable. “This is a great step forward!”



The youngest nominee on this list and lone South African artist is 21-year-old Tyla Laura Seethal, with her viral song, Water, already nominated for two South African Music Awards.



Seethal’s recent and fast climb to the top is testament to the excellent emerging pool of talent in the industry.



When you open the explore pages of video-sharing social media platforms such as TikTok or Instagram Reels or even YouTube shorts, hit songs like Yahyuppiyah from Lungelihle Zwane (Uncle Waffles), Tony Duardo and Justin99, and Unavailable by Davido featuring Musa Makamu (professionally known as Musa Keys) stream into your soundscapes. People from all over the world have taken to social media to ensure they get the energetic moves right for the vigorously viral songs.



Davin Phillips, Executive Director at Celebrity Services Africa (CSA), an agency that specializes in brand marketing in the culture and entertainment space, says that social media has amplified the &nbsp;reach of African artists.



“I think social media, maybe more technology, has allowed us to actually go into other regions across the continent that previously didn’t have access to certain streaming or publishing. We’ve been able to identify the continent a lot more and bring it together. Also, another thing, as we know, in any emerging market, sometimes we only give our own artists the recognition, but we are seeing the international community recognize them,” Phillips says.



“Social media has amplified the careers of so many artists on the continent, so its role cannot be understated,” adds Phiona Okumu, Head of Music for sub-Saharan Africa at Spotify. “Reaching a global audience, instantly, looked different a few years ago and required significant resources. But now on the back of social media, accessibility has taken a new form for artists.”



Data shows that social media platform TikTok has over 1.677 billion users globally out of which 1.1 billion are its monthly active users as of 2023; South Africa alone makes up about 11.83 million of those users. Instagram’s data also shows there are 2.35 billion active users, and 14.9 million of those users are reportedly from Western Africa.



This has allowed young artists like eSwatini- born DJ, Uncle Waffles, Nigeria’s Rema, and even South Africa’s Musa Keys to take the world by storm in what feels like the blink of an eye. “The pool of artists is a lot younger,” concurs advocate Katlego Malatji, Head of Legal and Business Affairs at Sony Music Africa. “I think the internet has created quite an opportunity for a lot of young acts and a lot more diverse acts to come out with different interpretations and variations of various sounds.”



<figure class="wp-block-pullquote"><blockquote>“Sustainability being obviously a different question altogether as to how sustainable are some of these careers because of the lack of depth that comes with being young; but at the very least, they’re getting their moment” <cite>Katlego Malatji</cite></blockquote></figure>



But a big concern for Malatji, especially from a revenue perspective, is if social media offers a viable and sustainable future for the artists.



“Sustainability being obviously a different question altogether as to how sustainable are some of these careers because of the lack of depth that comes with being young; but at the very least, they’re getting their moment,” Malatji says.



“The challenge is that a lot of the songs that I see go viral are not really listenable songs, like we can’t just be chilling at home [and listening to it],” Amapiano artist Makamu says. “You always have to hear that specific part of the song which is kind of dangerous for some songs, however, some people really need viral moments and some don’t.”



Be that as it may, Dataxis however has predicted that Africa’s annual music streaming revenues will grow (from $92.9 million in 2021) to $314.6 million by 2026. Recently, PricewaterhouseCoopers’ (PwC) annual report, Africa’s Entertainment &amp; Media Outlook 2023-2027, highlighted that the music streaming market will continue its march across three of Africa’s biggest markets; South Africa, Kenya and Nigeria. Marketing streaming subscription revenue in South Africa alone is set to rise at 10.5% compound annual growth rate (CAGR) to reach R1.1 billion ($58,494,304) in 2027.



Spotify’s Okumu adds that in 2022, revenues generated by Nigerian artists from Spotify alone reached over NGN11 billion (approximately $14.3 million). While Nigerian music industry revenues overall have grown 63% from 2021 to 2022, according to the International Federation of the Phonographic Industry (IFPI), revenues generated by Nigerian artists, from Spotify, grew 74% over this same time period. Similarly, in 2022, revenues generated by South African artists from Spotify reached nearly R200 million (approximately $10 million) which is three times what it was four years ago.



“These figures only represent a part of the picture. Spotify is one of many music-streaming services that generate revenue for the music industry, and streaming only makes up a portion of all industry revenues,” Okumu adds.



“Africa has incredible creativity that people in Europe and the US marvel at once they get to know about it,” two-time Grammy- award winner Wouter Kellerman says. “I’m very upbeat about the future of African culture and music.”

2023 MTV Video Music Awards – Arrivals

The Rise And Influence Of African Music On The Global Stage

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="544" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-820x544.jpg" alt="" class="wp-image-431625" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-820x544.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-1536x1019.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/S.Africas-Transnet-gets-2.5-bln-govt-support-package-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An aerial view shows oil tanks of Transneft oil pipeline operator at the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia June 13, 2022. Picture taken with a drone. REUTERS/Tatiana Meel</figcaption></figure>



South Africa&#8217;s National Treasury said on Friday it has issued state-owned rail and ports firm Transnet a support package of 47 billion rand ($2.5 billion) to help with a recovery plan, which includes meeting its immediate debt obligations.



&#8220;The financial support package provided for the entity is a 47 billion rand guarantee facility against which Transnet will drawdown an initial amount of 22.8 billion rand to deal with immediate liquidity matters such as settling maturity debt,&#8221; the National Treasury and the Department of Public Enterprises said in a joint statement.



Transnet has been struggling to provide adequate freight rail and port services due to equipment shortages and maintenance backlogs after years of under-investment. The logistics utility&#8217;s underperformance has impacted commodity exports and other sectors such as manufacturing and retail, weakening Africa&#8217;s most advanced economy.



The company, which has a 130 billion rand debt and recorded a loss of 5.7 billion rand in the financial year to March, has seen freight volumes decline to 150 million metric tons in financial year 2022/23 from 226 million tons in the 2017/18.



Transnet&#8217;s new board is pursuing a recovery plan which seeks to restore freight volumes and return the company to profitability over the next 18 months. The turnaround plan includes splitting the freight rail subsidiary into two &#8211; an infrastructure management company and an operating unit.



The company is also targeting reduced port backlogs and will make another attempt to open up parts of its rail network to private operators after last year&#8217;s false start.



Transnet on Oct. 26 said it had requested funding from government, reported to be around 100 billion rand, including an equity injection, to help fund the recovery efforts.



But the government on Friday said it had not considered an equity injection, saying the budget for the 2023/24 financial year was closed.



Transnet&#8217;s single $1 billion international bond, which matures in 2028, rose on the news, with its price up as much as 1.8 cents to 98.9 cents, its highest price since Aug. 1 according to Tradeweb data. ($1 = 18.8111 rand) (Reporting by Bhargav Acharya and Nelson Banya; Additional reporting by Rachel Savage; Editing by Sonali Paul, Tom Hogue and Toby Chopra)

A view shows oil terminal Kozmino near Nakhodka

S.Africa’s Transnet gets $2.5 bln govt support package

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough-820x462.jpg" alt="" class="wp-image-431341" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man wearing a thawb walks past flags of nations participating in the UNFCCC COP28 Climate Conference the day before its official opening on November 29, 2023 in Dubai, United Arab Emirates. Sean Gallup | Getty Images News | Getty Images</figcaption></figure>



Dubai, UNITED ARAB EMIRATES — Countries at the U.N. COP28 summit on Thursday agreed on deal details for a disaster fund to help nations reeling from damages caused by the climate crisis.



This agreement, struck on the opening day of the conference in the United Arab Emirates, builds on a deal for a loss and damage fund brokered at COP27 in Egypt last year — widely seen as a historic breakthrough and potential turning point in the climate crisis.



Many key arrangements were left unresolved at the time, such as who should pay into the fund, how large should it be and who should administer the money.



The operationalization of the fund on Thursday prompted a standing ovation from delegates in the audience.



So far, the pledges to the fund include $100 million from Germany, $100 million from the United Arab Emirates, $17 million from the U.S. and $10 million from Japan. The U.K. has also pledged sums into the fund.



Payments are made into the fund on a voluntary basis, and all developing countries are eligible to directly access the resources. The World Bank will be the interim host to the fund for a period of four years — an issue that has previously fueled tensions between high-income and low-income countries.



In emailed comments, Friederike Roder, vice president of sustainable development advocacy group Global Citizen, described the announcement of a loss and damage fund as a “historic decision,” but added that “a fund is worthless without any dollars in it” and urged wealthy countries to step and announce significant pledges.



“The needs for loss and damage and other climate finance will continue to increase. This is why we also need, additionally, to tap into other financing sources, such as international taxes,” Roder said.



High-income countries, which account for the bulk of historical greenhouse gas emissions, have long opposed the creation of a loss and damage fund to compensate low-income nations.



Advocates argue that the fund is required to account for climate impacts — including hurricanes, floods and wildfires or slow-onset impacts such as rising sea levels — that countries cannot defend against, either because the risks are unavoidable, or because they lack the financial resources to do so.



Avinash Persaud, special climate envoy to Barbados, said that the deal reflects “a hard fought historic agreement.”



“It shows recognition that climate loss and damage is not a distant risk but part of the lived reality of almost half of the world’s population and that money is needed to reconstruct and rehabilitate if we are not to let the climate crisis reverse decades of development in mere moments,” he added.



<h2 class="wp-block-heading" id="h-a-boost-to-momentum">A boost to momentum?</h2>



 In Dubai, Alex Scott, an analyst at environmental think tank E3G, described the deal to establish a loss and damage fund as a “massive” breakthrough that reflected “a huge show of global cooperation.”



“There is often a lot of skepticism at these multilateral spaces because they are often getting every country to agree, so they always end up being the lowest common denominator and end up with diplomatic speak that doesn’t really make sense to people,” Scott told CNBC.



“But this is very clear. This is a decision to establish the fund that they agreed they would try to establish last year. I think it will be a good momentum boost for the rest of the negotiations.”



Policymakers will now need to reflect on how much they are willing to put into the fund, Scott said.



Low-income countries have previously called for sums of at least $100 billion a year by 2030, to be put toward the loss and damage caused by the climate crisis.



“I would expect some countries might hold back their pledges and wait until the very end, as part of the negotiating tactics to bring the final package together,” Scott said.

Countries-at-COP28-approve-climate-disaster-fund-deal-details-in-early-breakthrough

Countries at COP28 approve climate disaster fund deal details in early breakthrough

Geneva, Switzerland, 28 November 2023&nbsp;– Transitioning to a more sustainable and carbon-neutral future, $13.5 trillion in investments will be needed by 2050, particularly in the production, energy and transport sectors, according to a new World Economic Forum report.



The&nbsp;Net-Zero Industry Tracker 2023, published in collaboration with Accenture, takes stock of progress towards net-zero emissions for eight industries – steel, cement, aluminum, ammonia, excluding other chemicals, oil and gas, aviation, shipping and trucking – which depend on fossil fuels for 90% of their energy demand and pose some of the most technological and capital-intensive decarbonization challenges.



The report, published the same week as the United Nations called at COP28 for “dramatic climate action” to close an “emissions canyon”, outlines pathways to accelerate the decarbonization of emission-intensive production, energy and transport industries.&nbsp;While the pathway to net zero in these sectors will differ based on unique sectoral and regional factors, investments in clean power, clean hydrogen and infrastructure for carbon capture, utilization and storage (CCUS) will be needed to accelerate industrial decarbonization across most sectors.



“Decarbonizing these industrial and transport sectors, which emit 40% of global greenhouse gas emissions today, is essential to achieving net zero, especially as demand for industrial products and transport services will continue to be strong,” said Roberto Bocca, Head of Centre for Energy and Materials, World Economic Forum. “Significant infrastructure investments are required, complemented by policies and stronger incentives so industries can switch to low-emission technologies while ensuring access to affordable and reliable resources critical for economic growth.”



According to the report, the $13.5 trillion in investments is derived from average clean power generation costs of solar, off-shore and on-shore wind, nuclear and geothermal, electrolyzer costs for clean hydrogen and carbon transport, as well as storage costs.



The Net-Zero Industry Tracker proposes a comprehensive framework of emissions drivers and enablers to measure progress and identify gaps, scorecards for each industry, and opportunities for cross-sector collaboration. Building on the 2022 edition, the updated report includes transportation sectors and applies the framework to identify strategies for net-zero industrial transformation.



The report’s findings underscore the urgency for creating a robust enabling environment, including low-emissions technologies, infrastructure, demand for green products, policies and investments. In addition to increasing capital expenditures to decarbonize existing industrial and transport asset bases, further investment is needed to build a clean-energy infrastructure.



Share of global GHG emissions for heavy industrial and transport sectors



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="956" height="856" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WEF_Image_Graph.jpg" alt="W" class="wp-image-430686" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WEF_Image_Graph.jpg 956w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WEF_Image_Graph-300x269.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WEF_Image_Graph-820x734.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WEF_Image_Graph-101x90.jpg 101w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WEF_Image_Graph-768x688.jpg 768w" sizes="auto, (max-width: 956px) 100vw, 956px" /></figure>



The majority of the technologies needed to deliver net-zero emissions are expected to reach commercial maturity after 2030, highlighting the need for collaborative approaches to research, develop and scale them. This includes substituting legacy technologies with low-emission alternatives, increasing efficiency of processes and machinery, electrification and driving circularity.



“It is imperative that action is taken soon to both decarbonize and improve energy efficiency; otherwise, unabated fossil-fuel demand in the key industry sectors, which have grown 8% on average the past three years, will increase very significantly by 2050,” said Bocca. “But industrial leaders can&nbsp; respond through new collaborative ways of working and innovating, for example within&nbsp;<a href="https://weforum.us3.list-manage.com/track/click?u=6308fe51b420dc9ff3834abc8&amp;id=5e48b8e30b&amp;e=d66be97e93">industrial clusters</a>&nbsp;and by fostering best practices, sharing infrastructure in important areas like clean hydrogen and CCUS and building &nbsp;demand for lower-emissions products.”



According to the report, carbon pricing, tax subsidies, public procurement and development of strong business cases can support in mobilizing necessary investments. However, raising capital for high-risk projects with unproven technologies could be challenging in the current macroeconomic environment. Institutional investors and multilateral banks, therefore, can play an important role by providing access to low-cost capital linked to emissions targets; equally vital is adapting financial models to the needs of various industries and regions.



“Collaboration between the public and private sectors is critical to a successful energy transition, and technology can be a key enabler in both managing affordable and reliable access to clean energy and addressing the incremental cost of decarbonization,” said Muqsit Ashraf, who leads&nbsp;<a href="https://weforum.us3.list-manage.com/track/click?u=6308fe51b420dc9ff3834abc8&amp;id=095135a5bd&amp;e=d66be97e93">Accenture Strategy</a>. “Widespread scaling and adoption of clean power, carbon capture and storage, and energy efficiency technologies across sectors are vital for progress. Additionally, business model innovations can also help stimulate demand and accelerate industrial decarbonization — achieving&nbsp;<a href="https://weforum.us3.list-manage.com/track/click?u=6308fe51b420dc9ff3834abc8&amp;id=08ae963912&amp;e=d66be97e93">net-zero objectives</a>&nbsp;and a resilient energy transition.”



The report acknowledges that recent policy developments can push the industrial net-zero transformation in the right direction. While some advanced economies are enacting large-scale policy measures, emerging economies – which will account for a larger share of future demand for industrial products and transport services – will need help accessing low-emission technologies and solutions.



The report also calls for industrial sectors to focus on the following five areas, and details specific actions for each of the sectors as part of its individual scorecard:



<ul class="wp-block-list">
<li>Technology&nbsp;– Prioritize clean power technology across most sectors, commercially scale CCUS in cement, and improve technology to reduce costs for clean hydrogen development.</li>



<li>Infrastructure&nbsp;– Promote shared infrastructure, such as industrial hubs and clusters.</li>



<li>Demand&nbsp;– Create a standardized framework for low-emissions products, a simple emissions-intensity calculator and an auditable carbon-footprint assessment process, improving consumer transparency.</li>



<li>Policy&nbsp;– Align on emissions reduction requirements globally, with policies customized to suit individual country needs and enhance market transparency to increase emission intensity visibility.</li>



<li>Capital&nbsp;– Improve transparency for low-emissions and low-carbon alternatives, strengthen demand signals and reduce capital expenditures through shared infrastructure development.</li>
</ul>



“The Net-Zero Tracker 2023 explores in detail how low-carbon solutions and infrastructure will contribute to increasing the pace of decarbonization in hard-to-abate industries,” said Stephanie Jamison, Accenture’s global Resources industry practice lead and global sustainability services lead. “This depth is essential to help companies create sustainable value and impact as they strive to achieve net-zero carbon emissions.”

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Sub-Saharan Africa must lift revenue to ride out global turbulence – IMF Africa head

Cocoa tops global commodities rally for 2nd year, steel ingredients struggle on China demand

African Markets – Factors to watch on Dec 11

Gen Z and millennials are increasingly ‘doom spending.’ Here’s what it is and how to stop it

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Ugandan shilling stable, draws support from tax payments

Ether extends its rally following 20% surge on renewed ether ETF optimism

Chad prepares to vote in a coup-hit region, wary allies look on

Congo M23 rebels claim control of smartphone mineral mining town

African philosophers must create new development model for continent

IMF says sub-Saharan Africa financing conditions tough, outflows continue

The Rise And Influence Of African Music On The Global Stage

S.Africa’s Transnet gets $2.5 bln govt support package

Countries at COP28 approve climate disaster fund deal details in early breakthrough

Net-Zero Industry Tracker: $13.5 Trillion Investment Needed to Fast-Track Decarbonization of Key Hard-to-Abate Industry Sectors

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