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Kganyago keeps repo rate unchanged at 8.25% (full speech)

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-820x462.jpeg" alt="" class="wp-image-429017" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kristalina Georgieva, managing director of the International Monetary Fund, at a press conference at the IMF Headquarters on April 14, 2023. Kevin Dietsch | Getty Images News | Getty Images</figcaption></figure>



SINGAPORE — Central bank digital currencies have the potential to replace cash, but adoption could take time, said Kristalina Georgieva, managing director of the International Monetary Fund on Wednesday.



“CBDCs can replace cash which is costly to distribute in island economies,” she said Wednesday at the Singapore FinTech Festival. “They can offer resilience in more advanced economies. And they can improve financial inclusion where few hold bank accounts.”



CBDCs are the digital form of a country’s fiat currency, which are regulated by the country’s central bank. They are powered by blockchain technology, allowing central banks to channel&nbsp;government payments directly to households.



“CBDCs would offer a safe and low-cost alternative [to cash]. They would also offer a bridge to go between private monies and a yardstick to measure their value, just like cash today which we can withdraw from our banks,” the IMF chief said.



The IMF has said that more than 100 countries are exploring CBDCs – or approximately 60% of countries in the world.



“The level of global interest in CBDCs is unprecedented. Several central banks have already launched pilots or even issued a CBDC,” the IMF said in a September report.



According to a 2022 survey conducted by the Bank for International Settlements, of the 86 central banks surveyed, 93% said they were exploring CBDCs, while 58% said they were likely to or may possibly issue a retail CBDC in either the short or medium term.



But as of June, only 11 countries have adopted CBDCs, with an additional 53 in advanced planning stages and 46 researching the topic, according to data from the Atlantic Council.



Referring to a 2018 speech by her predecessor Christine Lagarde, when the former IMF chief encouraged policymakers to follow the “winds of change” and explore the use of CBDCs, Georgieva said: “Five years on, I’m here to provide an update on that voyage.”



“First, countries did set sail. Many are investigating CBDCs and are developing regulation to guide digital money developments,” said Georgieva referring to the speech.



On Wednesday, the fund launched a CBDC handbook as a reference guide for policymakers around the world. Georgieva said many countries are investigating CBDCs and developing regulation to guide digital money developments.



“Second, we have not yet reached land. There is so much more space for innovation and so much uncertainty over use-cases,” Georgieva told an audience which included industry experts, investors and journalists.



“In some countries the case seems dim&nbsp;today,&nbsp;but even they should remain open to potentially deploy CBDCs&nbsp;tomorrow. Why?” said Georgieva. “This is not the time to turn back.”



“The public sector should keep preparing to deploy CBDCs and related payment platforms in the future. Fourth, these platforms should be designed from the start to facilitate cross-border payments, including with CBDCs,” the managing director said.



<h2 class="wp-block-heading" id="h-potential-of-cbdcs"><a></a>Potential of CBDCs</h2>



Countries that have issued retail CBDC include the&nbsp;Bahamas, Jamaica and Nigeria.



Singapore’s Monetary Authority of Singapore has said that cash is “generally incompatible” with the digital economy. In a 2021 report, the country’s central bank said the demand for cash as a means of payment is set to decline further.



According to the BIS, using CBDCs for cross-border payments could lower the costs of obtaining, storing and spending foreign currency, depending on design and regulations.



Georgieva also said that artificial intelligence “could amplify some of the benefits of CBDCs” by providing accurate credit scoring and personalized support.



Demand for generative AI has boomed following the release of OpenAI’s ChatGPT in November last year, which was estimated to have reached 100 million monthly active users within two months after launch.



“It could improve financial inclusion by providing rapid, accurate credit scoring based on various data. It could provide personalized support to people with low financial literacy,” said Georgieva.



“To be sure, we need to protect personal privacy and data security, and avoid embedded biases so we don’t perpetuate inequality but aim to reduce it. Managed prudently, AI could help,” she added.

107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3

IMF says central bank digital currencies can replace cash: ‘This is not the time to turn back’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LPLH3MCUKZPKLOKBOCFD2MBNBQ-820x547.jpg" alt="" class="wp-image-428556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LPLH3MCUKZPKLOKBOCFD2MBNBQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LPLH3MCUKZPKLOKBOCFD2MBNBQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LPLH3MCUKZPKLOKBOCFD2MBNBQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LPLH3MCUKZPKLOKBOCFD2MBNBQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LPLH3MCUKZPKLOKBOCFD2MBNBQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/LPLH3MCUKZPKLOKBOCFD2MBNBQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian naira notes are seen in this picture illustration March 15, 2016 REUTERS/Afolabi Sotunde/Illustration</figcaption></figure>



NAIROBI, Oct 26 (Reuters) &#8211; The Ugandan and Kenyan shillings and Zambia&#8217;s kwacha are expected to slip in the next week to Thursday, while Nigeria&#8217;s naira is forecast to be range-bound on the official market and Ghana&#8217;s cedi and Tanzania&#8217;s shilling broadly stable, traders said.



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



Kenya&#8217;s shilling is forecast to weaken because of increased demand for dollars from importers from all sectors.



Commercial banks quoted the shilling at 150.30/50 per U.S. dollar, compared with last Thursday&#8217;s closing rate of 149.90/150.10.



Earlier on Thursday, the shilling, which is down 17.9% so far this year, touched a new all-time low of 150.35/55 per dollar, according to LSEG data.



&#8220;We have seen a lot of demand, but it cuts across all sectors,&#8221; one trader said.



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



Nigeria&#8217;s naira is seen trading around its current levels on the official market in the coming week, after the finance minister said the government was expecting $10 billion of inflows to ease dollar shortages.



However the currency will likely fall on the black market, where it trades freely but on thin volumes, one trader said.



The naira recovered to 775 naira to the dollar on the official market on Thursday from a record low of 999 naira touched last week. But it hit a record low of 1,300 to the dollar on the black market on Thursday.



&#8220;Market participants realise that even if you take the (exchange) rates (down) there are no funds. I expect the market to trade around the 800 levels next week,&#8221; the trader said.



<h2 class="wp-block-heading" id="h-uganda">UGANDA</h2>



Uganda&#8217;s shilling is expected to fall on customary end-month demand for dollars from goods importers.



Commercial banks quoted the shilling at 3,760/3,770 to the dollar, compared with last Thursday&#8217;s closing rate of 3,750/3,760.



&#8220;We anticipate a bit of demand as importers seek dollars to pay for shipments of goods for the coming month,&#8221; said a forex trader.



He said the shilling might weaken to 3,800 to the dollar in the coming days.



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



Zambia&#8217;s kwacha is likely to continue trading on the back foot next week as dollar demand, largely from energy importers, continues to exceed supply.



On Thursday, commercial banks quoted the kwacha at 22.11 per dollar, compared with 21.79 a week earlier.



&#8220;The local currency is projected to follow a downward trajectory,&#8221; Access Bank said in a note.



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



Ghana&#8217;s cedi is expected to remain steady due to improved dollar supply on the interbank market and a fall in demand.



LSEG data showed the cedi trading at 11.81 to the dollar on Thursday, compared to 11.80 at last Thursday&#8217;s close.



&#8220;The cedi traded relatively stable against the dollar in the past week. &#8230; We expect a similar narrative in the coming week,&#8221; said Sedem Dornoo, a senior trader Absa Bank Ghana.



<h2 class="wp-block-heading" id="h-tanzania">TANZANIA</h2>



Tanzania&#8217;s shilling is expected to hold steady as dollar inflows from foreign direct investment, tourism and agricultural exports meet demand from importers.



Commercial banks quoted the shilling at 2,495/2,505 per dollar, the same as last Thursday&#8217;s close.



(Reporting by Elias Biryabarema, George Obulutsa, Nuzulack Dausen, Chris Mfula, Christian Akorlie and Chijioke Ohuocha Editing by Alexander Winning)

Nigerian naira notes are seen in this picture illustration

WEEKAHEAD-AFRICA-FX-Ugandan, Kenyan and Zambian currencies seen sliding

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: 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>



WASHINGTON, Sept 28 (Reuters)&nbsp;&#8211;&nbsp;The World Bank on Thursday proposed steps that would boost its lending to developing countries by an additional $100 billion over a decade as part of an ongoing reform process aimed at helping the bank expand its mission to include climate change.



In a 24-page report to the joint ministerial committee that oversees the bank and the International Monetary Fund, the bank&#8217;s management said it would ask shareholders to approve a hybrid capital measure and a new portfolio guarantee platform that together could boost lending by over $100 billion.



That amount would come on top of measures already being implemented that will boost the bank&#8217;s lending to developing countries by up to $50 billion.



(Reporting by Andrea Shalal and David Lawder)

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

World Bank maps out plans to further boost lending by $100 bln-plus over a decade

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/P6LTVFDMVZK5ZDIDUZRGCUZHVM-820x547.jpg" alt="" class="wp-image-427340" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/P6LTVFDMVZK5ZDIDUZRGCUZHVM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/P6LTVFDMVZK5ZDIDUZRGCUZHVM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/P6LTVFDMVZK5ZDIDUZRGCUZHVM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/P6LTVFDMVZK5ZDIDUZRGCUZHVM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/P6LTVFDMVZK5ZDIDUZRGCUZHVM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/P6LTVFDMVZK5ZDIDUZRGCUZHVM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Emergency crews work, in the aftermath of a deadly earthquake, in Amizmiz, Morocco, September 10, 2023. REUTERS/Nacho Doce</figcaption></figure>



MOULAY BRAHIM, Morocco, Sept 10 (Reuters)&nbsp;&#8211;&nbsp;Survivors of Morocco&#8217;s deadliest earthquake in more than six decades struggled to find food, water and shelter on Sunday as the search for the missing continued in remote villages and the death toll of more than 2,100 seemed likely to rise further.



Many people were spending a third night in the open after the 6.8 magnitude quake hit late on Friday. Relief workers face the challenge of reaching the worst-affected villages in the High Atlas, a rugged mountain range where settlements are often remote and where many houses crumbled.



The death toll climbed to 2,122 with 2,421 people injured, state TV reported. Morocco said it may accept relief offers from other countries and will work to coordinate them if needed, according to state TV.



The damage done to Morocco&#8217;s cultural heritage became more evident as local media reported the collapse of a historically important 12th century mosque. The quake also damaged parts of Marrakech old city, a UNESCO World Heritage site.



In Moulay Brahim, a village 40 km (25 miles) south of Marrakech, residents described how they dug the dead from the rubble using their bare hands. On a hillside overlooking the village, residents buried a 45-year-old woman who had died along with her 18-year-old son, a woman sobbing loudly as the body was lowered into the grave.



As he retrieved possessions from his damaged home, Hussein Adnaie said he believed people were still buried in the rubble nearby.



&#8220;They didn&#8217;t get the rescue they needed so they died. I rescued my children and I&#8217;m trying to get covers for them and anything to wear from the house,&#8221; Adnaie said.



Yassin Noumghar, 36, complained of shortages of water, food and power, saying he had received little government aid so far.



&#8220;We lost everything, we lost the entire house,&#8221; Noumghar said. &#8220;We want just for our government to help us.&#8221;



Later, sacks of food were unloaded from a truck which local official Mouhamad al-Hayyan said had been organised by the government and civil society organisations.



Twenty-five bodies had been brought to the village&#8217;s small clinic, according to staff.



With many homes built of mud bricks and timber or cement and breeze blocks, structures crumbled easily. It was Morocco&#8217;s deadliest earthquake since 1960 when a quake was estimated to have killed at least 12,000 people.



In the badly hit village of Amizmiz, residents watched as rescuers used a mechanical digger on a collapsed house.



&#8220;They are looking for a man and his son. One of them might still be alive,&#8221; said Hassan Halouch, a retired builder.



The team eventually recovered only bodies.



The army, mobilised to help the rescue effort, set up a camp with tents for the homeless. With most shops damaged or closed, residents struggled to get food and supplies.



&#8220;We&#8217;re still waiting for tents. We haven&#8217;t had anything yet,&#8221; said Mohammed Nejjar, a labourer who was folding his blanket in a makeshift shelter constructed with bits of wood. &#8220;I had a little food offered by one man but that&#8217;s all since the earthquake. You can&#8217;t see a single shop open here and people are frightened to go inside in case the roof falls down.&#8221;



The quake&#8217;s epicentre was 72 km (45 miles) southwest of Marrakech, a city beloved by Moroccans and foreign tourists for its medieval mosques, palaces and seminaries richly adorned with vivid mosaic tiling amid a labyrinth of rose-hued alleyways.



The government said on Sunday it has set up a fund for those affected by the earthquake. The government has also said it is reinforcing search-and-rescue teams, providing drinking water and distributing food, tents and blankets. The World Health Organization said more than 300,000 people have been affected by the disaster.



<h2 class="wp-block-heading" id="h-foreign-aid">FOREIGN AID</h2>



Spain said 56 officers and four sniffer dogs have arrived in Morocco, while a second team of 30 people and four dogs was heading there. Britain said it was deploying 60 search-and-rescue specialists and four dogs on Sunday, as well as a four-person medical assessment team. Qatar also said its search-and-rescue team departed for Morocco.



U.S. President Joe Biden expressed his &#8220;sadness about the loss of life and devastation&#8221; caused by the quake.



&#8220;We stand ready to provide any necessary assistance to the Moroccan people,&#8221; Biden told a news conference in Hanoi, Vietnam.



A U.S. official said a small team of disaster experts dispatched by the United States arrived in Morocco on Sunday to assess the situation.



France said it stood ready to help and was awaiting a formal request from Morocco.



Other countries offering assistance included Turkey, where earthquakes in February killed more than 50,000 people. By Sunday, the Turkish team had not yet departed.



&#8220;The next two to three days will be critical for finding people trapped under the rubble,&#8221; Caroline Holt, global director of operations for the International Federation of Red Cross and Red Crescent Societies (IFRC), told Reuters.



Holt said the international aid system has been waiting for an invitation from Morocco to assist, adding this was not necessarily unusual as the government assesses needs.



Pope Francis offered prayers and solidarity for the victims.



Morocco has declared three days of mourning and King Mohammed VI called for prayers for the dead to be held at mosques across the country.



(Additional reporting by Ahmed Eljechtimi and Abdulhak Balhaki in the Marrakech region, Jose Joseph in Bengaluru, Adam Makary, Moaz Abd-Alaziz and Omar Abdel-Razek in Cairo, Angus McDowall in London, Graham Keeley in Madrid, Dominique Vidalon in Paris and Nandita Bose in Hanoi; Writing by Tom Perry and Andy SullivanEditing by Elaine Hardcastle, Frances Kerry and Giles Elgood)

Aftermath of a deadly earthquake in Morocco

Morocco survivors seek aid as earthquake toll passes 2,100

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="504" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2KLXFZ554JLPZCUK3BTLBB2HO4-820x504.jpg" alt="" class="wp-image-427318" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2KLXFZ554JLPZCUK3BTLBB2HO4-820x504.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2KLXFZ554JLPZCUK3BTLBB2HO4-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2KLXFZ554JLPZCUK3BTLBB2HO4-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2KLXFZ554JLPZCUK3BTLBB2HO4-768x472.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2KLXFZ554JLPZCUK3BTLBB2HO4-1536x945.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/2KLXFZ554JLPZCUK3BTLBB2HO4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows windmills of several wind farms at the so-called &#8220;HelWin-Cluster&#8221;, located 35 kilometres (22 miles) north of the German island of Heligoland November 5, 2014. REUTERS/Fabian Bimmer</figcaption></figure>



LONDON, Sept 7&nbsp;&#8211;&nbsp;The Africa Finance Corporation (AFC), which is owned by Nigeria&#8217;s central bank and other African financial institutions, has no intention of backing away from fossil fuel investments, a senior executive said on Thursday.



While governments and U.N. leaders at Africa&#8217;s first-ever climate summit in Nairobi this week sought to promote the continent as a source of renewable energy solutions, the development of fossil fuel projects remains firmly on the agenda for many countries.



&#8220;We cannot and will not run away from doing fossil fuel-based investing because the development needs of the continent are so huge,&#8221; Sanjeev Gupta, executive director of financial services at the AFC, said at the Reuters IMPACT climate conference in London.



&#8220;The world still needs energy security, the world still needs energy source diversity. No energy mix in the world in the next 50 years says no oil and gas, so why would we not develop our resources and fund our own fiscal budgets?&#8221;



The Lagos-based AFC is a pan-African multilateral development institution, with 40 member states. It is 43.1%-owned by Nigeria’s central bank and 42% by other African financial institutions, according to its website.



A report released this week by development charity ActionAid said that banks worldwide gave $3.2 trillion to the fossil fuel industry in Global South countries in the seven years since the 2015 Paris climate agreement, which agreed to limit global warming to &#8220;well below&#8221; 2 degrees Celsius by slashing emissions.



(By Jane Wardell; Editing by Elaine Hardcastle)

A view shows windmills of several wind farms at the so-called “HelWin-Cluster\

Africa Finance Corporation remains committed to fossil fuel investments

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-820x547.jpg" alt="" class="wp-image-426336" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Bola Tinubu, President of Nigeria, arrives for the closing session of the New Global Financial Pact Summit, Friday, June 23, 2023 in Paris, France. Lewis Joly/Pool via REUTERS/File Photo</figcaption></figure>



ABUJA, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;Nigerian President Bola Tinubu swore in ministers to his cabinet on Monday, nearly three months after his inauguration.



The new cabinet will have to confront sluggish growth, caused by a previous collapse in oil prices that weakened the naira&nbsp;NGN=D1&nbsp;currency, slashed government revenues and drove up inflation.



The government must also deal with large-scale crude oil theft and insecurity in the country, and win back foreign investors who fled as currency controls were introduced in 2016.



Tinubu, 71, who is also the chairman of regional bloc ECOWAS, is also working with other heads of government in West Africa to find a solution to the crisis in Niger where a military junta has seized power.



Tinubu, who took office on May 29, won a disputed presidential election in February, which is being challenged by his main opponents in court.



He has embarked on some of the boldest reforms that Nigeria has seen in years, including scrapping a popular but costly petrol subsidy and removing exchange rate restrictions. The naira has weakened to record lows.



The reforms are a gamble to try to kick-start growth but inflation has soared, worsening a cost of living crisis for Africa&#8217;s most populous nation, a big headache for Tinubu and his new ministers.



Tinubu, 71, appointed former investment banker Olawale Edun as finance minister and coordinating minister for the economy. He named Heineken Lokpobiri as junior minister of petroleum and Ekperipe Ekpo as junior minister of gas resources.



A main petroleum minister has yet to be appointed, spokesman Ajuri Ngelale said.



(Reporting by Felix Onuah, Writing by Chijioke Ohuocha, Editing by Angus MacSwan)

FILE PHOTO: Summit for a new global financing pact takes place in Paris

Nigeria’s Tinubu swears in cabinet ministers amid concerns over slow growth, insecurity

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-820x547.jpg" alt="" class="wp-image-426413" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The Central Bank of Nigeria&#8217;s logo is seen on its headquarters building in Abuja, Nigeria, January 22, 2018. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, (Reuters) &#8211; Nigeria&#8217;s central bank raised its main lending rate by a smaller-than-expected 25 basis points NGCBIR=ECI on Tuesday, saying it preferred a moderate increase to anchor inflation expectations while continuing to support investment.



In the boldest reforms seen in years, new President Bola Tinubu has ended a decades-old petrol subsidy that has seen prices triple and ended restrictions on foreign exchange, which has weakened the naira more than 40%, feeding into inflation.



The reforms have been mostly welcomed by investors, but analysts would have preferred more aggressive central bank action to counter price increases.



Tuesday&#8217;s decision to raise the bank&#8217;s Monetary Policy Rate to 18.75% is the first since Tinubu suspended central bank governor Godwin Emefiele in June.



Emefiele, who earlier appeared in court on fire arms charges, had used a much-criticised system of multiple exchange rates to keep the country&#8217;s naira currency artificially strong and lent directly to businesses to try to boost growth.



Analysts polled by Reuters had predicted a 100 basis point hike, as inflation rose for the sixth month in a row in June to 22.79% in annual terms.



Acting central bank governor Folashodun Shonubi told a news conference that the balance of arguments among monetary policy committee members &#8220;leaned in favor of a moderate rate hike to sustain efforts at anchoring inflation expectations, narrow the negative real interest rate gap and improve investor confidence&#8221;.



At the last monetary policy meeting under Emefiele in May, the central bank raised its policy rate by 50 basis points.



Research firm Capital Economics said investors wanted to see whether the central bank would continue to take the inflation fight more seriously, or follow the lead of Tinubu, who has said he prefers lower interest rates.



&#8220;There is clearly not the appetite for the major, and prolonged, monetary policy tightening that is needed to address high inflation,&#8221; the firm said a note to investors.



Tinubu criticised the central bank&#8217;s policies under Emefiele at his inauguration, saying they needed &#8220;thorough house-cleaning&#8221;.



(Reporting by Chijioke Ohuocha; Additional reporting by Camillus Eboh and Elisha Bala-Gbogbo; Editing by Alexander Winning, MacDonald Dzirutwe and Sharon Singleton)

FILE PHOTO: The Central Bank of Nigeria’s logo is seen on its headquarters in Abuja

Nigeria opts for small rate hike at first meeting after Emefiele’s suspension

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RTS312I2-1-820x461.jpg" alt="" class="wp-image-425841" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RTS312I2-1-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RTS312I2-1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RTS312I2-1-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RTS312I2-1-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RTS312I2-1-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RTS312I2-1.jpg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



LONDON, (Reuters) &#8211; A total of 130 countries representing 98% of the global economy are now exploring digital versions of their currencies, with almost half in advanced development, pilot or launch stages, a closely-followed study shows.



The research by the U.S.-based Atlantic Council think tank published on Wednesday said significant progress over the past six months meant that all G20 countries with the exception of Argentina were now in one of those advanced phases.



Eleven countries, including a number in the Caribbean, and Nigeria, have already launched central bank digital currencies (CBDCs) as they are known, while pilot testing in China now reaches 260 million people and covers 200 scenarios from e-commerce to government stimulus payments.



Two other big emerging economies, India and Brazil, also plan to launch digital currencies next year. The European Central Bank is on track to begin its digital euro pilot ahead of a possible launch in 2028, while over 20 other countries will also take significant steps towards pilots this year.



In the United States, though, progress on a digital dollar is only &#8220;moving forward&#8221; for a wholesale (bank-to-bank) version, the Atlantic Council&#8217;s research said, whereas work on a retail version for use by the wider population has &#8220;stalled&#8221;.



U.S. President Joe Biden ordered government officials to assess the risks and benefits of creating a digital dollar in March 2022.



The heavyweight status of the dollar in the financial system means any U.S. move has potentially enormous global consequences, but the Federal Reserve said back in January that Congress, rather than it, should decide whether a digital version is launched.



The global push for CBDCs comes as physical cash use falls and authorities look to fend off the threat to their money-printing powers from bitcoin and &#8216;Big Tech&#8217; firms.



Sanctions imposed on the likes of Russia and Venezuela in recent years have been another driver, including even for long-time U.S. allies like Europe, which wants to ensure it has an alternative to the Visa, Mastercard and Swift payment networks.



&#8220;Since Russia’s invasion of Ukraine and the G7 sanctions response, wholesale CBDC developments have doubled,&#8221; the Atlantic Council said, adding that there were now 12 multi-country &#8220;cross-border&#8221; projects being worked on.



It said that Sweden remained one of Europe&#8217;s most advanced with its CBDC pilot, while the Bank of England is pressing on with work on a possible digital pound that could be in use by the second half of this decade.



Australia, Thailand, South Korea, and Russia all intend to continue pilot testing this year too.



Despite the growing interest in CBDCs, however, some countries that have launched them &#8211; such as Nigeria &#8211; have seen a disappointing take-up, while Senegal and Ecuador have both cancelled development work.



(Reporting by Marc Jones; Editing by Mark Potter)

RTS312I2-1

Study shows 130 countries exploring central bank digital currencies

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/107181610-1674206959843-gettyimages-1246304931-AFP_337A2Q4-820x462.jpeg" alt="" class="wp-image-422574" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/107181610-1674206959843-gettyimages-1246304931-AFP_337A2Q4-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/107181610-1674206959843-gettyimages-1246304931-AFP_337A2Q4-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/107181610-1674206959843-gettyimages-1246304931-AFP_337A2Q4-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/107181610-1674206959843-gettyimages-1246304931-AFP_337A2Q4-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/107181610-1674206959843-gettyimages-1246304931-AFP_337A2Q4.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) Managing Director Kristalina Georgieva attends a session at the World Economic Forum (WEF) annual meeting in Davos on January 17, 2023. Fabrice Coffrini | Afp | Getty Images</figcaption></figure>



The global economic outlook is not as bad as feared a couple of months ago — “but less bad doesn’t quite yet mean good,” according to the managing director of the International Monetary Fund.



“We have to be cautious,” Kristalina Georgieva told a closing panel at the World Economic Forum in Davos moderated by CNBC.



She said headline inflation was heading down and China’s reopening was expected to boost global growth, with the IMF forecasting its economy will outpace global growth of 2.7% this year, at 4.4%, after slipping below it for the first time in four decades last year.



“Also what has changed in the positive is we have seen demonstrably the strength of labor markets translating into consumers spending and keeping the economy up,” she said.



However, she also highlighted ongoing risks, including China’s growth resulting in higher oil and gas prices and the “horrible” war in Ukraine harming global confidence, particularly in Europe.



And 2.7% growth was still “not fabulous,” she added.



“So, conclusion, be careful not to get on the other side of the spectrum from being too pessimistic to too optimistic. Stay in the middle of realism that seems to serve the world well,” Georgieva said.



She then called on Davos attendees to “keep the global economy integrated for the benefit of all of us.”



“If we look at medium-term growth prospects, how we handle security of supply chains will matter tremendously on our future prospects of growth,” she said.



“If we diversify rationally, the cost of this adjustment will be low. We put it down to 0.2% of GDP. If we are like an elephant in a china shop and we trash the trade that has been an engine for growth for so many decades, the cost can go up to 7% loss of GDP, $7 trillion.”



“So a great deal of whether we can lift optimism depends on the people in this room. Be pragmatic, collaborate, do the right thing, keep the global economy integrated for the benefit of all of us.”



This is a developing story&#8230;

107181610-1674206959843-gettyimages-1246304931-AFP_337A2Q4

Global economic outlook may be less bad — but we’re still not in a good place, IMF chief says

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



Jan 19 (Reuters)&nbsp;&#8211;&nbsp;Zambia needs &#8220;desperate debt relief&#8221; and agreements under a Group of 20 restructuring vehicle are proving difficult, the World Bank&#8217;s managing director of operations said on Thursday.



&#8220;In the last two years, we have seen the limitations of the common framework,&#8221; Axel van Trotsenburg told a panel at the World Economic Forum&#8217;s annual meeting in Davos, moderated by Reuters Editor-in-Chief Alessandra Galloni.



Zambia has become a test case for the G20-led &#8220;Common Framework&#8221; restructuring vehicle launched during COVID-19 to streamline debt restructuring efforts as poorer countries buckle under the fallout from the pandemic hit. It aims to include non-Paris club members, such as China, in debt relief talks.



Non-Paris Club creditors &#8220;are now playing a very significant role and that is, I think the challenge, to bring these creditors into this process of dialogue and it is not only China, India as important creditors, (but also) Saudi Arabia and some of the Arab states,&#8221; van Trotsenburg said.



&#8220;Right now we have negotiations where there is not an established debt sustainability framework. What you see in the discussions is that different creditors are challenging all the underlying assumptions,&#8221; van Trotsenburg added, without specifying which creditors he was referring to.



&#8220;Take the Zambia case, but this will come up in Sri Lanka &#8211; we need to have a serious discussion on lending into arrears by financial institutions,&#8221; he added.



Speaking at the same panel, Jose Antonio Ocampo, Colombia&#8217;s finance minister, said there was a lack of institutional arrangements to manage debt issues.



&#8220;The lack of institutions for debt renegotiations is a major institutional problem in the world economy,&#8221; he said.



Ocampo also said that it would make &#8220;major sense&#8221; to enhance debt-for-climate swaps.



Debt-for-nature swaps usually replace expensive bonds or loans with cheaper financing for developing countries, often with the help of a credit guarantee from a multilateral development bank.



But Kenneth Rogoff, a former International Monetary Fund chief economist who teaches at Harvard University, challenged this idea.



Rogoff said that in such swaps, the debt still remained and investors that do not swap their debt still get paid by the sovereign governments.



For daily Davos updates in your inbox sign up for the Reuters Daily Briefing&nbsp;<a href="https://www.reuters.com/newsletters/daily-briefing/" target="_blank" rel="noreferrer noopener">here</a>.



(Reporting by Jorgelina do Rosario and Yoruk Bahceli, writing by Yoruk Bahceli; editing by Dhara Ranasinghe)

IMF And World Bank Headquarters During Virtual Spring Meetings

Davos 2023: World Bank: Zambia needs ‘desperate’ debt relief under challenging Common Framework

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246299971-820x547.jpg" alt="" class="wp-image-422552" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246299971-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246299971-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246299971-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246299971-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246299971-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246299971-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ersNgozi Okonjo-Iweala, director-general of the World Trade Organization (WTO), speaks during a panel session on the opening day of the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 17, 2023. The annual Davos gathering of political leaders, top executives and celebrities runs from January 16 to 20. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



DAVOS, Switzerland, Jan 19 (Reuters)&nbsp;&#8211;&nbsp;Trade blocs seeking to skirt geopolitical risk by &#8220;friend-shoring&#8221; activities to like-minded countries should be careful which commerce partners they favour, World Trade Organization chief Ngozi Okonjo-Iweala said on Thursday.



U.S. Treasury Secretary Janet Yellen and others have used the term to encourage countries to diversify supply chains away from China to market-oriented democracies such as India.



Speaking on the sidelines of the World Economic Forum in Davos, Okonjo-Iweala urged caution, citing the need to explore trade opportunities more widely with those countries and regions that until now have been left on the margins of world trade.



&#8220;Who is a friend? You&#8217;re not too sure they&#8217;ll be a friend tomorrow, we&#8217;ve seen examples of that,&#8221; she told Reuters.



&#8220;Friends should not just be in Asia, there is Latin America, there is Africa. There are countries there that are places where you can perfectly de-concentrate manufacturing. You bring them into the supply chain and that way you also include them.&#8221;



The Ukraine war has prompted a hasty exit from Russia of the Western firms who for years &#8211; with the support of their governments &#8211; saw it as a lucrative market. Similar aspirations for China have also cooled amid human rights and other concerns.



Okonjo-Iweala has acknowledged that the WTO in its current form need to reform its processes and institutions to make sure it can effectively promote free trade. But she called on trade blocs not to abandon the WTO and its rules-based system.



&#8220;Don&#8217;t throw the baby out with the bathwater,&#8221; she said. &#8220;If you do it outside, you are in for a free-for-all and I don&#8217;t think that would be for the benefit for anyone.&#8221;



(Reporting by Mark John in Davos; Editing by Mark Heinrich)

Opening Day of The World Economic Forum (WEF) 2023

Davos 2023-Be careful on ‘friend-shoring’, WTO’s Ngozi warns

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246232947-820x547.jpg" alt="" class="wp-image-422539" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246232947-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246232947-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246232947-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246232947-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246232947-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246232947-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">KEYENBERG, GERMANY &#8211; JANUARY 14: Swedish climate activist Greta Thunberg joins a protest march over the pending razing of the settlement of Luetzerath on January 14, 2022 near Keyenberg, Germany. Police have been evicting environmental activists who have occupied the abandoned Luetzerath settlement and who are seeking to prevent Luetzerath&#8217;s demolition that will make way for an expansion of the adjacent Garzweiler II open cast coal mine. The North Rhine-Westphalia state government of German Christian Democrats (CDU) and Greens has approved the demolition and the coal mine expansion, while at the same time announcing an accelerated phase out of coal-fired energy production in the state from 2038 to 2030. Other nearby settlements that were also slated for demolition will now be spared, though critics point out that Germany has sufficient energy production capacity and does not need the coal lying beneath Luetzerath. (Photo by Bernd Lauter/Getty Images)</figcaption></figure>



Swedish climate activist Greta Thunberg on Thursday accused the political and business elite at the World Economic Forum in Davos, Switzerland, of prioritizing self-interest and short-term profits over people and the planet.



“We are right now in Davos where basically the people who are mostly fueling the destruction of the planet, the people who are at the very core of the climate crisis, the people who are investing in fossil fuels etcetera, etcetera and yet somehow these are the people that we seem to rely on solving our problems,” Thunberg said.



“They have proven time and time again that they are not prioritizing that. They are prioritizing self-greed, corporate greed and short-term economic profits above people and above planet,” she added.



Thunberg said it was “absurd” that the world seems to be listening to Davos delegates rather than those on the frontlines of the climate emergency.



Thunberg was released by police earlier this week after being&nbsp;detained&nbsp;alongside other climate activists for protesting the expansion of a coal mine in the tiny village of Luetzerath in western Germany.



“Yesterday I was part of a group that peacefully protested the expansion of a coal mine in Germany. We were kettled by police and then detained but were let go later that evening,” Thunberg said on Wednesday&nbsp;via Twitter. “Climate protection is not a crime,” she added.



Alongside IEA Executive Director Fatih Birol, Thunberg took part in the CNBC-moderated panel with youth climate advocates Vanessa Nakate, Helena Gualinga and Luisa Neubauer.



The four climate activists arrived in Davos having recently composed an&nbsp;open letter&nbsp;to the CEOs of fossil fuel companies through the non-profit website Avaaz. Thunberg, Nakate, Gualinga and Neubauer called on the executives of energy giants to “immediately stop” opening new oil, gas or coal extraction sites and said they intended to keep protesting in the streets in “huge numbers.”



“We know that Big Oil knew for decades that fossil fuels cause catastrophic climate change, misled the public about climate science and risks [and] deceived politicians with disinformation sowing doubt and causing delay,” the letter says.



It adds that fossil fuel executives “must end these activities as they are in direct violation of our human right to a clean, healthy, and sustainable environment, your duties of care, as well as the rights of Indigenous people.”



Failure to act immediately, the activists warn, comes at a time when citizens around the world “will consider taking any and all legal action to hold you accountable.” Nearly 900,000 people added their names to the letter as of Thursday morning.



The fossil fuel industry has sought to underline the importance of energy security amid calls for a rapid transition to renewables, typically highlighting that&nbsp;demand for fossil fuels remains high.



To be sure, the burning of fossil fuels such as coal, oil and gas, is the chief driver of the climate crisis.



<h2 class="wp-block-heading" id="h-big-oil-peddled-the-big-lie"><a></a>‘Big Oil peddled the big lie’</h2>



The climate emergency is one of the main themes for this year’s annual meeting in the Swiss Alpine town of Davos, which brings together roughly 1,500 business leaders.



Addressing delegates during a special address on Wednesday, U.N. Secretary-General Antonio Guterres&nbsp;condemned&nbsp;fossil fuel giants for ignoring their own climate science. He accused the oil and gas industry of seeking to expand production despite knowing “full well” that their business model is incompatible with human survival.



“Some in Big Oil peddled the big lie,” Guterres said. “And like the tobacco industry, those responsible must be held to account.”



Thunberg has previously excoriated the climate inaction of the world’s political and business leaders at WEF,&nbsp;saying&nbsp;in Jan. 2019, “Our house is on fire.”

Greta Thunberg Joins Luetzerath Protest

Greta Thunberg says Davos elite are prioritizing greed and short-term profits over people and the planet

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320792-820x547.jpg" alt="" class="wp-image-422532" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320792-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320792-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320792-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320792-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320792-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320792-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DAVOS, SWITZERLAND &#8211; JANUARY 18: A general view of the World Economic Forum (WEF) as it continues with special sessions in Davos, Switzerland on January 18, 2023. (Photo by Dursun Aydemir/Anadolu Agency via Getty Images)</figcaption></figure>



European markets retreated on Thursday, tracking weaker global sentiment as investors gauge the economic outlook, a topic high on the agenda at the World Economic Forum in Davos this week.



The pan-European Stoxx 600 was down 0.6% in early trade, with oil and gas stocks shedding 1.9% to lead losses as almost all sectors and major bourses slid into the red.



CNBC will be speaking to a range of delegates at the World Economic Forum on Wednesday, including the CEOs of Enel, Merck, Rio Tinto and leaders of the Netherlands and Ireland, among many others.



The lower open in Europe comes after the Dow Jones Industrial Average tumbled more than 600 points on Wednesday as investors took profits on some of the strong January gains, and as a disappointing December retail sales reading in the U.S. raised concerns about a recession.



Shares in the Asia-Pacific traded mixed on Thursday after tracking the losses on Wall Street.

World Economic Forum

European markets fall as investor mood sours

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320969-820x547.jpg" alt="" class="wp-image-422511" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320969-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320969-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320969-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320969-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320969-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-1246320969-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DAVOS, SWITZERLAND &#8211; JANUARY 18: A general view of the World Economic Forum (WEF) as it continues with special sessions in Davos, Switzerland on January 18, 2023. (Photo by Dursun Aydemir/Anadolu Agency via Getty Images)</figcaption></figure>



Davos-Klosters, Switzerland, 18 January 2023 – African heads of state and global CEOs at the World Economic Forum Annual Meeting backed the launch of the first of its kind report on how public-private partnerships can support the implementation of the African Continental Free Trade Area (AfCFTA).   AfCFTA: A New Era for Global Business and Investment in Africa outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in entering and expanding in this area.   The report aims to provide a pathway for global businesses and investors to understand the biggest trends, opportunities and strategies to successfully invest and achieve high returns in Africa, developing local, subregional and continental value chains and accelerating industrialization, all of which go hand in hand with the success of the AfCFTA.   The AfCFTA is the largest free trade area in the world, by area and number of participating countries. Once fully implemented, it will be the fifth-largest economy in the world, with the potential to have a combined GDP of more than $3.4 trillion. Conceived in 2018, it now has 54 national economies in Africa, could attract billions in foreign investment, boost overseas exports by a third, double intra-continental trade, raise incomes by 8% and lift 50 million people out of poverty.   To ease the pain of transition to its new single market, Africa has learned from trade liberalization in North America and Europe. “Our wide range of partners and experience can help anticipate and mitigate potential disruptions in business and production dynamics,” said Børge Brende, President, World Economic Forum. “The Forum’s initiatives will help to ease physical, capital and digital flows in Africa through stakeholder collaboration, private-public collaboration and information-sharing.”   Given the continent’s historically low foreign direct investment relative to other regions, the report highlights the sense of excitement as the AfCFTA lowers or removes barriers to trade and competitiveness. “The promising gains from an integrated African market should be a signal to investors around the world that the continent is ripe for business creation, integration and expansion,” said Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum.   The report focuses on four key sectors that have a combined worth of $130 billion and represent high-potential opportunities for companies looking to invest in Africa: automotive; agriculture and agroprocessing; pharmaceuticals; and transport and logistics.   “Macro trends in the four key sectors and across Africa’s growth potential reveal tremendous opportunities for business expansion as population, income and connectivity are on the rise,” said Wamkele Mene, Secretary-General, AfCFTA Secretariat.   “These projections reveal an unprecedented opportunity for local and global businesses to invest in African countries and play a vital role in the development of crucial local and regional value chains on the continent,” said Landry Signé, Executive Director and Professor, Thunderbird School of Global Management and Co-Chair, World Economic Forum Regional Action Group for Africa.   The Forum is actively working towards implementing trade and investment tools through initiatives, such as Friends of the Africa Continental Free Trade Area, to align with the negotiation process of the AfCFTA. It identifies areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.

Global CEOs Back Plan to Unlock $3.4 Trillion Potential of Africa Free Trade Area

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/weforum-820x461.jpg" alt="" class="wp-image-422507" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/weforum-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/weforum-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/weforum-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/weforum-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/weforum.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Davos-Klosters, Switzerland, 18 January 2023 – In an effort to tackle rising cybercrime levels, the World Economic Forum launched today at the Annual Meeting 2023 an initiative to map cybercriminal activities and identify joint public and private sector responses.   Building on the expertise of the Forum’s <a href="https://weforum.us3.list-manage.com/track/click?u=6308fe51b420dc9ff3834abc8&amp;id=ed970aff1c&amp;e=d635155278" target="_blank" rel="noreferrer noopener">Partnership against Cybercrime</a>, the Cybercrime Atlas initiative will provide a platform for leading cybercrime investigators, national and international law enforcement agencies, and global businesses to share knowledge, generate policy recommendations and identify opportunities for coordinated action to fight cyberthreats.   “The Cybercrime Atlas is a collaborative research initiative that gathers and collates information about the cybercriminal ecosystem and major threat actors operating today,” said Jeremy Jurgens, Managing Director, World Economic Forum. “The insights generated will help promote opportunities for greater cooperation between the private sector and law enforcement to address cybercrime.”   Cybercrime, such as the ransomware attack on Colonial Pipeline in May 2021 that caused US President Joe Biden to declare a state of emergency, is a threat to national security, public organizations and businesses of all sizes. Despite the amount of digital data collected on cybercriminal activities worldwide, the effort to fight it is often uncoordinated, disjointed and dispersed. The Cybercrime Atlas aims to map the cybercrime landscape, covering criminal operations, structures and networks.   First announced at San Francisco’s RSA Conference in June 2022, the Cybercrime Atlas has benefited from a year of pro bono analysis of 13 criminal groups by cybercrime investigators. Their approach and findings have been welcomed by law enforcement agencies.   “This initiative underlines the need for an enhanced multi-sector approach to combat the increasing cybercrime threat,” said Jürgen Stock, Secretary-General, International Criminal Police Organization (INTERPOL). “A global solution must include private sector insights to enable law enforcement to prevent, detect, investigate and disrupt cybercrime.”   The secretariat for the Cybercrime Atlas initiative will be hosted by the World Economic Forum for the next 2-3 years, with the support of Fortinet, Microsoft, PayPal and Santander, until it is sufficiently established to become an independent platform.   “The Cybercrime Atlas is an important initiative that will aid industry, law enforcement, and government agencies by providing a first-of-its-kind visibility to disrupt cybercriminals across their ecosystem and infrastructure,” said Ken Xie, Chief Executive Officer, Fortinet. “A global and unified effort will make it easier to get beyond the obstacles that shield cybercriminals.”   The Forum’s Partnership against Cybercrime initiative brings together a dedicated community to drive momentum for a public-private partnership to combat cybercrime.   “Cybercriminals work in the shadows and exploit vulnerabilities to inflict devastating attacks. The Cybercrime Atlas provides an important forum that brings the public and private sectors together to share actionable information and leverage cross-sector data, capabilities and expertise, crucial to disrupting cybercrime quickly, and at scale,” said Brad Smith, Vice-Chair and President, Microsoft.   &#8220;To mitigate and disrupt global cybercrime in today’s interconnected world, we need robust platforms to share intelligence and facilitate more meaningful institutional collaboration,” added Assaf Keren, Chief Information Security Officer and Vice-President, Enterprise Cyber Security, PayPal. “The Cybercrime Atlas represents a key next step in this work and an opportunity to unite global businesses, law enforcement and experts around concrete opportunities to protect the world’s citizens and their safety.”   “Given the global nature of cyberthreats, increasingly public-private collaboration is the best way to combat cybercrime,” said Dirk Marzluf, Group Chief Operating and Technology Officer, Banco Santander. “Organizations must look beyond their perimeter and combine efforts and resources with businesses, law enforcement and government.”

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Kganyago keeps repo rate unchanged at 8.25% (full speech)

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IMF says central bank digital currencies can replace cash: ‘This is not the time to turn back’

WEEKAHEAD-AFRICA-FX-Ugandan, Kenyan and Zambian currencies seen sliding

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