
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429-1.jpg" alt="" class="wp-image-534014" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429-1.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429-1-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429-1-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429-1-768x402.jpg 768w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller counts Kenya shilling notes inside the cashier’s booth at a forex exchange bureau in Kenya’s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



<p>NAIROBI, Sept 23 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s shilling&nbsp;KES=&nbsp;was unchanged against the U.S. dollar on Monday, data from the London Stock Exchange Group showed.</p>



<p>At 1039 GMT, commercial banks quoted the shilling at 128.50/129.50 per dollar, the same as Friday&#8217;s closing rate.</p>



<p>The shilling has been relatively stable for several months,&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N3EZ12H&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">after rallying</a>&nbsp;in the first half of 2024 as concerns eased that the East African country would default on a $2 billion Eurobond that matured in June.</p>



<p>(Reporting by Hereward Holland; Editing by Anait Miridzhanian)</p>



<p></p>


LYEEWJTJKRPK3GJPCKWFP3EK7E-820×429

Kenyan shilling stable, LSEG data shows


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/JAPAN-820x462.webp" alt="" class="wp-image-533991" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/JAPAN-820x462.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/JAPAN-300x169.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/JAPAN-160x90.webp 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/JAPAN-768x432.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/JAPAN.webp 1480w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An office worker studying electronic diagrams on a computer at control-panel maker in Japan.<br>Bloomberg | Bloomberg | Getty Images</figcaption></figure>



<p>Japan has ramped up its push for companies to adopt a four-day workweek, but those efforts face steep challenges in a country famous for its workaholic culture.</p>



<p>The Japanese government recently&nbsp;<a href="https://jsite.mhlw.go.jp/shiga-roudoukyoku/hourei_seido_tetsuzuki/_119416/consultant.html" target="_blank" rel="noreferrer noopener">initiated a “work style reform” campaign</a>&nbsp;aimed at promoting flexible work arrangements, shorter hours and overtime limits. To further encourage this initiative, the labor ministry has also begun&nbsp;<a href="https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/0000120692.html" target="_blank" rel="noreferrer noopener">providing subsidies</a>&nbsp;and&nbsp;<a href="https://jsite.mhlw.go.jp/shiga-roudoukyoku/hourei_seido_tetsuzuki/hatarkikata-kaikaku.html" target="_blank" rel="noreferrer noopener">free consulting services</a>.&nbsp;</p>



<p>The move marks a more concerted effort after the government first floated support for a shorter workweek in 2021 when lawmakers endorsed the idea. But the concept has not been mandated, and has been slow to gain traction.</p>



<p>“The reasons Japanese work long hours are cultural and social; those things don’t change quickly,” said<strong>&nbsp;</strong>Tim Craig, who spent over&nbsp;<a href="https://blueskyacademic.net/welcome-to-bluesky/about-us/" target="_blank" rel="noreferrer noopener">20 years teaching and conducting research&nbsp;</a>in top business schools in Japan.</p>



<p>According to the Ministry of Health, Labor and Welfare,&nbsp;<a href="https://www.e-stat.go.jp/en/stat-search/files?page=1&amp;amp;query=week&amp;amp;layout=dataset&amp;amp;toukei=00200531&amp;amp;tstat=000000110001&amp;amp;tclass1=000001215302&amp;amp;stat_infid=000040169039&amp;amp;metadata=1&amp;amp;data=1" target="_blank" rel="noreferrer noopener">only about 8% of companies</a>&nbsp;in Japan permit employees to take three or more days off each week.&nbsp;</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p>If they go home early, then their colleagues will (a) look askance at them, and (b) have to work more to cover for them.</p>



<p>Tim Craig &#8211; Founder of BlueSky Academic Services</p>
</blockquote>



<p>Craig, who also&nbsp;<a href="https://www.amazon.sg/Cool-Japan-Cultural-Creative-Industries/dp/4990982215" target="_blank" rel="noreferrer noopener">wrote a book on Japanese popular and traditional culture</a>, explained that the Japanese place a high premium on work because they tend to view it as a “positive part of life,” but social pressure also plays a role.</p>



<p>“If they go home early, then their colleagues will (a) look askance at them, and (b) have to work more to cover for them. Either way, it’s not a good feeling,” Craig elaborated.&nbsp;</p>



<p>The workplace is also where most Japanese have most of their social interactions, where employees are often willing to stay around longer to help the team and attend long company dinners, observed Martin Schulz, chief policy economist at Fujitsu.</p>



<p>“Being part of a company is almost part of a community, and this results often in longer work hours, not as efficient work hours,” he told CNBC.</p>



<p>Last October, the health ministry&nbsp;<a href="https://www.mhlw.go.jp/stf/wp/hakusyo/karoushi/23/index.html" target="_blank" rel="noreferrer noopener">published its annual white paper</a>&nbsp;addressing Japan’s excessively long working hours and their connection to depression and karoshi, or death from overwork. In 2022, 2,968 people in Japan died by suicide attributed to karoshi, an increase from 1,935 in 2021. Japan has not released its white paper for 2023′s statistics yet.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p>I think that it’s going to take time [for the four-day workweek] to penetrate… we’re not used to being flexible.</p>



<p>Hiroshi Ono &#8211; Professor at Hitotsubashi University</p>
</blockquote>



<p>The report highlighted that 10.1% of men and 4.2% of women work over 60 hours a week, linking these long hours to the incidence of karoshi.</p>



<p>“I think that it’s going to take time [for the four-day work week] to penetrate… we’re not used to being flexible,” said Hiroshi Ono, professor of human resources at Hitotsubashi University.</p>



<p>“It’s still pretty rare in other countries as well. So I think that Japan especially will take some time to do that,” he added.</p>



<p>The small number of companies implementing a four-day workweek are also generally not traditional Japanese companies, Ono also observed,&nbsp;<a href="https://www.weforum.org/agenda/2022/01/four-day-week-work-life-balance-trial/" target="_blank" rel="noreferrer noopener">citing the example of Microsoft Japan</a>.&nbsp;</p>



<p>“So for the traditional Japanese companies, it might even take longer,” he said.</p>



<p>One of Japan’s largest companies,&nbsp;<a href="https://www.cnbc.com/quotes/6752.T-JP/">Panasonic</a>, rolled out the four-day workweek option for employees in 2022, but&nbsp;<a href="https://4dayweek.io/country/japan" target="_blank" rel="noreferrer noopener">only about 150 of 63,000 eligible workers</a>&nbsp;opted in.&nbsp;</p>



<p>Brokerage firm&nbsp;<a href="https://work-holiday.mhlw.go.jp/detail/11010.html#:~:text=%E9%80%B1%EF%BC%94%E6%97%A5%E5%8B%A4%E5%8B%99%E3%81%AE,%E9%81%B8%E6%8A%9E%E3%81%A7%E3%81%8D%E3%82%8B%E3%82%88%E3%81%86%E3%81%AB%E3%81%97%E3%81%9F%E3%80%82" target="_blank" rel="noreferrer noopener">SMBC has also offered employees a four-day workweek</a>&nbsp;option since 2020. But it has limited eligibility to workers aged 40 years or older for either family care or “autonomous career development.” The option is also only available from the fourth year of employment.&nbsp;</p>



<p>While the adoption rates are slim, the initiative is not all moot.</p>



<p>“The overall flexibility helps, definitely,” said Fujitsu’s Schulz, adding that the government has been pushing companies harder on work-life balance such that endless overtime hours are not allowed anymore.&nbsp;</p>



<p>Additionally, experts told CNBC that the concept of karoshi is not a phenomenon unique to Japan. In 2019,&nbsp;<a href="https://www.arbetarskydd.se/arbetsmiljo-stress/over-770-svenskar-dor-av-stress-varje-ar/1486737" target="_blank" rel="noreferrer noopener">more than 770 workers reportedly died due to work stress in Sweden</a>.</p>



<p>“The only thing that’s unique to Japan is that the ministry actually collects data on karoshi,” said Ono.</p>


An office worker studying electronic diagrams on a computer at control-panel maker in Japan. Bloomberg | Bloomberg | Getty Images

Japan is pushing a 4-day working week — but its workaholic culture makes it a hard sell


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MARKETS.jpg" alt="" class="wp-image-533973" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MARKETS.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MARKETS-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/MARKETS-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



<p>JOHANNESBURG, Sept 23 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, equity and currency market moves may affect South African markets on Monday.</p>



<p><strong>ECONOMIC EVENTS</strong></p>



<p>Foreigners&#8217; trading in South African bonds and equities</p>



<p>Weekly treasury bill auction</p>



<p><strong>SOUTH AFRICAN MARKETS</strong></p>



<p>The South African rand softened on Friday, cooling off after strong gains in a week that saw interest rate cuts by both the U.S. Federal Reserve and the South African Reserve Bank, plus a local inflation print.</p>



<p>On the Johannesburg Stock Exchange, the blue-chip Top-40 index&nbsp;.JTOPI&nbsp;closed little changed.&nbsp;.JZAR/</p>



<p><strong>GLOBAL MARKETS</strong></p>



<p>World stocks stuck around record highs as investors turned their attention to China and Switzerland as the next central banks to add vim to the global economy with rate cuts after last week&#8217;s decisive move by the U.S. Federal Reserve.&nbsp;MKTS/GLOB</p>



<p><strong>WALL STREET</strong></p>



<p>U.S. stocks closed nearly unchanged on Friday, as investors paused buying after a strong rally in the prior session that was fueled by an upsized interest-rate cut by the Federal Reserve, while Nike&#8217;s gains helped nudge the Dow to a record.&nbsp;.N</p>



<p><strong>GOLD</strong></p>



<p>Gold extended gains to scale a record high on Monday, driven by the momentum generated by the Federal Reserve&#8217;s interest rate cut and safe-haven demand due to geopolitical risks in the Middle East.&nbsp;GOL/</p>



<p><strong>EMERGING MARKETS</strong></p>



<p>For the top emerging markets news, double click on&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3ATOPEMRG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a></p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



<p><strong>BUSINESS DAY</strong></p>



<p>&#8211; Home deliveries give sales of motorbikes a lift</p>



<p>&#8211; GNU boosts business confidence in property market, survey shows</p>



<p><strong>FIN 24</strong></p>



<p>&#8211; SABC household levy: SARS, MultiChoice must help collect, says broadcaster</p>



<p>(Compiled by Bhargav Acharya)</p>


MARKETS

South African Markets – Factors to watch on Sept 23


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="507" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-820x507.jpg" alt="" class="wp-image-533970" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-820x507.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-300x186.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-145x90.jpg 145w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-768x475.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-1536x950.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg August 13 2014. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



<p>JOHANNESBURG, Sept 23 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand softened against the dollar on Monday, retreating from a fresh 20-month high it hit earlier in the session.</p>



<p>At 0820 GMT, the rand traded at 17.455 against the greenback&nbsp;ZAR=D3, 0.27% weaker than its previous close.</p>



<p>The local unit earlier hit 17.37 per dollar, its strongest level since February 2023, as it continued to rally following strong&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3L20LG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">gains last week</a>&nbsp;after a super-sized interest rate cut by the Federal Reserve. That was followed by a rate cut by the South African Reserve Bank (SARB) along expected lines.</p>



<p>The local currency benefited from the positive sentiment in the wake of the Fed and SARB rate cuts, said Andre Cilliers, currency strategist at TreasuryONE.</p>



<p>On the stock market, the Top-40&nbsp;.JTOPI&nbsp;index was up 0.4%.</p>



<p>South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was flat, with the yield at 8.88%.</p>



<p>(Reporting by Bhargav Acharya; Editing by Andrew Cawthorne)</p>


Photo illustration of South African bank notes displayed next to the American dollar notes in Johannesburg

South African rand softens against the dollar


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="486" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/UGANDA-COFFEE.jpg" alt="" class="wp-image-533967" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/UGANDA-COFFEE.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/UGANDA-COFFEE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/UGANDA-COFFEE-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Roasted coffee beans are seen on display in Bogota, Colombia June 5, 2019. REUTERS/Luisa Gonzalez</figcaption></figure>



<p>KAMPALA, Sept 23 (Reuters)&nbsp;&#8211;&nbsp;The value of Uganda&#8217;s coffee exports in August soared 82.9% versus a year earlier helped by higher global prices, the state-run sector regulator said in a report on Monday.</p>



<p>Uganda is Africa&#8217;s largest exporter of the beans which are, alongside gold, the country&#8217;s biggest sources of foreign exchange.</p>



<p>In August Uganda shipped 837,915 60-kilogram bags of coffee worth $221.6 million, according to the Uganda Coffee Development Authority (UCDA).</p>



<p>&#8220;The value of coffee exports was higher as global coffee prices continue to rise as dry conditions in Brazil and Vietnam are seen to affect coffee crop yields,&#8221; UCDA said in the report.</p>



<p>Uganda&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3AU2BC&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">exported</a>&nbsp;743,517 60-kilogram bags in August last year, worth $121.64 million.</p>



<p>Uganda earned $1.4 billion from coffee exports in the 12 months to August, up from $918.4 million last year, continuing a general upward trend in earnings in recent years, the UCDA said.</p>



<p>(Reporting by Elias Biryabarema; editing by Hereward Holland and Jason Neely)</p>


Roasted coffee beans on display in Bogota, Colombia

Value of Uganda’s coffee exports up 83% in August, regulator says


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="554" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/SA-JOBSEEKERS-820x554.jpg" alt="" class="wp-image-533948" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/SA-JOBSEEKERS-820x554.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/SA-JOBSEEKERS-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/SA-JOBSEEKERS-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/SA-JOBSEEKERS-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/SA-JOBSEEKERS.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Job seekers wait beside a road for casual work offered by passing motorists, in Eikenhof, south of Johannesburg, South Africa, September 19, 2024. REUTERS/Siphiwe Sibeko/File Photo&nbsp;<a href="https://www.reutersagency.com/en/licensereuterscontent/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead" target="_blank" rel="noreferrer noopener">Purchase Licensing&nbsp;Rights</a></figcaption></figure>



<p></p>



<p>JOHANNESBURG, Sept 23 (Reuters) &#8211; The head of South Africa&#8217;s flagship Black economic empowerment programme plans to introduce additional incentives and potential fines to improve corporate participation and curb exploitation of the system meant to tackle the country&#8217;s gross inequality, he said.</p>



<p>The African National Congress, which had ruled unchallenged for 30 years until it lost its parliamentary majority in May elections, is under intense pressure to improve the lives of Black people left disadvantaged by decades of white minority rule.</p>



<p>The empowerment law enacted in 2003 created a scorecard system that encourages companies to hire and promote Black people by offering them tax breaks and access to government contracts.</p>



<p>Two decades later, unemployment is five times higher for Black people than for white people and income inequality is the worst in the world, according to the World Bank, and critics say the empowerment policy has not worked.</p>



<p>&#8220;There&#8217;s no society that can be viable with (this) level of inequality,&#8221; Tshediso Matona, head of the Broad-based Black Economic Empowerment Commission told Reuters.</p>



<p>Under the voluntary programme, companies earn points in categories such as Black ownership, management control and skills development.</p>



<p>However, Matona says some companies inflate their scores by falsely listing Black people as managers, a practice commonly known in South Africa as &#8220;fronting&#8221;, a crime under the law.</p>



<p>The commission, which refers cases of infringement to state prosecutors, has received 1,348 complaints of fronting since 2017, said Matona. He added, without saying how many cases had been sent to trial, that no one had yet been convicted of fronting largely because the criminal justice system was &#8220;still figuring out how to work with the B-BBEE regulation&#8221;.</p>



<p>Listed companies are required to disclose their Black empowerment status in annual reports, but fewer and fewer are doing so. In 2022, only 141 of about 400 listed companies submitted a report.</p>



<p>Matona said he hoped to enhance company incentives for compliance while &#8220;naming and shaming&#8221; and possibly fining those which fail to submit the reports.</p>



<p>President Cyril Ramaphosa has said he wants to focus on showing companies the advantages of Black empowerment, but that if they refuse to comply then penalties would be needed.</p>



<p>&#8220;On this one (Black empowerment), we are unequivocal,&#8221; Ramaphosa told reporters over a week ago, describing racial inequality as an &#8220;existential challenge&#8221; for South Africa.</p>



<p>&#8220;It must be done, and it will be done.&#8221;</p>



<p>Matona would not be drawn on the specifics of the proposals but said incentives could focus on increasing recognition for companies that invest in skills and enterprise development and should not be &#8220;too obsessed about ownership in existing businesses&#8221;.</p>



<p>He said he hoped to have amendments to the law tabled in parliament within 12 months.</p>



<p>Any inclusion of punitive measures could set the ANC on a collision course with its coalition partner, the pro-business Democratic Alliance party, which has said it would resist them.</p>



<p>&#8220;Businesses don&#8217;t exist for altruistic purposes, we must accept that,&#8221; said DA labour spokesperson Michael Bagraim.</p>



<p><strong>&#8216;BLACKWASHING&#8217; AND TRAINING LOOPHOLES</strong></p>



<p>A common criticism of the affirmative action system is that it made a small number of political insiders extremely wealthy through shareholding deals, especially in its early years.</p>



<p>Economist Duma Gqubule said his research &#8211; based on an analysis of companies&#8217; annual reports and shareholding plans &#8211; found Black ownership of the 50 biggest firms listed on the Johannesburg bourse was barely 1%, far below the official average figure of about 30%.</p>



<p>This was because legal loopholes allowed firms to count Black shareholders even after they sold their stake, or to use shareholding structures that artificially increase Black ownership, a practice Gqubule described as &#8220;Blackwashing&#8221;.</p>



<p>Matona blamed a lack of oversight of independent agencies which issue Black empowerment scorecards and said the industry needed regulation.</p>



<p>His attempt to shift the focus away from ownership to skills development and training also has loopholes, consultants and trainees Reuters spoke to said.</p>



<p>To get skills points companies must pay for training courses for Black people, but they don&#8217;t have to hire them. Some engage a consultancy to find them disabled people to train, because these earn more points, the head of one such consultancy said.</p>



<p>This often leaves Black job seekers in a cycle of training.</p>



<p>&#8220;They keep on promising us that they will hire us but they&#8217;ve never done that,&#8221; said Nonhle Mnguni, a 22-year-old woman in Soweto who has done such courses in business administration, banking, freight forwarding and call centre work since leaving high school.</p>



<p>Giles Von Broembsen, CEO of property management company Pretor Group, said his company ran training programmes for employees, more than half of whom are Black, but that he could only earn points by sending them on a training course elsewhere.</p>



<p>&#8220;The points and the scoring and the system is all very laudable, but it&#8217;s not practical,&#8221; he said.</p>



<p>While some political and economic analysts agree with Matona&#8217;s approach to push for more compliance, others want the law repealed, saying it adds unnecessary bureaucracy which increases business costs and deters foreign investment.</p>



<p>&#8220;I think the whole thing should be repealed,&#8221; said political analyst Moeletsi Mbeki. &#8220;(The state) should help entrepreneurs to develop new businesses, irrespective of their race.&#8221;</p>



<p>(Reporting by Nellie Peyton and Olivia Kumwenda-Mtambo; Editing by Estelle Shirbon and Emelia Sithole-Matarise)</p>


Job seekers wait beside a road for casual work offered by passing motorists, in Eikenhof, south of Johannesburg, South Africa, September 19, 2024. REUTERS/Siphiwe Sibeko/File Photo Purchase Licensing Rights

South Africa seeks to reform faltering Black empowerment system


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="444" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UXGWX6XZO5LIROPXQDLPV6SPGA.jpg" alt="" class="wp-image-422268" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UXGWX6XZO5LIROPXQDLPV6SPGA.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UXGWX6XZO5LIROPXQDLPV6SPGA-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/UXGWX6XZO5LIROPXQDLPV6SPGA-148x90.jpg 148w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 28, 2020.  REUTERS/Mike Hutchings</figcaption></figure>



<p>JOHANNESBURG, Sept 20 (Reuters)&nbsp;&#8211;&nbsp;The South African rand softened in early trade on Friday, cooling off after strong gains in a week that saw interest rate cuts by both the U.S. Federal Reserve and the South African Reserve Bank (SARB), plus a local inflation print.</p>



<p>At 0715 GMT, the rand traded at 17.50 against the dollar, about 0.1% weaker than its previous close.</p>



<p>The local unit has gained about 1.4% against the greenback this week.</p>



<p>&#8220;The rand is likely to remain within a R17.40/R17.70 range in the short term as it tracks international moves but we could see further profit-taking, given the rand&#8217;s recent strong run,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.</p>



<p>The Fed cut interest rates by 50 bps on Wednesday, weakening the dollar and boosting the risk-sensitive rand.</p>



<p>Also on Wednesday, data showed that South Africa&#8217;s annual inflation rate fell to 4.4% last month, the lowest since April 2021 and just below the mid-point of the central bank&#8217;s 3% to 6% target range.</p>



<p>The SARB joined the easing club when it announced a 25 basis point (bps) rate cut on Thursday, the first time interest rates have been reduced in four years.</p>



<p>&#8220;We believe that the SARB has now entered a cycle of rate cuts,&#8221; said Volkmar Baur, Commerzbank FX analyst, in a research note.</p>



<p>&#8220;Further rate cuts are likely to follow, but these should not weigh on the rand if they are accompanied by structural improvements in the economy,&#8221; Baur added.</p>



<p>On the Johannesburg Stock Exchange, the blue-chip Top-40 index was little changed in early trade.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was slightly weaker in early deals, as the yield gained 3 basis points to 8.88%.</p>



<p>(Reporting by Tannur Anders; Editing by Ros Russell)</p>


South African Rand coins are seen in this illustration picture

South African rand cools after strong gains in data-filled week


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg" alt="" class="wp-image-524600" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



<p>JOHANNESBURG, Sept 20 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, company announcement, equity and currency market moves may affect South African markets on Friday.</p>



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



<p>South Africa&#8217;s government will hold its weekly auction of inflation-linked bonds.</p>



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



<p>South African petrochemicals company Sasol and state-owned power utility Eskom will sign agreement on sustainable energy solutions.</p>



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



<p>The South African rand held onto early gains on Thursday following the South African Reserve Bank&#8217;s (SARB) decision to cut interest rates for the first time in over four years, after a super-sized interest rate cut by the U.S. Federal Reserve.</p>



<p>On the Johannesburg Stock Exchange, the Top-40 index .JTOPI closed about 1.3% higher.</p>



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



<p>Asian shares extended their rally on Friday, bathing in the afterglow of an outsized interest U.S. rate cut, while the yen edged higher as the Bank of Japan held rates steady and stayed upbeat on the economy.</p>



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



<p>The S&amp;P 500 surged to a record high close on Thursday, the day after the Federal Reserve cut interest rates by 50 basis points and indicated more rate cuts were on the horizon.</p>



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



<p>Gold lingered near record high levels on Friday and was on track for a weekly gain after the Federal Reserve&#8217;s recent super-sized interest rate reduction and on signs that further cuts were on the horizon.</p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



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



<p>&#8211; Reserve Bank eases into cutting cycle as inflation outlook improves</p>



<h2 class="wp-block-heading" id="h-fin-24">FIN 24</h2>



<p>&#8211; Regulatory delays in Vodacom tie-up may have cost SA R4bn in new fibre, says Rupert&#8217;s Remgro</p>



<p>(Compiled by Tannur Anders)</p>


istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Sept 20


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



<p>NAIROBI, Sept 20 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday.</p>



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



<p>*Mauritius&#8217; central bank to announce its latest benchmark lending rate decision.</p>



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



<p>Asian shares extended their rally on Friday, bathing in the afterglow of an outsized interest rate cut in the United States, while the yen edged higher as the Bank of Japan held rates steady and stayed upbeat on the economy.</p>



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



<p>Oil prices, which were little changed in early Asian trade on Friday, were on track to end higher for a second straight week following a large cut in U.S. interest rates and declining global stockpiles.</p>



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



<p>The South African rand held onto early gains on Thursday following the South African Reserve Bank&#8217;s (SARB) decision to cut interest rates for the first time in over four years, after a super-sized interest rate cut by the U.S. Federal Reserve.</p>



<h2 class="wp-block-heading" id="h-africa-currencies">AFRICA CURRENCIES</h2>



<p>The Kenyan, Nigerian and Ghanaian currencies are expected to be broadly stable against the dollar in the next week to Thursday, while Zambia&#8217;s is seen under pressure and Uganda&#8217;s could strengthen, traders said.</p>



<h2 class="wp-block-heading" id="h-nigeria-coca-cola">NIGERIA COCA COLA</h2>



<p>Coca-Cola plans to invest $1 billion in its Nigeria operations over the next five years, the country&#8217;s presidency said after a meeting between President Bola Tinubu and senior executives of the soft drinks maker on Thursday.</p>



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



<p>Kenya&#8217;s shilling was unchanged against the U.S. dollar on Thursday, data from the London Stock Exchange Group showed.</p>



<h2 class="wp-block-heading" id="h-zimbabwe-currency">ZIMBABWE CURRENCY</h2>



<p>Five months after its launch, Zimbabwe&#8217;s new currency is under pressure as increased grain imports eat away at foreign reserves, putting at risk the government&#8217;s plan to make it the only currency in the market by 2026.</p>



<h2 class="wp-block-heading" id="h-angola-central-bank-rate">ANGOLA CENTRAL BANK RATE</h2>



<p>Angola&#8217;s central bank left its main interest rate unchanged at 19.50% in a decision announced on Thursday, after inflation started easing last month.</p>



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


World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Sept 20


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/E6VGTQJGT5PWVIY65GTH6X443Q-820x547.jpg" alt="" class="wp-image-532541" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/E6VGTQJGT5PWVIY65GTH6X443Q-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/E6VGTQJGT5PWVIY65GTH6X443Q-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/E6VGTQJGT5PWVIY65GTH6X443Q-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/E6VGTQJGT5PWVIY65GTH6X443Q-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/E6VGTQJGT5PWVIY65GTH6X443Q.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Governor of the South African Reserve Bank, Lesetja Kganyago, gestures during an interview with Reuters in Centurion, South Africa April 3, 2024 REUTERS/James Oatway/File Photo</figcaption></figure>



<p>PRETORIA, Sept 19 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s central bank cut its main interest rate for the first time in more than four years&nbsp;on Thursday, as it said it saw inflation staying below the midpoint of its target range as far out as 2026.</p>



<p>The South African Reserve Bank (SARB) lowered the repo rate by 25 basis points to 8.00%, as predicted by economists polled by Reuters.</p>



<p>South Africa&#8217;s headline consumer inflation came in at 4.4% year-on-year in August, just below the 4.5% midpoint of the target range the central bank aims for.</p>



<p>The rate cut follows the U.S. Federal Reserve&#8217;s decision on Wednesday to begin lowering rates, and makes South Africa the latest emerging market to embark on an easing cycle after early movers in Latin America and central Europe.</p>



<p>Prior to Thursday&#8217;s cut, the SARB had kept the repo rate unchanged at seven policy meetings in a row. Before that it raised rates 10 times consecutively.</p>



<p>For much of the past three years annual inflation has been near the top of the central bank&#8217;s target band or above it, averaging 5.9% in 2023 and 6.9% in 2022.</p>



<p>But it dropped sharply in July and further in August.</p>



<p>The SARB said on Thursday that it thought progress bringing down inflation would be sustained, &#8220;with inflation contained below the 4.5% midpoint of our range through to the end of the forecast horizon, in 2026&#8221;.</p>



<p>On inflation expectations the bank noted they were slowly moving in the right direction, as shown in a recent quarterly survey.</p>



<p>&#8220;As long as headline inflation stabilises at lower levels, we anticipate further progress in re-anchoring expectations around the middle of our target range,&#8221; the SARB said in a statement.</p>



<p>Economic growth is expected to improve in the final two quarters of this year, bolstered by power utility Eskom suspending rolling power blackouts and higher consumer spending spurred by the government&#8217;s &#8220;two-pot&#8221; pension reform.</p>



<p>The rand currency has also benefited from confidence linked to the formation of a coalition government following May&#8217;s election, when the African National Congress party lost its majority in parliament.</p>



<p>(Reporting by Tannur Anders, Bhargav Acharya and Kopano Gumbi; Editing by Alexander Winning and Emelia Sithole-Matarise)</p>


E6VGTQJGT5PWVIY65GTH6X443Q

South Africa central bank joins easing club with 25 basis point rate cut


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-820x547.jpg" alt="" class="wp-image-505638" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864874-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A South African one rand coin sits on South African rand banknotes in this arranged photograph in Pretoria, South Africa, on Wednesday, Aug. 14, 2019. The rand ended a tumultuous week on a positive note, gaining against the dollar for a second day and heading for its first weekly advance in four as technical indicators suggested recent declines are overdone. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



<p>JOHANNESBURG, Sept 19 (Reuters)&nbsp;&#8211;&nbsp;The South African rand gained in early trade on Thursday after a super-sized interest rate cut by the U.S. Federal Reserve, and as local investors awaited a rate decision by the South African Reserve Bank (SARB) later in the day.</p>



<p>At 0735 GMT, the rand traded at 17.4650 against the dollar, about 0.4% stronger than its previous close.</p>



<p>The U.S. currency was down around 0.3% against a basket of peers.</p>



<p>The SARB is also widely expected to cut rates on Thursday in what would be its first easing step in more than four years.</p>



<p>Data showed on Wednesday that South Africa&#8217;s annual inflation rate fell to 4.4% last month, its lowest level since April 2021 and just below the mid-point of the SARB&#8217;s 3% to 6% target range.</p>



<p>Even before August&#8217;s inflation figures were released, economists polled by Reuters predicted the SARB&#8217;s repo rate would be lowered by 25 basis points (bps).</p>



<p>&#8220;Markets (are) expecting the central bank to cut by 25 bps. However, there are growing calls for a 50 bps cut after local inflation fell below the mid-point of the SARB&#8217;s target range and on the back of the larger Fed rate cut,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.</p>



<p>The Fed cut interest rates by 50 bps on Wednesday, weakening the dollar and boosting the risk-sensitive rand, which hit a 14-month high after the announcement.</p>



<p>On the Johannesburg Stock Exchange, the Top-40 index was up about 1% in early trade.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was little changed in early deals, with the yield at 8.83%.</p>



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


South African Rand Rebound Snaps Streak of Weekly Losses

South African rand on front foot post-Fed, SARB decision up next


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg" alt="" class="wp-image-524600" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



<p>JOHANNESBURG, Sept 19 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, company announcement, equity and currency market moves may affect South African markets on Thursday.</p>



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



<p>The South African Reserve Bank will announce its interest rate decision.</p>



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



<p>South African insurer Discovery will report its full-year results.</p>



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



<p>The South African rand firmed to a near 14-month high on Wednesday ahead of the U.S. Federal Reserve&#8217;s interest rate cut and after the local inflation rate fell more than expected.</p>



<p>On the stock market, the Top-40 index closed 0.44% lower.</p>



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



<p>The U.S. dollar bounced, long-dated bond yields were up and Asian stocks rose after the Federal Reserve announced a 50 basis point rate reduction and flagged that its easing cycle would be measured.</p>



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



<p>U.S. stocks closed with modest losses on Wednesday, well off their intraday highs, after the Federal Reserve cut interest rates by 50 basis points, the high side of estimates for its first cut in more than four years.</p>



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



<p>Gold prices held steady on Thursday after hitting a record high in the previous session, following the Federal Reserve&#8217;s super-sized interest rate cut.</p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



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



<p>&#8211; Reserve Bank has ‘ample space’ to cut rates</p>



<p>&#8211; Consumers get relief from a drop in blackouts but battle with rising prices</p>



<p>(Compiled by Tannur Anders; Editing by Sumana Nandy)</p>


South African Markets-Factors to watch on Sept 19


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



<p>NAIROBI, Sept 19 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.</p>



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



<p>The dollar bounced, long-dated bond yields were up and Asian stocks rose after the U.S. Federal Reserve announced a 50-basis-point rate cut and flagged that its easing cycle would be measured.</p>



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



<p>Oil prices fell in Asian trading on Thursday after a larger-than-expected Federal Reserve interest rate cut sparked concerns about the U.S. economy.</p>



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



<p>The South African rand firmed to a near 14-month high on Wednesday ahead of an expected U.S. Federal Reserve interest rate cut and after the local inflation rate fell more than expected.</p>



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



<p>The Kenyan shilling fell against the dollar on Wednesday, data from the London Stock Exchange Group showed.</p>



<h2 class="wp-block-heading" id="h-standard-bank-mauritius">STANDARD BANK MAURITIUS</h2>



<p>Standard Bank, Africa&#8217;s largest bank by assets said on Wednesday it will allow small to mid-sized businesses operating on the continent to do their banking with the lender in Mauritius.</p>



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



<p>Botswana has awarded Giyani Metals a 15-year mining licence, the company announced on Wednesday, paving the way for it to become the country&#8217;s first battery-grade manganese producer.</p>



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



<p>Ghana&#8217;s economy grew by 6.9% year-on-year in the second quarter of 2024, the fastest rate in five years, boosted by expansion in several key sectors, the country&#8217;s statistics agency said on Wednesday.</p>



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


African Markets – Factors to watch on Sept 19


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-820x547.jpg" alt="" class="wp-image-532028" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A street vendor balances a box on her head as she makes a sale at Markets of Warwick in the Durban CBD, Durban, South Africa May 31, 2024. REUTERS/Alaister Russell/File photo</figcaption></figure>



<p>JOHANNESBURG, Sept 18 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s inflation rate fell more than expected last month to its lowest since April 2021, data showed on Wednesday, reinforcing expectations that the central bank will cut interest rates this week.</p>



<p>Headline consumer inflation fell to 4.4% year-on-year from 4.6% in July, just below the 4.5% midpoint of the South African Reserve Bank&#8217;s target range where it likes to see inflation.</p>



<p>The median forecast of analysts polled by Reuters was for a reading of 4.5%.</p>



<p>&#8220;The table is laid for the interest rate cutting cycle to commence,&#8221; said independent economist Elize Kruger.</p>



<p>Easing price pressures from transport, housing, restaurants and hotels contributed to August&#8217;s lower inflation print, data from Statistics South Africa showed.</p>



<p>However food inflation ticked up to 4.7% in annual terms from 4.5% in July, reversing an eight-month downward trend.</p>



<p>The figures hardened expectations that the central bank will cut interest rates on Thursday for the first time in more than four years.</p>



<p>Even before August&#8217;s inflation figures were released, economists polled by Reuters were predicting the central bank would cut its main lending rate by 25 basis points.</p>



<p>(Reporting by Tannur Anders and Kopano Gumbi; Editing by Alexander Winning and Christina Fincher)</p>


A street vendor balances a box on her head as she makes a sale, in Durban

South African inflation falls more than expected, sets stage for rate cut


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg" alt="" class="wp-image-524600" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



<p>JOHANNESBURG, Sept 18 (Reuters)&nbsp;&#8211;&nbsp;The following economic events, equity and currency market moves may affect South African markets on Wednesday.</p>



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



<p>August consumer inflation data at 0800 GMT</p>



<p>July retail sales data at 1100 GMT</p>



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



<p>The South African rand held steady on Tuesday, with investor focus on Wednesday&#8217;s U.S. Federal Reserve policy decision which could see it deliver a big interest rate cut.</p>



<p>In the stock market, the Top-40 index closed 1.2% higher.</p>



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



<p>The dollar ceded some of its overnight gains on Wednesday while Asian stocks put in a mixed display as traders weighed the odds of a super-sized Federal Reserve interest rate cut later in the day.</p>



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



<p>U.S. stocks closed nearly unchanged on Tuesday, giving up earlier gains that had vaulted the S&amp;P 500 and Dow Industrial Average to record highs as investors braced for the first Federal Reserve rate cut in 4-1/2 years. </p>



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



<p>Gold prices were flat on Wednesday as investors weighed chances of an outsized interest rate cut by the Federal Reserve later in the day. </p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



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



<p>&#8211; GNU ministers’ actions boost confidence, says JSE boss Leila Fourie</p>



<p>&#8211; Prasa spent R3.8bn on irregular expenditure, says auditor-general</p>



<p>(Compiled by Tannur Anders)</p>


South African Markets – Factors to watch on Sept 18


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



<p>NAIROBI, Sept 18 (Reuters)&nbsp;&#8211;&nbsp;The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Wednesday.</p>



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



<p>The dollar ceded some of its overnight gains on Wednesday while Asian stocks put in a mixed display as traders weighed the odds of a super-sized Federal Reserve interest rate cut later in the day.</p>



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



<p>Oil prices steadied on Wednesday, after rising in the previous two sessions, as investors await the U.S. Federal Reserve&#8217;s anticipated interest rate cut, with the potential for more violence in the Middle East supporting the market.</p>



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



<p>The South African rand held steady on Tuesday, with investor focus on Wednesday&#8217;s U.S. Federal Reserve policy decision which could see it deliver a big interest rate cut.</p>



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



<p>The Kenyan shilling was unchanged on Tuesday as dollar inflows from the tourism sector balanced demand from the manufacturing sector, traders said.</p>



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



<p>The International Monetary Fund said on Tuesday it has held productive discussions with the Kenyan government on its plans to address the country&#8217;s economic and fiscal challenges, after nationwide protests forced it to abandon planned tax hikes.</p>



<h2 class="wp-block-heading" id="h-jp-morgan-africa">JP MORGAN AFRICA</h2>



<p>JPMorgan Chase CEO Jamie Dimon plans to travel to Africa in mid-October in a push by the biggest U.S. lender to expand on the continent, four sources familiar with the matter told Reuters, his first trip there in seven years.</p>



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



<p>Ghana&#8217;s main opposition National Democratic Congress (NDC) party on Tuesday held nationwide protests against alleged voter roll irregularities, demanding an independent forensic audit to rid the register of errors for free and fair elections.</p>



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



<p>South Sudan and Sudan have made progress towards restarting the pumping of South Sudan&#8217;s crude oil through a pipeline running to a port in its neighbour, South Sudan&#8217;s finance minister and the president&#8217;s office said.</p>



<h2 class="wp-block-heading" id="h-senegal-economy">SENEGAL ECONOMY</h2>



<p>Senegal&#8217;s slower economic growth, its widening fiscal deficit and a potential delay in International Monetary Fund financing could cloud the outlook ahead of Nov. 17 parliamentary elections, analysts say.</p>



<h2 class="wp-block-heading" id="h-mali-security">MALI SECURITY</h2>



<p>Mali said on Tuesday that its capital Bamako was under control after insurgents attacked a gendarmerie training school and other strategic areas before dawn, firing gunshots that reverberated around the city.</p>



<h2 class="wp-block-heading" id="h-zimbabwe-electricity">ZIMBABWE ELECTRICITY</h2>



<p>Zimbabwe is struggling to get independent energy projects built to help ease a prolonged power shortage due to lack of funding and economic instability, a government official has said.</p>



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


African Markets – Factors to watch on Sept 18


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



<p>JOHANNESBURG, Sept 17 (Reuters)&nbsp;&#8211;&nbsp;The South African rand held steady in early trade on Tuesday, with investor focus on Wednesday&#8217;s U.S. Federal Reserve policy decision which could see it deliver a big interest rate cut.</p>



<p>At 0750 GMT, the rand traded at 17.6250 against the dollar, not far from its Monday closing level of 17.6225.</p>



<p>Markets are certain the Fed will cut rates when it makes its policy announcement on Wednesday and are leaning towards more aggressive easing in the world&#8217;s biggest economy.</p>



<p>&#8220;Markets have started positioning themselves for a 50bps (basis points) rate cut by the Fed,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.</p>



<p>Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S. monetary policy in addition to domestic factors.</p>



<p>On Wednesday, local investors will look to South Africa&#8217;s August consumer inflation figures and on Thursday, the South African Reserve Bank will announce its policy decision.</p>



<p>Economists polled by Reuters predict a 25-basis-point rate cut by the central bank of Africa&#8217;s most industrialised economy.</p>



<p>On the stock market, the Top-40 index was up about 0.6% in early trade.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was also firmer in early deals, as the yield slipped 2 basis points to 8.805%.</p>



<p>(Reporting by Tannur Anders; Editing by Emelia Sithole-Matarise)</p>


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Kenyan shilling stable, LSEG data shows

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