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



July 11 (Reuters)&nbsp;&#8211;&nbsp;Most emerging market stocks gained on Tuesday as risk appetite improved amid bets that market-punishing U.S. rate hikes were approaching an end, while equities in China rose on Beijing&#8217;s support for the property sector.



The heavily-weighted blue-chip CSI300 index&nbsp;.CSI300&nbsp;and Hong Kong&#8217;s Hang Seng Index&nbsp;.HSI&nbsp;climbed 0.7% and 1.0% respectively, boosting the MSCI index&nbsp;.MSCIEF&nbsp;for EM stocks by 1.2%.



Hong Kong-listed China developers .HSMPI jumped as much as 3.2%, before paring gains, after China extended some policies in a November rescue package until end-2024 to shore up the real estate sector, with markets expecting more stimulus soon.



Pakistan&#8217;s benchmark KSE 100 index .KSE jumped 1.3% to its highest in more than a year after the country received $2 billion in financial support from Saudi Arabia, another boost for the ailing economy after an IMF bailout.



Turkish President Tayyip Erdogan on Monday agreed to forward to parliament Sweden&#8217;s bid to join the NATO military alliance, appearing to end months of drama over an issue that had strained the bloc as war has raged in Ukraine. Turkey&#8217;s BIST-100 stock index .XU100 gained 0.8%



&#8220;Foreign policy matters for a country (Turkey) that needs external capital, sits close to some of the world&#8217;s hottest military conflicts, is part of the route taken by migrants on the way to Europe, and has ambitions to project influence and power in all directions outside its borders,&#8221; said Hasnain Malik, emerging &amp; frontier markets equity strategy at Tellimer.



Elsewhere, the Bank of Israel left short-term borrowing rates unchanged on Monday for the first time since early 2022, but warned that rates could be hiked further if inflation picked up again.



Tel Aviv shares&nbsp;.TA125&nbsp;rose 0.2%, while the shekel&nbsp;ILS=&nbsp;fell 0.3%.



The MSCI index for EM currencies&nbsp;.MIEM00000CUS&nbsp;advanced 0.3%, hitting a near one-week high and on track for its biggest one-day percentage gain in nearly a month.



The dollar =USD weakened to a two-month low after Federal Reserve officials signalled that the central bank was nearing the end of its tightening cycle. FRX/



South Africa&#8217;s rand ZAR=strengthened 0.5% ahead of local manufacturing data that could provide more clues about the health of the economy.



A strengthening Russian rouble RUBUTSTN=MCX continued to move further away from a more than 15-month low hit last week after a slump triggered by an aborted armed mutiny.



Among major movers in the Central and East Europe, Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;was up 0.3% against the euro, while Czech Republic&#8217;s crown&nbsp;EURCZK=&nbsp;was down 0.2%.



(Reporting by Ankika Biswas in Bengaluru; Editing by Christina Fincher)

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

Easing Fed rate concerns, China stimulus hopes boost EM stocks

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="728" height="439" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/ONVCC5LK7VLUBOEBUB6IRWDEDI.jpg" alt="" class="wp-image-426046" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/ONVCC5LK7VLUBOEBUB6IRWDEDI.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/ONVCC5LK7VLUBOEBUB6IRWDEDI-300x181.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/ONVCC5LK7VLUBOEBUB6IRWDEDI-149x90.jpg 149w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Machinery is seen at the Congolese state mining company Gecamines&#8217; copper plant in Kambove, in the southern region of Katanga January 31, 2013. REUTERS/Jonny Hogg</figcaption></figure>



NAIROBI, July 6 (Reuters) &#8211; Gecamines aims to produce 30 metric tons of germanium a year at a plant which is nearing completion in the Democratic Republic of Congo, the state-owned copper and cobalt producer said on Thursday.



Starting in September, the plant at Big Bill slag in Lubumbashi will process waste material from the tailings site and germanium could be available on the market from October, Gecamines Chairman Guy Robert Lukama told Reuters.



China on Monday announced export curbs on some gallium and germanium products, citing national security interests, causing concern in the semiconductor and defence sectors, which use the metals in products from computer chips to fibre-optic cables.



&#8220;The move by China will create some scarcity in the market, which means that our germanium which is not yet committed could have more value,&#8221; Lukama said in an interview.



&#8220;There are no customers yet, but there is interest, its been there since we started the project and we are quite sure that we will get more interest on our germanium shortly.&#8221;



The Chinese curbs from Aug. 1 could disrupt global supply chains, as China controls most production of the metals.



Gecamines expects to see more interest for its metals and could enter into sales contracts from 2024, Lukama said.



The plant at the Big Hill slag will also process copper, cobalt and silver cost effectively, as it is cheaper to recover metal from tailings, he added.



Congo is the world&#8217;s top cobalt supplier and Africa&#8217;s biggest copper producer.



Gecamines also plans to explore the viability of processing gallium and could consider further investments to recover germanium from old mining sites if global demand firms up.



&#8220;In the past germanium was not critical that is why they just put them as a tailings,&#8221; Lukama said.



&#8220;If the demand is huge, then we can spend more money on restoration of those mines to convert into viable projects.&#8221; 



(Reporting by Felix Njini; Editing by Jason Neely and Alexander Smith)

Congo’s Gecamines aims to get germanium out of new plant from October

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-820x547.jpg" alt="" class="wp-image-426016" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/PKJQ7JMDLFNENCLG7LH25JBXNY-1-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A labourer dehusks rice before loading it in bags at a processing unit in the town of Fanaye, on the outskirts of Saint Louis, Senegal September 13, 2022. REUTERS/Zohra Bensemra</figcaption></figure>



SEOUL, July 6 (Reuters)&nbsp;&#8211;&nbsp;South Korea is set to sign an agreement next week with eight African nations to help boost rice production and cut their dependence on imports, Agriculture Minister Chung Hwang-keun told Reuters, amid concerns over food security on the continent.



The move also comes as President Yoon Suk Yeol has pledged to revamp South Korea&#8217;s foreign policy and make it a &#8220;global pivotal state&#8221; playing a more active role around the world.



Under the &#8220;K-Ricebelt Project&#8221;, South Korea will build facilities in Ghana, Guinea, Guinea-Bissau, Gambia, Senegal, Cameroon, Uganda and Kenya to produce rice seeds that better suit local conditions and have yields two to three times higher than domestic varieties, Chung said in an interview this week.



The minister said during several visits to Africa starting late last year officials told him they desperately needed help.



&#8220;It was when food security was a global issue. Rice prices had almost doubled due to supply chain disruptions,&#8221; Chung said, noting how food imports had squeezed the countries&#8217; foreign exchange reserves.



Rice is a staple in West Africa, but local production only meets around 60% of demand, according to the Economic Community of West African States (ECOWAS). This means the region is very exposed to global price volatility and trade disruptions.



An agriculture ministry official said South Korea planned to spend more than 100 billion won ($77 million) on the food project over the next four years, with a goal of distributing 10,000 tonnes of rice seeds every year from 2027.



&#8220;President Yoon Suk Yeol has been very clear about this, that we should come forward to help because we were the ones getting help during the difficult times,&#8221; Chung said.



South Korea has been able to produce enough rice to meet more than 90% of local demand, though still depends heavily on some other food imports.



Agriculture ministers from the eight participating African countries are due to visit Seoul to sign agreements on the project on Monday.



The United Nations&#8217; World Food Programme welcomed the move.



&#8220;The K-Rice project will bring outstanding rice varieties and hope to the small farmers in Africa suffering from the climate crisis,&#8221; Marian Sunhee Yun, the director of WFP Korea Office, said.



($1 = 1,302.3500 won)



(Reporting by Soo-hyang Choi; Editing by Ed Davies and Sonali Paul)

PKJQ7JMDLFNENCLG7LH25JBXNY-1

South Korea to help Africa cut dependence on rice imports -minister

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="728" height="468" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/CSMPDCLAIVJNDJG6CWBH2RSYLY-1.jpg" alt="" class="wp-image-425988" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/CSMPDCLAIVJNDJG6CWBH2RSYLY-1.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/CSMPDCLAIVJNDJG6CWBH2RSYLY-1-300x193.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/CSMPDCLAIVJNDJG6CWBH2RSYLY-1-140x90.jpg 140w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A worker walks near the Congolese state mining company Gecamines&#8217; copper concentrator at its Kambove operation in the southern province of Katanga, File. REUTERS/Jonny Hogg//File Photo</figcaption></figure>



NAIROBI, July 5 (Reuters)&nbsp;&#8211;&nbsp;China&#8217;s curbs on exports of germanium products will lift prices of the semiconductor material, Congolese state miner Gecamines said on Wednesday, creating more value for Democratic Republic of Congo as it readies a&nbsp;new unit&nbsp;to produce it.



China on Monday announced&nbsp;export restrictions&nbsp;on some gallium and germanium products, citing national security interests, alarming international companies in the semiconductor and defense industries.



&#8220;We will produce germanium (to replace material) that&#8217;s unavailable for the market,&#8221; Gecamines&#8217; chairman Guy Robert Lukama told Reuters.



Congo, already the world&#8217;s top cobalt supplier and Africa&#8217;s biggest copper producer, plans to explore for minerals needed to facilitate the global transition to a low-carbon economy, including lithium, tin, and rare earths.



The germanium and gallium export curbs from Aug. 1 could potentially cause disruption to global supply chains, as China controls most production of the metals used in computer chips and other products.



Nyrstar, an international producer of minerals and metals,&nbsp;told Reuters&nbsp;it is considering germanium and gallium projects in Australia, Europe and the U.S.



North America&#8217;s biggest germanium producer, Canada&#8217;s Teck Resources&nbsp;TECKb.TO, told Reuters in an emailed statement that the curbs on Chinese exports would not have any impact on its germanium production.



(Reporting by Felix Njini and Clara Denina; Editing by Alex Richardson and Jan Harvey)

FILE PHOTO: Worker walks near the Congolese state mining company Gecamines’ copper concentrator at its Kambove operation in the southern province of Katanga

Congo to benefit as China curbs germanium exports, state miner says

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="512" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-136332147-820x512.jpeg" alt="" class="wp-image-397703" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-136332147-820x512.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-136332147-300x187.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-136332147-768x479.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-136332147-1536x959.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-136332147-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A fuel attendant fills a tank at a gas station on Lagos&#8217; Ibadan highway on January 2, 2012 where new pump prices were implemented. Queues formed at petrol stations, protests broke out and unions threatened to paralyse Nigeria on January 2 over a deeply controversial measure that has more than doubled pump prices. The move announced on Sunday in Africa&#8217;s most populous nation and largest oil producer immediately ends fuel subsidies on petrol, a policy that had held pump prices at 65 naira per litre ($0.40, 0.30 euros). AFP PHOTO / PIUS UTOMI EKPEI (Photo credit should read PIUS UTOMI EKPEI/AFP via Getty Images)</figcaption></figure>



LONDON, July 4 (Reuters)&nbsp;&#8211;&nbsp;Abdoulaye Diallo is paying over 50% more to fill up his &#8220;thiak-thiak&#8221; motorbike taxi in Keur Mbaye Fall, a suburb of Senegal&#8217;s capital Dakar, than he was before the government began lifting fuel subsidies in January.



Diallo, 25, is already navigating punishing inflation and deadly political riots, but his biggest problem is he cannot pass on the cost of filling his fuel tank, which has risen to 3,500 CFA ($5.82), from 2,000 CFA last year.



&#8220;The customers&#8230;don&#8217;t realize how difficult it is,&#8221; Diallo said. &#8220;That&#8217;s the kind of thing we need to protest against.&#8221;



Senegal, like Nigeria and Angola, is removing costly fossil fuel subsidies – a move once considered politically unthinkable but which has become a necessity due to crushing debt, a spike in borrowing costs and high fuel prices.



Global spending on fossil fuel consumption subsidies doubled to a record $1 trillion last year as the war in Ukraine sent oil prices skyrocketing, according to the International Energy Agency (IEA).



Senegal&#8217;s fuel and electricity supports gobbled up 4% of GDP last year, while Nigeria spent $10 billion capping the price of petrol. Angola spent 1.9 trillion kwanza ($2.3 billion) in 2022, which is more than 40% of what the IMF estimated it spent on social programmes.



&#8220;The cost is too high for us to continue to pay,&#8221; said Stanley Achonu, Nigeria director of the ONE Campaign, which advocates for sustainable debt and an end to poverty.



<h2 class="wp-block-heading" id="h-sheer-fiscal-necessity">SHEER FISCAL NECESSITY</h2>



Nearly every country on earth has some fossil fuel subsidies, according to the Organisation for Economic Co-operation and Development (OECD). Costs ballooned when governments stepped in to shield citizens from punishingly high energy bills after Russia invaded Ukraine.



Goolam Ballim, chief economist with Standard Bank in Johannesburg, said African countries were removing them &#8220;out of sheer necessity&#8221; due to the toxic combination of rising borrowing costs and already large debt piles.



A borrowing spree during the last decade of low interest rates saw debt-to-GDP ratios in many African nations double or triple; ONE Campaign figures show that debt to GDP across Africa roughly doubled to 24% in the past decade.



Now, high costs have effectively locked many out of international bond markets. China, the lifeline lender to some African nations, has also tightened its purse strings.



After COVID-19 battered economic growth and the war in Ukraine boosted fuel and food prices, African countries had no &#8220;powder in the keg&#8221; to fund subsidies and kick-start economic recoveries.



&#8220;Credit spreads for African countries have surged,&#8221; said Ballim, indicating rising borrowing costs. &#8220;They&#8217;re about three times that of the average of emerging markets.&#8221;



According to the World Bank, almost half of the countries in sub-Saharan Africa are in or at high risk of debt distress.



<h2 class="wp-block-heading">FEEDING THE RICH</h2>



For people like Diallo, the timing is tough. Inflation in Senegal hit a record 14.1% last year, though it has since slowed, while in Nigeria it remains above 22%, its highest in decades. Angola&#8217;s double-digit inflation is likely to stay high due to the weakening kwanza.



In Angola, gasoline prices nearly doubled to 300 kwanza ($0.3645) per litre last month, prompting deadly protests, while Nigeria abandoned its last effort to cut subsidies in 2012 after crippling strikes.



But David Amaglobeli, deputy division chief in the IMF&#8217;s fiscal affairs department, said tough times should not stop subsidy removal.



&#8220;This money could be used or could be put to more productive use,&#8221; he said, adding that wealthier people disproportionately benefited from price caps, while printing money at the central bank to pay for them boosts inflation.



Widespread smuggling, which has &#8220;virtually disappeared&#8221; since Nigeria lifted subsidies, also drained cash that states could use boost economic growth for all citizens, he said.



Zambia cut subsidies as part of its IMF bailout after a painful 2020 default. Subsidy spending fell from 2.4% of GDP in 2021 to 0.4% in 2022, enabling a proportional rise in funding for education, health and social protection. Supporting vulnerable households &#8220;more or less immediately&#8221; is essential, Amaglobeli said.



Gregoire Garsous, senior policy analyst with the OECD, agreed.



&#8220;This is why we tend to think (subsidies) should be progressively phased out, and with policies that would replace them for those that would be hurt,&#8221; he said.



Nigeria will get $800 million from the World Bank to help support its poor, but Achonu said its registry of vulnerable citizens had only about 10 million people, compared with its more than 130 million poor.



The World Bank estimates that subsidy removal, and scrapping foreign exchange controls, would save Nigeria some 21 trillion naira ($27.49 billion) from 2023 to 2025.



Angola said it would phase its subsidy removal through 2025, and the savings would go towards cash transfers to poor citizens and to support agriculture, fishing and public transit.



Senegal will also slowly remove price supports through 2025, transfer cash to its poorest and continue carefully targeted subsidies for public transit. But those measures leave out urban taxis like Diallo&#8217;s motorbike.



&#8220;Changing prices will be tough for us,&#8221; Diallo said. &#8220;The authorities should take responsibility.&#8221;



($1 = 822.9400 kwanzas)



($1 = 764.0000 naira)



(Additional reporting by Karin Strohecker in London, Ngouda Dione in Dakar and Christian Elion in Brazzaville; Editing by Hugh Lawson)

Caught between riots and debt crises, African countries cut fuel subsidies

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



June 29 (Reuters)&nbsp;&#8211;&nbsp;Most emerging market currencies weakened on Thursday as the dollar gained on the back of hawkish comments by major central bankers, while Sri Lanka&#8217;s sovereign dollar bonds rose after the government made its latest debt restructuring pitch.



The greenback&nbsp;=USD&nbsp;strengthened to a seven-month high against the Japanese yen after U.S. Federal Reserve Chair Jerome&nbsp;Powell, speaking on a panel with ECB President Christine Lagarde, Bank of Japan (BOJ) Governor Kazuo Ueda and Bank of England Governor Andrew Bailey, pointed to expectations for two rate rises this year.



&#8220;Powell&#8217;s comments were on the hawkish side and are consistent with another hike coming in July,&#8221; Jefferies interest rate strategist Mohit Kumar said.



The Chinese yuan weakened&nbsp;CNY=CFXS&nbsp;despite the People&#8217;s Bank of China (PBOC) setting a much stronger than expected official rate.



Sri Lanka&#8217;s sovereign&nbsp;dollar bonds&nbsp;rose by as much as 0.77 cents earlier in the session, Tradeweb data showed.



The crisis-hit island nation is asking foreign&nbsp;investors&nbsp;in its international sovereign bonds to take a 30% haircut and seeks similar concessions from holders of its other dollar-denominated bonds in the effort to restructure massive debt.



The&nbsp;World Bank&nbsp;approved $700 million in budgetary and welfare support for Sri Lanka on Thursday, the biggest funding tranche since an International Monetary Fund (IMF) deal in March.



South Africa&#8217;s rand&nbsp;ZAR=&nbsp;dropped 0.2% ahead of producer price index data for May later in the day.



Central bank data&nbsp;showed&nbsp;South Africa saw a small foreign direct investment inflow of 0.5 billion rand ($26.76 million) in the first quarter of 2023, down from a revised inflow of 64.0 billion in the previous quarter.



Turkey&#8217;s lira&nbsp;TRYTOM=D3&nbsp;kept near a record low at about 26 to the dollar, while the Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;weakened to 87 against the dollar, hampered by domestic political instability after an aborted mutiny over the weekend.



&#8220;Countries like China and Iran, which are aligned with Russia, and prefer a weak but coherent Russia to a strong or fragmented Russia, will be left in a weaker position relative to their rivals than before,&#8221; said Hasnain Malik, emerging &amp; frontier markets equity strategy at Tellimer.



Brazil&#8217;s central bank inflation report will be watched later in the day.



(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Clarence Fernandez)

Currencies fall against dollar, Sri Lanka plans new debt restructuring

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="(max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



June 26 (Reuters)&nbsp;&#8211;&nbsp;A broad gauge for emerging market stocks hit near three-week lows on Monday after a failed mutiny by Russian mercenaries raised questions about stability in the country, sending the rouble to its lowest in nearly 15 months against the dollar.



The MSCI&#8217;s emerging market stocks index&nbsp;.MSCIEF&nbsp;fell 0.3% by 0847 GMT, heading for its sixth straight session of declines.



A short-lived mutiny by Wagner Group mercenaries over the weekend has made Western allies assess how President Vladimir Putin might reassert his authority and what it could mean for the war in Ukraine.



Russia&#8217;s rouble was 0.2% weaker against the dollar at 84.87&nbsp;RUBUTSTN=MCX&nbsp;in Moscow trading, after hitting 87.2300 in early trade, its weakest point since March, 2022.



&#8220;Many geopolitical experts claim that President Putin&#8217;s position is now weaker, which should be positive for Ukraine and it may force him to seek peace talks earlier than previously assumed,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets in London.



&#8220;Should such a scenario unfold, it would be particularly positive for the euro and the CEE currencies – particularly the zloty.&#8221;



Ukraine&#8217;s sovereign dollar-denominated bonds rose nearly 3 cents on Monday, with the 2041 bond rising as much as 2.9 cents to trade at 42 cents in the dollar &#8211; its strongest level since Russia&#8217;s invasion of Ukraine in February, 2022, Tradeweb data showed. XS1303929894=TE



The Polish zloty&nbsp;EURPLN=&nbsp;was flat against the euro, while other central and eastern European currencies edged lower against the euro.



The Turkish lira TRY= plunged nearly 3% to a new record low of 26 against the dollar, after the central bank took steps to simplify its macroprudential framework over the weekend, having hiked rates sharply last week.



Pakistan&#8217;s sovereign dollar-denominated bonds jumped after the country&#8217;s parliament approved a revised budget in a last- ditch bid to clinch a deal with the International Monetary Fund (IMF).



China and Hong Kong stocks&nbsp;.HSI,&nbsp;.SSEC&nbsp;closed down for a fourth straight session on Monday, as tourism data during last week&#8217;s three-day Dragon Boat Festival pointed to weak economic recovery.&nbsp;.SS



S&amp;P Global cut its forecast for economic growth in China this year, underscoring the uneven nature of the country&#8217;s post-reopening recovery that is spurring more calls for further stimulus.



South Africa&#8217;s rand ZAR= was among rare gainers against the dollar, firming some 0.2%. Data from the Johannesburg Stock Exchange showed offshore investors sold a net 7.63 billion rand ($407 million) of South African stocks last week.



(Reporting by Shreyashi Sanyal in Bengaluru, editing by Ed Osmond)

Stock market report. 3d illustration

Stocks extend fall, rouble languishes at 15-month low after failed mutiny

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg" alt="" class="wp-image-424734" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management.jpg 1200w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Stock</figcaption></figure>



June 20 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks fell for the second straight session on Tuesday as a modest rate cut from China disappointed investors awaiting bigger policy stimulus from the country to boost its faltering economic growth.



MSCI&#8217;s index of emerging market equities&nbsp;.MSCIEF&nbsp;was 0.8% lower at 0817 am GMT, hovering near one-week lows.



The People&#8217;s Bank of China cut its key lending benchmarks on Tuesday to shore up a slowing economic recovery, but the cut to the five-year rate, on which mortgage rates are based, was not as large as markets had expected.



Equities in mainland China&nbsp;CSI300&nbsp;and Hong Kong&nbsp;.HSI&nbsp;were a big drag, with the Hang Seng Mainland Property Index&nbsp;.HSMPI&nbsp;slumping nearly 4%.



&#8220;It (the smaller rate cut) does suggest that the PBoC is unwilling to bolster the already inflated housing markets to support growth. Instead, the central bank believes the oversized household savings at present should be able buttress consumption going forward even without mortgage payment relief,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets.



Hopes of major policy stimulus from China had helped EM stocks log solid gains last week, after the country lowered some lending rates to aid its economy through a rocky post-pandemic recovery.



Also denting sentiment, China and the United States failed to produce any major breakthrough during a rare visit to Beijing by U.S. Secretary of State Antony Blinken, though both parties agreed to stabilize their intense rivalry.



EM currencies&nbsp;.MIEM00000CUS&nbsp;were down 0.1%.



The Hungarian forint EURHUF= slipped 0.2% against the euro ahead of a local interest rate decision where the central bank is expected to deliver another cut to the one-day deposit rate.



Turkey is working on extending a measure limiting annual rent increases to a maximum of 25%, Justice Minister Yilmaz Tunc was quoted as saying late on Monday by state-owned Anadolu news agency.



The lira&nbsp;TRYTOM=D3&nbsp;was slightly weaker at 23.6075 against the dollar.



The South African rand ZAR= rose 0.2% against the dollar, extending gains to the fifth straight day. South Africa&#8217;s composite leading business cycle indicator fell 1.0% month on month in April, central bank data showed on Tuesday.



(Reporting by Amruta Khandekar; Editing by Sharon Singleton)

Investment-management

Stocks fall for second day as China’s rate cut disappoints

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-820x541.jpg" alt="" class="wp-image-425505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-1536x1013.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3NRDMJVDJBLXNPFEXL4MTTGM6E-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Harsha Bangari, Managing Director, India EXIM Bank, poses for a picture after an interview with Reuters at a hotel in New Delhi, India, June 15, 2023. REUTERS/Anushree Fadnavis</figcaption></figure>



NEW DELHI, June 15 (Reuters)&nbsp;&#8211;&nbsp;India&#8217;s Export-Import Bank plans to step up investments under a government-supported line of credit programme to finance Indian companies looking to access fast-growing African markets, the bank&#8217;s top official said, part of a move to expand trade ties.



Amid rising competition from China, Indian Prime Minister Narendra Modi has stepped up efforts to strengthen ties with African nations via aid for infrastructure projects and private investments by Indian companies.



&#8220;Africa is becoming a big consuming continent and there Indian companies have huge potential to find a market,&#8221; Harsha Bangari, managing director of Export-Import (EXIM) Bank of India, told Reuters in an interview on the sidelines of the 18th CII-Exim Bank Conclave on India-Africa Growth Partnership.



State-owned EXIM Bank, which plays a critical role in providing export financing and government-directed lending to other countries, was supporting over 300 small Indian companies to expand business in African countries, she said.



&#8220;We are seeing a consistent and steady trend,&#8221; in increasing lines of credit and trade finance, she said, adding EXIM&nbsp;Bank had so far made a credit commitment of $12.8 billion to 42 African countries.



The bank plans to raise $3-$3.5 billion of funds in the current financial year, mostly denominated in U.S. dollars, to finance new projects, she said.



With nearly $75 billion of investments by Indian companies, India is among the top five investors in Africa, government officials told African leaders at the three-day summit.



Bilateral trade between India and Africa rose to nearly $100 billion in the fiscal year to the end of March 2023, and the government aims to raise it to $200 billion by 2030.



EXIM Bank was engaged with various African governments as part of India&#8217;s economic diplomacy, including over a metro train project in Mauritius, exports of buses from India to Senegal, and an electricity project in Gambia, Bangari said.



&#8220;We have identified sustainable fuels and minerals for transport, renewable and clean energy, climate smart agriculture among other areas for supporting lending to the African countries,&#8221; she added.



(Reporting by Manoj Kumar; Editing by Mark Potter)

Harsha Bangari, Managing Director, India EXIM Bank, poses for a picture after an interview with Reuters at a hotel in New Delhi

India’s EXIM Bank plans to step up funding for African countries

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="471" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-820x471.jpg" alt="" class="wp-image-425497" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-820x471.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-300x172.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-157x90.jpg 157w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-768x441.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-1536x882.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HG6EGOSEMRKZ3EMS7LH4UWZCXU-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Commercial vessels including vessels which are part of Black Sea grain deal wait to pass the Bosphorus strait off the shores of Yenikapi during a misty morning in Istanbul, Turkey, October 31, 2022. REUTERS/Umit Bektas/File Photo</figcaption></figure>



JOHANNESBURG/LUSAKA/KAMPALA, June 15 (Reuters)&nbsp;&#8211;&nbsp;Key African states stressed the need for grain imports to tackle food insecurity as Russian President Vladimir Putin prepares to discuss with the continent&#8217;s leaders the fate of a deal allowing the safe Black Sea export of food and fertiliser from Ukraine.



Putin&nbsp;said&nbsp;on Tuesday that Russia was considering quitting the Black Sea grain initiative &#8211; brokered by the United Nations and Turkey in July last year &#8211; because its own grain and fertiliser shipments still face obstacles.



The pact could&nbsp;expire&nbsp;on July 17.



A delegation of African leaders is due to visit both Ukraine and Russia from this weekend in a push to end Russia&#8217;s 16-month long war, and Putin has said he plans to use the occasion to raise the matter.



South African President Cyril Ramaphosa believes Putin and Ukrainian President Volodymyr Zelenskiy are aligned with him on the &#8220;importance of grain deliveries to Africa for the alleviation of food insecurity&#8221;, said Ramaphosa&#8217;s spokesperson Vincent Magwenya.



&#8220;We are therefore not aware of any threats to pull out of the grain deal,&#8221; Magwenya told Reuters on Wednesday.



Kremlin spokesman Dmitry Peskov&nbsp;said&nbsp;on Wednesday that Moscow had not yet made a decision on withdrawing.



Russia has issued a list of&nbsp;demands&nbsp;it wants met, including the resumption of its Black Sea&nbsp;ammonia&nbsp;exports and&nbsp;reconnection&nbsp;of the Russian Agricultural Bank to the SWIFT payment system.



<h2 class="wp-block-heading" id="h-devastating-toll">&#8216;DEVASTATING TOLL&#8217;</h2>



While food and fertiliser exports do not fall under the West&#8217;s tough sanctions imposed on Russia over the war, Moscow says restrictions on payments, logistics and insurance create barriers.



Putin also complained that under the deal &#8220;almost nothing goes to African countries&#8221; and said Moscow is ready to supply grain for free to the world&#8217;s poorest countries.



The United Nations has long&nbsp;said&nbsp;the Black Sea grain deal is a commercial enterprise, but that it benefits poorer countries by helping lower food prices globally.



Zambia&#8217;s Foreign Minister Stanley Kakubo said in a statement on Wednesday that the war in Ukraine and conflict in Sudan had &#8220;taken a devastating toll on African communities, resulting in the loss of life, and food insecurity, due to the rising costs of grain and fertiliser&#8221;.



According to U.N.&nbsp;data&nbsp;more than 31 million tonnes of grain have been exported under the pact, with 43% of that to developing countries. More than 625,000 tonnes of grain has been shipped by the U.N. World Food Programme for aid operations.



The Black Sea grain deal was initially brokered for 120 days. Russia has agreed to extend it three times but&nbsp;warned&nbsp;on Wednesday that its &#8220;goodwill&#8221; cannot last forever.



Not all African states were worried, however.



&#8220;If it&#8217;s true that we would starve if that grain deal is disrupted, why is it that it&#8217;s the West crying more than us Africans? They are crying crocodile tears,&#8221; Uganda&#8217;s state minister for Foreign Affairs, Okello Oryem told Reuters.



He added that Uganda would have no qualms about accepting free grain from Russia.



(Writing by Michelle Nichols; Editing by Joe Bavier, Kirsten Donovan)

FILE PHOTO: Commercial vessels including vessels which are part of Black Sea grain deal wait to pass the Bosphorus strait off the shores of Yenikapi in Istanbul, Turkey

Africa needs grain imports, key states say ahead of Putin talks

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



June 15 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks were at four-month highs on Thursday, boosted by hopes of more policy stimulus from China to support its struggling economy, while currencies were subdued after the U.S.&nbsp;Federal Reserve&#8217;s &#8216;hawkish pause&#8217; propped up the dollar.



The MSCI index of emerging market equities .MSCIEF rose 0.7% by 0841 am GMT as China&#8217;s weak industrial output and retail sales growth in May boosted expectations that Beijing will need to do more to shore up a shaky post-pandemic recovery.



China has already ramped up stimulus measures in recent days, with its central bank on Thursday lowering the borrowing cost of its medium-term policy loans for the first time in 10 months.



China&#8217;s blue-chip stocks gained 1.6% and Hong Kong&#8217;s Hang Seng index&nbsp;.HSI&nbsp;rallied 2.2%, while the yuan&nbsp;CNY=CFXS&nbsp;erased early losses to edge 0.1% higher.



Broader emerging market currencies .MIEM00000CUS were down 0.06% as the dollar =USD firmed after the Fed on Wednesday left interest rates unchanged but signaled that borrowing costs may still need to rise by as much as half of a percentage point by the end of this year.



&#8220;The pause in rate hikes was widely expected and communicated, and over the past weeks, there were strong hints to the possibility of new rate rises,&#8221; said Paolo Zanghieri, senior economist at Generali Investments.



&#8220;What surprised in the June meeting was the possible extent of such&nbsp;an&nbsp;increase.&#8221;



The European Central Bank (ECB) is widely expected to hike rates by 25 basis points later in the day.



The Turkish lira&nbsp;TRYTOM=D3&nbsp;slipped to 23.67 against the dollar after having steadied on Wednesday.



Turkish home sales fell 7.7% year-on-year in May, data showed on Thursday.



The Polish zloty EURPLN= was flat against the euro, while shares in Poland&#8217;s banking sector .BNKI fell 2.3% after the European Union&#8217;s top court backed consumers in a foreign currency mortgage case.



In other news, Nigeria&#8217;s central bank moved to liberalize foreign exchange trading on Wednesday, capping a dramatic day that saw the official Naira rate devalued by more than a third.



The International Monetary Fund on Thursday expressed dissatisfaction with Pakistan&#8217;s recently presented budget in a blow for the cash-strapped country.



(Reporting by Amruta Khandekar; Editing by Sohini Goswami)

China stimulus hopes boost stocks, FX muted as Fed signals rate hikes

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



June 14 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks and currencies were subdued on Wednesday as investors awaited the outcome of the U.S. Federal Reserve&#8217;s monetary policy meeting for clues on the direction of interest rates in the world&#8217;s largest economy.



MSCI&#8217;s index for emerging market equities&nbsp;.MSCIEF&nbsp;was down 0.2% by 0823 am GMT, slipping from a fresh four-month high hit earlier in the session, while currencies&nbsp;.MIEM00000CUS&nbsp;were 0.1% lower.



The Federal Reserve is expected to leave interest rates unchanged at the end of its meeting later in the day given a slowdown in inflation, pausing an aggressive rate-hiking cycle which began early last year.



Investors will also focus on comments from Fed Chair Jerome Powell at a conference held shortly after the policy decision.



Hopes of a pause in the Fed&#8217;s tightening as well as a rate cut from China to boost its faltering economic recovery have aided sentiment towards emerging market equities this week.



&#8220;Inflationary pressures have faded sufficiently for the Fed to skip a rate hike, but not to end the tightening cycle. The overall message could be far more hawkish than the markets assume,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets.



&#8220;The key question is whether the markets actually listen to what Chair Powell has to say about inflation being sticky and that more rate hikes are likely.&#8221;



China&#8217;s blue-chip stocks index&nbsp;.CSI300&nbsp;was muted, while the yuan&nbsp;CNY=CFXS&nbsp;steadied just above a six-month low against the dollar as investors assessed odds of further policy stimulus from the country.



The Chinese central bank is widely expected to cut the borrowing cost of medium-term policy loans for the first time in 10 months on Thursday after it lowered two key short-term policy rates, a Reuters poll showed.



Turkey&#8217;s lira&nbsp;TRYTOM=D3&nbsp;weakened from the previous day&#8217;s close and was last at 23.68 against the dollar, but had still not touched Monday&#8217;s record low of 23.77 versus the dollar.



The Russian rouble RUBUTSTN=MCX slid to a more than 14-month low past the 85 mark against the dollar due to limited foreign currency supply in a reduced-liquidity market.



South Africa&#8217;s rand ZAR= gained 0.6% against the dollar ahead of retail sales data for April due later in the day.



(Reporting by Amruta Khandekar; Editing by Jan Harvey)

istockphoto-1076949610-612×612-1

Stocks, FX subdued with all eyes on Fed rate decision

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" 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="(max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



June 12 (Reuters)&nbsp;&#8211;&nbsp;Stocks in emerging markets edged higher on Monday at the start of a week dominated by major central bank policy decisions, while Turkey&#8217;s lira slid to an all-time low as investors awaited signals on the central bank&#8217;s next move on interest rates.



MSCI&#8217;s emerging markets equities index&nbsp;.MSCIEF&nbsp;was up 0.1% at 0817 am GMT, clinging to a two-month high.



Market focus this week is on monetary policy decisions from the U.S. Federal Reserve, the European Central Bank (ECB) and the Bank of Japan (BOJ), which will shape expectations for the direction of interest rates in major global economies going forward.



China&#8217;s blue-chip index&nbsp;.CSI300&nbsp;was trading higher ahead of a fresh batch of data on the world&#8217;s second-largest economy this week, while the yuan&nbsp;CNY=CFXS&nbsp;weakened to a fresh six-month low against the dollar.



Several Chinese commercial banks cut interest rates on a range of yuan deposits from Monday, following their larger peers in a coordinated move to ease pressure on profit margins.



The Turkish liraTRYTOM=D3 weakened to 23.77 against the dollar, its lowest level so far, as investors awaited any indications from authorities about a reversal of unorthodox monetary policies after the appointment of a new central bank governor last week.



JPMorgan said on Monday it expects Turkey&#8217;s central bank to hike rates to 25% from the current 8.5% at its June meeting, while Goldman Sachs has said rates could rise to 40%.



&#8220;Lira could see more bouts of volatility in the coming weeks as intervention takes a backseat and more &#8220;rational&#8221; policy making is being advocated. However, better communication to the markets ahead of the meeting could smooth out the volatility,&#8221; said Charu Chanana, market strategist at Saxo Markets in Singapore.



The country&#8217;s main stock index&nbsp;.XU100&nbsp;hit an all-time high of 5,725.25 points earlier in the session.



Turkey&#8217;s central bank said on Monday the country&#8217;s current account deficit in April widened to $5.404 billion, with the figure surpassing a Reuters forecast.



Separately, Turkey&#8217;s unemployment rate edged up 0.1 points month-on-month to 10.2% in April.



Nigeria&#8217;s sovereign dollar-denominated bonds rose sharply on Monday, as overseas investors welcomed the suspension late on Friday of central bank governor Godwin Emefiele, who oversaw multiple exchange rates that sought to keep the naira strong.



(Reporting by Amruta Khandekar; Editing by Sherry Jacob-Phillips)

World map with charts and graphs as symbols of global finance

Stocks rise ahead of major cenbank decisions; Turkey’s lira weakens

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-820x547.jpg" alt="" class="wp-image-425362" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A woman shops for groceries at El Progreso Market in the Mount Pleasant neighborhood of Washington, D.C., U.S., August 19, 2022. REUTERS/Sarah Silbiger</figcaption></figure>



June 9 (Reuters)&nbsp;&#8211;&nbsp;Pandemic-related disruptions to global supply chains and the effects of Russia&#8217;s war in Ukraine have driven up prices of energy, commodities and other necessities.



Here&#8217;s how governments are trying to help hard-hit consumers and companies:



<h2 class="wp-block-heading" id="h-americas">AMERICAS:</h2>



* U.S. President Joe Biden&#8217;s drug pricing reform, part of the Inflation Reduction Act, penalises drugmakers for excessive prices, aiming to reduce out-of-pocket costs for Medicare recipients. The program has been challenged in court by drugmaker Merck &amp; Co MRK.N.



* Brazil&#8217;s state oil company Petrobras PETR4.SA in May approved a new fuel pricing policy for gasoline and diesel that will sharply lower costs for motorists. President Luiz Inacio Lula da Silva has pledged to introduce a bill making the annual minimum wage adjustment above inflation a permanent rule.



* Mexico has raised the minimum wage by 20% for 2023. In March it opened the door to imported Brazilian bovine products for the first time as it looks to diversify its food supply to try to curb inflation.



* Colombia raised the minimum wage by 16% for 2023.



<h2 class="wp-block-heading">EUROPE:</h2>



* The European Commission extended its gas price cap system to all trading hubs in the European Union from May. EU countries agreed on the cap in December.



* French finance Minister Bruno Le Maire said 75 big food industry players had pledged to lower prices on hundreds of products starting next month. The government has been urging food retailers and manufacturers to cut prices to help households.



* Hungarian Prime Minister Viktor Orban earlier in June imposed mandatory price cuts on some basic food items by large retailers.



* Poland plans to raise the minimum wage twice more in 2024. It was increased from January 2023 and will be lifted again from July.



* Germany is launching a programme that will make available tens of billions of euros for firms facing substantial energy costs. The government last year introduced electricity and gas price caps.



* Most British households can expect cheaper energy bills from July after regulator Ofgem slashed its price cap to reflect a slump in wholesale costs. The new cap marks a near 40% fall compared with the previous level.



* The Greek government in May extended to the end of September some of the measures it took last year to help households and businesses with soaring energy bills.



* Italy in March approved measures worth almost 5 billion euros ($5.38 billion) to cut energy bills for families and firms.



* Portugal in March announced a package to help low-income families, including scrapping value added tax on essential food products.



* Spain raised the minimum wage from January by 8%.



<h2 class="wp-block-heading">ASIA-PACIFIC:</h2>



* Australia will raise the minimum wage by 5.75% from July 1. In May, the government said it would include A$14.6 billion ($9.79 billion) over four years in the federal budget for cost of living relief.



* South Korea has cut tariffs from June on higher-priced edible products, including pork and sugar.



* Pakistan in April capped the retail price rise in essential drugs at 14%.



* India in March lifted the inflation-adjusted allowance for federal government employees by 4%.



* Top Japanese companies in March agreed to their largest pay increases in a quarter of a century at annual labour talks, heeding Prime Minister Fumio Kishida&#8217;s call for higher wages.



* Japan has allocated more than 2 trillion yen ($14.33 billion) from reserve funds to try to limit inflation.



* Thailand in March agreed to extend an excise tax cut on diesel to July 20.



* The Philippines in December extended lower tariff rates on rice and other food items to the end of 2023.



<h2 class="wp-block-heading">AFRICA AND MIDDLE EAST:</h2>



* Nigeria needs to review its minimum wage policy, President Bola Tinubu said earlier in June. The country&#8217;s main labour union is negotiating with the government after petrol prices soared following the removal of a decades-old subsidy.



* Morocco in April adopted a decree cancelling VAT on agricultural inputs such as soil nutrients.



* The majority of South Africa&#8217;s public sector unions in late March agreed to a 7.5% wage increase after five months of strike action. The two-year deal is significantly higher than what the government had factored into its 2023 budget.



* Israel in early March reached a wage deal with its main public sector labour union, covering some 350,000 civil servants, and offering 11% increases between 2020 and 2027.



* Turkey in December raised the monthly minimum wage for 2023 by 55% from the level determined in July.



(Reporting by Reuters bureaus; Compiled by Olivier Sorgho, Tristan Chabba, Anna Mackenzie and Laura Lenkiewicz; Editing by Catherine Evans)

Grocery store in Washington

What are governments doing to ease inflation pain?

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-820x547.jpg" alt="" class="wp-image-425291" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: World Bank President David Malpass speaks during a news conference at the Spring Meetings of the World Bank Group and IMF in Washington, U.S., April 11, 2019. REUTERS/James Lawler Duggan/File Photo</figcaption></figure>



WASHINGTON, June 6 (Reuters)&nbsp;&#8211;&nbsp;The World Bank on Tuesday raised its 2023 global growth forecast as the U.S. and other major economies have proven more resilient than forecast, but said higher interest rates would cause a larger-than-expected drag next year.



Real global GDP is set to climb 2.1% this year, the World Bank said in its latest Global Economic Prospects report. That&#8217;s up from a 1.7% forecast issued in January but well below the 2022 growth rate of 3.1%.



The development lender cut its 2024 global growth forecast to 2.4% from 2.7% in January, citing the continuing effects of tighter monetary policy, particularly in reducing business and residential investment.



&#8220;Growth over the rest of 2023 is set to slow substantially as it is weighed down by the lagged and ongoing effects of monetary tightening, and more restrictive credit conditions,&#8221; it said.



&#8220;These factors are envisaged to continue to affect activity heading into next year, leaving global growth below previous projections.&#8221;



The bank predicted global growth rebounding to 3.0% in 2025.



In January, the World Bank had warned that global GDP was slowing to the brink of recession, but since then, strength in the labor market and consumption in the U.S. had exceeded expectations as has China&#8217;s recovery from COVID-19 lockdowns.



U.S. growth for 2023 is now forecast at 1.1%, more than double the 0.5% forecast in January, while China&#8217;s growth is expected to climb to 5.6%, compared to a 4.3% forecast in January after COVID-reduced growth of 3% in 2022.



The bank, however, halved its previous 2024 U.S. growth forecast for the U.S. to 0.8%, and cut China&#8217;s forecast by 0.4 percentage point to 4.6%.



The euro zone got a forecast increase to 0.4% growth for 2023 from a flat outlook in January, but the forecast for next year was also cut slightly.



<h2 class="wp-block-heading" id="h-banking-stress">BANKING STRESS</h2>



Recent banking sector stress is also contributing to tighter financial conditions that will continue into 2024, the lender said.



It cited one potential downside scenario where banking stress results in a severe credit crunch and broader financial market stress in advanced economies. This would likely cut 2024 growth by nearly half to just 1.3% &#8211; the slowest pace in 30 years outside of the 2009 and 2020 recessions.



&#8220;In another scenario where financial stress propagates globally to a far greater degree, the world economy would fall into recession in 2024,&#8221; the bank added.



The bank said inflation is expected to gradually edge down as growth decelerates and labor demand in many economies softens and commodity prices remain stable. But it added that core inflation is expected to remain above central bank targets in many countries throughout 2024.



(Reporting by David Lawder; Editing by Edwina Gibbs)

FILE PHOTO: World Bank President David Malpass speaks during a news conference at the Spring Meetings of the World Bank Group and IMF in Washington

World Bank lifts 2023 global growth forecasts, but cuts next year’s outlook

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="566" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-820x566.jpg" alt="" class="wp-image-425180" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-820x566.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-768x530.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-1536x1061.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The buildings with the logos of three of South Africa&#8217;s biggest banks, ABSA, Standard Bank and First National Bank (FNB) are seen against the city skyline in Cape Town, South Africa, September 3, 2017. REUTERS/Mike Hutchings</figcaption></figure>



JOHANNESBURG, May 31 (Reuters)&nbsp;&#8211;&nbsp;Economic growth in key Sub-Saharan African economies will slow this year as weaker global growth makes the backdrop less favourable and high interest rates deter investment, ratings agency S&amp;P said in a research report.



S&amp;P said it now forecast the gross domestic product of eight Sub-Saharan African economies it tracks would expand 2.9% in 2023, down from 3.4% in 2022.



Its latest forecast is slightly more gloomy than a research report from June last year that predicted 2023 growth of 3.2% for seven African economies.



This year&#8217;s report included economic forecasts for Angola, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Mozambique, Nigeria and South Africa. S&amp;P&#8217;s 2022 report did not feature Mozambique forecasts.



&#8220;The economic environment remains far from growth friendly, reflecting elevated policy uncertainty and above-average systemic financial stress,&#8221; S&amp;P said. &#8220;Policymakers face a tricky trade-off between public debt management, especially given higher interest rates, and macroeconomic stability.&#8221;



However, the end of the COVID-19 pandemic, the reopening of tourism and services sectors, and falling food and fuel prices should bring some relief, S&amp;P added.



S&amp;P now forecasts South Africa&#8217;s economy will grow 0.7% this year, down from a 1.6% forecast given in June 2022 because of an intensifying electricity crisis.



Democratic Republic of Congo and Ethiopia were poised to be the growth leaders in 2023 with GDP expansions of 6% this year, supported by mining in Congo and a recovery in investment in Ethiopia after a ceasefire between the government and Tigray forces, S&amp;P said.



Looking to 2024, S&amp;P projected average growth of 3.4% in the eight countries.



(Reporting by Anait Miridzhanian; Editing by Alexander Winning and Alison Williams)

The buildings with the logos of three of South Africa’s biggest banks, ABSA, Standard Bank and First National Bank (FNB) are seen against the city skyline in Cape Town

S&P sees weaker 2023 growth in key African economies as tailwinds fade

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="512" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-820x512.jpg" alt="" class="wp-image-425070" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-820x512.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-768x480.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-1536x960.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Singer Youssou N&#8217;Dour performs during the Muslim Voices: Arts &amp; Ideas festival in New York June 5, 2009. REUTERS/Lucas Jackson/File Photo</figcaption></figure>



ADDIS ABABA, May 26 (Reuters)&nbsp;&#8211;&nbsp;Performers from Ghana, Ethiopia and Tanzania have helped launch a five-year project to try to secure more funding for arts and culture, aiming to persuade&nbsp;African governments to allocate at least 1% of their budgets.



The project, called Connect for Culture&nbsp;Africa&nbsp;(CfCA) has been started by the&nbsp;African Union in collaboration with Selam Ethiopia, a non-governmental organisation that uses film, music and circus performances to address issues such as women rights.



&#8220;We want to empower artists. A lot of artists want to participate in these discussions about good governance, human rights but they are scared of the consequences,&#8221; Lucy Ilado, regional programme director at Selam, said.



It is not yet clear whether&nbsp;African governments, many of whom are struggling with debt repayments and the high costs of living, will be able to allocate more cash to the arts.



The&nbsp;African Union was not immediately available for further comment.



CfCA organisers said they would work with government agencies, research institutions, artists and civil society with the aim of &#8220;budget proposals, budget bills, and, in countries where the process is further along, discussions on increased budget allocation to the culture and creative sectors&#8221;.



Vitali Maembe, a musician from Tanzania who took part in Thursday night&#8217;s concert to launch the project, told Reuters he hoped that more funding would help artists to be better educated.



&#8220;It is very rare you go to the university and see funds for the art students,&#8221; he said.



Hundreds of revellers from Ethiopia and other&nbsp;African countries attended the concert, with music performances featuring saxophones, guitars, drums and traditional Ethiopian instruments.



(Reporting by Dawit Endeshaw; Editing by George Obulutsa and Alison Williams)

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