<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1387" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-scaled.jpg" alt="" class="wp-image-469888" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-820x555.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-768x520.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-1536x1040.jpg 1536w" sizes="(max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">People walk past the Bank of Ghana in Accra, Ghana, November 28, 2018. REUTERS/Zohra Bensemra/File Photo</figcaption></figure>



ACCRA, July 26 (Reuters) &#8211; Ghana&#8217;s central bank held its main interest rate steady at 29% for the third meeting in a row on Friday, saying a strong monetary stance was needed due to uncertainty over the inflation outlook.



Economists polled by Reuters before Friday&#8217;s announcement predicted a 50-basis-point cut in its main rate. They expect Ghana to finish the year with interest rates 200 basis points lower.



&#8220;Even though inflation is expected to remain within the target year band, the risks have tilted slightly on the upside,&#8221; Bank of Ghana Governor Ernest Addison told a news conference.



&#8220;This will require maintaining a strong monetary policy stance, supported by strong fiscal consolidation efforts,&#8221; Addison said.



He added that there was some uncertainty regarding the inflation path for the year given the recent exchange rate pressures, upward adjustment in utility tariffs, and increases in export fuel prices.



Ghana&#8217;s consumer inflation slowed last month to 22.8% year on year in June from 23.1% in May, but it remains well above the central bank&#8217;s 8% target with a margin of error of 2 percentage points either side.



Finance minister Mohammed Amin Adam said on Tuesday the West African nation would be able to reach the target for the year of 15% by the end of 2024, adding that its economy was rebounding faster than expected.



&#8220;The central bank is clearly reacting to the stalling disinflation during the first half of 2024, which has put both its short- and medium-term inflation targets at risk,&#8221; said Leslie Dwight Mensah, economist and research fellow at the Institute for Fiscal Studies in Accra.



&#8220;The decision has also been made with an eye on the cedi exchange rate, which has had a bad run in recent months and remains prone to depreciation given the economy&#8217;s limited foreign financing options,&#8221; Mensah said.



The West African cocoa, gold and oil producer has been restructuring its $30 billion debt in an attempt to emerge from its worst economic crisis in a generation.



Central bank governor Addison said economic activity in Ghana remained resilient in the context of a generally tight policy stance.



Ghana&#8217;s trade balance improved in the first half of the year, driven by higher exports of gold and crude oil, he said.



Strong gold output, and soaring prices helped Ghana earn more from the precious metal in the first half of 2024.



&#8220;The value of gold exports increased by 46.4% to $5.04 billion, while earnings from crude oil increased to $2 billion from $1.7 billion in the same period last year,&#8221; Addison said.



(Reporting by Christian Akorlie, additonal reporting by Maxwell Akalaare Adombila Writing by Anait MiridzhanianEditing by Bate Felix, William Maclean and Ros Russell)

People walk past the Bank of Ghana in Accra

Bank of Ghana keeps main rate unchanged over inflation concerns

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="576" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-820x576.jpg" alt="" class="wp-image-425778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-820x576.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-1536x1079.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/OHD5J7KDHJJKBG6Q7MD3YOK36E-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu waves to a crowd as he takes the traditional ride on top of a ceremonial vehicle, after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, July 26 (Reuters)&nbsp;&#8211;&nbsp;Nigeria plans to issue a diaspora bond of up to $500 million, its Finance Minister Olawale Edun said, as part of its strategy to stabilise and grow the economy.



The domestic dollar-denominated bond, set for issuance in the third quarter, aims to attract investment from Nigerians living abroad and those with savings held overseas, but also to demonstrate the strength and resilience of the economy amidst ongoing economic reforms.



Nigeria&#8217;s move to issue the securities comes in the wake of ongoing reforms by President Bola Tinubu, which have seen significant strides including a projected budget deficit of 4% this year, Edun said in a statement late on Thursday.



Since taking office a little over a year ago, Tinubu has instituted landmark reforms cheered by investors, including slashing costly petrol and electricity subsidies and twice devaluing the naira currency with a year.



Edun said the reforms, and the issuance of securities as an integral part of them, represent a concerted push by the government to boost inclusive growth, potentially lifting millions out of poverty while attracting domestic and foreign investments.



(Writing by Elisha Bala-Gbogbo; Editing by Sharon Singleton)

FILE PHOTO: Nigeria’s President Bola Tinubu waves to a crowd as he takes the traditional ride on top of a ceremonial vehicle after his swearing-in ceremony in Abuja

Nigeria to launch $500 million diaspora bond in economic growth push

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="929" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108009036-1721398542475-gettyimages-2162004949-AA_19072024_1780984.jpeg" alt="" class="wp-image-511432" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108009036-1721398542475-gettyimages-2162004949-AA_19072024_1780984.jpeg 929w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108009036-1721398542475-gettyimages-2162004949-AA_19072024_1780984-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108009036-1721398542475-gettyimages-2162004949-AA_19072024_1780984-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108009036-1721398542475-gettyimages-2162004949-AA_19072024_1780984-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108009036-1721398542475-gettyimages-2162004949-AA_19072024_1780984-768x432.jpeg 768w" sizes="(max-width: 929px) 100vw, 929px" /><figcaption class="wp-element-caption">The blue screen of death errors on computer screens are viewed due to the global communications outage caused by CrowdStrike, which provides cyber security services to US technology company Microsoft, on July 19, 2024 in Ankara, Turkey.  Harun Ozalp | Anadolu | Getty Images</figcaption></figure>



CrowdStrike CEO George Kurtz said that over 97% of Windows sensors are back online after an update from the cybersecurity firm caused one of the world’s biggest IT outages.



“To our customers still affected, please know we will not rest until we achieve full recovery,” Kurtz said in a LinkedIn post on Thursday.



Last week, CrowdStrike issued a routine update to its users around the world — which mainly comprise large businesses — that had a bug which caused Microsoft’s Windows operating system to crash.



Many users woke up on Friday to a blue screen error on Windows. The IT outage sparked chaos around the world, with flights being cancelled, businesses closing early and even medical staff scrambling to keep operations running.



CrowdStrike rolled back the update to fix the issue.



The company’s share price has been hammered since the incident, as CEO Kurtz looks to contain the reputational fallout.



“I am deeply sorry for the disruption this outage has caused and personally apologize to everyone impacted. While I can’t promise perfection, I can promise a response that is focused, effective, and with a sense of urgency,” he wrote on LinkedIn.



To apologize for the incident, CrowdStrike sent Uber Eats gift cards to “teammates and partners who have been helping customers through this situation,” a company spokesperson told CNBC.



TechCrunch previously reported the news and added that some people were having trouble using the gift card.



“Uber flagged it as fraud because of high usage rates,” a CrowdStrike spokesperson said.

108009036-1721398542475-gettyimages-2162004949-AA_19072024_1780984

CrowdStrike CEO says 97% of Windows sensors back online after major outage

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107418094-1716321352537-gettyimages-2153474140-AFP_34TH9TC-scaled.jpeg" alt="" class="wp-image-511392" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107418094-1716321352537-gettyimages-2153474140-AFP_34TH9TC-scaled.jpeg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107418094-1716321352537-gettyimages-2153474140-AFP_34TH9TC-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107418094-1716321352537-gettyimages-2153474140-AFP_34TH9TC-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107418094-1716321352537-gettyimages-2153474140-AFP_34TH9TC-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107418094-1716321352537-gettyimages-2153474140-AFP_34TH9TC-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/107418094-1716321352537-gettyimages-2153474140-AFP_34TH9TC-1536x1024.jpeg 1536w" sizes="(max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



OpenAI on Thursday announced a prototype of its search engine, called SearchGPT, which aims to give users “fast and timely answers with clear and relevant sources.”



The company said it eventually plans to integrate the tool, which is currently being tested with a small group of users, into its ChatGPT chatbot.



The rollout could have implications for Google and its dominant search engine. Since the launch of ChatGPT in November 2022, Alphabet investors have been concerned that OpenAI could take market share from Google in search by giving consumers new ways to seek information online. 



With this prototype, OpenAI is testing the waters for doing just that, promising users the chance to “search in a more natural, intuitive way” and ask follow-up questions “just like you would in a conversation.”



“We think there is room to make search much better than it is today,” OpenAI CEO Sam Altman wrote Thursday in a post on X.



Alphabet shares fell more than 3% on Thursday to close at $167.28, while the Nasdaq was down less than 1%.



In May, Google launched AI Overview, which CEO Sundar Pichai called the biggest change in search in 25 years, to a limited audience, allowing users to see a summary of answers to queries at the very top of Google Search.



Though Google had been working on AI Overview for more than a year, public criticism mounted after  users quickly noticed that queries returned nonsensical or inaccurate results within the AI feature — without any way to opt out.



“Google has been kind of shaking in their boots a little bit since this stuff first popped off,” said Daniel Faggella, founder and head of research at Emerj Artificial Intelligence Research, referring to generative artificial intelligence. “We haven’t seem their company crumble in the interim, but we have seen them kind of fumble.”&nbsp;



The SearchGPT announcement follows OpenAI’s launch last Thursday of a new AI model, “GPT-4o mini.” The new model is an offshoot of GPT-4o, the startup’s fastest and most powerful model to date, which it launched in May during a livestreamed event with executives. 



OpenAI, backed by Microsoft, has been valued at more than $80 billion by investors. The company, founded in 2015, is under pressure to stay on top of the generative AI market while finding ways to make money as it spends massive sums on processors and infrastructure to build and train its models.



Last Month, OpenAI announced the hiring of two top executives as well as a partnership with Apple that includes a ChatGPT-Siri integration. Sarah Friar, previously CEO of Nextdoor and finance chief at Square, joined as chief financial officer, and Kevin Weil, an ex-president at Planet Labs and former senior vice president at Twitter and a vice president at Facebook and Instagram, joined as chief product officer.



OpenAI is bolstering its C-suite as its large language models gain importance across the tech sector and as competition rapidly emerges in the burgeoning generative AI market.&nbsp;



Both OpenAI’s new mini AI model and the prototype of SearchGPT are also part of the company’s push to be at the forefront of “multimodality,” or the ability to offer a wide range of types of AI-generated media, like text, images, audio, video and search, inside one tool: ChatGPT.



For SearchGPT, OpenAI’s blog post said the tool’s visual results will lead to “richer understanding” for users.



Last year, OpenAI Chief Operating Officer Brad Lightcap told CNBC, “The world is multimodal.” He added that as humans “engage with the world, we see things, we hear things, we say things,” so limiting interactions to text is insufficient.

107418094-1716321352537-gettyimages-2153474140-AFP_34TH9TC

OpenAI announces a search engine called SearchGPT; Alphabet shares dip

<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="1920" height="1080" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108004882-1720728328098-gettyimages-2161665996-economy451659_szz6uf7k.jpeg" alt="" class="wp-image-511374" style="width:840px;height:auto" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108004882-1720728328098-gettyimages-2161665996-economy451659_szz6uf7k.jpeg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108004882-1720728328098-gettyimages-2161665996-economy451659_szz6uf7k-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108004882-1720728328098-gettyimages-2161665996-economy451659_szz6uf7k-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108004882-1720728328098-gettyimages-2161665996-economy451659_szz6uf7k-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108004882-1720728328098-gettyimages-2161665996-economy451659_szz6uf7k-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108004882-1720728328098-gettyimages-2161665996-economy451659_szz6uf7k-1536x864.jpeg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Economic activity in the U.S. was considerably stronger than expected during the second quarter, boosted by a strong consumer, government spending and a sizeable inventory build, according to an initial estimate Thursday from the Commerce Department.



Real gross domestic product, a measure of all the goods and services produced during the April-through-June period, increased at a 2.8% annualized pace adjusted for seasonality and inflation. Economists surveyed by Dow Jones had been looking for growth of 2.1% following a 1.4% rise in the first quarter.



Consumer spending helped propel the growth number higher, as did contributions from private inventory investment and nonresidential fixed investment, according to the first of three estimates the department will provide.



Personal consumption expenditures, the main proxy in the Bureau of Economic Analysis report for consumer activity, increased 2.3% for the quarter, up from the 1.5% acceleration in Q1. Both services and goods spending saw solid increases for the quarter.



Inventories also were a significant contributor, adding 0.82 percentage point to the total gain. Government spending added a tailwind as well, rising 3.9% at the federal level, including a 5.2% surge in defense outlays.



On the downside, imports, which subtract from GDP, jumped 6.9%, the biggest quarterly rise since Q1 of 2022. Exports were up just 2%.



Stock market futures drifted higher following the report while Treasury yields moved lower.



“The composition of growth was one of the better mixes that we have observed in some time,” said Joseph Brusuelas, chief economist at RSM. The report “tends to support the idea that the American economy is in the midst of a productivity boom which over the medium term will lift living standards across the country via lower inflation, low employment and rising real wages.”



There was some good news on the inflation front: the personal consumption expenditures price index, a key measure for the Federal Reserve, increased 2.6% for the quarter, down from the 3.4% move in Q1. Excluding food and energy, core PCE prices, which the Fed focuses on even more as a longer-term inflation indicator, were up 2.9%, compared to a 3.7% increase in the prior period.



The so-called chain-weighted price index, which takes into account changes in consumer behavior, increased 2.3% for the quarter, below the 2.6% estimate.



Treasury Secretary Janet Yellen saw the GDP report as “affirming the path we’re on to steady growth and declining inflation,” in remarks she delivered Thursday morning in Rio de Janeiro.



One other key variable, final sales to private domestic purchasers, which the Fed considers a good indicator of underlying demand, accelerated at a 2.6% pace, the same as in the prior quarter.



However, the report also indicated that the personal savings rate continues to decelerate, at 3.5% for the quarter, compared with 3.8% in Q1.



There have been signs of cracks lately in the consumer picture.



A report Wednesday from the Philadelphia Federal Reserve showed credit card delinquencies at an all-time high according to data going back to 2012. Revolving debt balances also reached a new high even as banks reported tightening credit standards and declining new card originations.



However, retail sales numbers have continued to climb indicating that consumers are weathering the headwinds of high interest rates and persistent inflation.



There also is pressure in the housing market: Sales are declining while home prices continue to rise, putting stress on first-time homebuyers.



Federal Reserve officials are expected to hold interest rates steady when they meet next week, though market pricing is pointing to the first cut in four years in September. Policymakers have been circumspect about when they might start reducing rates, though recent comments indicate more of a willingness to start easing policy and most central bankers have said they see further increases as unlikely.



In other economic news Thursday, the Labor Department reported that initial jobless claims totaled 235,000 for the week ended July 20, down 10,000 from the previous week and exactly in line with the Dow Jones forecast. Continuing claims, which run a week behind, edged lower to 1.85 million.



Also, orders for durable goods — generally big-ticket items such as aircraft, appliances and computers — unexpectedly fell 6.6% in June, compared with the forecast for a 0.3% increase. However, excluding transportation, new orders increased 0.5%.

108004882-1720728328098-gettyimages-2161665996-economy451659_szz6uf7k

U.S. economy grew at a 2.8% pace in the second quarter, much more than expected

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="571" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-699242978-820x571.jpg" alt="" class="wp-image-511175" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-699242978-820x571.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-699242978-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-699242978-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-699242978-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-699242978-1536x1069.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-699242978-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">BLOEMFONTEIN, SOUTH AFRICA JUNE 15: (SOUTH AFRICA OUT) President of the Supreme Court of Appeal (SCA) Mandisa Maya opens up during an interview at her offices on June 15, 2017 in Bloemfontein, South Africa. Maya is the first female to occupy the post of President of the SCA in South Africa. (Photo by Gallo Images / The Times / Simphiwe Nkwali)</figcaption></figure>



JOHANNESBURG, July 25 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa on Thursday named Mandisa Maya as the first female chief justice, effective on Sept. 1, following consultations with the Judicial Service Commission.



This is a significant milestone for the country, the presidency said in a statement.



Maya, the current deputy chief justice, will replace Raymond Zondo, whose term ends on Aug. 31.



This is a developing story&#8230;



(Reporting by Bhargav Acharya; Editing by Kevin Liffey and Richard Chang)

Close up with Supreme Court of Appeal head Mandisa Maya

South Africa appoints first woman chief justice

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="619" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/YCWFEE2J3NLKPHC3NQ2YRVFRB4-820x619.jpg" alt="" class="wp-image-511102" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/YCWFEE2J3NLKPHC3NQ2YRVFRB4-820x619.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/YCWFEE2J3NLKPHC3NQ2YRVFRB4-300x227.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/YCWFEE2J3NLKPHC3NQ2YRVFRB4-119x90.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/YCWFEE2J3NLKPHC3NQ2YRVFRB4-768x580.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/YCWFEE2J3NLKPHC3NQ2YRVFRB4-1536x1160.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/YCWFEE2J3NLKPHC3NQ2YRVFRB4-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO &#8211; Zimbabwean Finance Minister Mthuli Ncube looks on before the swearing in of new cabinet ministers at State House in Harare, Zimbabwe, September 10, 2018. REUTERS/Philimon Bulawayo</figcaption></figure>



HARARE, July 25 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s 2024 budget deficit is forecast to be 1.3% of gross domestic product, Finance Minister Mthuli Ncube said on Thursday,but warned that concerns remained over the impact of a drought on finances.



The finance ministry projected 2024 growth at 2% earlier this month, down from 3.5% forecast in November, as southern Africa suffers its worst drought in decades.



In his midterm budget review, Ncube told lawmakers that the agriculture sector was now projected to contract by 21.2%, against a contraction of 4.9% in November, due to the drought.



Ncube added that spending priorities for the remainder of the year could change as the government takes stock of the impact of the drought on food security and water.



In April, the southern African nation introduced its new gold-backed currency, Zimbabwe Gold (ZiG), its sixth attempt at a domestic currency in 15 years.



&#8220;Since the introduction of the ZiG currency, the economy is experiencing relatively stable prices and exchange rate,&#8221; Ncube said, adding that inflation had remained stable in the two months since its introduction.



Zimbabweans however have been slow to adopt the new currency, opting instead to continue trading in foreign currency, mainly US dollars.



Ncube introduced revised tax proposals which he says will encourage greater use of the currency, including changes to corporate taxes and making some domestic taxes only payable in local currency.



(Reporting by Nyasha Chingono in Harare and Kopano Gumbi in Johannesburg, additional reporting by Tannur Anders and Bhargav Acharya, writing by Kopano Gumbi, editing by Mark Heinrich and Bernadette Baum)

FILE PHOTO – Zimbabwean Finance Minister Mthuli Ncube looks on before the swearing in of new cabinet ministers at State House in Harare

Zimbabwe’s 2024 budget deficit seen at 1.3% of GDP, finmin says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CQVBUS4TCRKRPKTBUCLDNRK4CM-820x573.jpg" alt="" class="wp-image-511082" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CQVBUS4TCRKRPKTBUCLDNRK4CM-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CQVBUS4TCRKRPKTBUCLDNRK4CM-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CQVBUS4TCRKRPKTBUCLDNRK4CM-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CQVBUS4TCRKRPKTBUCLDNRK4CM-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CQVBUS4TCRKRPKTBUCLDNRK4CM-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CQVBUS4TCRKRPKTBUCLDNRK4CM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Solar panels are seen near the cooling towers of a retired coal-fired Komati Power Station, operated by Eskom, near Komati village, in the Mpumalanga province in South Africa, May 9, 2024. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, July 25 (Reuters)&nbsp;&#8211;&nbsp;South Africa, the world&#8217;s 14th biggest carbon emitter, has made strong commitments to climate action but is moving too slowly to wean itself off coal and roll out renewables to meet them, a key report said on Thursday.



Africa&#8217;s most industrialised country has been lauded for making ambitious pledges to cut greenhouse gas emissions &#8211; which are higher even than far richer nations like France, Britain and Italy &#8211; and for producing a comprehensive plan to achieve them.



&#8220;Despite all the strong public support and policy commitments, we&#8217;ve got a huge discrepancy between that and what&#8217;s actually happening,&#8221; Melissa Fourie, one of the authors of the Presidential Climate Commission report, said at its launch in the commercial capital Johannesburg.



The report, commissioned by the president&#8217;s office but independent, said a more than six-fold increase in the pace of renewables buildout was needed.



Several countries&#8217; actions globally are lagging behind their pledges.



President Cyril Ramaphosa signed a sweeping climate change act into law this week that set caps for large emitters.



Donors are providing $12 billion of mostly loans to fund South Africa&#8217;s energy transition, a model they hope to export elsewhere in the developing world.



At the same time, the country has been firing up its coal burners to end years of power shortages. Last year, officials backtracked on pledges to shut down eight coal-fired power stations and have admitted South Africa will not meet its 2030 targets.



The report said total renewable capacity in South Africa was 10.4 gigawatts (GW) in 2022, growing by 1 GW per year since 2015. To meet net zero by 2050, however, it would need between 190 GW and 390 GW, requiring between 6 GW and 14 GW per year.



The report blamed &#8220;contradictory public policies &#8230; particularly regarding the future of the energy



sector,&#8221; adding: &#8220;The lack of consensus about the pace of the coal phaseout is delaying the &#8230; the transition&#8221;.



It added that investment was far below what was required, with 131 billion rand ($7.09 billion) a year being committed, against the 334 billion to 535 billion needed.



($1 = 18.4799 rand)



(Reporting by Tim Cocks; Editing by Alexandra Hudson)

FILE PHOTO: South Africa’s ANC walks political tight rope over coal plant shutdowns

South Africa’s climate action too slow to meet its bold pledges, says report

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AIWBQMUGNNKINK5I5LYWF6KGQI-820x533.jpg" alt="" class="wp-image-511030" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AIWBQMUGNNKINK5I5LYWF6KGQI-820x533.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AIWBQMUGNNKINK5I5LYWF6KGQI-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AIWBQMUGNNKINK5I5LYWF6KGQI-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AIWBQMUGNNKINK5I5LYWF6KGQI-768x500.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AIWBQMUGNNKINK5I5LYWF6KGQI-1536x999.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/AIWBQMUGNNKINK5I5LYWF6KGQI-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Protestors chant slogans during a rally against what they say are rampant corruption and human rights abuses by the country&#8217;s rulers in Kampala, Uganda July 23, 2024. REUTERS/Michael Muhati/File Photo</figcaption></figure>



KAMPALA, July 25 (Reuters)&nbsp;&#8211;&nbsp;Ugandan police detained several people in the capital Kampala on Thursday during a second day of anti-corruption protests that are demanding the resignation of the parliament speaker, footage broadcast by local media showed.



Drawing inspiration from weeks of youth-led protests in neighbouring Kenya that forced the president there to withdraw proposed tax hikes, young Ugandans began demonstrating this week against alleged graft by elected leaders.



The police quickly shut down a planned march to parliament on Tuesday. They arrested at least 73 young protesters, according to Chapter Four Uganda, an organisation providing legal services to those detained.



On Thursday, more demonstrators took to the streets, according to video posted on X by the Daily Monitor newspaper. The footage showed police in riot gear forcing several&nbsp;young adults&nbsp;into the back of a truck as they shouted protest slogans.



Footage broadcast by NTV Uganda showed about a dozen people marching with signs that said, &#8220;The Corrupt are Messing with a Wrong Generation&#8221; and &#8220;This is our 1986&#8221;, a reference to when President Yoweri Museveni overthrew a repressive government.



Reached for comment, police spokesperson Kituuma Rusoke referred Reuters to comments on Monday in which he said protests had been banned because they would be hijacked by people looking to loot and vandalise.



Museveni, who over the weekend warned protesters against &#8220;playing with fire&#8221;, accused them on Thursday of receiving foreign funding.



&#8220;Those involved should know that Uganda is not a neo-colony,&#8221; he said. &#8220;The fight against corruption is in my hands. I just need evidence and action will be taken.&#8221;



Ugandan and Kenyan activists have used audio forums on X as the main platform for organising their protests.



In one such forum on Thursday, activists encouraged Ugandans to take to the streets but acknowledged the challenge of mobilising in a country where anti-government demonstrations routinely draw forceful police crackdowns.



&#8220;You want it done today? Get out of your house &#8230; Be the soldier for this anti-corruption fight,&#8221; said one speaker identified only by their X handle.



The protesters&#8217; demands include the resignation of parliament speaker Anita Among, who was sanctioned this year by the United States and Britain for alleged involvement in corruption.



Among has denied all allegations of graft and says she is being targeted by Western governments for her role pushing through harsh anti-LGBTQ legislation last year.



The Ugandan protesters have borrowed slogans from their counterparts in Kenya, where more than 50 people have been killed in six weeks of protests, characterising themselves as &#8220;fearless&#8221; and &#8220;leaderless&#8221;.



Nigerian activists are also looking to emulate the protests in Kenya and have called for demonstrations next month in response to a cost of living crisis.



(Reporting by Elias Biryabarema in Kampala and Aaron Ross in Nairobi; Editing by Toby Chopra)

FILE PHOTO: Ugandan security forces detain young protesters marching in Kampala

Uganda police arrest more people protesting corruption

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-scaled.jpg" alt="" class="wp-image-408693" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-1536x1024.jpg 1536w" sizes="(max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A sign stands at the entrance to the offices of Anglo American Plc in the Marshalltown district of Johannesburg, South Africa, on Friday, Oct. 26, 2012. Anglo American Plc Chief Executive Officer Cynthia Carroll , the first woman, external hire and non-South African to hold the job, will quit after Anglo lost $14 billion in value in the more than five years she was in charge. Photographer: Chris Ratcliffe/Bloomberg via Getty Images</figcaption></figure>



LONDON, July 25 (Reuters) &#8211; Anglo American took a further $1.6 billion writedown on its costly British fertiliser project on Thursday, but the miner said it expects to reach a deal for the sale of its coal assets by early 2025, despite a fire at one of its mines.



CEO Duncan Wanblad is under pressure to boost returns to investors and demonstrate he can deliver on his May 14 plan to radically refocus the company on copper and iron ore, after fighting off a $49 billion takeover attempt from bigger rival BHP Group.



Wanblad pinned his approach on getting an early start with selling Anglo&#8217;s coking coal assets in Australia, but a fire at its Grosvenor mine threatened to set back the timing with a likely hit to the deal&#8217;s valuation.



Anglo said the company plans to conduct a two-stage auction process for the coal assets, including Grosvenor, adding that the mine would probably only resume operations under a new owner.



&#8220;There are so many interested potential buyers for this set of assets,&#8221; Wanblad told reporters.



&#8220;Our expectation is that hopefully by the end of this year, very early next year&#8230;we will have a deal,&#8221; he added.



Anglo&#8217;s shares were unchanged at the London market open.



The CEO said Anglo is still looking for partners at its Woodsmith fertiliser project in northern England, despite the impairment. It already wrote down $1.7 billion on the project a year ago.



The miner also said its nickel assets in Brazil have attracted interest from potential buyers.



&#8220;We have had inbound interest from a number of credible parties and we will be starting a formal process later this year,&#8221; a spokesperson told Reuters via email.



The company declared an interim dividend of $0.42 per share, down from $0.55 a year earlier and far below the record levels of 2021.



It posted a $672 million loss for the first half, mostly reflecting the impairment at Woodsmith, while core earnings or EBITDA of $5 billion was slightly lower than $5.1 billion a year earlier but above the $4.6 billion seen in an analysts&#8217; consensus estimate.



Anglo cut diamond production by 19% during the first six months of the year amid lower prices. Production guidance at its De Beers unit was revised down to 23-26 million carats from 26-29 million to help preserve cash.



The company&#8217;s restructuring plan includes the divestment of De Beers and also of its nickel mines, and the demerger of its South African platinum unit.



(Reporting by Clara Denina in London and Felix Njini in Johannesburg; editing by Jon Boyle and Jason Neely, Kirsten Donovan)

Anglo American Plc’s South African Headquarters As CEO Cynthia Carroll Quits

Anglo takes further fertiliser writedown, sees coal deal by early 2025

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="499" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/QW76VFKRQNM3RCXVXVQ5TDQVFY-820x499.jpg" alt="" class="wp-image-510929" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/QW76VFKRQNM3RCXVXVQ5TDQVFY-820x499.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/QW76VFKRQNM3RCXVXVQ5TDQVFY-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/QW76VFKRQNM3RCXVXVQ5TDQVFY-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/QW76VFKRQNM3RCXVXVQ5TDQVFY-768x467.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/QW76VFKRQNM3RCXVXVQ5TDQVFY-1536x934.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/QW76VFKRQNM3RCXVXVQ5TDQVFY-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: FILE PHOTO: Shein logo and their web shop are seen in this illustration taken, May 16, 2024. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo</figcaption></figure>



JOHANNESBURG, (Reuters) &#8211; Fast-fashion giant Shein, known for its $5 tops and $10 dresses, will open a pop-up store in Johannesburg, South Africa in August as the online retailer aims to expand its brand recognition in the country.



Shein, founded in China, and its rival Temu have aggressively expanded worldwide as online shopping has surged after the COVID pandemic. They have been accused of exploiting tax loopholes by exporting China-made products in small quantities to avoid higher duties.



&#8220;Bringing the Shein experience directly to the end consumer is a key part of Shein&#8217;s strategy,&#8221; the company said on Wednesday in an emailed response.



&#8220;Given that Shein is a digital-first company, Shein&#8217;s hugely successful pop-ups are an opportunity for our consumers to touch and feel our products, as well as to interact and engage directly with Shein&#8217;s local brand ambassadors.&#8221;



Shein will open its pop-up store from Aug. 2-11 as an &#8220;exhibition space&#8221; for customers to try on trendy fashion and lifestyle products and order them online at a discount, the company said in its South African Instagram post.



Local influencers were tapped for a pre-opening marketing campaign.



Brick-and-mortar and online fashion retailers have urged South African regulators to impose a 45% import duty on all clothing item imports, no matter the price, to level the playing field. Shein, which is planning to go public in Britain, taps a network of largely China-based suppliers which take small initial orders and scale up based on demand.



A Shein spokesperson told Reuters the retailer is engaging with South African regulators to ensure its continued compliance with local laws.



&#8220;That said, such tax measures are not critical to the success of our business or the competitive prices we offer our consumers. We keep our prices affordable through our technology-based on-demand business model and flexible supply chain,&#8221; the spokesperson added.



(Reporting by Nqobile Dludla; Editing by Richard Chang and David Evans)

FILE PHOTO: FILE PHOTO: Illustration shows Shein logo

Shein to open pop-up store in South Africa to woo more shoppers

<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-1815421853-820x547.jpg" alt="" class="wp-image-510612" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President of Kenya William Ruto during the United Nations Climate Change Conference COP28 High Level Segment meeting in Dubai, United Arab Emirates on December 1, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images)</figcaption></figure>



NAIROBI, July 24 (Reuters) &#8211; Kenyan President William Ruto on Wednesday nominated four members of the main opposition party to a &#8220;broad-based&#8221; cabinet he promised in response to nationwide protests, but activists criticised the new government as a corrupt bargain.



The opposition members, including the pick to lead the finance ministry, John Mbadi, are allies of opposition leader Raila Odinga, whom Ruto defeated in the 2022 election.



In a speech from his official residence, Ruto called the new government &#8220;a visionary partnership for the radical transformation of Kenya&#8221; and thanked those who had consulted on its formation for the &#8220;historic gesture of their patriotism&#8221;.



Young protesters behind six weeks of demonstrations that forced Ruto to withdraw $2.7 billion in tax hikes said the unity government would perpetuate a tradition of leaders co-opting the opposition at the expense of the population.



More than 50 people have been killed in the protests, which are the biggest crisis of Ruto&#8217;s two years in power.



Demonstrations have continued even after he shelved the tax raises, with many activists now calling for him to resign and for far-reaching reforms to tackle graft.



&#8220;Zakayo has appointed corrupt people to fight corruption,&#8221; Boniface Mwangi, a prominent anti-government activist, wrote on X.



Zakayo is the Swahili name for a greedy tax collector in the Bible that protesters have used as a nickname for Ruto.



&#8220;It&#8217;s important to note @RailaOdinga is a traitor. He has betrayed the people, and formed a government of national looting with Zakayo,&#8221; Mwangi said.



On Monday, Odinga&#8217;s Orange Democratic Movement said it was not in negotiations with the government &#8220;for any coalition or political arrangement&#8221;. The ODM was due to hold a news conference shortly after Ruto&#8217;s speech.



The party&#8217;s coalition allies have strongly opposed a unity government.



<h2 class="wp-block-heading" id="h-new-protest-calls">NEW PROTEST CALLS</h2>



Besides the four opposition members, Ruto named five members of the cabinet he dismissed earlier this month in response to protesters&#8217; demands. Last week, Ruto announced 11 nominations &#8211; six of whom were holdovers from the previous cabinet.



The background of one of the nominees on Wednesday was not immediately clear. Ruto said he would announce additional nominees soon.



He also said he would be proposing amendments to anti-corruption and public procurement laws and called on the police to release any innocent people who may have been arrested during the demonstrations.



The protests, which have been mostly organised online and have no official leaders, began peacefully but turned violent as the police fire tear gas and live rounds. Some demonstrators briefly stormed parliament on June 25.



Activists circulated calls on social media for a march on Thursday to present a petition to the office of the president and lay flowers at parliament for those killed a month earlier.



Ruto initially praised protesters for being peaceful and mobilising across the ethnic lines that have traditionally defined Kenyan politics.



But he has stepped up his criticism of the protest movement in recent days. In comments over the weekend, he vowed to stop the demonstrations, saying they were causing &#8220;mayhem and anarchy&#8221;.



Anti-government activists have blamed incidents of violence and looting on thugs hired by politicians to discredit the movement and advance their own agendas.



(Reporting by George Obulutsa and Hereward Holland Writing by Aaron RossEditing by Peter Graff and Angus MacSwan)

COP28 In Dubai High Level Segment

Kenya’s Ruto names opponents to cabinet, protesters slam ‘corrupt’ deal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="588" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VTWRCG6IZBJX7GFQNKPNG35RVQ-820x588.jpg" alt="" class="wp-image-510571" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VTWRCG6IZBJX7GFQNKPNG35RVQ-820x588.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VTWRCG6IZBJX7GFQNKPNG35RVQ-300x215.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VTWRCG6IZBJX7GFQNKPNG35RVQ-126x90.jpg 126w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VTWRCG6IZBJX7GFQNKPNG35RVQ-768x551.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VTWRCG6IZBJX7GFQNKPNG35RVQ-1536x1101.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VTWRCG6IZBJX7GFQNKPNG35RVQ-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Shoppers stand at a Pick n Pay store at the Dobson Point Shopping Centre, in Soweto, South Africa, March 19, 2024. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, July 24 (Reuters)&nbsp;&#8211;&nbsp;South African inflation slowed in June, statistics agency data showed on Wednesday, clearing the path for the central bank to cut rates at its next meeting, economists said.



Headline consumer inflation stood at 5.1% year-on-year in June, compared to 5.2% in May, Statistics South Africa said, in line with the prediction made by economists polled by Reuters.



Inflation has remained above 5% for 10 consecutive months Statistics South Africa data showed, while the South African Reserve Bank (SARB) prefers it to be at the midpoint of its 3%-6% target band.



The slow rate of disinflation has meant the central bank has kept its main lending rate unchanged at 8.25% for more than a year.



Isaac Matshego, senior economist at local financial firm, Nedbank, said they now see the SARB cutting rates at their next meeting in September.



&#8220;Today’s figure affirms our view that the SARB will cut the repo rate by 25 basis points to 8% at its meeting in September followed by a similar reduction in November,&#8221; said Matshego.



A key concern for the SARB has been high food and services prices, but June data shows these have both come down to 4.6% in June from 4.7% in May, just shy of the midpoint.



David Omojomolo, Africa economist at Capital Economics said lower food and services inflation gives impetus to the central bank to start cutting rates in September, agreeing that a 25 basis point cut would be acceptable.



Core inflation, which excludes food and fuel prices, came in at 4.5% for June, Statistics South Africa added.



(Writing by Kopano Gumbi and Bhargav Acharya; Editing by Alex Richardson and Angus MacSwan)

Shoppers stand at a Pick n Pay store in Soweto

South African inflation drops, rate cuts now expected in September

<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-2162833993-820x547.jpg" alt="" class="wp-image-510532" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2162833993-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2162833993-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2162833993-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2162833993-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2162833993-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2162833993-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">GRAND RAPIDS, MICHIGAN &#8211; JULY 20: Republican presidential nominee, former U.S. President Donald Trump walks offstage after speaking at a campaign rally at the Van Andel Arena on July 20, 2024 in Grand Rapids, Michigan. Trump&#8217;s campaign event is the first joint event with his recent vice presidential pick Sen. J.D. Vance (R-OH) and the first campaign rally since the attempted assassination attempt his rally in Butler, Pennsylvania. (Photo by Anna Moneymaker/Getty Images)</figcaption></figure>



Former President Donald Trump would likely take his trade war and economic decoupling policies to new levels if he were elected to a second term in the White House, experts told CNBC.



While Joe Biden also placed strategic competition with China at the forefront of his economic policy, economists and trade experts largely expect Trump would further cut and destabilize trade relations between the world’s two largest economies.



“A Trump victory is highly likely to increase trade and economic hostilities between the U.S. and China, ramping up the trade and financial decoupling between the two countries,” said Eswar Prasad, an economics professor at Cornell University.



Trump is widely expected to face incumbent Vice President Kamala Harris after Biden bowed out of the race and endorsed her. According to Prasad and other experts, Harris’ approach to China would likely be similar to that of Biden.



While Trump and Biden both took a protectionist stance, their strategies and tactics differed greatly, explained Prasad, who previously served as head of the International Monetary Fund’s China and financial studies divisions.



“Trump relied on tariffs to keep out imports from China. Biden — while keeping those tariffs in place and even increasing tariffs on certain imports — has focused more on restricting China’s access to technology transfers and computer chips,” he said.



<h2 class="wp-block-heading" id="h-tariff-man"><a></a>‘Tariff man’</h2>



Trump’s biggest diversion from Biden-era trade policy would likely be tariffs levied on China.



The self-proclaimed “tariff man” set off a trade war with Beijing during his first term. He placed a series of duties on $250 billion of Chinese imports, disregarding warnings the levies would raise prices and hurt consumers. 



After defeating Trump in 2020, Biden retained his predecessor’s tariffs and even added his own, announcing stiff new duties on about $18 billion worth of Chinese imports, including electric vehicles, solar cells, lithium batteries, steel and aluminum. 



Experts told CNBC they expect Harris to largely continue Biden’s tariff policy. Trump, on the other hand, has already proposed increasing rates on Chinese imports by at least 60%. 



“I certainly don’t know if Trump is willing to pursue such extreme measures, but I do believe that he’s likely to increase tariffs to some degree during a second term,” said Stephen Weymouth, a professor of international political economy at Georgetown University.&nbsp;&nbsp;



Economist Stephen Roach said Trump raising tariffs in a second term would be the “functional equivalent of the nuclear option” in international economic conflict.&nbsp;



William Reinsch, Scholl chair in international business at the Center for Strategic and International Studies, said the tariffs risk another trade war that would end most goods exchange between the two countries at an “enormous economic cost.”



Even if Trump’s aim is not a full decoupling but forcing Beijing into negotiating a more favorable trade deal, Reinsch said there’s little reason to believe that would work.



The Trump administration reached a “phase one trade deal” with China in 2019, but few terms were honored and subsequent phases never materialized.



Some commentators said Trump picking JD Vance as his running mate further signals the Republican is serious about his tariff plans. The senator from Ohio has been a staunch supporter of tariffs on China, identifying the country as the biggest threat facing the U.S. 



“If I was a China policy maker, this selection would have me shaking in my boots,” said Arthur Dong, professor of strategy and economics at Georgetown.&nbsp;



<h2 class="wp-block-heading"><a></a>Tech war</h2>



In contrast, the Biden-Harris administration’s key policies focused on limiting China’s access to technology transfers and directing domestic subsidies to develop high-tech industries and supply chains in the U.S.



The administration dramatically expanded the list of technologies and Chinese companies subject to U.S. export controls in efforts to cut support to critical tech industries in China, such as advanced semiconductors. The Trump administration had enacted some similar controls.



The Biden administration also announced rules limiting U.S. investment in Chinese firms developing sensitive technologies, citing national security concerns.



In perhaps Biden’s biggest move, the administration signed the CHIPS and Science Act in August 2022, putting aside almost $53 billion to invest in domestic semiconductor manufacturing and research to boost U.S. competitiveness with China.



Chris Miller, author of “Chip War,” noted export controls and the CHIPS Act were passed with bipartisan support in Washington, and thus, such policies are likely to remain a priority regardless of what happens in November.&nbsp;



“I expect that the U.S. will ratchet up restrictions a notch or two regardless of who wins the election,” Miller said.



<h2 class="wp-block-heading"><a></a>Diplomacy&nbsp;</h2>



A second term for Trump would also impact U.S. diplomacy and dialogue with Beijing beyond trade matters, said Rorry Daniels,&nbsp;managing director of the Asia Society Policy Institute.



She said channels for the two countries to discuss policy issues decreased significantly during the Trump administration, whereas the Biden administration emphasized its diplomatic engagement efforts.



The current administration has also sought greater coordination with “likeminded partners,” such as lobbying Japan and the Netherlands to cooperate on semiconductor restrictions. 



“That’s both helped minimize the blowback of his trade policy actions, while in many ways also making them more effective,” said Nick Marro, lead analyst for global trade with the Economist Intelligence Unit, adding he expects any future Democratic administration to retain this multilateral approach.&nbsp;



On the other hand, he said Trump opts for a more “go-it-alone” approach, allowing for a more rapid adoption of U.S. measures on China.



While the Biden-Harris administration’s “more measured and cautious” approach to China trade and diplomacy has done more to stabilize the relationship, Marro said he doubts Beijing is excited about either candidate.



“There’s this feeling that, regardless of&nbsp;which party&nbsp;sits in the White House,&nbsp;US-China relations will remain on a crash-course throughout the remainder of this decade.”



— CNBC’s Zenith Wong contributed to this report

Donald Trump And J.D. Vance Hold First Joint Campaign Rally After The RNC

Trump 2.0 could go ‘nuclear’ on China trade, while economists say Harris would remain tough

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="531" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-820x531.jpg" alt="" class="wp-image-510275" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-820x531.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-768x498.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-1536x995.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XBNTXEMQ4VNGFLKE3FC5UUA2RM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view of Central Bank of Nigeria headquarters next to National Ecumenical Centre in Abuja, Nigeria November 23, 2021. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, July 23 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank raised its benchmark lending rate by 50 basis points to 26.75%, in a decision announced on Tuesday.



Economists had predicted another hike to rates after inflation rose further in June and the naira currency&nbsp;fell on both the official and parallel markets, forcing the central bank to intervene.



Tuesday&#8217;s decision by the bank&#8217;s Monetary Policy Committee is the fourth straight hike this year, after increases of 150 basis points (bps) in May, 200 bps in March and 400 bps in February, its largest in around 17 years.



(Reporting by Elisha Bala-Gbogbo and Chijioke Ohuocha, Writing by Bhargav Acharya; Editing by Bate Felix Editing by Bate Felix)

A view of Central Bank of Nigeria headquaters next to National Ecumenical Centre in Abuja

Nigeria’s central bank raises benchmark rate to 26.75%

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1280" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1.jpg" alt="" class="wp-image-510152" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1-1536x1024.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">President William Kipchirchir Ruto of Kenya speaks during a plenary session of the Summit on peace in Ukraine, in Stansstad near Lucerne, Switzerland, June 16, 2024. URS FLUEELER/Pool via REUTERS/File Photo</figcaption></figure>



NAIROBI, July 23 (Reuters)&nbsp;&#8211;&nbsp;Kenya has submitted an economic repair plan to the International Monetary Fund and it expects the fund&#8217;s board to review it for approval at the end of August, the country&#8217;s chief minister told a parliamentary panel.



Kenya had to rapidly draw up new spending cuts after widespread youth-led protests against tax hikes previously put forward by President William Ruto&#8217;s government left at least 50 people dead.



Kenya&#8217;s chief minister Musalia Mudavadi said that the Treasury &#8220;has had a very robust engagement with the International Monetary Fund&#8221; despite the tax-hike setback.



&#8220;It is our desire and hope that Kenya&#8217;s proposition will receive favourable consideration so that we can move beyond the challenges that we are facing,&#8221; Mudavadi told the parliamentary budget committee in remarks seen by Reuters on Tuesday.



The IMF did not immediately comment. The East African nation has a $3.6 billion IMF programme, and the Fund had reached a staff level agreement on the seventh review of Kenya&#8217;s programme in early June.



But its board had not signed off on the review when Ruto scrapped the tax hikes that were a core part of its plan to meet IMF targets, and investors said the political turmoil would make getting IMF cash trickier.



Even at the review, Kenya had sought IMF waivers after failing to meet two targets on balancing the budget and tax collection.



Mudavadi said that under the revised spending plan for the 2024/25 financial year, the budget deficit is projected to rise to 4.2% of gross domestic product, up from 3.3% before the withdrawal of the finance bill.



&#8220;The revision to the deficit barely a week after the initial plan underlines the herculean task faced by the authorities to achieve their fiscal consolidation goals,&#8221; Ayodeji Dawodu, head of Africa research and strategy with boutique investment banking group BancTrust &amp; Co said in a note.



(Reporting by Duncan Miriri; Editing by Alison Williams, Libby George and Alexandra Hudson)

42CTWLL6LJPYDHMYIWIJ6ISWHI (1)

IMF to consider Kenya’s economic plan at end of August, chief minister says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1241" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CP5TTKOKHFOJDPSDGWT5QFQDP4-scaled.jpg" alt="" class="wp-image-510149" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CP5TTKOKHFOJDPSDGWT5QFQDP4-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CP5TTKOKHFOJDPSDGWT5QFQDP4-300x182.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CP5TTKOKHFOJDPSDGWT5QFQDP4-820x497.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CP5TTKOKHFOJDPSDGWT5QFQDP4-149x90.jpg 149w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CP5TTKOKHFOJDPSDGWT5QFQDP4-768x465.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/CP5TTKOKHFOJDPSDGWT5QFQDP4-1536x931.jpg 1536w" sizes="(max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Uganda security forces patrol near the National Unity Platform (NUP) political party offices led by Robert Kyagulanyi, popularly known as Bobi Wine, ahead of anti-government protests at the Makerere Kavule, in the suburb of Kampala, Uganda July 22, 2024. REUTERS/Abubaker Lubowa</figcaption></figure>



KAMPALA, July 23 (Reuters)&nbsp;&#8211;&nbsp;Ugandan security forces detained a number of young people on Tuesday in downtown Kampala who were taking part in a banned rally against what the protesters say are rampant corruption and human rights abuses by the country&#8217;s rulers.



A Reuters witness saw the detentions being made, while a video posted by NTV Uganda on the X social media platform also showed a small group of young people being intercepted and detained by police while they were marching.



The protesters were holding placards and shouting slogans denouncing corruption. One wore a T-shirt bearing the words &#8220;Speaker Must Resign&#8221;.



A police spokesman was not immediately available to say how many people had been detained.



Authorities banned the planned protest, citing intelligence they said showed criminally-minded youths might hijack it in order to loot and vandalise.



Soldiers and police have been deployed around the parliament building and in the centre of the Ugandan capital with the aim of deterring any protesters.



All roads to the parliament were blocked off, with only lawmakers and other parliamentary staff having access, and NTV Uganda images showed military&nbsp;armoured personnel carriers&nbsp;patrolling the area.



Ugandans&nbsp;with businesses near parliament were experiencing difficulty getting to their premises.



&#8220;It&#8217;s like a war zone,&#8221; Edwin Mugisha, who works in Kampala, told Reuters,&nbsp;referring to the military&nbsp;patrols.



On Monday police sealed off the offices of Uganda&#8217;s biggest opposition party, accusing it of mobilising for the protests, and detained some party officials, including its lawmakers.



The party denied it was organising the march, but said it supported it.



Opposition leaders and rights activists say embezzlement and misuse of government funds are widespread in Uganda. They&nbsp;have long accused&nbsp;President Yoweri&nbsp;Museveni of failing to prosecute corrupt senior officials who are politically loyal or related to him.



Museveni has repeatedly denied condoning corruption and says whenever there is sufficient evidence,&nbsp;culprits&nbsp;including lawmakers and even ministers&nbsp;are prosecuted.



(Writing by Elias Biryabarema; Editing by George Obulutsa, Clarence Fernandez and Gareth Jones)

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Bank of Ghana keeps main rate unchanged over inflation concerns

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OpenAI announces a search engine called SearchGPT; Alphabet shares dip

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South Africa appoints first woman chief justice

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South Africa’s climate action too slow to meet its bold pledges, says report

Uganda police arrest more people protesting corruption

Anglo takes further fertiliser writedown, sees coal deal by early 2025

Shein to open pop-up store in South Africa to woo more shoppers

Kenya’s Ruto names opponents to cabinet, protesters slam ‘corrupt’ deal

South African inflation drops, rate cuts now expected in September

Trump 2.0 could go ‘nuclear’ on China trade, while economists say Harris would remain tough

Nigeria’s central bank raises benchmark rate to 26.75%

IMF to consider Kenya’s economic plan at end of August, chief minister says

Heavy security patrols in Uganda’s capital ahead of planned protest

News Tips

Advertise With Us

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