<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/EU-ministers-seal-historic-migration-deal-820x547.jpg" alt="" class="wp-image-425350" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/EU-ministers-seal-historic-migration-deal-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/EU-ministers-seal-historic-migration-deal-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/EU-ministers-seal-historic-migration-deal-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/EU-ministers-seal-historic-migration-deal-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/EU-ministers-seal-historic-migration-deal-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/EU-ministers-seal-historic-migration-deal-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A member of the Red Cross assists a migrant after disembarking from a Spanish coast guard vessel, at the port of Arguineguin, in the island of Gran Canaria, Spain, May 30, 2023. REUTERS/Borja Suarez</figcaption></figure>



BRUSSELS, June 8 (Reuters) &#8211; European Union ministers agreed on Thursday on how to share out the responsibility for looking after migrants and refugees, after 12 hours of negotiations got Italy and Greece to sign up to a deal that has eluded the bloc for nearly a decade.



Home affairs ministers from the 27-member bloc sealed the deal, hoping to end years of division dating back to 2015 when more than a million people &#8211; mostly fleeing war in Syria &#8211; reached the EU across the Mediterranean.



Germany&#8217;s Nancy Faeser hailed the agreement as &#8220;historic&#8221;. The bloc&#8217;s top migration official said it amounted to &#8220;a win-win&#8221; situation for all EU member states.



&#8220;This is a great, great achievement, showing that it&#8217;s possible to work together on migration. We are so much stronger when we work together,&#8221; home affairs commissioner Ylva Johansson said.



Hosting immigrants has become an increasingly divisive issue in the bloc since 2015.



Unable to agree how to share the responsibility, EU countries mostly focused on bringing down arrivals, with U.N. data showing fewer than 160,000 people made it across the sea last year to the bloc of half a billion people.



Nearly 2,500 people died or went missing in the dangerous crossing over the same period.



Countries on the EU&#8217;s southern edge, including Italy and Greece, have long demanded more help to cope with the numbers of people arriving on their shores. Richer countries, including Germany and Sweden, have balked at how many head on to their soil.



Eastern EU countries such as Poland and Hungary refused to host anyone from the mainly-Muslim Middle East and North Africa, while right-wing and populist parties across the bloc have fuelled the debate with anti-immigration rhetoric.



&#8220;You can still win and lose any election in any member state on migration. It is an illustration of how contentious this issue is,&#8221; said an EU diplomat involved in the negotiations.



DEAL



As the ministers talked, Italian Prime Minister Giorgia Meloni, her Dutch peer Mark Rutte and the head of EU executive announced a visit to Tunisia to discuss economic and energy ties with the country, a gateway for African migration to Europe.



Earlier on Thursday, Italy and Greece demanded last-minute changes to the proposed agreement, pushing for a cut in the number of people each state would take on and laxer rules to send people back to countries outside of the EU.



Under the deal that eventually came together and is to be finalised ahead of a 2024 EU election, each country would be responsible for a set number of people, but would not necessarily have to take them in.



Countries unwilling to receive irregular migrants and refugees arriving ad hoc to the EU would be able to help their hosting peers through cash &#8211; around 20,000 euros per person &#8211; equipment or personnel.



The agreement would introduce a new expedited border procedure for those deemed unlikely to win asylum to prevent them from lingering inside the bloc for years.



Poland and Hungary &#8211; among the EU&#8217;s loudest voices against accepting sea immigrants &#8211; opposed the deal, saying the bloc&#8217;s national leaders should return to the matter when they meet later in June. That, however, did not scupper the majority deal.



Liberal critics of the agreement said the rapid border procedure risked reviving tragic scenes that played out on the Greek islands several years ago by creating even more overcrowded and inadequate migration camps on EU periphery. (Additional reporting by Benoit van Overstraeten, Bart Meijer, Alexander Ratz, Kristina Than; Writing by Gabriela Baczynska; Editing by Mark Potter and Andrew Heavens)

FILE PHOTO: A member of the Red Cross assists a migrant after disembarking from a Spanish coast guard vessel, at the port of Arguineguin

EU ministers seal ‘historic’ migration deal

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s-820x462.jpeg" alt="" class="wp-image-425343" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s.jpeg 929w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President Joe Biden and Prime Minister of the United Kingdom Rishi Sunak arrive for a joint press conference in the East Room of the White House on June 08, 2023 in Washington, DC. Kevin Dietsch | Getty Images News | Getty Images</figcaption></figure>



Despite a U.S.-U.K. trade deal remaining very much elusive, British Prime Minister Rishi Sunak and President Joe Biden signed a new “Atlantic Declaration” aiming to bolster economic security in the face of threats coming from Russia and China.



The agreement, announced Thursday at a joint press conference in the East Room of the White House, is a series of mini deals looking artificial intelligence, critical minerals, clean energy and security.



Sunak, coming to the end of his U.S. trip this week, lauded the deal as a “new economic partnership for a new age, of a kind that has never been agreed before.” He highlighted £14 billion ($17.5 billion) of new U.S. investment that has been committed into the U.K., with the two sides also undertaking joint research in areas like quantum, semiconductors and AI.



A document outlining the deal on the U.K. government website said that Britain and the U.S. would start talks on an agreement that would allow electric vehicle minerals mined in the U.K. to receive the tax benefits under Biden’s Inflation Reduction Act. The same document said Biden would ask Congress to label Britain as a “domestic source” within the U.S. Defense Production Act, giving suppliers in the country more favorable terms.



“We face new challenges to international stability — from authoritarian states such as Russia and the People’s Republic of China (PRC); disruptive technologies; non-state actors; and transnational challenges like climate change,” the document read.



Sunak, still fairly new in the role after being installed following the market turmoil of his predecessor Liz Truss, was quizzed on a possible U.K.-U.S. trade deal that was promised to his Conservative Party under Donald Trump’s tenure.



Britain left the European Union on Jan. 31, 2020, and a recent cost-of-living crisis in Britain as well as current opinion polls suggest that public sentiment has turned against Brexit amid a cost of living crisis accentuated by supply chain issues.



“I know some people have wondered what kind of partner Britain would be after we left the EU,” Sunak said Thursday. “I’d say: judge us by our actions. We’re as committed to our values as ever, as reliable an ally as ever, as attractive an investment destination as ever.”

107253873-1686269612716-gettyimages-1497002008-kd_29327_flbbuz6s

Biden and UK’s Sunak sign ‘Atlantic Declaration,’ pledging agreements on A.I. and critical minerals

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="728" height="487" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/5EKJKYH535LQVMCNP2OHGL2RZA-1.jpg" alt="" class="wp-image-425335" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/5EKJKYH535LQVMCNP2OHGL2RZA-1.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/5EKJKYH535LQVMCNP2OHGL2RZA-1-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/5EKJKYH535LQVMCNP2OHGL2RZA-1-135x90.jpg 135w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg, File. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, June 8 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand is likely to recoup only half of its over 10% losses made against the dollar so far this year in 12 months as electricity shortages weigh heavily on its potential to make sustainable gains, a Reuters poll found on Thursday.



The rand strengthened below 19 to the U.S. dollar for the first time in three weeks on Wednesday as an easing of rolling power cuts, known as load-shedding, boosted the currency.



That comes despite the dollar having now recouped all of its roughly 3% losses for the year sustained through April on safe-haven bids and its renewed strength against major currencies that is not expected to fade anytime soon.



Given how far South African asset prices have already fallen it is more likely markets will stabilise close to current levels, Kevin Daly at Goldman Sachs wrote in a note to clients.



The June 1-7 poll suggests stabilization will happen around 18.13/dollar in 12 months, around a 5% appreciation from current levels.



The rand, highly liquid and normally an investors&#8217; favourite due to returns in high carry trades, is currently one of the worst five among 20 emerging market currencies tracked by Reuters since the year began.



JPMorgan have held on to a structurally bearish rand view since the year began.



The currency has been plagued by negative sentiment due to bouts of chronic power shortages, posing major challenges for President Cyril Ramaphosa&#8217;s party ahead of elections next year.



&#8220;(A weaker rand) seems the cleanest expression to capture both the structural challenges to South Africa&#8217;s growth, balance of payments and fiscal account. At current levels, the carry seems entirely insufficient to compensate for risks,&#8221; the JPMorgan note added.



The South African Reserve Bank hiked its repo rate by 50 basis points to a 14-year high of 8.25% last month, a move Governor Lesetja Kganyago described as &#8220;bitter medicine&#8221; needed to tame inflation.



A Reuters poll ahead of that May meeting predicted the South African Reserve Bank would hike rates by only 25 basis points in May and then draw a line under its tightening cycle.



South Africa&#8217;s economy grew 0.4% in the first three months of 2023 in quarter-on-quarter seasonally-adjusted terms, after contracting by a revised 1.1% in the fourth quarter of 2022, testament to the struggles the currency has endured.



(Reporting by Vuyani Ndaba, additional polling by Aditi Verma and Anitta Sunil; Editing by Chizu Nomiyama)

New South African bank notes featuring an image of former South African President Nelson Mandela are displayed at an office in Johannesburg

South Africa’s rand to only recoup half of 2023 losses due to electricity shortages

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="603" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Q4ZF574T5NM37GRK4DB3U6ZTKI-820x603.jpg" alt="" class="wp-image-425320" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Q4ZF574T5NM37GRK4DB3U6ZTKI-820x603.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Q4ZF574T5NM37GRK4DB3U6ZTKI-300x220.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Q4ZF574T5NM37GRK4DB3U6ZTKI-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Q4ZF574T5NM37GRK4DB3U6ZTKI-768x564.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Q4ZF574T5NM37GRK4DB3U6ZTKI-1536x1129.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Q4ZF574T5NM37GRK4DB3U6ZTKI-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO-Russian President Vladimir Putin, right, and South African President Cyril Ramaphosa shake hands during their meeting on the sidelines of the G-20 summit in Osaka, western Japan, Friday, June 28, 2019. Alexander Zemlianichenko/Pool via REUTERS</figcaption></figure>



JOHANNESBURG, June 8 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s President Cyril Ramaphosa had a telephone call with Russian President Vladimir Putin where he briefed him on the upcoming African leaders peace mission to Russia and Ukraine, the South African presidency said on Thursday.



&#8220;President Putin has welcomed the initiative by African Heads of State and expressed his desire to receive the peace mission,&#8221;&nbsp;the presidency statement said.



A delegation of African heads of state is expected to visit Ukraine and Russia in June hoping to persuade them to cease hostilities, a spokesperson for Ramaphosa told Reuters last month.



He said on Wednesday no date had been set for the mission as yet.



The two leaders also discussed the Russia-Africa Summit that is scheduled to take place at the end of July in St. Petersburg, the statement said.



(Reporting by Nellie Peyton; Editing by Alexander Winning)

Russian President Vladimir Putin, right, and South African President Cyril Ramaphosa shake hands during their meeting on the sidelines of the G-20 summit in Osaka, western Japan

President Ramaphosa discusses African peace mission with Putin

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF-820x462.jpeg" alt="" class="wp-image-425316" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF.jpeg 929w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Sundar Pichai, CEO of Alphabet, speaks during an event in New Delhi, December 19, 2022. Sajjad Hussain | AFP | Getty Images</figcaption></figure>



Google plans to crack down on employees who haven’t been coming into its offices consistently, CNBC has found.



The company updated its hybrid work policy Wednesday and it includes tracking office badge attendance, confronting workers who aren’t coming in when they’re supposed to and including the attendance in employees’ performance reviews, according to internal memos viewed by CNBC. Most employees are expected in physical offices at least three days a week.



Google’s chief people officer Fiona Cicconi wrote an email to employees at the end of the day on Wednesday, which included doubling down on office attendance, reasoning that “there’s just no substitute for coming together in person.”



“Of course, not everyone believes in ‘magical hallway conversations,’ but there’s no question that working together in the same room makes a positive difference,” Cicconi’s email read. “Many of the products we unveiled at I/O and Google Marketing Live last month were conceived, developed and built by teams working side by side.”



Her note said the company will start including their three days per week as a part of their performance reviews and teams will start sending reminders to workers “who are consistently absent from the office.”



Cicconi even asked already-approved remote workers to reconsider. “For those who are remote and who live near a Google office, we hope you’ll consider switching to a hybrid work schedule. Our offices are where you’ll be most connected to Google’s community.”



A separate internal document showed that already-approved remote workers may be subject to re-evaluation if the company determines “material changes in business need, role, team, structure or location.”



In the U.S., the company will periodically track whether employees are adhering to the office attendance using badge data and executives are currently reviewing local requirements to implement in other countries, one of the documents states. If workers don’t follow the policy after an extended period of time, HR will reach out about “next steps.”



Going forward, Cicconi said, new fully remote work will only be granted “by exception only.”



Google did not immediately respond to CNBC’s request for comment.



These policy updates represent the company’s most stringent attempt to bring employees back into physical offices.



In 2021, after facing backlash for returning to offices, the company relaxed remote work plans and said it expected to let 20% of employees telecommute. However, most employees have been expected in physical offices at least three days a week as of April 2022 and at the time, the company tried to woo workers by throwing a private Lizzo concert, hiring marching bands and bringing in city mayors to celebrate the returns.



In April, CNBC reported Google dropped its Covid vaccine requirement to enter buildings.



The crackdown comes as the company is in the middle of an AI arms race by which the company has at times called all hands on deck to rapidly position itself against rivals like Microsoft and its backed ChatGPT, whose success has grown in recent months. The company has also made more attempts in recent weeks to crack down on leaks coming from within the company.



However, the crackdown also comes as the company downsizes its real estate footprint amid broader cost-cutting. In April, CNBC first reported the company’s cloud unit in March told employees that it will transition to a desk-sharing workspace in its five largest locations. CNBC also reported the company indefinitely paused construction on its massive San Jose campus.

107183744-1674657315783-gettyimages-1245722337-AFP_334U4DF

Google to crack down on office attendance, asks remote workers to reconsider

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/09/103026087-Rand.jpg" alt="Waldo Swiegers | Bloomberg | Getty Images" class="wp-image-381748" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/09/103026087-Rand.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/103026087-Rand-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/09/103026087-Rand-696x391.jpg 696w" sizes="(max-width: 740px) 100vw, 740px" /><figcaption class="wp-element-caption">Waldo Swiegers | Bloomberg | Getty Images
</figcaption></figure>



JOHANNESBURG, June 7 (Reuters)&nbsp;&#8211;&nbsp;The South African rand strengthened below 19 to the U.S. dollar for the first time in three weeks on Wednesday, as a weakening greenback and an easing of rolling power cuts, known as loadshedding, boosted the currency.



The rand firmed more than 1% at 18.975 to $1, its strongest level since May 16, before retreating to 19.04 at 1233 GMT.



The dollar&nbsp;=USD&nbsp;was last trading at 103.940, around 0.14% weaker, against a basket of global currencies.



&#8220;Externally, the USD is weaker today&#8230; which will be providing a tailwind for the rand,&#8221; Kieran Siney of research firm ETM Analytics, said.



&#8220;News that the nation&#8217;s power utility Eskom is suspending daytime loadshedding for the time being has provided a boost to investor sentiment.&#8221;



He added that news reports that South Africa is looking to host the BRICS summit online or in China, to avoid implementing an International Criminal Court arrest warrant for Russian President Vladimir Putin, had boosted sentiment.



The rand lost 7% in May amid record deep power cuts and U.S. allegations that South Africa had supplied arms to Russia last year, pushing it as low as 19.9075 against the greenback last week and leading to fears it would breach 20.



&#8220;The fact that the rand has pulled back more against the U.S. dollar than other EM&#8217;s could be down to the fact that the rand was disproportionally undervalued against its (emerging market) peers and a bit of rebalancing was warranted,&#8221; said Andre Botha, senior dealer at TreasuryONE.



The country managed 0.4% growth in gross domestic product for the first quarter and dodged a recession, data showed on Tuesday.



Investor outlook mostly remains bleak as the country&#8217;s rolling blackouts show no signs of fully abating. A business confidence survey published on Wednesday dropped to its lowest level in three years.



Nonetheless, South Africa&#8217;s international dollar bonds rallied, with some longer dated maturities up more than 0.7 cents in the dollar.&nbsp;US836205AS32=TEUS836205BE37=TE



&#8220;(It) suggests that there could be some significant portfolio inflows as investors take advantage of the deep discounts and the attractive yields on offer,&#8221; Siney said.



South Africa&#8217;s local benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;also strengthened, with the yield down 9 basis points at 10.875%.



(Reporting by Tannur Anders and Rachel Savage; Editing by Sherry Jacob-Phillips and Shilpi Majumdar)

Waldo Swiegers | Bloomberg | Getty Images

South African rand firms below 19 to US dollar as power cuts ease

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251535-1686039444457-GettyImages-1258388175-820x462.jpg" alt="" class="wp-image-425300" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251535-1686039444457-GettyImages-1258388175-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251535-1686039444457-GettyImages-1258388175-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251535-1686039444457-GettyImages-1258388175-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251535-1686039444457-GettyImages-1258388175-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251535-1686039444457-GettyImages-1258388175.jpg 929w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DAKAR, Senegal &#8211; June 2, 2023: Supporters of jailed opposition leader Ousmane Sonko protest in the Senegalese capital following his two-year sentencing for “corrupting the youth.” Annika Hammerschlag/Anadolu Agency via Getty Images</figcaption></figure>



The criminal conviction of a populist opposition leader in Senegal has triggered widespread unrest that threatens the West African country’s long-established political stability.



Days of violent clashes erupted late last week between security forces and supporters of Ousmane Sonko, the 2024 presidential candidate and leader of the opposition PASTEF party sentenced in absentia on Thursday to two years in prison for “corrupting the youth.” He was acquitted on an accompanying rape charge.



As of Monday, at least 16 people had reportedly been killed and hundreds of others were injured, while police had arrested around 500 people across several cities. Internet and social media access was restricted, and roadblocks were erected on key transport routes.



“The recent deaths and injuries of protesters set a worrying tone for the 2024 presidential elections and should be thoroughly investigated, with those responsible held accountable,” said Carine Kaneza Nantulya, deputy Africa director at Human Rights Watch.



“The authorities should end the repression against protesters and critics, and guarantee freedom of assembly.”



This condemnation and call for restraint were echoed in recent days by the spokesperson for United Nations Secretary-General Antonio Guterres, by the regional bloc of the Economic Community of West African States (ECOWAS) and by African Union Commission Chairman Moussa Faki Mahamat.



“The Senegalese authorities should end the arbitrary arrests, release those wrongfully held, including children, and respect the rights of Senegalese people to peacefully demonstrate and protest,” said Kaneza Nantulya.



“The African Union and ECOWAS should use their influence to press Senegalese authorities to end their repression of protests and critics.”



The unrest comes after a turbulent couple of years and is the worst seen for decades in a country often held up as a beacon for democracy and stability in the region.



<h3 class="wp-block-heading" id="h-triggers-for-unrest">Triggers for unrest</h3>



Sonko has staunchly maintained that the multiple criminal cases brought against him in recent years are politically motivated and part of an effort by President Macky Sall’s government to derail his 2024 candidacy. The conviction could bar him from running.



He was first indicted on rape charges in March 2021 and faces separate defamation charges. His various trial dates over the last two years have often been accompanied by flare-ups of violence from supporters.



Broader tensions among the public were already simmering of late, amid speculation that Sall will seek a third term in office despite the country’s two-term limit and his rapidly deteriorating popularity since the last election in 2019.



The underlying roots of the unrest are both political and socio-economic, according to analysts at African specialist intelligence company Pangea-Risk. Consumer price inflation has slowed since late 2022, but hovers at around 9%, with food prices up more than 11% year-on-year.



“Transportation costs, rents, electricity tariffs, and fuel prices are also still unaffordable for many Senegalese. Even while the country’s economy has been growing at record rates on the back of sizable investments in extractive sectors and infrastructure projects, including both renewable and gas-fired power plants, living conditions for many people have not noticeably improved,” Pangea-Risk said.



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="720" height="405" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251537-1686039807640-GettyImages-1257796610-1.jpg" alt="" class="wp-image-425302" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251537-1686039807640-GettyImages-1257796610-1.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251537-1686039807640-GettyImages-1257796610-1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251537-1686039807640-GettyImages-1257796610-1-160x90.jpg 160w" sizes="(max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">ZIGUINCHOR, Senegal &#8211; May 24, 2023: Opposition leader and 2024 presidential candidate Ousmane Sonko meets supporters protesting against his rape trial. Muhamadou Bittaye/AFP via Getty Images</figcaption></figure>



“Many young residents in cities feel socio-economically marginalised and are increasingly frustrated by a government that they say is led by aging and distant leaders, who have been too slow to soften the economic blow from the pandemic and the impact of the war in Ukraine.”



It is this demographic that has gravitated towards Sonko, a former tax inspector and whistleblower who rose to prominence by exposing offshore tax havens used by members of the Senegalese elite. He founded PASTEF in 2014.



After the failure of his first presidential bid in 2019, he was elected mayor of the southern city of Ziguinchor in 2022. He has since established a strong base in the south of the country and among socio-economically disillusioned voters in cities and industrial regions.



Sonko has fanned the flames of recent protests, with PASTEF issuing a statement Thursday urging citizens to “stop all activity and take to the streets.” Last month, he initiated a procession for his motorcade between Zinguinchor and Dakar, encouraging protestors to join him.



Whether police plan to detain Sonko imminently to commence his prison sentence remains unclear, though such a move would likely throw fuel on the fire of recent tensions. From apparent house arrest, Sonko has advocated for a “national resistance movement” to defend civil liberties.



<h3 class="wp-block-heading">A critical election</h3>



If last week’s conviction sticks, Sonko could follow other opposition leaders such as Khalifa Sall (unrelated to the president) and Karim Wade, both of whom were convicted on charges of fraudulent use of funds ahead of the 2019 election and barred from running.



Some commentators have speculated that, in order to split the opposition vote in the 2024 election, President Sall may grant amnesty to some previously-disqualified political leaders, after the government’s apparent suppression galvanized opposition parties in recent years.



Pangea-Risk suggested in its Monday report that, as the 2024 election approaches, the threat of civil unrest will increase and be exacerbated by Sall’s government’s efforts to curtail opposition and freedom of expression.



Although recent violence appears to have been contained by internet restrictions and the mass deployment of the military, they added that “widespread incidents of unrest” in major urban centers are likely in the event of Sonko’s physical arrest, or of Sall’s announcement that he will run as the ruling APR’s candidate for a third term in office.



“A popular backlash to [Sall’s] power extension ambitions could scupper relations with international investment partners, foreign donors, and the IMF, whose support is needed to maintain fiscal stability, finance subsidies, and service debts,” Pangea-Risk said.



<h3 class="wp-block-heading">Economic prospects</h3>



Senegal’s medium-term economic growth prospects have improved on the back of a massive influx of new hydrocarbon investments, with several major liquefied natural gas (LNG) and crude oil projects due to come online later this year.



“In the short-term, debt sustainability will remain a primary concern as costly energy subsidies place the public budget under sustained pressure,” the report projected.



“The government is unlikely to heed IMF advice to cut subsidies and is instead ramping up spending on socio-economic relief that is aimed at boosting its appeal ahead of the 2024 elections.”



<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="720" height="405" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251678-1686055171768-GettyImages-1258273678-1.jpg" alt="" class="wp-image-425304" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251678-1686055171768-GettyImages-1258273678-1.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251678-1686055171768-GettyImages-1258273678-1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107251678-1686055171768-GettyImages-1258273678-1-160x90.jpg 160w" sizes="(max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">DAKAR, Senegal &#8211; May 29, 2023: A Senegalese gendarme stands near a smoke billowing from burning tyres during a protest over the arrest of opposition leader Ousmane Sonko, ahead of the final verdict in his rape trial. JOHN WESSELS/AFP via Getty Images</figcaption></figure>



The IMF and Senegalese authorities agreed last month on a new 36-month financing arrangement of around $1.526 billion under the institution’s Extended Fund Facility and Extended Credit Facility, combined with a Resilience and Sustainability Facility of $327.1 million.



Associated policy requirements include a fiscal consolidation, strengthened governance and a framework for anti-money laundering and terrorism financing measures, along with delivering “more inclusive and job-rich growth,” the IMF’s mission to Dakar recorded last month.



The D.C.-based organization projected that non-hydrocarbon GDP growth in Senegal will hit 5.3% in 2023, down from an initial forecast of 6%. Total GDP growth could exceed 8% this year, should the aforementioned oil and gas production begin in the fourth quarter.



Government debt is also expected to drop from 75% of GDP in 2022 to more sustainable levels in the coming years. The country’s debt position is widely considered stable, with the outlook viewed as sustainable due to the new hydrocarbon revenues due onstream from later this year.

107251535-1686039444457-GettyImages-1258388175

Senegal, one of Africa’s bastions of stability, faces its gravest threat of unrest in decades

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



NAIROBI, June 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s economy is expected to grow at a slightly faster pace this year, the World Bank said on Wednesday, underpinned by a recovery in the key agriculture sector.



The East African nation&#8217;s economy will expand by 5.0% in 2023, the bank said in its latest biannual Kenya Economic Update report, inching up from 4.8% last year.



Following a debilitating drought in the past two years, many farming areas have enjoyed adequate rainfall in recent months, which could boost production and reduce inflationary pressure.



The growth outlook, however, faces several risks, the bank said, including any new global shocks that could curb demand for exports, the World Bank said.



Kenya is also dealing with growing public debt repayments, that have put pressure on government finances, but the authors of the report said they expect it to cope well.



&#8220;Though the debt remains at high risk of distress, it remains sustainable,&#8221; said Naomi Mathenge, a senior economist at the bank and one of the report&#8217;s authors.



President William Ruto&#8217;s government, which took over last September, has also reduced the pace of debt accumulation and sought cheaper sources of funds from bilateral and multilateral financiers, she said.



Total public debt is expected to edge lower to 64.8% of gross domestic product at the end of this year, from 67.4% at the end of 2022, the World Bank said, .



Ruto&#8217;s administration, which is under pressure to raise additional revenue, has proposed a raft of tax hikes, which have attracted protests.



The additional taxes could dampen consumption, Mathenge said.



Kenya could turn the threat it faces from climate change into an opportunity, the World Bank said in the report, by courting green investments from international investors who want to reduce the carbon footprint in their supply chains.



It contributes less than 1% of the annual global greenhouse gases emissions, the bank said, offering it opportunities to trade more of its carbon credits.



(Reporting by Duncan Miriri; Editing by George Obulutsa and Sharon Singleton)

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

Kenya economic growth to edge up this year, World Bank says

<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="520" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KX46IZCR5JJZLHMSIBYSC4M6LY-820x520.jpg" alt="" class="wp-image-425283" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KX46IZCR5JJZLHMSIBYSC4M6LY-820x520.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KX46IZCR5JJZLHMSIBYSC4M6LY-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KX46IZCR5JJZLHMSIBYSC4M6LY-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KX46IZCR5JJZLHMSIBYSC4M6LY-768x487.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KX46IZCR5JJZLHMSIBYSC4M6LY-1536x975.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KX46IZCR5JJZLHMSIBYSC4M6LY-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A person works at &#8221;The Faktory&#8221;, a fashion design and clothing manufacturing company in Johannesburg, South Africa, March 4, 2021. REUTERS/Siphiwe Sibeko</figcaption></figure>



PRETORIA, June 6 (Reuters)&nbsp;&#8211;&nbsp;South&nbsp;Africa&nbsp;narrowly avoided a recession as the economy grew marginally in the first quarter, data showed on Tuesday, with manufacturing and finance holding up relatively well despite crippling power cuts.



Africa&#8217;s most industrialised economy grew 0.4% in quarter-on-quarter terms in the first three months of 2023, and 0.2% year on year.



Both the quarterly and annual growth rates were in line with economists&#8217; forecast in a Reuters poll.



Eight of 10 industries tracked by Stats SA recorded growth in the first quarter, with manufacturing and finance, real estate and business services making the biggest positive contributions.



Agriculture, forestry and fishing were the biggest drag on growth.



Statistician-General Risenga Maluleke said food and drinks manufacturing had performed particularly well, partly because the sector was not as electricity-intensive as other types of manufacturing.



&#8220;Household consumption was driven largely by restaurants and hotels, and when you look at that, with load-shedding (power cuts), where do people get their food? They have to call on Uber Eats or order from restaurants,&#8221; Maluleke told Reuters.



Despite the country avoiding a technical recession, usually defined as a fall in gross domestic product for two successive quarters, analysts remain pessimistic about South&nbsp;Africa&#8217;s growth prospects.



The central bank predicts the economy will grow 0.3% in 2023, with power cuts lasting up to 10 hours a day hurting businesses of all sizes.



&#8220;The outlook remains bleak. Severe power cuts, tight fiscal and monetary policy and a worsening external backdrop mean that the economy is likely to merely stagnate this year,&#8221; Capital Economics economist Jason Tuvey said in a research note.



Manufacturing grew 1.5% and finance, real estate and business services 0.6% in the first quarter. Agriculture, forestry and fishing shrank 12.3% and electricity, gas and water 1.0%.



(Reporting by Kopano Gumbi; Writing by Bhargav Acharya; Editing by Alexander Winning and Emelia Sithole-Matarise)

A person works at ”The Faktory”, in Johannesburg

South Africa dodges recession as economy grows 0.4% in Q1

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, June 6 (Reuters) &#8211; The South African rand was stronger in early trade on Tuesday ahead of the country&#8217;s first quarter gross domestic product (GDP) figures, which could shed light on the health of Africa&#8217;s most industrialised economy.



At 0633 GMT, the rand traded at 19.2300 against the dollar , around 0.17% stronger than its previous close.



The rand had recovered more than 1% against the greenback on Monday after crashing in May on the back of souring investor sentiment.



The dollar was last trading at 103.830 &#8211; around 0.163% weaker &#8211; against a basket of global currencies.



Statistics South Africa will at 0930 GMT release the country&#8217;s first quarter GDP figures.



The previous quarter posted a contraction of 1.3% and another negative figure would classify the economy as facing a technical recession.



Analysts polled by Reuters are hopeful that the first quarter has brought growth, predicting 0.4% quarter-on-quarter growth.



The South African economy is being crippled by the worst rolling blackouts on record, leaving businesses and households in the dark for up to 10 hours daily.



South Africa&#8217;s benchmark 2030 government bond was stronger in early deals, with the yield down 2 basis points to 11.100%. 



(Reporting by Tannur Anders; Editing by Bhargav Acharya and David Evans)

Illustration photo of South African rand

South African rand extends gains ahead of GDP data

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="553" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-820x553.jpg" alt="" class="wp-image-425276" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-1536x1036.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107152567-1668602820538-GettyImages-1244424369-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The CEO of the largest online exchange for trading cryptocurrency, Binance, said he is establishing a recovery fund to help people in the industry, while saying the sector “will be fine.” Ben McShane / Contributor / Getty Images</figcaption></figure>



The Securities and Exchange Commission filed 13 charges against Binance, the world’s largest crypto exchange, and its founder, Changpeng Zhao, alleging both comingled billions of dollars worth of user funds and sent them to a European company controlled by Zhao.



The U.S. regulator alleged on Monday that Zhao and his exchange worked to subvert “their own controls” to allow high net worth U.S. investors and customers to continue trading on Binance’s unregulated international exchange.



One senior executive allegedly told a compliance officer that the company was operating as a ”[f&#8212;ing] unlicensed securities exchange in the USA bro.”



The complaint alleges Binance created Binance.US as a shield for the main company and Zhao, to “reveal, retard, and resolve” law enforcement targets and insulate Binance.



Two successive Binance.US CEOs expressed deep concern over Zhao’s level of control, according to the SEC. Both testified before federal regulators: Neither were named, but its first and second chief executives were Catherine Coley and Brian Brooks.



“I’m not actually the one running this company, and the mission that I believe I signed up for isn’t the mission. And as soon as I realized that, I left,” a former Binance.US CEO identified as “BAM CEO B” testified to the SEC.



Binance earned $11.6 billion in revenue, most of which came from transaction fees, from June 2018 through July 2021, the complaint said. Since its inception, the exchange has “at first overtly and later furtively” worked to entice U.S. customers, at the direction and control of its founder Zhao, the SEC alleged.



Binance knew that tens of thousands of customers were in the U.S. but chose not to act, the SEC alleged, despite federal law barring the unregistered offer and sale of securities. Binance’s ultimate compliance, in 2019, was largely a public show, the SEC complaint continues.



The SEC alleges Zhao ordered the creation of an evasion plan for high net worth customers, using a VPN service to hide their U.S. location and submitting compliance documents to obscure their country of origin.



CNBC previously reported on how Binance employees encouraged users to evade the exchange’s “know your customer” systems through VPNs.



“We do need to let users know that they can change their KYC on&nbsp;Binance.com&nbsp;and continue to use it. But the message, the message needs to be finessed very carefully because whatever we send will be public. We cannot be held accountable for it,” Zhao allegedly told his top team in 2019.



The SEC also alleged that Binance and Zhao used market-making companies that they controlled to inflate trading prices and profit off their customers.



Merit Peak and Sigma Chain allegedly acted as “market makers” for Binance’s two platforms, meaning they were always available to fill a customer order to buy or sell a crypto asset. But the SEC complaint highlighted multiple issues with the two companies’ roles: They were both beneficially owned by Zhao and collected “tens of billions of dollars” of customer money. The firms also mixed customer funds with Binance’s money, similar to allegations against bankrupt crypto exchange FTX.



Most damaging to investors, they allegedly engaged in “wash trading,” trading with themselves to artificially prop up the price of crypto assets.



Sigma Chain collected $190 million for its beneficial owner Zhao, the SEC alleged. The “proprietary trading firm” then spent $11 million to purchase a “yacht,” the complaint said.



Zhao dismissed the charges on Twitter by saying “4,” a popular refrain in Binance’s community urging users to ignore fear, uncertainty and doubt, or “FUD.”



The complaint comes after the Commodity Futures Trading Commission filed similar charges against the crypto exchange, alleging it failed to prevent U.S. customers from accessing it.



“We will issue a response once we see the complaint,” Zhao said on Twitter. “Media gets the info before we do.”



In a blog post that followed, Binance wrote, “We are disappointed that the U.S. Securities and Exchange Commission chose to file a complaint today against Binance seeking, among other remedies, purported emergency relief.” The company added that it has “actively cooperated with the SEC’s investigations” and “engaged in extensive good-faith discussions to reach a negotiated settlement to resolve their investigations.”



The defendants showed a “blatant disregard” for federal law, the SEC alleged. The complaint included a “high-level” breakdown of Binance’s ownership structure, with Zhao and his holding vehicles allegedly controlling 100% of Binance and Binance.US’ various entities.

107152567-1668602820538-GettyImages-1244424369

SEC sues Binance and CEO Changpeng Zhao for U.S. securities violations

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-820x549.jpg" alt="" class="wp-image-425202" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-1536x1028.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African Rand coins are seen in this photo illustration . REUTERS/Mike Hutchings</figcaption></figure>



JOHANNESBURG, June 5 (Reuters) &#8211; The South African rand gained more than 1% against the dollar on Monday, despite an economic survey that showed business activity was at an almost two-year low.



At 1401 GMT, the rand traded at 19.2800 against the dollar , up about 1.2% from its closing level on Friday.



The dollar was last trading around 0.1% stronger &#8211; at 104.030 &#8211; against a basket of global currencies.



The rand was boosted by Chinese PMI data that showed manufacturing and services activity picking up, said DailyFX analyst Warren Venketas.



China is South Africa&#8217;s largest trading partner, so positive news about the health of its economy tends to lift South African asset prices.



&#8220;In addition, part of the rand strength is likely due to some profit taking as the pair has been in overbought territory for some time at extreme levels.&#8221; said Venketas in a note.



The rand fell sharply last month as investor sentiment soured on the back of the worst rolling blackouts on record and U.S. allegations that South Africa had supplied arms to Russia late last year.



It hit an all-time low last week at 19.9075 to the greenback.



&#8220;(South Africa’s) geo-diplomatic risk has peaked, and foreign investors are starting to dip their toes back into (South Africa), but a strong dollar reduces scope for rand gains,&#8221; said Rand Merchant Bank analysts in a research note.



The S&amp;P Global South Africa Purchasing Managers Index (PMI) released on Monday showed that private sector activity



had contracted



for a third consecutive month in May as rolling power cuts and inflationary pressures continued to weigh on businesses.



Investors will turn their attention on Tuesday to Statistics South Africa for the country&#8217;s first quarter gross domestic product (GDP) figures.



JP Morgan in May predicted a 0.2% decline in the country&#8217;s 2023 GDP.



South Africa&#8217;s benchmark 2030 government bond was stronger, with the yield down 11 basis points at 11.140%. 



(Reporting by Tannur Anders and Nellie Peyton; Editing by Bhargav Acharya, Gareth Jones and Ed Osmond)

South African Rand coins are seen in this photo illustration

South African rand strengthens despite lacklustre PMI

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="800" height="559" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/download-66.jpg" alt="" class="wp-image-425261" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/download-66.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/download-66-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/download-66-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/download-66-768x537.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">Workers from Mondi paper mill stand behind a fence in the town of Stamboliyski, Bulgaria. File photo. REUTERS/Stoyan Nenov</figcaption></figure>



June 5 (Reuters)&nbsp;&#8211;&nbsp;Must saMondi Plc&nbsp;MNDI.L&nbsp;on Monday said it terminated a 95 billion rouble ($1.17 billion) deal to sell its largest plant in Russia to an investment vehicle owned by Russian billionaire Viktor Kharitonin due to a &#8220;lack of progress&#8221; in getting approvals.



London-listed shares in Mondi, a British paper and packaging firm, were down 1.6% at 1,270 pence by 1200 GMT.



This marks a rare example of a company scrapping a deal to sell assets in Russia, where the Kremlin has put pressure on Western companies to sell to local investors or companies from countries friendly to Russia.



The company had agreed to sell Mondi Syktyvkar, a pulp, packaging paper and uncoated fine paper mill located in the capital of the Komi Republic in Russia, to Augment Investments in August last year.



While the deal with Augment Investments was off, Mondi said it &#8220;remained committed to divest the plant and will continue to assess all alternative divestment options.&#8221;



Many companies suspended or halted operations in Russia last year as Western governments imposed sanctions following Moscow&#8217;s invasion of Ukraine.



Some managed to negotiate swift exits, often selling at huge discounts or handing the keys to local management.



The pace of exits has now slowed substantially but the rules are even harder to navigate for those remaining.



The government in December demanded that companies leaving Russia sell their operations for at least half price and claimed 10% of the sale for the federal budget, termed an &#8220;exit tax&#8221; by the U.S. Treasury.



It also seized assets owned by Finland&#8217;s Fortum FORTUM.HE and Germany&#8217;s Uniper UN01.DE in April.



Executives have said gaining government commission approval is a lengthy and difficult process.



Separately, Mondi had agreed to sell three of its Russian packaging converting operations to Moscow-based Gotek Group for 1.6 billion roubles in December.



That deal remains in progress, the firm said.



Augment and Kharitonin, who has not been sanctioned, could not be immediately reached for comment.



($1 = 81.3975 roubles)



(Reporting by Eva Mathews in Bengaluru; Editing by Nivedita Bhattacharjee, Sharon Singleton and Louise Heavens)

download-66

UK’s Mondi scraps $1.17 bln deal to sell largest Russian plant

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-820x462.jpeg" alt="" class="wp-image-425257" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset.jpeg 929w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Imaginima | E+ | Getty Images</figcaption></figure>



Oil prices rose following OPEC kingpin Saudi Arabia’s decision to cut production by another million barrels per day.



On Sunday, the Organization of the Petroleum Exporting Countries and its partners (known as OPEC+) made no changes to its planned oil production cuts for the rest of the year. However, the world’s top oil exporter Saudi Arabia announced further voluntary output cuts which will be implemented from July.



The kingdom’s output will decline to 9 million barrels per day from around 10 million barrels in May, Saudi’s energy ministry said in a statement.



Both benchmarks were more than 2% higher on Monday.



International benchmark Brent crude futures traded at $77.89 a barrel at 9:50 a.m. London time, up 2.3%, while U.S. West Texas Intermediate futures stood at $73.50, over 2.4% higher.



OPEC+ pumps approximately 40% of the world’s crude and policy decisions can have a significant impact on prices.



On April 3, several producers of the oil cartel had revealed a combined 1.66 million barrels per day of production declines until the end of this year. And many market watchers, including analysts at Goldman Sachs, had expected the alliance to keep output unchanged this time around.



“The market did not widely expect the Saudi decision to cut production by 1 million barrels per day unilaterally,” the president of analysis firm Rapidan Energy, Bob McNally, told CNBC in an e-mail following the decision.



“It once again demonstrated that Saudi Arabia is willing to act unilaterally to stabilize oil prices,” McNally said, citing the example of January 2021 when the oil titan unilaterally cut by production by 1 million barrels per day.



“We see large global deficits materializing&nbsp;in the second half of 2023 and crude prices exceeding $100 next year,” he added.



Similarly, Kang Wu, head of global demand and Asia Analytics at S&amp;P Global Commodity Insights, estimates that the significant rise of global oil demand in the Northern Hemisphere’s summer season will lead to an oil inventory draw and “support higher oil prices” over the coming months.



RBC Capital Markets’ Managing Director Helima Croft noted that while some market participants will focus on the fact that Saudi Arabia slashed its output independently, its actions lends to the integrity of the cuts.



“The fact that [Saudi Arabia] is willing to shoulder it alone adds to the credibility of the cut and signals real barrels coming off the market,” Croft wrote in a research report. However, others have not viewed the kingdom’s move with that much optimism.



<h2 class="wp-block-heading" id="h-ultimate-failure"><a></a>‘Ultimate failure’</h2>



This weekend marked an “ultimate failure of the Saudis” to marshal together all the OPEC+ members to undertake “what was required to bring better prices into the market,” said Ed Morse, Citi’s global head of commodities research and managing director.



Morse told CNBC’s “Squawk Box Asia” Monday that it’s still “an extremely weak” oil market in part due to disappointing demand in the three largest consuming regions: China, the European Union and the United States.



“We have a potential for supply to be a lot bigger than where demand growth is going,” he said, citing the potential of a recession on the horizon. “There is no guarantee that [oil prices] won’t go below $70,” he said.



Commonwealth Bank of Australia is of the view that Saudi Arabia will extend July’s production cuts if Brent futures remain in the $70 to $75 per barrel range, or even drop below that. “We think Saudi Arabia will look to deepen production cuts if Brent futures sustainably drop below $US70/bbl,” CBA’s Vivek Dhar wrote in a research note Monday.



— CNBC’s Sam Meredith contributed to this report.

107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset

Oil prices pop after Saudi Arabia pledges more voluntary production cuts

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="484" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KM4CMTCGYVINRBH2PZLM35ZMZQ-820x484.jpg" alt="" class="wp-image-425248" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KM4CMTCGYVINRBH2PZLM35ZMZQ-820x484.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KM4CMTCGYVINRBH2PZLM35ZMZQ-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KM4CMTCGYVINRBH2PZLM35ZMZQ-153x90.jpg 153w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KM4CMTCGYVINRBH2PZLM35ZMZQ-768x453.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KM4CMTCGYVINRBH2PZLM35ZMZQ-1536x906.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/KM4CMTCGYVINRBH2PZLM35ZMZQ-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A worker walks near a row of cars at Nissan&#8217;s manufacturing plant in Rosslyn, outside Pretoria, September 11, 2009. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, June 5 (Reuters)&nbsp;&#8211;&nbsp;South African private sector economic activity contracted for a third consecutive month in May as rolling power cuts and inflationary pressures continued to weigh on business, a survey showed on Monday.



The S&amp;P Global South Africa Purchasing Managers&#8217; Index (PMI) fell to 47.9 in May, the lowest level since July 2021, from 49.6 in April. Readings above 50 indicate growth in activity.



&#8220;After a promising (albeit slight) uplift in new business during April, customer demand was back in negative territory, adding to a steep and accelerated drop in output,&#8221; said David Owen, economist at S&amp;P Global Market Intelligence.



He added that firms continued to face severe inflation, driven by weakness in the rand, high electricity costs and elevated wage pressures.



South Africa&#8217;s state power utility Eskom has also warned that it may have to increase power cuts to an unprecedented level this winter, as the country grapples with its worst power crisis on record.



&#8220;The bleak energy outlook over the winter suggests that more companies will look for alternative electricity sources, pushing costs and customer prices even higher,&#8221; Owen said.



However, firms remained positive about the future, flagging an improvement in supply chain challenges.



(Reporting by Anait Miridzhanian; Editing by Toby Chopra)

A worker walks near a row of cars at Nissan’s manufacturing plant in Rosslyn

South African business activity falls to almost two-year low – PMI

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107204874-1678259915861-GettyImages-1243868217_1-820x462.jpg" alt="" class="wp-image-425241" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107204874-1678259915861-GettyImages-1243868217_1-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107204874-1678259915861-GettyImages-1243868217_1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107204874-1678259915861-GettyImages-1243868217_1-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107204874-1678259915861-GettyImages-1243868217_1-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107204874-1678259915861-GettyImages-1243868217_1.jpg 929w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



The International Monetary Fund has yet to see enough banks pulling back on lending that would cause the U.S. Federal Reserve to change course with its rate-hiking cycle.



“We don’t yet see a significant slowdown in lending. There is some, but not on the scale that would lead to the Fed stepping back,” the IMF’s Managing Director Kristalina Georgieva told CNBC’s Karen Tso Saturday in Dubrovnik,&nbsp;Croatia.



The&nbsp;Federal Reserve in a May banks report&nbsp;warned that lenders are worried about conditions ahead, as&nbsp;trouble in mid-sized financial institutions in the U.S.&nbsp;caused banks to tighten lending standards for households and businesses.



The Fed’s loan officers added that they expect the issues to continue over the next year due to lowered growth forecasts and concerns over deposit outflows and reduced tolerance for risk.



Georgieva told CNBC: “I cannot stress enough that we are in an exceptionally uncertain environment. Therefore pay attention to trends and be agile, adjusting&nbsp;—&nbsp;should the trends change.”



The IMF’s commentary on the pace of a slowdown in global lending comes after its&nbsp;Chief Economist Pierre-Olivier Gourinchas told CNBC&nbsp;in April that banks are now situated in a “more precarious situation” that would pose a risk to the international organization’s world growth forecast of 2.8% for this year.



A majority of major global central banks, including the U.S. Federal Reserve, have tightened their monetary policy aggressively to tame soaring inflation. Meanwhile, the&nbsp;world’s global debt has swelled to a near-record high of $305 trillion, according to the Institute of International Finance. The IIF said in its May report that high debt levels and interest rates have led to further concerns about leverage in the financial system.



<h2 class="wp-block-heading" id="h-a-little-bit-more"><a></a>‘A little bit more’</h2>



As the IMF is yet to see a significant slowdown in lending that would prompt the Fed to reverse its course, Georgieva said that combined with a&nbsp;resilient U.S. jobs report&nbsp;on Friday, that it could hike further.



“The pressure that comes from incomes going up and in unemployment being still very, very low, means that the Fed will have to stay the course and perhaps in our view, they may need to do a little bit more,” she said.



She projected the U.S. unemployment rate to go beyond 4%, up to 4.5%, from more rate hikes by the Fed after the rate rose to 3.7% in May, marking the highest since October 2022.



On the U.S. government&nbsp;passing a debt ceiling bill&nbsp;that was signed by President Joe Biden over the weekend, she said: “what has been agreed, in the context [that] it was agreed, is broadly speaking, a good outcome.”



“Where the problem lies is that repetitive debate around the debt ceiling, in our view, is not very helpful. There is space to rethink how to go about it,” she added.



— CNBC’s Jeff Cox, Elliot Smith contributed to this report

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featured

EU ministers seal ‘historic’ migration deal

Biden and UK’s Sunak sign ‘Atlantic Declaration,’ pledging agreements on A.I. and critical minerals

South Africa’s rand to only recoup half of 2023 losses due to electricity shortages

President Ramaphosa discusses African peace mission with Putin

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South African rand firms below 19 to US dollar as power cuts ease

Senegal, one of Africa’s bastions of stability, faces its gravest threat of unrest in decades

Kenya economic growth to edge up this year, World Bank says

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

South Africa dodges recession as economy grows 0.4% in Q1

South African rand extends gains ahead of GDP data

SEC sues Binance and CEO Changpeng Zhao for U.S. securities violations

South African rand strengthens despite lacklustre PMI

UK’s Mondi scraps $1.17 bln deal to sell largest Russian plant

Oil prices pop after Saudi Arabia pledges more voluntary production cuts

South African business activity falls to almost two-year low – PMI

IMF chief says there’s no significant slowdown in lending and the Fed may need to do more

News Tips

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