<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107174540-1672936825177-gettyimages-1245949857-Vuk_Valcic_City_of_London_skyline_020123_3-1-820x461.jpeg" alt="" class="wp-image-597297" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107174540-1672936825177-gettyimages-1245949857-Vuk_Valcic_City_of_London_skyline_020123_3-1-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107174540-1672936825177-gettyimages-1245949857-Vuk_Valcic_City_of_London_skyline_020123_3-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107174540-1672936825177-gettyimages-1245949857-Vuk_Valcic_City_of_London_skyline_020123_3-1-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107174540-1672936825177-gettyimages-1245949857-Vuk_Valcic_City_of_London_skyline_020123_3-1-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107174540-1672936825177-gettyimages-1245949857-Vuk_Valcic_City_of_London_skyline_020123_3-1-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/107174540-1672936825177-gettyimages-1245949857-Vuk_Valcic_City_of_London_skyline_020123_3-1.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People walk along Waterloo Bridge past the City of London skyline, the capital’s financial district. U.K.-focused equity funds saw record outflows in 2022. Sopa Images | Lightrocket | Getty Images</figcaption></figure>



The U.K.’s economy unexpectedly shrank by 0.1% month-on-month in January, official figures showed on Friday.



Britain’s Office for National Statistics said the fall was mainly due to a contraction in the production sector.



Economists polled by Reuters had expected the country’s GDP to grow by 0.1%.



At 7:35 a.m. in London, shortly after the data release, the British pound was down by around 0.15% against the dollar to trade at $1.293. Sterling was flat against the euro.



Meanwhile, long-term government borrowing costs, which spiked to multi-decade highs earlier this year, rose. The yield on 20-year U.K. government bonds — known as gilts — added 2 basis points, while 30-year gilt yields were up by 4 basis points.



Services output picked up by 0.1% month-on-month in January, but marked a slowdown from the 0.4% hike of December. Production output dropped by 0.9% on the month, after recording a 0.5% rise in the previous month. Monthly construction output meanwhile fell by another 0.2% in January, after also shedding 0.2% in December.



The U.K. economy grew by 0.1% in the fourth quarter, beating expectations, ONS data showed last month. It flatlined in the third quarter.



The monthly GDP data has been checkered since then, with a 0.1% contraction in October, a 0.1% expansion in November and a 0.4% month-on-month expansion in December thanks, to growth in services and production.



Friday’s GDP release will be the last data print before the U.K. Treasury’s “Spring Statement” on March 26, when Chancellor Rachel Reeves presents an update on her plans for the British economy.



The statement is released alongside economic forecasts from the&nbsp;Office for Budget Responsibility, the U.K.’s independent economic and fiscal forecaster, which gives its assessment on the likely impact of the government’s tax and spending plans.



There have been concerns that the Treasury’s fiscal plans, which were laid out last fall and which will increase the tax burden on British businesses, could weigh on investment, jobs and growth. Reeves has defended the tax rises, saying they’re a one-off measure and necessary to boost investment in public services.



The Bank of England made its first interest rate cut of the year in February, signaling further cuts were to come as it halved the U.K.’s growth forecast for 2025 from 1.5% to 0.75%.



Markets are widely expecting the Bank of England to hold rates steady at 4.5% at its Monetary Policy Committee meeting next week, LSEG data showed on Friday.



The central bank said it would judge how to balance the need to boost growth with the inflationary risk posed by U.S. President Donald Trump’s trade tariffs. The U.K. has not been targeted so far.



This breaking news is being updated.

107174540-1672936825177-gettyimages-1245949857-Vuk_Valcic_City_of_London_skyline_020123_3 (1)

UK economy unexpectedly shrank by 0.1% in January

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QJNXCFIWLRLG5CVFJF3DG2WJ3A-820x545.jpg" alt="" class="wp-image-479321" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QJNXCFIWLRLG5CVFJF3DG2WJ3A-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QJNXCFIWLRLG5CVFJF3DG2WJ3A-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QJNXCFIWLRLG5CVFJF3DG2WJ3A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QJNXCFIWLRLG5CVFJF3DG2WJ3A-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/QJNXCFIWLRLG5CVFJF3DG2WJ3A.jpg 1325w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of Anglo American is seen on a jacket of an employee at the Los Bronces copper mine, in the outskirts of Santiago, Chile March 14, 2019 REUTERS/Rodrigo Garrido</figcaption></figure>



(Reuters) &#8211; Anglo American has begun a consultation process in the United Kingdom and South Africa to cut jobs, amid a broader restructuring aimed at refocusing its operations on copper and iron ore mining, a spokesperson said on Thursday.



As part of the strategic overhaul, the company is set to spin off its Anglo American Platinum unit by mid-year. It also sold its coal and nickel assets and plans to divest its De Beers diamond unit.



Bloomberg News earlier&nbsp;in the day reported&nbsp;that Anglo was planning to cut more jobs at its corporate office.



The company has sent notices to employees who are likely to be affected, the report added, citing people with knowledge of the matter.



&#8220;These are clearly significant changes to our global business that naturally require adjustment to the resourcing of our corporate offices, so we are beginning consultation processes in the UK and South Africa to discuss proposed organisational changes,&#8221; a company spokesperson told Reuters in an email.



Anglo American has about 55,000 employees across the globe, according to its 2024 annual report.



(Reporting by Shanima A and Prerna Bedi, additional reporting by Dhanush Vignesh Babu in Bengaluru; Editing by Devika Syamnath)

FILE PHOTO: Logo of Anglo American is seen on a jacket of an employee at the Los Bronces copper mine, in the outskirts of Santiago

Anglo American begins consultation to cut jobs amid business overhaul

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/PZJDEL4AJBOQRBQVBFB3WB6VNI.avif" alt="" class="wp-image-597019"/><figcaption class="wp-element-caption">South Africa&#8217;s President Cyril Ramaphosa and European Commission President Ursula von der Leyen, attend the 8th EU-South Africa summit, in Cape Town, South Africa, March 13, 2025. REUTERS/Esa Alexander</figcaption></figure>



CAPE TOWN, March 13 (Reuters)&nbsp;&#8211;&nbsp;European Commission President Ursula von der Leyen on Thursday&nbsp;announced&nbsp;a new 4.7 billion euro ($5.10 billion) investment package for South Africa&nbsp;on a visit to the country.



Von der Leyen said the Global Gateway investment package was to support a just energy transition, vaccine manufacturing, and digital and physical connectivity.



She made the remarks at the beginning of talks with South African President Cyril Ramaphosa, sitting alongside European Council President Antonio Costa.



($1 = 0.9223 euros)



(Reporting by Wendell Roelf; Writing by Sfundo Parakozov; Editing by Alexander Winning)

PZJDEL4AJBOQRBQVBFB3WB6VNI

European Union announces 4.7 billion euro investment package for South Africa

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3089" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/CVXKTNP76NMWJHEFTALQL7UPHQ.avif" alt="" class="wp-image-596982"/><figcaption class="wp-element-caption">A company logo for the South African supermarket chain SPAR Group is seen on a trolley outside a store in Johannesburg, South Africa, June 7, 2022. Picture taken June 7, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, March 13 (Reuters) &#8211; South Africa&#8217;s SPAR Group is planning a chain of about 30 to 40 high-end grocery stores, with the first set to open in the fourth quarter of this year, an executive said on Thursday, as the retailer targets affluent shoppers.



South African grocery retailers are increasingly tailoring stores to wealthy or low-income customers in a market that is becoming more polarised.



&#8220;The strategy includes converting high-end niche SPAR stores while also opening new locations in strategic sites. We anticipate around 30 to 40 Gourmet stores in the future, though no fixed timeline has been set,&#8221; Max Oliva, SPAR Southern Africa CEO, told Reuters.



The South African retailer owns several SPAR country licences of the Dutch SPAR group.



Presenting on Wednesday at the company&#8217;s capital markets day, Oliva told investors that the new SPAR Gourmet format would target customers in high-end residential and urban areas.



&#8220;Key focus areas include premium food solutions, coffee, bakery, and indulgent products, with a curated assortment tailored to meet the needs of a more affluent customer base,&#8221; he said.



SPAR Gourmet and discount chain SaveMor are part of the group&#8217;s segmentation strategy, similar to what rivals Pick n Pay and Shoprite have been doing in recent years.



To strengthen its position in the competitive discount grocery sector, SPAR will also be revamping the SaveMor chain.



South Africa&#8217;s higher-end grocery market is dominated by Woolworths, followed by Shoprite&#8217;s Checkers chain. In the discount space, Shoprite has Usave and Pick n Pay has Boxer.



(Reporting by Siyanda Mthethwa and Nqobile Dludla. Editing by Mark Potter)

CVXKTNP76NMWJHEFTALQL7UPHQ

South Africa’s SPAR plans chain of up to 40 high-end grocery stores

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3496" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/YPYZLCVLKZMVJOWUT7HMSPRWEE.avif" alt="" class="wp-image-596933"/><figcaption class="wp-element-caption">A woman walks past a Standard Bank logo at the Investing in African Mining Indaba 2024 conference in Cape Town, South Africa February 7, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, March 13 (Reuters) &#8211; Standard Bank, Africa&#8217;s biggest lender by assets, on Thursday reported a 4% jump in annual profit and forecast headline earnings per share (HEPS) growth of 8%-12% in the medium term.



The South Africa-based lender said its headline earnings rose to 44.5 billion rand ($2.42 billion) in the year ended December 31 from 42.9 billion rand in the previous year.



It also said that the HEPS was up 4% at 26.91 rand.



The new medium-term target for HEPS is for 2026 to 2028, the bank said. Its return on equity target range for the period is 18%-22%.



For the current reporting period, the lender&#8217;s net income grew 2% to 181.7 billion rand, driven by a 3% increase in its net interest income to 101 billion rand.



Growth in loans and advances rose a mere 2%&nbsp;due to lower consumer affordability and demand for credit&nbsp;as interest rates remained high, on average, in 2024, the bank said.



Credit impairment charges fell 7% to 15 billion rand, largely due to a slowdown in early arrears and inflows into non-performing loans in the retail and business segments.



($1 = 18.3709 rand)



(Reporting by Nqobile Dludla; Editing by Christopher Cushing)

YPYZLCVLKZMVJOWUT7HMSPRWEE

Standard Bank’s annual profit rises, forecasts growth in medium term

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2560" height="1440" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/RJQQJCNPY5N5TEMOPIA3PHPUWY.avif" alt="" class="wp-image-596924"/><figcaption class="wp-element-caption">A drone view shows construction on the 3.2 kilometre Kigongo–Busisi Bridge, named John Pombe Magufuli Bridge that crosses the southern end of Lake Victoria at a cost of approximately $300 million USD, in Mwanza, Tanzania October 14, 2024. REUTERS/Emmanuel Herman/File Photo</figcaption></figure>



DAR ES SALAAM, March 13 (Reuters)&nbsp;&#8211;&nbsp;Tanzania plans to increase overall spending by 13.4% in the fiscal year from July, according to a draft budget that focuses on the country&#8217;s debt repayment needs, the cost of a coming general election, and U.S. President Donald Trump&#8217;s pause in overseas aid.



The east African country plans to spend 57.04 trillion shillings ($22 billion) in the 12 months starting in July, up from 50.29 trillion shillings this year, according to a budget paper seen by Reuters.



Finance Minister Mwigulu Nchemba presented a paper titled &#8220;Budget Framework and Expenditure Ceiling For 2025/26&#8221; to a parliamentary committee on Tuesday.



The final budget for the coming fiscal year will be read in June.



Of the total amount, the government expects to raise 40.97 trillion shillings from domestic revenue sources and the rest through both domestic and external debt, according to the paper.



Tanzania is taking steps to reduce its dependence on unpredictable sources of revenue or debt with unfavourable terms, the paper showed.



Like some other developing countries Tanzania has also been hit hard by U.S. President Donald Trump&#8217;s freeze on all foreign aid for 90 days.



The budget has taken into consideration, the paper said, &#8220;the potential impact that is likely to happen due to changes of policies from development partners, especially the United States.&#8221;



In the next financial year the government will focus on boosting production of manufactured goods and services, and the promotion of trade and investment among other factors, the paper said.



&#8220;Specific priorities include covering costs on government debt repayment, salaries, the general election of 2025 and promotion of democracy in the country,&#8221; Nchemba said in the paper.



Tanzania is set to hold a general election in October in which voters will choose the next president, lawmakers and local government officials.



President Samia Suluhu Hassan will be seeking re-election for a second term of five years, having come to power in 2021 after the death of her predecessor.



($1 = 2,610.0000 Tanzanian shillings)



(Reporting by Nuzulack Dausen; Editing by Elias Biryabarema and Hugh Lawson)

RJQQJCNPY5N5TEMOPIA3PHPUWY

Tanzania plans to raise spending by 13% in fiscal year from July, draft shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/TK6CHSZXDJPLLBYFHHDN2UBZGY.avif" alt="" class="wp-image-596859"/><figcaption class="wp-element-caption">South Africa&#8217;s Finance Minister Enoch Godongwana delivers his 2025 budget speech in Cape Town, South Africa, March 12, 2025. REUTERS/Esa Alexander/File Photo</figcaption></figure>



CAPE TOWN, March 13 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s budget may be tweaked further as more talks between political parties will try to overcome differences over a contentious plan to raise value-added tax, the country&#8217;s finance minister told Reuters.



Most big parliamentary parties rejected Finance Minister Enoch Godongwana&#8217;s revised budget on Wednesday, despite it scaling back the size of the proposed VAT hike from 2 percentage points to 1 point, spread over two years.



Godongwana&#8217;s African National Congress needs the support of at least one other big party for the budget to pass, but its main coalition partner, the Democratic Alliance, is dead-set against any tax increases, as are other big parties outside the coalition.



The budget has been the biggest test for the fractious coalition formed last year when the ANC lost its parliamentary majority for the first time since the end of apartheid.



&#8220;There will be engagement which may lead to some amendments in the budget. It is the nature of the thing,&#8221; Godongwana said in an interview in his parliamentary office late on Wednesday.



He said he was open to hearing proposals from lawmakers on how to change the budget, but they needed to understand the difficult trade-offs involved.



&#8220;Where we sit (as government), we say we&#8217;ve done our job and then it&#8217;s for parliament to make the final call, but if they scrap the VAT which is 14 billion (rand of additional revenue) they must then say from an expenditure side what should be scrapped,&#8221; Godongwana said.



He said a suggestion by some politicians that money could be saved by cutting the country&#8217;s bloated cabinet would not yield the sort of money the government needs to fund spending on frontline services like health and education.



Godongwana said the budget now before parliament could be the most controversial for years because the government was not likely to try to raise taxes again soon.



He said he thought the budget, which sees public debt peaking next fiscal year and the deficit falling gradually over the next three years, would be viewed favourably by ratings agencies but their main fear would be whether it gets through parliament.



&#8220;That&#8217;s a test we&#8217;ve got to pass,&#8221; he said.



(Reporting by Wendell Roelf; Editing by Alexander Winning and Lincoln Feast.)

TK6CHSZXDJPLLBYFHHDN2UBZGY

South Africa’s budget may be tweaked further, finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108111007-17411428882025-03-05t024718z_970393539_rc2q6dapgzf5_rtrmadp_0_usa-trump-congress-820x461.jpeg" alt="" class="wp-image-596826" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108111007-17411428882025-03-05t024718z_970393539_rc2q6dapgzf5_rtrmadp_0_usa-trump-congress-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108111007-17411428882025-03-05t024718z_970393539_rc2q6dapgzf5_rtrmadp_0_usa-trump-congress-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108111007-17411428882025-03-05t024718z_970393539_rc2q6dapgzf5_rtrmadp_0_usa-trump-congress-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108111007-17411428882025-03-05t024718z_970393539_rc2q6dapgzf5_rtrmadp_0_usa-trump-congress-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108111007-17411428882025-03-05t024718z_970393539_rc2q6dapgzf5_rtrmadp_0_usa-trump-congress-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108111007-17411428882025-03-05t024718z_970393539_rc2q6dapgzf5_rtrmadp_0_usa-trump-congress.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



LONDON — President Donald Trump’s trade tariffs are a major concern among U.S. and international business leaders, with industry titans warning of trouble ahead.



Speaking at CNBC’s CONVERGE LIVE in Singapore, Bridgewater founder Ray Dalio warned of “fighting” between countries over the duties.



“Tariffs are going to cause fighting between countries … I’m not necessarily talking about military. But think about U.S., Canada, Mexico, China &#8230; There will be fighting, and that will have consequences,” he said, speaking to CNBC’s Sara Eisen on Wednesday.



Trump’s 25% tariffs on aluminum and steel imports took effect Wednesday, with the EU, Australia and Canada among the regions and countries affected. U.S. markets have been in turmoil over the duties this week.



Dalio said the current environment is “an extension of the patterns of history” — giving 1930s Germany as an example.



There was a hike in tariffs to boost revenue and a buildup of the country’s domestic base as well as a writedown of debt at the time, Dalio said. “Be nationalistic, be protectionistic, be militaristic. That is the way these things operate,” Dalio said. “The issue is really the confrontation of all of this,” he said.



Salesforce CEO Marc Benioff described reciprocity between countries as “good” if they treat each other the same way. But he said the “what and the how” are “very important.” “If you can’t put the what and the how in a consistent, clear and meaningful way, then you could end up with high levels of volatility and conflict,” Benioff said, speaking at CONVERGE.



<h2 class="wp-block-heading" id="h-european-reaction"><a></a>European reaction</h2>



Europe quickly retaliated to the steel and aluminum tariffs with its own counter-tariffs on 26 billion euros ($28.33 billion) worth of U.S. goods starting next month.



“Tariffs are taxes, they are bad for business and worse for consumers, they are disrupting supply chains, they bring uncertainty for the economy,” European Commission President Ursula von der Leyen&nbsp;told reporters during a press conference Wednesday.



Trump appeared unimpressed, stating that additional duties would be imposed on Europe if it goes ahead with the tariffs in April. “Whatever they charge us, we’re charging them,” Trump told reporters.



Former U.K. Prime Minister David Cameron on Thursday said he was concerned about the simmering trade war.



“I’m worried about this because I’m a free trader. I believe that if you maximize free trade, it isn’t a one country wins and the other country loses, it can be a win-win situation and it normally is,” Cameron said at COVERGE LIVE.



“I fear that Donald Trump’s view of the world is he sort of looks at a country and says if you’ve got a surplus in trade with me, you’re ripping me off. That’s not the case. If every country in the world had a surplus, who would have the deficit? Mars, Jupiter? So, I don’t think that view of the world is right,” he continued.



“But, and it is an important but, as ever with Donald Trump, at the heart of what he is saying there is a real and understandable concern,” Cameron added.



<h2 class="wp-block-heading"><a></a>Risk of recession</h2>



Alec Kersman, managing director and head of Asia-Pacific at Pimco, warned of an increased risk of recession because of the tariffs. There is a “maybe 35% probability” that the U.S. will enter a recession this year, Kersman told CNBC’s Martin Soong at CONVERGE LIVE, up from Pimco’s December 2024 estimate of 15%.



Despite that, Kersman said, Pimco’s base case scenario is that the U.S. economy will grow 1% to 1.5%, “quite a significant decrease” from its earlier projections.



Kersman advised market participants to be “more patient” in terms of rebalancing investments. “There’s a lot of noise in the markets right now, and you want to give it three to six months before you make that action,” he said. Tariffs will create “more distinct winners and losers,” and added, “The trend of globalization is is being redirected, and there are no more universal laws of how capital will behave.”



<h2 class="wp-block-heading"><a></a>Consumer spending</h2>



However, Kamal Bhatia, president and CEO of Principal Asset Management, said trade wars caused by tariffs could in fact mean that consumers spend more at home.



Most people will underestimate this potential increase in expenditure because of a focus on the “external effects” on gross domestic product, Bhatia said at CONVERGE LIVE. Countries could “go back to being insular,” he said, leading to patriotism and better-than-expected gross domestic product growth.



The potential for increased domestic expenditure was also brought up by Alibaba’s Chairman Joe Tsai. China’s domestic consumption “needs a boost,” thanks to “tariffs and geopolitics,” Tsai said at CONVERGE LIVE — the average effective U.S. duty on Chinese goods is set to reach 33%, according to Nomura estimates.



“Look at the Chinese consumer. They’re very, very healthy. Household balance sheet is very, very strong. You’re looking at over $20 trillion of bank deposits by households. So, they’re standing on the sidelines waiting to spend,” Tsai said.



Tsai said he is “glass half full” about Trump’s trade policy. “The Trump administration will want to have more American companies doing business in China,” he said. “Eventually, you know, the tariffs being a negotiating tool maybe, but at some point things will sort of get better,” he added.



CNBC’s Amala Balakrishner, Anniek Bao, Katrina Bishop, Holly Ellyatt and Sam Meredith contributed reporting.

108111007-17411428882025-03-05t024718z_970393539_rc2q6dapgzf5_rtrmadp_0_usa-trump-congress

‘Volatility and conflict’: Business leaders sound warnings over Trump’s tariffs

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="480" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/3GWHJ24G6BNGHDPVWY36IOPFFQ.jpg" alt="" class="wp-image-596532" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/3GWHJ24G6BNGHDPVWY36IOPFFQ.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/3GWHJ24G6BNGHDPVWY36IOPFFQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/3GWHJ24G6BNGHDPVWY36IOPFFQ-135x90.jpg 135w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">South Africa&#8217;s Finance Minister Enoch Godongwana speaks during his 2023 budget speech in Cape Town, South Africa, February 22, 2023. REUTERS/Shelley Christians/File Photo</figcaption></figure>



CAPE TOWN, March 12 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s National Treasury on Wednesday proposed a smaller hike in value-added tax in a revised budget aimed at ending deadlock within the coalition government, but it was not clear if it would get the support in parliament to pass.



Last month, the Treasury had proposed a 2-percentage-point hike in VAT in its initial budget, but the African National Congress&#8217; biggest coalition partner refused to back the move, forcing the budget to be postponed.



On Wednesday, the Treasury instead proposed raising VAT by 0.5 percentage points from its current level of 15% on May 1, followed by another 0.5-percentage-point increase in 2026.



Minutes before Finance Minister Enoch Godongwana took the podium in parliament, the leader of the Democratic Alliance, the second-biggest party in government, said his party was still opposed.



&#8220;The DA will not support the budget in its current form,&#8221; said John Steenhuisen on X.



The budget has been the biggest test so far of South Africa&#8217;s fractious coalition government, formed last year after the ANC lost its parliamentary majority for the first time since the end of apartheid in 1994.



The ANC needs at least one other big party behind it to pass the budget, and parties outside of the coalition, such as the Economic Freedom Fighters, are also opposed to raising taxes.



The ANC and the DA are ideologically opposed on many issues but have managed to govern together so far with occasional disputes that have not derailed the coalition.



SPENDING PRESSURES



The Treasury said the government faced &#8220;new and persistent&#8221; spending pressures that required additional funding, and the tax increase would fund health, education and rail projects.



&#8220;This decision was not taken lightly. We thoroughly examined alternatives to raising the VAT,&#8221; Godongwana said, adding a tax hike was the best way to avoid further spending cuts.



Tax measures proposed in the latest budget would generate an additional 28 billion rand ($1.53 billion) of revenue in the fiscal year that starts on April 1 2025, Godongwana said, less than the 58 billion the Treasury had initially hoped to raise.



Additional funds would be drawn from contingency reserves, revised budget documents showed.



The budget deficit is now seen at 5.0% of gross domestic product (GDP) in the 2025/26 fiscal year and debt is expected to peak at 76.2% of GDP in 2025/26.



Consumer inflation is expected to rise due to the VAT hike, the budget showed.



($1 = 18.3462 rand)



(Roelf reported from Cape Town and Gumbi and Anders from Pretoria; Additional reporting by Nqobile Dludla and Sfundo Parakozov in Pretoria; Writing by Nellie Peyton; Editing by Alexander Winning, Alexandra Hudson)

3GWHJ24G6BNGHDPVWY36IOPFFQ

South Africa proposes smaller VAT hike in revised budget, disagreements remain

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108100870-17393003382025-02-11t173028z_1368012250_rc2dscayok3b_rtrmadp_0_usa-trump-tariffs-mexico-820x547.jpeg" alt="" class="wp-image-596469" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108100870-17393003382025-02-11t173028z_1368012250_rc2dscayok3b_rtrmadp_0_usa-trump-tariffs-mexico-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108100870-17393003382025-02-11t173028z_1368012250_rc2dscayok3b_rtrmadp_0_usa-trump-tariffs-mexico-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108100870-17393003382025-02-11t173028z_1368012250_rc2dscayok3b_rtrmadp_0_usa-trump-tariffs-mexico-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108100870-17393003382025-02-11t173028z_1368012250_rc2dscayok3b_rtrmadp_0_usa-trump-tariffs-mexico-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108100870-17393003382025-02-11t173028z_1368012250_rc2dscayok3b_rtrmadp_0_usa-trump-tariffs-mexico-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108100870-17393003382025-02-11t173028z_1368012250_rc2dscayok3b_rtrmadp_0_usa-trump-tariffs-mexico-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Steel coils are pictured in the yards of the steelmaker Ternium plant. Daniel Becerril | Reuters</figcaption></figure>



The European Union has reacted swiftly to U.S. President Donald Trump’s 25% tariffs on steel and aluminum imports that came into effect Wednesday, retaliating with their own punitive counter-measures that it said were needed to protect consumers and businesses.



The White House confirmed the duties — which will affect Canada, Australia, the EU and others — late Tuesday, but said that Trump no longer planned to raise tariffs on the metals from Canada to 50%.



The EU responded swiftly, saying it would impose counter-tariffs on 26 billion euros ($28.33 billion) worth of U.S. goods starting in April.



European Commission President Ursula von der Leyen on Wednesday told reporters that the EU “must act to protect businesses and consumers.”



“We deeply regret this measure [by the U.S.]. Tariffs are taxes, they are bad for business and worse for consumers, they are disrupting supply chains, they bring uncertainty for the economy, jobs are at stake, prices are up and nobody needs that, neither side needs that,” she said during a press conference.



Trade ties between the U.S. and EU “are the biggest in the world,” Von der Leyen said, and the relationship had brought “prosperity and security to millions of people” as well as job creation on both sides of the Atlantic, she noted.



The EU’s two-pronged approach will see previously suspended tariffs re-imposed on 8 billion euros of U.S. exports, and a slew of new countermeasures on 18 billion euros of goods in a move Von der Leyen had earlier described as “strong but proportionate.”



“We will always remain open to negotiation,” she added in a statement.



The EU said the tariffs will affect up to 26 billion euros (28.3 billion) worth of EU exports to the U.S. They&nbsp; apply to industrial-grade steel and aluminum, other steel and aluminum semi-finished and finished products, and also their derivative commercial products, such as machinery parts and knitting needles.



<h2 class="wp-block-heading" id="h-rising-tensions"><a></a>Rising tensions</h2>



The tit for tat action marks the latest development in a simmering trade war that has been marked by bold promises of tariffs — and subsequent reversals and delays — by Trump.



The trade tensions have hit markets in recent days amid growing concerns that the duties could push the world’s biggest economy toward a recession.



Unlike Mexico, Canada and China, EU-origin products had not been hit by Trump’s tariffs until the steel and aluminum duties came into effect Wednesday.



Tensions between Washington and Brussels have been simmering since Trump’s inauguration in January, when the White House leader immediately signaled his intention to impose tariffs on the bloc.



“They’ve really taken advantage of us,” Trump said in a Cabinet meeting on Feb.26, adding: “They don’t accept our cars, they don’t accept, essentially, our farm products. They use all sorts of reasons why not. And we accept everything of them.”



One of Trump’s biggest bugbears is the U.S.′ trade deficits with a number of key trading partners, including Canada and the EU.



European Commission data show that the EU had a trade surplus of 155.8 billion euros ($159.6 billion) with the U.S. for goods in 2023, but ran a 104-billion-euros deficit on services. Overall, EU-U.S. trade in goods and services in 2023 was worth 1.6 trillion euros ($1.68 trillion), according the to EU.



Machinery and vehicles make up the largest chunk of EU exports to the U.S. by product group, followed by chemicals, other manufactured goods and medicinal and pharmaceutical products.&nbsp;



— CNBC’s Katrina Bishop and Amala Balakrishner contributed reporting to this story.

108100870-17393003382025-02-11t173028z_1368012250_rc2dscayok3b_rtrmadp_0_usa-trump-tariffs-mexico

We ‘must act’: Europe retaliates against Trump’s 25% tariffs on steel and aluminum imports

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="390" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Z7OUSBHECZMJVEHQT7G2AZVSQU.avif" alt="" class="wp-image-573028"/><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration/File photo</figcaption></figure>



JOHANNESBURG, March 12 (Reuters)&nbsp;&#8211;&nbsp;South African markets were on edge on Wednesday as the finance minister prepared to present a revised annual budget, with local media reports suggesting there was still no agreement between the two largest political parties.



At 0830 GMT the rand traded at 18.3475 against the dollar, down more than 0.7% on Tuesday&#8217;s closing level.



The Johannesburg Stock Exchange&#8217;s Top-40 index was down 0.1% and the benchmark 2030 government bond was marginally weaker.



The budget has been the biggest test so far of South Africa&#8217;s fractious coalition politics.



It was due out three weeks ago but was postponed at the last minute because of disagreements in the coalition over a plan to hike value-added tax by 2 percentage points to 17%.



Local media have reported that the amended budget is likely to propose a smaller VAT increase, in a concession&nbsp;the finance ministry hopes will help it pass.



But it is still not clear&nbsp;if that&nbsp;will work.



The biggest party in the coalition, the African National Congress, needs the support of at least one other big party in parliament&nbsp;to pass the fiscal framework.



All other big parties including the second-biggest in the coalition, the Democratic Alliance, have publicly opposed raising VAT.



Finance Minister Enoch Godongwana&#8217;s budget speech is expected to start around 1200 GMT.



&#8220;Uncertainty reigns as reports indicate no final agreement between the ANC and DA within the (coalition), meaning the budget could still face opposition in parliament,&#8221; Andre Cilliers, currency strategist at TreasuryONE, said.



&#8220;While investors were hoping for a clear fiscal path, speculation suggests the ANC will push ahead regardless, setting up a potential political battle that could impact markets.&#8221;



(Reporting by Alexander Winning; Editing by Mrigank Dhaniwala and Andrew Heavens)

Z7OUSBHECZMJVEHQT7G2AZVSQU

South African markets on edge before budget showdown

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-820x547.jpg" alt="" class="wp-image-596161" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/GettyImages-2203090787-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ACCRA, GHANA &#8211; MARCH 3: Cassiel Ato Forson, Ghana&#8217;s finance minister, speaks during the National Economic Dialogue on March 3, 2025, in Accra, Ghana. The National Economic Dialogue brings together representatives from government, business, and civil society for a dialogue around the theme &#8220;Resetting Ghana: Building the Economy We Want Together&#8221; and takes place ahead of the reading of Ghana&#8217;s national budget in Parliament on March 11. (Photo by Ernest Ankomah/Getty Images)</figcaption></figure>



ACCRA, March 11 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s Finance Minister Cassiel Ato Baah Forson said on Tuesday that the West African nation faced significant external debt service costs over the next four years.



&#8220;The next four years we&#8217;ll be made to call upon to pay $8.7 billion representing 10.9% of GDP, with heavy concentration in the year 2027 and 2028,&#8221; Forson told parliament in his first budget speech.



He that Ghana will have to pay $2.5 billion in 2027 and $2.4 billion in 2028.



&#8220;In spite of all these upcoming domestic and external debt service obligations, no buffers were built to cushion this unprecedented debt service burden,&#8221; Forson said.



The West African nation is emerging from its deepest economic crisis in a generation resulting from the COVID-19 pandemic, the war in Ukraine, higher global interest rates and years of excessive borrowing.



President John Dramani Mahama, who took office in January, has vowed to boost the economy and create jobs. He faces the fallouts of a cost-of-living crisis, an ongoing bailout from the International Monetary Fund and a sovereign debt default in the cocoa and gold-producing nation.



(Reporting by Christian Akorlie; Writing by Sofia Christensen and Anait Miridzhanian; Editing by Bate Felix and Tomasz Janowski)

National Economic Dialogue Held In Ghana

Ghana faces significant external debt service, finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-820x547.jpg" alt="" class="wp-image-495905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, March 11 (Reuters) &#8211; Nigeria&#8217;s government has started vetting potential candidates to lead its more than 100 diplomatic missions, with appointments expected &#8220;very soon&#8221;, 18 months after President Bola Tinubu recalled all ambassadors, sources familiar with the matter said.



Nigeria, Africa&#8217;s most populous country and a key Western ally in the fight against Islamist insurgents in West Africa, has operated without ambassadors since September 2023.



The minister of foreign affairs has previously blamed a lack of funds for the delay in naming new diplomats.



A government source told Reuters that the issue &#8220;is being resolved&#8221; and &#8220;that means the appointment will be announced very soon.&#8221;



Nigeria&#8217;s security services were conducting background checks on possible appointees and had started sharing their findings with the relevant agencies within the presidency and legislature, an intelligence official told Reuters.



A spokesperson from the presidency referred questions to the foreign affairs ministry, which declined to comment. The sources declined to be named as they are not authorised to speak on the matter.



Since coming to power in May 2023, Tinubu has prioritised fixing Nigeria&#8217;s struggling economy, with foreign policy taking a back seat, said a former ambassador who served in Africa and the United States.



The government has this year budgeted 302.4 billion naira ($198.30 million) to run its foreign missions.



The former Nigerian ambassador said he was informed by government officials that the issue of the absence of ambassadors in their countries had come up in discussions between Tinubu and some foreign leaders.



&#8220;Assurance had been given that they will soon be appointed,&#8221; said the former ambassador, who declined to be named.



($1 = 1,525.0000 naira)



(Reporting by Ope Adetayo, additional reporting by Ben Ezeamalu in Lagos; Editing by Sharon Singleton)

FILE PHOTO: Nigeria’s President Bola Tinubu looks on after his swearing-in ceremony in Abuja

Nigeria to appoint ambassadors, 18 months after worldwide recall, sources say

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="480" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/6XIG4R3DRFK2ZPWEVWERAVU4PA.avif" alt="" class="wp-image-590617"/><figcaption class="wp-element-caption">The new logo of the Nigeria oil company is seen at the NNPC Mega Gas Station in Abuja, Nigeria August 30, 2022. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



LAGOS, March 11 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s state oil company NNPC Ltd has begun discussions with the Dangote Oil Refinery to extend its contract for supplying crude oil in the naira currency, the company said.



The original six-month agreement, which ends later this month, was implemented in October after local refineries, including the Dangote facility, reported difficulties securing crude supplies.



The initiative aimed to alleviate those supply issues by allowing refineries to purchase crude in naira through NNPC Ltd. Under the existing arrangement, NNPC Ltd says it has supplied 48 million barrels of oil to the Dangote Oil Refinery.



While the initial plan included supplying seven other smaller refineries, only the Dangote refinery ultimately benefited from the agreement, and even it did not receive the initially agreed-upon volumes.



NNPC Ltd said that &#8220;discussions are ongoing towards&#8221; a new contract. The details of the potential new contract, including volume, pricing, and duration, are yet to be disclosed.



(Reporting by Isaac Anyaogu; editing by David Evans)

6XIG4R3DRFK2ZPWEVWERAVU4PA

Nigeria’s NNPC, Dangote Refinery in talks to extend naira-based crude supply deal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-820x547.jpg" alt="" class="wp-image-542097" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/NBCYKZR44FM2XJAGL3GJEWP3KA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A person enters the JPMorgan Chase &amp; Co. New York headquarters in Manhattan, New York City, U.S., June 30, 2022. REUTERS/Andrew Kelly/File Photo</figcaption></figure>



March 11 (Reuters)&nbsp;&#8211;&nbsp;J.P.Morgan on Tuesday downgraded South African equities to &#8220;neutral&#8221; from &#8220;overweight,&#8221; citing concerns over an economic slowdown and the effectiveness of the country&#8217;s policy reforms.



&#8220;While South Africa&#8217;s investment case on reforms remains an attractive point of departure, it is unlikely to result in meaningful (economic) growth that&#8217;s above 2% in the coming two years,&#8221; the brokerage said in a note.



Since the aftermath of the 2008-09 global financial crisis, the government of Africa&#8217;s most industrialised nation has struggled to deliver economic growth rates high enough to make a dent in inequality and unemployment.



In January, South African Reserve Bank (SARB) Governor Lesetja Kganyago told Reuters in an interview that the region&#8217;s economic growth could be close to 2% in 2025.



Last month, South African President Cyril Ramaphosa said his government would launch a second wave of reforms to try to bolster economic growth, by boosting struggling state companies and investing in infrastructure.



But despite improved power availability in the past year and optimism that the ruling Government of National Unity (GNU) coalition will seek to push through growth-enhancing reforms, the operating environment is expected to remain challenging for many businesses.



&#8220;We expect foreign investors to apply a wait-and-see approach while domestic investors will have to straddle the options of GNU’s imperfect execution of its reform agenda,&#8221; the brokerage said.



Last month, U.S. President Donald Trump signed an executive order to cut U.S. financial assistance to South Africa, citing disapproval of its land policy and of its genocide case at the International Court of Justice against Washington&#8217;s ally Israel.



&#8220;Global dynamics resulting in South Africa/U.S. relations being strained by matters involving expropriation, ICJ case and domestic affairs around affirmative action&#8230;create uncertainty around the performance of South Africa&#8217;s domestic assets,&#8221; JPM said.



The brokerage said it prefers Emerging European equities within the Central &amp; Eastern Europe, Middle East &amp; Africa (CEEMEA) region, but prefers South African stocks to Middle East and North Africa&#8217;s (MENA) equities.



(Reporting by Siddarth S in Bengaluru; Editing by Subhranshu Sahu and Varun H K)

A person enters the JPMorgan Chase & Co. New York headquarters in Manhattan, New York City

JPMorgan downgrades South African equities on economic slowdown concerns

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108112693-1741359002550-gettyimages-2202592326-raa-cryptocr250303_npQOY-820x461.jpeg" alt="" class="wp-image-595769" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108112693-1741359002550-gettyimages-2202592326-raa-cryptocr250303_npQOY-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108112693-1741359002550-gettyimages-2202592326-raa-cryptocr250303_npQOY-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108112693-1741359002550-gettyimages-2202592326-raa-cryptocr250303_npQOY-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108112693-1741359002550-gettyimages-2202592326-raa-cryptocr250303_npQOY-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108112693-1741359002550-gettyimages-2202592326-raa-cryptocr250303_npQOY-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/108112693-1741359002550-gettyimages-2202592326-raa-cryptocr250303_npQOY.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Jonathan Raa | Nurphoto | Getty Images</figcaption></figure>



Bitcoin fell on Monday as volatility in the price of the world’s largest cryptocurrency continues following an executive order signed by President Donald Trump to create a strategic bitcoin reserve for the United States.



Earlier Monday, bitcoin prices slipped up to 6.5% to trade around $80,650 before paring most losses. By 4:12 a.m., the coin was down 0.74% at $82,050, according to Coin Metrics.



The reserve will be funded by coins that have been seized in criminal and civil forfeiture cases and there are no plans for the U.S. government to buy more bitcoin. After the strategic reserve announcement last Thursday, crypto prices declined as investors were disappointed it wasn’t a more aggressive program.



Other cryptocurrency prices also proved volatile on Monday. Both ether and XRP were trading in the green by 4:12 a.m. after earlier falling around 7.5%.



Some investors, however, said the move to establish a reserve was bullish in the long-term.



“I absolutely think the market has this wrong,” Matt Hougan, chief investment officer at&nbsp;Bitwise Asset Management, told CNBC’s “Squawk Box Asia” on Monday. “The market is short-term disappointed” that the government didn’t say it was immediately going to start acquiring 100,000 or 200,000 bitcoin, he added.



Hougan pointed towards comments on X from White House Crypto and AI Czar David Sacks, who said the U.S. would look for “budget-neutral strategies for acquiring additional bitcoin, provided that those strategies have no incremental costs on American taxpayers.”



“I think the right question to ask is: did this executive order make it more likely that in the future, bitcoin will be a geopolitically important currency or asset? Will other governments look to follow the U.S.’s lead and build their own strategic reserve? And to me, the answer to that is emphatically yes,” Hougan said.



“The reason that questions matters is that’s the question that determines if bitcoin is $80,000 a coin or $1 million a coin.”



Hougan called the decline in crypto prices a “short-term setback.”



“I think the market will soon find its footing and realize that actually this is incredibly bullish long term for this asset and for crypto as a whole,” he said.



<a target="_blank" rel="noreferrer noopener" href="https://www.blinkist.com/magazine/posts/andrew-ng-book-recommendations-onboarding/?utm_source=taboola&amp;utm_medium=paid&amp;utm_campaign=20240906_TB_PRO_AndrewNGTTS-OnboardingTest_DW_Universal_MaxConversion-OnboardingLength&amp;utm_term=cnbc&amp;utm_content=4031132309&amp;taboola_click_id=GiDj4YBFh-KY4ULxc1Tv38w6L4sAzStLAzm14ncTr9ZdryCtlkEosfHclcKfxLBgMMQE&amp;tblci=GiDj4YBFh-KY4ULxc1Tv38w6L4sAzStLAzm14ncTr9ZdryCtlkEosfHclcKfxLBgMMQE#tblciGiDj4YBFh-KY4ULxc1Tv38w6L4sAzStLAzm14ncTr9ZdryCtlkEosfHclcKfxLBgMMQE"></a>

108112693-1741359002550-gettyimages-2202592326-raa-cryptocr250303_npQOY

Bitcoin falls as much as 6.5% as volatility continues after Trump’s bitcoin reserve plan

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="469" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/I7JNEWQ4GVLM3NU76F6XVVSAV4.avif" alt="" class="wp-image-564821"/><figcaption class="wp-element-caption">People walk on the street around Kwame Nkrumah circle in Accra, Ghana, December 2, 2016. Picture taken December 2, 2016. REUTERS/Luc Gnago/File Photo</figcaption></figure>



ACCRA, March 10 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s&nbsp;economic growth slowed in the fourth quarter of last year,&nbsp;dragged down by a weaker performance of the industry sector, the&nbsp;country&#8217;s statistics agency said on Monday.



Gross domestic product grew by 3.6% year-on-year in the fourth quarter, the data showed, compared with a revised 7.5% in the third quarter.



Economic growth for the year 2024 was at 5.7%.



Growth in the&nbsp;fourth quarter&nbsp;was&nbsp;mostly&nbsp;driven by&nbsp;the services sector, which grew 6.3%,&nbsp;and&nbsp;agriculture,&nbsp;which rose 2.9%, government statistician Samuel Kobina Annim said,&nbsp;adding that the industry sector only&nbsp;expanded by 0.2%.



The West African country is emerging from its deepest economic crisis in a generation, with turmoil in the vital cocoa and gold industries.



Ghana&#8217;s consumer inflation rate slowed for the second month in a row in February, to 23.1% from 23.5% in January.



However, it remains well above Bank of Ghana&#8217;s 8% target with a margin of error of 2 percentage points either side.



President John Dramani Mahama, who returned to office in January, has promised to cut taxes and expenditure to attract investments and lift growth.



(Reporting by Christian Akorlie; Writing by Anait Miridzhanian; Editing by Bate Felix and Toby Chopra)

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South Africa proposes smaller VAT hike in revised budget, disagreements remain

We ‘must act’: Europe retaliates against Trump’s 25% tariffs on steel and aluminum imports

South African markets on edge before budget showdown

Ghana faces significant external debt service, finance minister says

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Nigeria’s NNPC, Dangote Refinery in talks to extend naira-based crude supply deal

JPMorgan downgrades South African equities on economic slowdown concerns

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UK economy unexpectedly shrank by 0.1% in January

Anglo American begins consultation to cut jobs amid business overhaul

European Union announces 4.7 billion euro investment package for South Africa

South Africa’s SPAR plans chain of up to 40 high-end grocery stores

Standard Bank’s annual profit rises, forecasts growth in medium term

Tanzania plans to raise spending by 13% in fiscal year from July, draft shows

South Africa’s budget may be tweaked further, finance minister says

‘Volatility and conflict’: Business leaders sound warnings over Trump’s tariffs

South Africa proposes smaller VAT hike in revised budget, disagreements remain

We ‘must act’: Europe retaliates against Trump’s 25% tariffs on steel and aluminum imports

South African markets on edge before budget showdown

Ghana faces significant external debt service, finance minister says

Nigeria to appoint ambassadors, 18 months after worldwide recall, sources say

Nigeria’s NNPC, Dangote Refinery in talks to extend naira-based crude supply deal

JPMorgan downgrades South African equities on economic slowdown concerns

Bitcoin falls as much as 6.5% as volatility continues after Trump’s bitcoin reserve plan

Ghana’s growth slows in fourth quarter of 2024

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