<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107290995-1692818566260-isro-1694376945340080398-img1-820x462.jpg" alt="" class="wp-image-426967" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107290995-1692818566260-isro-1694376945340080398-img1-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107290995-1692818566260-isro-1694376945340080398-img1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107290995-1692818566260-isro-1694376945340080398-img1-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107290995-1692818566260-isro-1694376945340080398-img1-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107290995-1692818566260-isro-1694376945340080398-img1.jpg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The shadow of the Chandrayaan-3 spacecraft is seen on the moon’s surface. ISRO</figcaption></figure>



The list is grim reading: Stuck, failed, missed, failed, failed, stuck, failed, crashed, missed, crashed, crashed.



Those were the fate of the Soviet Union’s first 11 attempts before successfully landing a spacecraft on the moon, according to a database compiled by Jonathan McDowell, an astrophysicist at the Harvard-Smithsonian Center for Astrophysics who catalogs space missions.



Even in the modern era — with nine lunar landing attempts since 2013 — the track record is still shaky. Before India’s success Wednesday, missions by China, India, Israel, Japan and Russia were three for eight in the past decade.



McDowell’s database showcases the monumental challenge undertaken by the 50 attempts to land on the moon, with a cheeky scoreboard that reads: Earthlings 23, Gravity 27.



India chocked up its first W against Gravity on Wednesday, after the country’s Chandrayaan-3 spacecraft safely landed on the lunar surface. The feat makes India the fourth country to successfully land on the moon, and the first to touch down near the lunar south pole.



“They should feel very proud of this accomplishment,” Jim Bridenstine, who led NASA as administrator from 2018 to 2021, told CNBC.



Perhaps the most remarkable aspect of India’s moon landing is the shoestring budget — by government standards — with which the country achieved the mission. In 2020, the Indian Space Research Organization (ISRO) estimated the Chandrayaan-3 mission would cost about $75 million. The launch was delayed two years, which likely increased the overall mission’s cost. ISRO has not responded to CNBC’s request for an updated cost figure.



But that rivals the lowest-cost lunar lander missions in development in the U.S. NASA in recent years turned to having companies compete for fixed-price contracts to build moon landers, under a program it calls Commercial Lunar Payload Services. The CLPS program has a maximum budget of $2.6 billion over 10 years, with 14 companies vying for mission contracts typically worth upwards of $70 million each.



Overall, NASA’s annual budget dwarfs that of its Indian counterpart. In 2023, the U.S. agency received $25.4 billion in funding, compared to the ISRO’s budget of about $1.6 billion. Bridenstine stressed that NASA’s much larger budget is a reflection of the “different level of capability” that the U.S. agency offers, with everything from a continuous astronaut presence in orbit to missions targeting planets, asteroids and more.



As a percentage of gross domestic product, the U.S. spends the most on space — although it still amounts to just 0.28% of GDP.&nbsp; That ranks well ahead of India’s 0.04% of GDP, according to a July report on the global space economy by the Space Foundation.



“India should have in its ambitions the desire to invest more and more and develop the capabilities that are more on par with the United States,” Bridenstine said.



India is increasingly seen as a top player in space geopolitically. While China has succeeded Russia as the most significant rival to U.S. influence and capabilities in space, India may yet take that third spot in the space superpower hierarchy.



“I would hope that they use [Chandrayaan-3] as an opportunity to capitalize on the success,” Bridenstine said. “They’ve got a big economy and they’re going to be able to put money into space exploration.”



“Costs are going to continue to go down, which is a very positive development for everybody who’s interested in space exploration,” he added. “And costs to get to the moon are going to go down, especially as we have more and more companies doing more and more missions.”

107290995-1692818566260-isro-1694376945340080398-img1

India’s moon landing made history at a low cost

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/FIL5KIWV4BI3VCAGLNOPUC4SFY-820x541.jpg" alt="" class="wp-image-426954" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/FIL5KIWV4BI3VCAGLNOPUC4SFY-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/FIL5KIWV4BI3VCAGLNOPUC4SFY-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/FIL5KIWV4BI3VCAGLNOPUC4SFY-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/FIL5KIWV4BI3VCAGLNOPUC4SFY-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/FIL5KIWV4BI3VCAGLNOPUC4SFY-1536x1014.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/FIL5KIWV4BI3VCAGLNOPUC4SFY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President of Brazil Luiz Inacio Lula da Silva, President of China Xi Jinping, South African President Cyril Ramaphosa, Prime Minister of India Narendra Modi and Russia&#8217;s Foreign Minister Sergei Lavrov pose for a BRICS family photo during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg, South Africa, on August 23, 2023. GIANLUIGI GUERCIA/Pool via REUTERS</figcaption></figure>



JOHANNESBURG, Aug 23 (Reuters)&nbsp;&#8211;&nbsp;China&#8217;s President Xi Jinping called for unity among his BRICS counterparts at a summit in South&nbsp;Africa&nbsp;on Wednesday as he pushed the case for expanding the grouping to face a global &#8220;period of turbulence and transformation&#8221;.



Leaders of the bloc of leading developing nations Brazil, Russia, India, China and South Africa are meeting in Johannesburg with discussions around establishing a framework and criteria for admitting new members topping the agenda.



While all BRICS members have publicly expressed support for growing the bloc, divisions remain over how much and how quickly.



Bloc heavyweight China has long pushed for expansion and views its deteriorating relations with Washington as well as heightened global tensions resulting from the Ukraine war as adding urgency to the enlargement project.



&#8220;The world is undergoing major shifts, division and regrouping &#8230; it has entered a new period of turbulence and transformation,&#8221; Xi said.



&#8220;We, the BRICS countries, should always bear in mind our founding purpose of strengthening ourselves through unity.&#8221;



BRICS group countries have economies that are vastly different in scale and governments that often seem to have few foreign policy goals in common, complicating decision-making.



The economy of China for example, is more than 40 times larger than South&nbsp;Africa&#8217;s,&nbsp;Africa&#8217;s most developed country.



Russia, isolated by the United States and Europe over its invasion of Ukraine, is also pushing to quickly grow BRICS and forge it into a counterweight to the West.



Russian President Vladimir Putin, who is wanted under an international arrest warrant for alleged war crimes, sees BRICS membership as a way of showing the West he still has friends.



He did not travel to South Africa but used a video address to attack Western powers.



&#8220;I want to note that it was the desire to maintain their hegemony in the world, the desire of some countries to maintain this hegemony that led to the severe crisis in Ukraine,&#8221; he said.



<h2 class="wp-block-heading" id="h-no-tower-of-babel">NO &#8216;TOWER OF BABEL&#8217;</h2>



South&nbsp;Africa&#8217;s President Cyril Ramaphosa said on Tuesday that he and Xi had similar positions on BRICS expansion.



But pushback has come from Brazil and India, which have both forged closer ties with the West.



Brazil&#8217;s President Luiz Inacio Lula da Silva on Tuesday rejected the idea the bloc should seek to rival the United States and Group of Seven wealthy economies.



While he is pushing for neighbour Argentina to join, he said any new members would need to meet certain conditions, so the group does not become a &#8220;Tower of Babel&#8221;.



Indian Prime Minister Narendra Modi said on Wednesday his country, which is wary of Chinese dominance, fully supported expansion.



However, an Indian official familiar with discussions late on Tuesday between the leaders said Modi indicated &#8220;there have to be ground rules about how it should happen and who can join&#8221;.



India and China periodically clash over their disputed Himalayan border.



<h2 class="wp-block-heading">BREAKING DOLLAR-DOMINANCE</h2>



More than 40 countries have expressed interest in joining BRICS, say South African officials, 22 of whom have formally asked to be admitted.



Details of criteria for joining could be included in a joint declaration due to be finalised on Wednesday.



Beyond the enlargement question, boosting the use of member states&#8217; local currencies in trade and financial transactions to lessen dependency of the U.S. dollar is also on the summit agenda.



South African organisers had said there would be no discussions of a common BRICS currency, an idea floated by Brazil as an alternative to dollar-dependence.



At least 15 potential new member countries &#8211; including Saudi Arabia, Algeria and Argentina &#8211; are under consideration to join the bloc&#8217;s New Development Bank (NDB), its chief financial officer said on Wednesday.



The NDB, which has long tapped China&#8217;s capital market for funding, is registering an Indian rupee bond programme worth $2.5 billion over five years, after it issued its first South African rand bond last week.



(Reporting Carien du Plessis in Johannesburg and Krishn Kaushik in New Delhi; Additional reporting by Rachel Savage in Johannesburg; Writing by Joe Bavier; Editing by Emelia Sithole-Matarise)

BRICS Summit in Johannesburg

China’s Xi calls for BRICS unity as bloc weighs expansion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" 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="auto, (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>



Aug 23 (Reuters)&nbsp;&#8211;&nbsp;Most emerging market currencies were subdued on Wednesday with investors cautious ahead of the U.S. Federal Reserve chair&#8217;s speech this week, while South&nbsp;Africa&#8217;s rand rallied after data showed inflation slowed in&nbsp;Africa&#8217;s largest economy.



The MSCI&#8217;s index for EM currencies&nbsp;.MIEM00000CUS&nbsp;was flat at 0900 GMT, while the stocks index&nbsp;.MSCIEF&nbsp;inched 0.1% higher.



The South African randZAR= extended gains to a fifth straight day against the dollar and was last up 0.6%, after headline consumer inflation fell to 4.7% year-on-year in July from 5.4% in June.



&#8220;While Deputy Governor Tshazibana said that it&#8217;s not &#8216;a solid pause&#8217; when the South&nbsp;African Reserve Bank (SARB) left the policy rate unchanged at 8.25% in July, it&#8217;s reasonable to argue that finding a majority for more rate hikes could be even more difficult when the SARB meets on Sept. 21,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets.



South Africa and China also signed deals covering emissions technology, electricity transmission and distribution, and nuclear power on the sidelines of a summit in Johannesburg where leaders of the BRICS nations &#8211; Brazil, Russia, India, China and South Africa &#8211; are meeting.



This is part of the government&#8217;s efforts to end record power cuts, with Electricity Minister Kgosientsho Ramokgopa saying one of the deals would see Chinese companies share technology to help South&nbsp;Africa&#8217;s struggling state utility Eskom cut emissions from its coal-fired power plants.



The Russian roubleRUBUTSTN=MCX weakened against the dollar, ahead of three OFZ treasury bond auctions, while oil major Lukoil&#8217;s sharesLKOH.MM shed 1% after Tuesday&#8217;s sharp gains on a report that it could buy back a chunk of shares at a 50% discount.



The BRICS summit could impact Russian assets, especially as member states look to boost the use of their local currencies.



Also on top of the agenda at this year&#8217;s summit is a potential expansion of the bloc, with some hoping to forge it into a counterweight to Western dominance of global institutions.



The New Development Bank of the BRICS group of nations is registering an Indian rupee bond programme worth $2.5 billion over 5 years, its CFO Leslie Maasdorp said during a panel discussion



China&#8217;s blue-chip CSI 300 Index .CSI300 and the Shanghai Composite Index .SSEC fell more than 1% each as investors stayed cautious amid a deepening crisis in the country&#8217;s real estate sector and as a raft of share buybacks did little to boost confidence.



Chinese President Xi Jinping said on Tuesday at the BRICS summit that China&#8217;s economy was resilient and that the fundamentals for its long-term growth remained unchanged.



Also in focus, Argentine Economy Minister Sergio Massa said he expects the International Monetary Fund (IMF) board to approve the latest reviews of its huge loan program on Wednesday, unlocking $7.5 billion that the embattled country desperately needs.



Investors eyed a rate decision by Zambia&#8217;s central bank later in the day. 



(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Devika Syamnath)

Illustration photo of South African rand

South African rand rises for fifth day after inflation data

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LLVUAHTV3NLQ7P347F4XF4ZL5Y-820x615.jpg" alt="" class="wp-image-426942" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LLVUAHTV3NLQ7P347F4XF4ZL5Y-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LLVUAHTV3NLQ7P347F4XF4ZL5Y-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LLVUAHTV3NLQ7P347F4XF4ZL5Y-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LLVUAHTV3NLQ7P347F4XF4ZL5Y-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LLVUAHTV3NLQ7P347F4XF4ZL5Y-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/LLVUAHTV3NLQ7P347F4XF4ZL5Y-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view of the Sandton Convention Centre, which will host the upcoming BRICS Summit, in Johannesburg, South Africa August 19, 2023. REUTERS/James Oatway</figcaption></figure>



JOHANNESBURG, Aug 23 (Reuters)&nbsp;&#8211;&nbsp;South&nbsp;Africa&nbsp;and China on Wednesday signed deals covering emissions technology, electricity transmission and distribution, and nuclear power on the sidelines of the BRICS summit.



The agreements are part of the South&nbsp;African government&#8217;s efforts to end record power cuts that are a major constraint on economic growth.



Electricity Minister Kgosientsho Ramokgopa&nbsp;said one of the deals would see Chinese companies share technology to help&nbsp;South&nbsp;Africa&#8217;s struggling&nbsp;state utility Eskom cut emissions from its coal-fired power plants.



Other agreements would see&nbsp;Chinese firms help Eskom upgrade its power transmission and distribution infrastructure,&nbsp;and share expertise on nuclear power.



The summit of the BRICS group of emerging economies &#8211; comprising Brazil, Russia, India, China and South&nbsp;Africa&nbsp;&#8211; runs from Tuesday to Thursday in Johannesburg, South&nbsp;Africa&#8217;s biggest city and commercial capital. BRICS members are seeking to use the summit to forge the grouping into a&nbsp;counterweight to Western dominance&nbsp;of global institutions.



(Reporting by Promit Mukherjee; Writing by Nellie Peyton; Editing by Alexander Winning)

South Africa prepares to host the BRICS Summit 2023, in Johannesburg

South Africa, China sign power deals during BRICS summit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/Zimbabweans-vote-but-hopes-of-ending-economic-freefall-appear-dim-820x547.jpg" alt="" class="wp-image-426934" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/Zimbabweans-vote-but-hopes-of-ending-economic-freefall-appear-dim-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/Zimbabweans-vote-but-hopes-of-ending-economic-freefall-appear-dim-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/Zimbabweans-vote-but-hopes-of-ending-economic-freefall-appear-dim-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/Zimbabweans-vote-but-hopes-of-ending-economic-freefall-appear-dim-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/Zimbabweans-vote-but-hopes-of-ending-economic-freefall-appear-dim-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/Zimbabweans-vote-but-hopes-of-ending-economic-freefall-appear-dim-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People queue to cast their vote in a general election at Kuwadzana school in Harare, Zimbabwe, August 23, 2023. REUTERS/Philimon Bulawayo</figcaption></figure>



HARARE, Aug 23 (Reuters) &#8211; Zimbabweans voted on Wednesday with many citizens desperate for change after two decades of relentless economic chaos but sceptical that the ruling ZANU-PF party will allow a credible election or any loosening of its stranglehold on power.



President Emmerson Mnangagwa is seeking re-election after a first term during which runaway inflation, currency shortages and sky-high unemployment made life a misery for Zimbabweans, many of whom rely on U.S. dollar remittances from relatives abroad to make ends meet.



The cash-strapped country&#8217;s chances of resolving a debt crisis that prevents it from accessing World Bank and International Monetary Fund loans are at stake, as foreign lenders have said a free and fair election is a pre-condition for any meaningful talks on the issue.



Mnangagwa, who took over when longtime strongman Robert Mugabe was toppled in a 2017 military coup, faces 10 other candidates including his main challenger, lawyer and pastor Nelson Chamisa of the Citizens Coalition for Change (CCC).



It is the second contest between the two after Mnangagwa won a closely contested poll in 2018, which the opposition alleged was rigged. The country&#8217;s constitutional court upheld Mnangagwa&#8217;s election.



Polls opened at 7 a.m. (0500 GMT) and were due to close at 7 p.m. (1700 GMT). Some 6.6 million people are registered to vote in the nation of about 15 million.



At Sherwood Primary School in the city of Kwekwe, where Mnangagwa is registered to vote and will cast his ballot later, dozens of voters lined up from 6 a.m. and chatted in hushed tones waiting for voting to start.



Communal farmer Beatrice Sibanda, 65, said: &#8220;I want a better life for my children. They need jobs. I hope that after voting life will become better.&#8221;



In the capital Harare, in the Kuwadzana constituency where Chamisa will vote, people also said they were hungry for change.



&#8220;We are struggling and hungry. I have five grand-children that I am taking care of. I&#8217;m fortunate that I own a house and can shelter them as their fathers don&#8217;t work,&#8221; said Mabel Fambi, a 67-year-old grandmother.



Vote-counting will start as soon as polling stations close, and parliamentary results are expected to trickle in over the course of Thursday morning. The presidential result is expected to come later, though well ahead of a five-day deadline.



LITTLE CHANGE SINCE MUGABE ERA



Political analysts say Zimbabwe&#8217;s unending economic maelstrom could tip the contest in favour of the opposition if the election is clean.



The local currency has weakened by about 85% since the start of the year and inflation has reached triple digit levels, pushing people further into poverty in a country where only 30% hold formal jobs.



But analysts say ZANU-PF, which has been in power for more than four decades, has an unfair advantage as it wields control over the police and other key institutions.



&#8220;The electoral playing field is heavily skewed in favour of the ruling party, which has used state institutions to close the democratic space,&#8221; said Africa Risk Consulting, a private firm, in a pre-election note.



&#8220;Five years into Mnangagwa&#8217;s rule, conditions have not changed much from the Mugabe era,&#8221; it said.



ZANU-PF and the police deny seeking to influence the outcome.



&#8220;I have told the Zimbabwe Electoral Commission that what happened in 2018 cannot be repeated. We will not accept a rigged vote,&#8221; Chamisa said at his last campaign rally on Monday.



Mnangagwa has repeatedly called for peace and tolerance in his campaign speeches.



&#8220;We will deal with those who want to perpetrate violence,&#8221; he told supporters on Saturday in Shurugwi, more than 300 km (190 miles) south of Harare.



To win the presidency, a candidate must get more than 50% of the vote. If there is no outright winner, a run-off between the top two candidates will be held on Oct. 2.



Parliamentary and local council candidates only need a simple majority of votes cast.



(Editing by Olivia Kumwenda-Mtambo, Estelle Shirbon and Giles Elgood)

People queue to cast their vote in a general election in Harare

Zimbabweans vote but hopes of ending economic freefall appear dim

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/YDYZX4ZVNJL6FDJC447KPRUA6E-820x547.jpg" alt="" class="wp-image-426925" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/YDYZX4ZVNJL6FDJC447KPRUA6E-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/YDYZX4ZVNJL6FDJC447KPRUA6E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/YDYZX4ZVNJL6FDJC447KPRUA6E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/YDYZX4ZVNJL6FDJC447KPRUA6E-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/YDYZX4ZVNJL6FDJC447KPRUA6E-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/YDYZX4ZVNJL6FDJC447KPRUA6E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Brazil&#8217;s President Luiz Inacio Lula da Silva gestures during a ministerial meeting to celebrate the first 100 days of his government at the Planalto Palace in Brasilia, Brazil, April 10, 2023. REUTERS/Ueslei Marcelino/File Photo</figcaption></figure>



JOHANNESBURG, Aug 22 (Reuters)&nbsp;&#8211;&nbsp;Brazilian President Luiz Inacio Lula da Silva said on Tuesday that the BRICS bloc of nations aims to organise the developing Global South and is not meant to rival the United States and the Group of Seven (G7) wealthy economies.



His comments point to a divergence of vision as leaders of the bloc &#8211; Brazil, Russia, India, China and South&nbsp;Africa&nbsp;&#8211; arrived in Johannesburg for a summit that will weigh&nbsp;expanding the group&nbsp;as some members push to forge it into a&nbsp;counterweight to the West.



Heightened global tensions provoked by the Ukraine war and Beijing&#8217;s growing rivalry with the United States have pushed China and Russia &#8211; whose President Vladimir Putin will attend the meeting virtually &#8211; to seek to strengthen the BRICS bloc.



Their vision of an expanded BRICS capable of rivaling U.S. and European global dominance has, however, been met with skepticism by some members. And the outcome of the debate over enlargement could determine the future of a bloc long criticised for a lack of cohesion.



&#8220;We do not want to be a counterpoint to the G7, G20 or the United States,&#8221; Brazil&#8217;s Lula&nbsp;said on Tuesday&nbsp;during a social media broadcast from Johannesburg. &#8220;We just want to organise ourselves.&#8221;



Summit host South&nbsp;Africa&nbsp;welcomed China&#8217;s Xi Jinping, the leading proponent of enlarging BRICS, for a state visit on Tuesday morning ahead of meetings with the grouping&#8217;s other leaders planned for later in the day.



&#8220;I am confident that the upcoming summit will be an important milestone in the development of the BRICS mechanism,&#8221; Xi said shortly after his arrival in South&nbsp;Africa.



South&nbsp;African President Cyril Ramaphosa said during a bilateral meeting with Xi that their two countries had &#8220;similar views&#8221; regarding expansion.



&#8220;We share your view, President Xi, that BRICS is a vitally important forum which plays an important role in the reform of global governance and in the promotion of multilateralism and cooperation throughout the world,&#8221; he said.



Indian Prime Minister Narendra Modi are also attending the Aug. 22 to 24 summit.



Putin, who is wanted under an international arrest warrant for alleged war crimes in Ukraine, will not travel to South&nbsp;Africa.



Beyond the enlargement question, boosting the use of member states&#8217;&nbsp;local currencies&nbsp;is also on the summit agenda. South&nbsp;African organisers, however, say there will be no discussions of a BRICS currency, an idea&nbsp;floated by Brazil&nbsp;earlier this year as an alternative to dollar-dependence.



<h2 class="wp-block-heading" id="h-point-of-contention">POINT OF CONTENTION</h2>



BRICS remains a disparate group, ranging from China, the world&#8217;s second biggest economy now grappling with a slowdown, to South&nbsp;Africa, an economic minnow facing a power crisis that&#8217;s led to daily blackouts.



Russia is being hammered by sanctions over its war in Ukraine is keen to show the West it still has friends.



India, however, has increasingly reached out to the West, as has Brazil under its new leader.



Two members &#8211; India and China &#8211; have periodically clashed along their disputed border, adding to the challenge of decision-making in a group that relies on consensus.



Expansion has long been a goal of China, which hopes that broader membership will lend clout to a grouping already home to some 40% of the world&#8217;s population and a quarter of global GDP.



The leaders will hold a mini-retreat and dinner on Tuesday evening where they are likely to discuss a framework and criteria for admitting new countries.



Russia is keen to bring in new members.



India, which is wary of Chinese dominance and has warned against rushing expansion, has&nbsp;&#8220;positive intent and an open mind&#8221;, Foreign Secretary Vinay Kwatra said on Monday. Brazil, meanwhile, is concerned that&nbsp;expanding BRICS will dilute&nbsp;its influence, though Lula reiterated on Tuesday his desire to see neighbour Argentina join the bloc.



While a potential BRICS enlargement remains up in the air, the grouping&#8217;s pledge to become a champion of the developing world and offer an alternative to a world order dominated by wealthy Western nations is already finding resonance.



Over 40 countries&nbsp;have expressed interest in joining BRICS, say South&nbsp;African officials. Of them, nearly two dozen have formally asked to be admitted, with some expected to send delegations to Johannesburg.



(Reporting by Bhargav Acharya in Johannesburg and Gabriel Araujo in Sao Paulo; Additional reporting by Carien du Plessis in Pretoria; Writing by Joe Bavier; Editing by Andy Sullivan, William Maclean and Emelia Sithole-Matarise)

FILE PHOTO: Brazil’s President Luiz Inacio Lula da Silva gestures during a ministerial meeting to celebrate the first 100 days of his government, in Brasilia

BRICS no rival to G7 and G20, Brazil’s Lula says as bloc meets

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="558" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/7FMDQ53H2BPVLPAMNW2QH3B4SY-820x558.jpg" alt="" class="wp-image-426921" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/7FMDQ53H2BPVLPAMNW2QH3B4SY-820x558.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/7FMDQ53H2BPVLPAMNW2QH3B4SY-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/7FMDQ53H2BPVLPAMNW2QH3B4SY-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/7FMDQ53H2BPVLPAMNW2QH3B4SY-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/7FMDQ53H2BPVLPAMNW2QH3B4SY-1536x1046.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/7FMDQ53H2BPVLPAMNW2QH3B4SY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Eskom&#8217;s logo is seen at the Megawatt Park in Sunninghill, South Africa, May 18, 2023. REUTERS/ Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Aug 22 (Reuters)&nbsp;&#8211;&nbsp;South&nbsp;Africa&#8217;s Treasury has paid 16 billion rand ($852 million) to heavily indebted power utility Eskom, the first tranche of a debt relief package that will wipe off more than half its liabilities, acting CEO Calib Cassim said on Tuesday.



The Treasury offered a total of 254 billion rand to the state-owned company in February so it can pay its debts to global financial institutions, which currently top 423 billion rand.



Analysts view the offer as a crucial lifeline to help Eskom cope with a cash crunch that has hobbled its ability to tackle daily power blackouts across South&nbsp;Africa.



&#8220;We have received the first drawdown in terms of the Eskom debt relief bill,&#8221; Cassim told Reuters on the sidelines of the BRICS summit, adding it would help the company meet its debts on maturity.



He added the payment came in at the end of July, and the next tranche was expected in October.



Corruption, cost overruns, and widespread theft of coal and transmission line materials have conspired with unrealistically low tariffs to almost bankrupt&nbsp;Africa&#8217;s biggest power company.



The government handouts come at a huge cost for the country: Eskoms&#8217;s total debt is almost equal to the total national budget for education, and more than the spending on health or social development.



So that Eskom does not get itself into more debt, Cassim said the relief package stipulated that Eskom cannot take out any further loans for the next four years. The Treasury had previously said the restriction was for three years.



A consequence of this is that Eskom will not be able to get any of the $8.5 billion that was committed to South Africa by wealthy nations at U.N. climate talks in November 2021 for its transition to clean energy.



Part of those loans were meant for the company to shut down its coal-fired plants, and Cassim said it wasn&#8217;t clear how or when Eskom would access this funding.



&#8220;We should not lose the opportunity of tapping into those things available to us as a country,&#8221; he said.



($1 = 18.7769 rand)



(Reporting by Promit Mukherjee; Editing by Tim Cocks and Mark Potter)

FILE PHOTO: South Africa’s Eskom says power cuts could increase to higher level

South African power utility Eskom gets $850 mln tranche of state help with debts

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



JOHANNESBURG, Aug 22 (Reuters)&nbsp;&#8211;&nbsp;South&nbsp;Africa&#8217;s rand jumped 1% on Tuesday after some risk appetite returned to markets due to falling U.S. Treasury yields, as the country kicked off the first day of the BRICS summit of emerging economies in Johannesburg.



At 1129 GMT, the rand traded at 18.7925 against the dollar&nbsp;ZAR=D3, about 0.88% stronger than its previous close.



The dollar&nbsp;=USD&nbsp;last traded flat against major peers.



The rand jumped as much as 1% earlier in the day on the back of increased risk appetite as U.S. Treasury yields fell, Danny Greeff, co-head of&nbsp;Africa&nbsp;at ETM Analytics, told Reuters.



&#8220;For the (rand) bulls to remain in charge of the market in the coming days, U.S. Treasury yields would need to continue falling, or at least not rise further,&#8221; Greeff added.



South&nbsp;Africa&nbsp;will host the leaders of Brazil, India and China for the Tuesday-to-Thursday summit, while Russian President Vladimir Putin will join virtually.



Putin is not travelling to South&nbsp;Africa&nbsp;because of an international arrest warrant for alleged war crimes in Ukraine.



The BRICS summit &#8220;is unlikely to provide the market with significant or sustainable momentum until the bloc adopts implementable policies,&#8221; Greeff said.



Leaders will consider expanding membership of the BRICS grouping, as some members hope to position the bloc as a counterweight to the West.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index&nbsp;.JTOPI&nbsp;was last trading around 0.6% higher from Monday&#8217;s close.



South&nbsp;Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was also firmer, with the yield down 5.5 basis points to 10.480%.



(Reporting by Tannur Anders; Editing by Bhargav Acharya and Mark Potter)

South African Rand coins are seen in this illustration picture

South African rand jumps on falling U.S. yields; BRICS summit kicks off

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107289246-1692614151535-gettyimages-1258280832-AFP_33GJ7AG-820x547.jpeg" alt="" class="wp-image-426914" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107289246-1692614151535-gettyimages-1258280832-AFP_33GJ7AG-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107289246-1692614151535-gettyimages-1258280832-AFP_33GJ7AG-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107289246-1692614151535-gettyimages-1258280832-AFP_33GJ7AG-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107289246-1692614151535-gettyimages-1258280832-AFP_33GJ7AG-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107289246-1692614151535-gettyimages-1258280832-AFP_33GJ7AG-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107289246-1692614151535-gettyimages-1258280832-AFP_33GJ7AG-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A labourer sorting out onions at a vegetable market in New Delhi on May 30, 2023. (Photo by Arun SANKAR / AFP) (Photo by ARUN SANKAR/AFP via Getty Images) Arun Sankar | Afp | Getty Images</figcaption></figure>



With India slapping a 40% export tax on onions on the back of higher domestic prices of the vegetable, analysts are considering the global impact, especially on major importers.



The new levy announced Saturday acts to ensure domestic availability and cool inflation, and is effective immediately until December 31, according to the country’s Ministry of Finance.



Retail prices of onions in India have risen around 20% year-on-year, averaging at around 30.72 Indian rupees (37 cents) per kilogram on Aug. 19, compared to 20.44 rupees in the same period last year, data from India’s Department of Consumer Affairs shows.



<h2 class="wp-block-heading" id="h-export-taxes">Export taxes</h2>



“High rainfall in the month of July 2023 in key producing regions of Maharashtra and Karnataka led to damage to the stored onion crops,” said Pushan Sharma, director of research at CRISIL Market Intelligence and Analytics, an Indian research firm which is a subsidiary of S&amp;P Global.



According to the Indian Meteorological Department, several parts of India were battered by rainfall during July.



Meanwhile, India’s inflation numbers for July hit a 15-month high of 7.44% compared to a year ago, largely attributed to the spike in domestic food costs. In April, prices of onions had dropped 32.2% year-on-year on the back of oversupply as a result of early crop maturation, according to a Mintec report published April.



But now the South Asian nation is currently wrestling with high vegetable, fruit and grain prices. Prices of tomatoes in India previously surged more than 300% due to adverse weather. India’s government in July also banned the exports of non-basmati white rice in a bid to ensure sufficient domestic supplies.



“The government would like to rein [in] prices and ensure sufficient availability in the domestic market. The late onset of monsoon has also affected the current onion crop,” said Samarendu Mohanty, Asian regional director of agricultural firm International Potato Center (CIP).



Bangladesh, Malaysia, Sri Lanka and parts of the Middle East rely on India for onion and the taxes will raise the prices of onions for these countries, he told CNBC.



India is the world’s largest exporter of onions, and contributes over 12% of global onion trade, data provided by CRISIL showed.



“Global onion prices are likely to get a positive price cue on account of India’s decision,” Sharma said.



However, he noted that the price hike is expected to be short lived, until October, where more onion crops are expected to come into the market.



Onions are an integral staple in India, and used in traditional South Asian dishes such as biryani. Alongside tomatoes and potatoes, the three vegetables form a part of the nation’s CPI basket. In 2019, India banned the exports of onions after a reduced harvest due to excessive rainfall.

107289246-1692614151535-gettyimages-1258280832-AFP_33GJ7AG

Global onion prices could be set to rise with India slapping an export tax on domestic production

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/PPA7LZHDAZIPJMJ7KHMLZAMWME-820x536.jpg" alt="" class="wp-image-424992" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/PPA7LZHDAZIPJMJ7KHMLZAMWME-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/PPA7LZHDAZIPJMJ7KHMLZAMWME-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/PPA7LZHDAZIPJMJ7KHMLZAMWME-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/PPA7LZHDAZIPJMJ7KHMLZAMWME-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/PPA7LZHDAZIPJMJ7KHMLZAMWME-1536x1003.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/PPA7LZHDAZIPJMJ7KHMLZAMWME-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows the logo of South Africa&#8217;s central reserve bank, at the reserve bank offices in Pretoria, South Africa, January 26, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



The South African Reserve Bank is likely to leave its repo rate unchanged this year before kicking off a cutting cycle in early 2024, chopping 25 basis points in every quarter as inflation slows closer to its comfort level, a Reuters poll found.



If this happens, South Africa’s Reserve Bank will join a list of emerging market central banks that have either already begun cutting rates or will embark on a loosening path after tightening to brake inflation long before many developed nations.



In a survey conducted in the past week, 17 of 20 economists predicted the repo rate would be kept steady next month at 8.25%, with 16 of them seeing no change again in November. Two economists predicted a September hike of 25 basis points while the other one saw a 50 basis points lift.



However, the poll suggests the Sarb will cut rates by 25 basis points as early as January or March and again in every subsequent quarter next year.



Investec chief economist Annabel Bishop said the United States is expected to cut interest rates next year and the Sarb is expected to do the same, potentially from Q1 24 for South Africa’s repo rate.



Bishop added that easing inflation, and potentially flat to lower interest rates next year would be a positive for households. There are risks, however, to the largest component of the CPI, food prices, due to the combination of climate change and El Nino conditions.



A sister poll suggested the US Federal Reserve is likely done raising interest rates and a slight majority of economists surveyed now expect the central bank to wait at least through end-March before cutting them.



In South Africa, inflation is expected to slow further in the coming months and average 4.9% next year from 5.9% this year and then fall to 4.6% in 2025. The South African Reserve Bank wants inflation between 3% and 6%.



Economic growth is expected to be 0.3% this year and 1.2% in 2024.



“In terms of the South African growth drivers in 2024, lower interest rates and inflation will help, but we think the major driver of improved growth will be faster private sector fixed investment, fuelled by green-energy-related capex,” said Hugo Pienaar, chief economist at the Bureau for Economic Research.



Growth has been hobbled by state power utility Eskom’s inability to transmit electricity during a slow ramp up of alternative power sources such as solar and wind energy.



Amid daily power cuts, Eskom is saddled with a massive debt burden forcing it to tread a thin line between allocating capital for regular maintenance and capital expenditure on its fleet of ageing, coal-fired power plants.

South Africa trims rate hikes as power cuts slash growth prospects

Sarb to kick off easing cycle early next year: economists

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/XBZDXHNKFBPULJS2ZNZW3KMJLU-820x615.jpg" alt="" class="wp-image-426905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/XBZDXHNKFBPULJS2ZNZW3KMJLU-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/XBZDXHNKFBPULJS2ZNZW3KMJLU-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/XBZDXHNKFBPULJS2ZNZW3KMJLU-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/XBZDXHNKFBPULJS2ZNZW3KMJLU-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/XBZDXHNKFBPULJS2ZNZW3KMJLU-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/XBZDXHNKFBPULJS2ZNZW3KMJLU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A person walks past the Sandton Convention Centre, which will host the upcoming BRICS Summit, in Johannesburg, South Africa August 19, 2023. REUTERS/James Oatway/File Photo</figcaption></figure>



JOHANNESBURG, Aug 22 (Reuters) &#8211; Leaders of the BRICS nations &#8211; Brazil, Russia, India, China and South Africa &#8211; are due to open a summit in Johannesburg on Tuesday where they will weigh expanding membership as some members push to forge the bloc into a counterweight to the West.



Heightened global tensions provoked by the Ukraine war and a growing rivalry between China and the United States have added urgency to a drive to strengthen the bloc, which has at times suffered from internal divisions and a lack of coherent vision.



&#8220;An expanded BRICS will represent a diverse group of nations with different political systems that share a common desire to have a more balanced global order,&#8221; South&nbsp;Africa&#8217;s president, Cyril Ramaphosa, said in an address ahead of the meetings.



Boosting the use of member states&#8217; local currencies is also on the agenda. South African summit organisers, however, say there will be no discussions of a BRICS currency, an idea floated by Brazil earlier this year as an alternative to dollar-dependence.



Ramaphosa will host Chinese President Xi Jinping, Brazil&#8217;s Luiz Inacio Lula da Silva and Indian Prime Minister Narendra Modi from Aug. 22 to 24.



Russian President Vladimir Putin, wanted under an international arrest warrant for alleged war crimes in Ukraine, will not travel to South Africa and instead join virtually.



<h2 class="wp-block-heading" id="h-read-more-brics-summit-2023-what-s-likely-to-be-discussed">Read more: <a href="https://www.cnbcafrica.com/2023/brics-summit-2023-whats-likely-to-be-discussed/">BRICS summit 2023: What’s likely to be discussed?</a></h2>



Expansion has long been a goal of bloc heavyweight China, which hopes that broader membership will lend clout to a grouping already home to some 40% of the world&#8217;s population and a quarter of global GDP.



The leaders will hold a mini-retreat and dinner on Tuesday evening where they are likely to discuss a framework and criteria for admitting new countries.



But expansion has become a point of contention.



Russia is keen to bring in new members to counter its diplomatic isolation over its invasion of Ukraine. South&nbsp;Africa&nbsp;has also voiced support.



India, which is wary of Chinese dominance and has warned against rushing expansion, has &#8220;positive intent and an open mind&#8221;, Foreign Secretary Vinay Kwatra said on Monday. Brazil, meanwhile, is concerned that growing BRICS will dilute its influence.



While a potential BRICS enlargement remains up in the air, the bloc&#8217;s pledge to become a champion of the developing &#8220;Global South&#8221; and offer an alternative to a world order dominated by wealthy Western nations is already finding resonance.



Over 40 countries have expressed interest in joining BRICS, say South African officials. Of them, nearly two dozen have formally asked to be admitted.



(Reporting by Bhargav Acharya; Writing by Joe Bavier; Editing by Andy Sullivan)

FILE PHOTO: South Africa prepares to host the BRICS Summit 2023, in Johannesburg

BRICS leaders meet in South Africa as bloc weighs expansion

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



Aug 21 (Reuters)&nbsp;&#8211;&nbsp;Emerging market equities sank to two-month lows on Monday, as the latest stimulus measures from China disappointed investors, while Turkish banks slumped after the central bank rolled back a scheme that protects deposits against falls in the lira.



The MSCI&#8217;s EM equities index&nbsp;.MSCIEF&nbsp;fell 0.4% &#8211; its eighth straight day in the red and longest losing streak since April 2022.



Heavyweight stocks of Shanghai .SSEC, .CSI300 and Hong Kong .HSI slumped more than 1%, with China&#8217;s blue-chip index .CSI300 hitting a nine-month low after the country&#8217;s central bank cut its one-year benchmark lending rate by a smaller-than-expected 10 basis points and kept the five-year rate unchanged. .SS



The yuan&nbsp;CNH=D3&nbsp;weakened by about 0.2% to 7.32 per dollar in offshore trading.



&#8220;At the current juncture, deeper rate cuts and RRR cuts could be seen as concrete moves that are necessary to help restore confidence, even though they may not lead to stronger credit and economic growth soon,&#8221; Commerzbank strategist Ulrich Leuchtmann said in a note.



&#8220;Admittedly, rate cuts will lead to larger interest rate differentials vis-a-vis the U.S. and most major economies, posing further downward pressure on the CNY initially. However, should more forceful stimulus be seen as effective in putting a floor to economic growth, the pressure on the CNY could also be alleviated.&#8221;



Most other Asian stock markets were mixed, though equities in central Europe&nbsp;.WIG20,&nbsp;.BETI&nbsp;and South&nbsp;Africa&nbsp;.JTOPI&nbsp;rebounded after losses last week.



Turkish banks .XBANK fell 3.7%, lagging the country&#8217;s benchmark index .XU100, after the central bank began rolling back a costly scheme that protects lira deposits from FX depreciation, marking another move toward more orthodox policies.



The central bank is widely expected to raise interest rates later this week, its third hike under Governor Hafize Gaye Erkan, who has vowed to continue with &#8220;gradual and steady rate hikes&#8221;. The central bank last week forecast year-end inflation at about 60%, up from 43.8% in July.



Further, investors will keep a close eye on the central bankers gathering at Jackson Hole, Wyoming, later this week, for clues on where U.S. interest rates will settle after a series of aggressive hikes.



EM currencies have come under pressure recently due to surging Treasury yields and a stronger dollar following signs of resilience in the U.S. economy and bets that borrowing costs there could remain elevated for longer.



The Turkish lira&nbsp;TRYTOM=D3&nbsp;slid to a fresh record low of 27.165 per dollar, but most other currencies stabilised.



Focus will also be on a summit of the BRICS group of major emerging economies &#8211; Brazil, Russia, India, China and South&nbsp;Africa&nbsp;&#8211; in Johannesburg between Aug. 22 and Aug. 24.



(Reporting by Sruthi Shankar in Bengaluru; editing by Eileen Soreng)

World map with charts and graphs as symbols of global finance

China, Turkish banks send EM stocks on longest losing run in over a year

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-820x547.jpg" alt="" class="wp-image-426336" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/WM23DAP7ZZIDHDPYXPH2BB7XJM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Bola Tinubu, President of Nigeria, arrives for the closing session of the New Global Financial Pact Summit, Friday, June 23, 2023 in Paris, France. Lewis Joly/Pool via REUTERS/File Photo</figcaption></figure>



ABUJA, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;Nigerian President Bola Tinubu swore in ministers to his cabinet on Monday, nearly three months after his inauguration.



The new cabinet will have to confront sluggish growth, caused by a previous collapse in oil prices that weakened the naira&nbsp;NGN=D1&nbsp;currency, slashed government revenues and drove up inflation.



The government must also deal with large-scale crude oil theft and insecurity in the country, and win back foreign investors who fled as currency controls were introduced in 2016.



Tinubu, 71, who is also the chairman of regional bloc ECOWAS, is also working with other heads of government in West Africa to find a solution to the crisis in Niger where a military junta has seized power.



Tinubu, who took office on May 29, won a disputed presidential election in February, which is being challenged by his main opponents in court.



He has embarked on some of the boldest reforms that Nigeria has seen in years, including scrapping a popular but costly petrol subsidy and removing exchange rate restrictions. The naira has weakened to record lows.



The reforms are a gamble to try to kick-start growth but inflation has soared, worsening a cost of living crisis for Africa&#8217;s most populous nation, a big headache for Tinubu and his new ministers.



Tinubu, 71, appointed former investment banker Olawale Edun as finance minister and coordinating minister for the economy. He named Heineken Lokpobiri as junior minister of petroleum and Ekperipe Ekpo as junior minister of gas resources.



A main petroleum minister has yet to be appointed, spokesman Ajuri Ngelale said.



(Reporting by Felix Onuah, Writing by Chijioke Ohuocha, Editing by Angus MacSwan)

FILE PHOTO: Summit for a new global financing pact takes place in Paris

Nigeria’s Tinubu swears in cabinet ministers amid concerns over slow growth, insecurity

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/6T2L6YSXFRMVDPQU3CSGFZE2GI-1-820x547.jpg" alt="" class="wp-image-426881" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/6T2L6YSXFRMVDPQU3CSGFZE2GI-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/6T2L6YSXFRMVDPQU3CSGFZE2GI-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/6T2L6YSXFRMVDPQU3CSGFZE2GI-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/6T2L6YSXFRMVDPQU3CSGFZE2GI-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/6T2L6YSXFRMVDPQU3CSGFZE2GI-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/6T2L6YSXFRMVDPQU3CSGFZE2GI-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view of logo of New Development Bank (NDB) at its headquarters in Shanghai, China July 10, 2023. REUTERS/Aly Song/File Photo</figcaption></figure>



JOHANNESBURG, Aug 21 (Reuters) &#8211; An expansion of the BRICS bloc under consideration at a summit this week has attracted a motley crew of potential candidates &#8211; from Iran to Argentina &#8211; with one thing in common: a desire to level a global playing field many consider rigged against them.



The list of grievances is long. Abusive trade practices. Punishing sanctions regimes. Perceived neglect of the development needs of poorer nations. The wealthy West&#8217;s domination of international bodies, such as the United Nations, the International Monetary Fund or the World Bank.



Amid widespread dissatisfaction with the prevailing world order, the pledge of BRICS nations &#8211; currently Brazil, Russia, India, China and South Africa &#8211; to make the grouping a leading champion of the &#8220;Global South&#8221; has, despite a dearth of concrete results, found resonance.



Over 40 countries have expressed interest in joining BRICS, say officials from South Africa, which is hosting the Aug. 22-24 summit. Of them, nearly two dozen have formally asked to be admitted.



&#8220;The objective necessity for a grouping like BRICS has never been larger,&#8221; said Rob Davies, South Africa&#8217;s former trade minister, who helped usher his country into the bloc in 2010.



&#8220;The multilateral bodies are not places where we can go and have an equitable, inclusive outcome.&#8221;



Observers, however, point to an underwhelming track record they say does not bode well for BRICS&#8217;s prospects of delivering on the lofty hopes of prospective members.



Though home to some 40% of the world&#8217;s population and a quarter of global GDP, the bloc&#8217;s ambitions of becoming a global political and economic player have long been thwarted by internal divisions and a lack of coherent vision.



Its once booming economies, notably heavyweight China, are slowing. Founding member, Russia, is facing isolation over the Ukraine war. President Vladimir Putin, wanted under an international arrest warrant for alleged war crimes, will not travel to Johannesburg and only join virtually.



&#8220;They may have over-inflated expectations of what BRICS membership will actually deliver in practice,&#8221; said Steven Gruzd from the South African Institute of International Affairs.



<h2 class="wp-block-heading" id="h-developing-world-discontent">DEVELOPING WORLD DISCONTENT</h2>



While BRICS has not divulged a full list of expansion candidates, a number of governments have publicly stated their interest.



Iran and Venezuela, punished and ostracised by sanctions, are seeking to reduce their isolation and hope the bloc can offer relief to their crippled economies.



&#8220;Other integration frameworks existing on a global level are blinded by the hegemonic vision pushed by the U.S. government,&#8221; Ramón Lobo, the former finance minister and central bank governor of Venezuela, told Reuters.



Gulf states Saudi Arabia and the United Arab Emirates see BRICS as a vehicle for a more prominent role within global bodies, analysts say.



African candidates Ethiopia and Nigeria are drawn by the bloc&#8217;s commitment to reforms at the United Nations that would give the continent a more powerful voice. Others want changes at the World Trade Organization, International Monetary Fund and World Bank.



&#8220;Argentina has insistently called for a reconfiguration of the international financial architecture,&#8221; an Argentine government official involved in the negotiations to join BRICS told Reuters.



<h2 class="wp-block-heading">&#8216;MUCH TALK, LESS ACTION&#8217;</h2>



BRICS public positions already reflect many of these concerns.



And as it seeks to become a counterweight to the West, amid China&#8217;s tensions with the United States and the fallout of Russia&#8217;s invasion of Ukraine, growing its membership could lend the bloc and its global reform message more clout.



In the run-up to the summit, however, the grouping&#8217;s shortcomings are in the spotlight.



While BRICS leaders at the summit are expected to discuss a framework for admitting new members with China and Russia keen to forge ahead with expansion, others, notably Brazil, are worried about rushing the process.



The tangible benefits to joining, meanwhile, are waning.



The bloc&#8217;s most concrete achievement, the New Development Bank, or &#8220;BRICS bank&#8221;, has seen its already sluggish pace of lending further hobbled by sanctions against founding member Russia.



Small countries hoping for an economic boost from BRICS membership might look to South Africa&#8217;s experience.



Its BRICS trade has indeed increased steadily since it joined, according to an analysis by the country&#8217;s Industrial Development Corporation.



But that growth is largely down to imports from China, and the bloc still accounts for just a fifth of South Africa&#8217;s total two-way trade. Brazil and Russia together absorb a mere 0.6% of its exports and by last year, South Africa&#8217;s trade deficit with its BRICS partners had ballooned four-fold to $14.9 billion compared to 2010.



Such outcomes should give candidate nations pause, Gruzd said.



&#8220;Concrete achievements for BRICS are difficult to find. Lots of talk. Much less action.&#8221;



(Additional reporting by Lucinda Elliott in Montevideo, Deisy Buitrago in Caracas, Yousef Saba in Dubai, Gustavo Palencia in Tegucigalpa, Lamine Chikhi in Algiers and Ahmed Eljechtimi in RabatEditing by Tomasz Janowski)

New Development Bank (NDB) headquarters in Shanghai

BRICS expansion hopefuls seek to rebalance world order

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107286480-1692078407337-gettyimages-1236477975-Beijing_CBD_Night_View-820x462.jpeg" alt="" class="wp-image-426877" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107286480-1692078407337-gettyimages-1236477975-Beijing_CBD_Night_View-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107286480-1692078407337-gettyimages-1236477975-Beijing_CBD_Night_View-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107286480-1692078407337-gettyimages-1236477975-Beijing_CBD_Night_View-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107286480-1692078407337-gettyimages-1236477975-Beijing_CBD_Night_View-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/107286480-1692078407337-gettyimages-1236477975-Beijing_CBD_Night_View.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A night view of the Central Business District in Beijing, China, Nov 10, 2021. Future Publishing | Future Publishing | Getty Images</figcaption></figure>



China’s central bank cut its one-year loan prime rate Monday, while leaving its five-year rate unchanged. These decisions are weaker than expectations for more muscular policy intervention following a raft of data that pointed to faltering growth momentum in the world’s second-largest economy.



The People’s Bank of China trimmed its one-year loan prime rate — the peg for most household and corporate loans in China — by 10 basis points from 3.55% to 3.45%, just shy of the 15 basis points that a majority of economists expected in a Reuters poll. This was the second time China has cut this rate in three months.



The PBOC left its five-year loan prime rate — the peg for most mortgages — unchanged at 4.2%, while economists expected a 15 basis point cut due to default risks from festering liquidity woes in the country’s property sector. Country Garden is on the verge of default, while Evergrande filed last week for bankruptcy protection in a Manhattan court.



“The underwhelming LPR announcement strengthens our view that the PBOC is unlikely to embrace the much larger rates cuts that would be required to revive credit demand,” Julian Evans-Pritchard, Capital Economics’ head of China, wrote in a note.



“Hopes for a stimulus-led turnaround in economic activity largely depend on the prospect of greater fiscal support,” he added.



On Monday, the Hang Seng Index sank by as much as nearly 1.8% to touch its lowest levels since late November, and the China Enterprises Index of the largest offshore listings in Hong Kong each sank by as much as 1.9%. The CSI 300 index of mainland-listed blue chips was by as much as 1%.



Monday’s actions follow surprise cuts to its short- and medium-term lending rates last Tuesday after a raft of economic data pointed to weak credit growth and emerging deflation risks, intensifying fears of a rapidly slowing economy. Missed payments on some shadow banking-linked trust products are further spooking investors.



The PBOC said Sunday that China will coordinate financial support to resolve local government debt risks and reduce systemic risks, while also looking to “adjust and optimize” credit policies for the property sector and lower financing costs for the economy.



Last week, the PBOC lowered the rate on 401 billion yuan ($55.25 billion) worth of one-year medium-term lending facility loans&nbsp;to some financial institutions by 15 basis points to 2.50% from 2.65% previously. Overnight, seven-day, and one-month standing lending facility rates were each trimmed by 10 basis points to 2.65%, 2.8% and 3.15%, respectively.

107286480-1692078407337-gettyimages-1236477975-Beijing_CBD_Night_View

China’s central bank trims 1-year rate, but unexpectedly leaves 5-year rate unchanged

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-820x548.jpg" alt="" class="wp-image-426864" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/IFNY65FOTJO4XHZDYY2W2UMXWQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A motorist drives on the Nairobi Expressway undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, in Nairobi, Kenya May 20, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Aug 18 (Reuters)&nbsp;&#8211;&nbsp;Kenya is aiming to boost its economic growth rate in the next four years, the finance ministry said on Friday, with plans to invest in the farming sector and small businesses to help create jobs and cut poverty.



The authorities in the East African country are trying to boost growth to reduce unemployment, which affects millions of people, while making the economy more inclusive.



&#8220;It is a deliberate agenda to lift those at the bottom of the pyramid,&#8221; Finance Minister Njuguna Ndung&#8217;u told reporters.



But the government faces a host of challenges, including a surge in living costs, rising debt repayments, a weakening currency and widespread corruption.



Under the finance ministry&#8217;s medium-term development plan, launched on Friday, the economy is expected to grow by a minimum of 7.2% by 2027.



Last year, growth slowed to 4.8% due to a severe drought, and the government expects it to rebound to 5.5% this year.



The country&#8217;s budget deficit fell to 4.4% of gross domestic product in this fiscal year, and the plan is to cut it further to 3.9% in the 2024/25 financial year, the finance ministry said.



The deficit reduction is expected to provide scope for the government to fund projects in priority sectors like farming and small businesses, Ndung&#8217;u said.



It has also been substituting local borrowing with cheaper loans from multilateral institutions like the World Bank and African Export &amp; Import Bank (Afreximbank), the minister said, to free up credit to the private sector.



&#8220;Credit is the grease that oils the wheels of the private sector,&#8221; he said.



(Reporting by Duncan Miriri; Editing by Jane Merriman)

Shadow of Kenya’s borrowing binge to hang over next president

Kenya aims to speed up economic growth to help small businesses, create jobs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="526" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/UNXPTNGYARKUTLTTXSEHAFTDMI-1-820x526.jpg" alt="" class="wp-image-426860" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/UNXPTNGYARKUTLTTXSEHAFTDMI-1-820x526.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/UNXPTNGYARKUTLTTXSEHAFTDMI-1-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/UNXPTNGYARKUTLTTXSEHAFTDMI-1-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/UNXPTNGYARKUTLTTXSEHAFTDMI-1-768x492.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/UNXPTNGYARKUTLTTXSEHAFTDMI-1-1536x985.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/UNXPTNGYARKUTLTTXSEHAFTDMI-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Smoke rises from chimneys at Hwange Power station in Hwange, Zimbabwe, October 19, 2021. Picture taken October 19, 2021 REUTERS/Philimon Bulawayo</figcaption></figure>



HARARE, Aug 18 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe will allow developers of carbon credits to keep as much as 70% of the proceeds for the first decade of the project, with 30% paid as an environmental levy, the government said in regulations published on Friday.



Environment minister Mangaliso Ndlovu moved against what he called &#8220;climate washing&#8221; in May, saying the government would take 50% of carbon project revenue, with 20% on top of that going to communities, in a move that surprised global markets.



The government said at the time that carbon credit projects were largely unregulated and needed to be registered with authorities within two months.



The global $2 billion voluntary carbon offset market involves companies buying credits from emission-reducing projects such as renewable energy or tree planting to offset their own emissions.



&#8220;All existing carbon credit projects deemed null and void shall be given 60 days&#8230; to comply with the provisions,&#8221; the new regulations document said.



&#8220;From the eleventh year of the project, the share of proceeds shall be renegotiated taking into account the prevailing circumstances,&#8221; it said.



The government did not immediately comment on the latest regulations.



(Reporting by Nyasha Chingono; Writing by Rachel Savage; Editing by Mark Potter)

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featured

India’s moon landing made history at a low cost

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South Africa, China sign power deals during BRICS summit

Zimbabweans vote but hopes of ending economic freefall appear dim

BRICS no rival to G7 and G20, Brazil’s Lula says as bloc meets

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Sarb to kick off easing cycle early next year: economists

BRICS leaders meet in South Africa as bloc weighs expansion

China, Turkish banks send EM stocks on longest losing run in over a year

Nigeria’s Tinubu swears in cabinet ministers amid concerns over slow growth, insecurity

BRICS expansion hopefuls seek to rebalance world order

China’s central bank trims 1-year rate, but unexpectedly leaves 5-year rate unchanged

Kenya aims to speed up economic growth to help small businesses, create jobs

Zimbabwe to take 30% of carbon credit revenue

News Tips

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