<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4000" height="2667" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/4RI6JH2DCRIBTOTEG67K23A2OM.avif" alt="" class="wp-image-591756"/><figcaption class="wp-element-caption">An American flag and USAID flag fly outside the USAID building in Washington, D.C., U.S., February 1, 2025. REUTERS/Annabelle Gordon/File Photo</figcaption></figure>



LONDON/JOHANNESBURG/GENEVA, (Reuters) &#8211; U.S.-funded projects worldwide, including those providing lifesaving care for millions of people in countries such as Sudan and South Africa, received termination notices on Thursday sending shockwaves across the global aid community.



The latest cancellations come as U.S. President Donald Trump&#8217;s administration nears completion of a review to ensure that grants are aligned with his &#8220;America First&#8221; agenda after ordering a 90-day pause on all foreign aid in January to assess whether projects were consistent with his policy aims.



U.S. Secretary of State Marco Rubio had dismissed concerns that Washington was ending foreign aid, saying waivers had been provided to life-saving services.



Only weeks later, the Trump administration decided to terminate more than 90% of the U.S. Agency for International Development programmes, according to a February 25 court document. Those included many that were initially covered by waivers such as work addressing HIV as well as wider health programmes. It is unclear whether the projects can be reinstated.



Major United Nations health programmes were among those to get termination notices, including UNAIDS, the Stop TB Partnership and Scaling Up Nutrition as well as projects helping millions of forcibly displaced people.



&#8220;We are hit, but we will continue to be there,&#8221; Lucica Ditiu, Stop TB&#8217;s executive director, said.



Ditiu said that the group has different sources of funding it would use for procuring TB tests and treatments, but that it would have to terminate contracts with 140 partners around the world, many of which provide services including helping TB patients get diagnosed and stay on treatment.



<h2 class="wp-block-heading" id="h-egregious-breaches">&#8216;EGREGIOUS BREACHES&#8217;</h2>



Charlotte Slente, secretary general of the Danish Refugee Council, said she was appalled after receiving more than 20 termination notices for projects across a range of countries including Sudan, Yemen and Colombia.



&#8220;Not only are these terminations egregious breaches of contracts, but they endanger the lives of millions of the world&#8217;s most vulnerable people,&#8221; Slente said, adding that the decision would hit forcibly displaced people in conflict zones.



&#8220;While it is understood that incoming governments want to review their overseas development assistance, the decisions from the U.S. government over the last month are abrupt and unilateral, and the rationale for these are unfathomable,&#8221; Slente added.



A global non-profit with projects on malaria and newborn health, among other areas, said the majority of its contracts had been cancelled. Smaller organisations were also hit, such as Khana in Cambodia, a TB and HIV organisation, and many organisations working on HIV and AIDS in South Africa.



UNAIDS on its website called the termination of its relationship with USAID a &#8220;serious development&#8221; that would affect lifesaving services, and said it had asked the U.S. government for more information.



Reuters was not immediately able to determine how many organisations worldwide were affected. Trump&#8217;s administration also eliminated nearly 30% of State Department foreign assistance grants, worth $4.4 billion.



The State Department did not respond to a question on why life-saving aid programs were terminated.



&#8220;Secretary Rubio and (USAID) Deputy Administrator (Peter) Marocco have determined your award is not aligned with Agency priorities and made a determination that continuing this program is not in the national interest,&#8221; said the notice received by organisations, which was seen by Reuters.



For some groups, USAID represents the majority of their funding, and they will struggle to survive, while for others it is only one of many donors.



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



International AIDS Society President Beatriz Grinsztejn, referring to cuts worldwide, said: &#8220;The U.S. funding cuts are dismantling the system. HIV treatment is crumbling. TB services are collapsing.&#8221;



In South Africa, which has the world&#8217;s largest number of people living with HIV at around 8 million, health experts said the cuts could roll back years of progress on the epidemic.



&#8220;We will see lives lost. We are going to see this epidemic walk back as a result of this,&#8221; said Linda-Gail Bekker, chief operating officer of the Desmond Tutu HIV Foundation, which works with many organisations that were affected.



Bekker said she expected a funding cut for programmes targeting specific groups such as LGBT+ people and sex workers, but in fact the cuts are far-reaching and include HIV/AIDS prevention and treatment programmes for women and children.



The United States provides about 17% of South Africa&#8217;s HIV/AIDS budget, and health experts said this funding was crucial for providing testing and getting new patients on treatment.



&#8220;The programmes who received their termination letters this morning were among the most efficient, effective health delivery programmes in the country,&#8221; said Francois Venter, executive director of the Ezintsha Research Centre in Johannesburg, which is not funded by USAID, calling it a &#8220;devastating blow&#8221; for South Africa&#8217;s HIV response.



Nonprofit Humanity &amp; Inclusion had more than 30 contracts with the U.S. government to provide services to hundreds of thousands of people with disabilities in multiple countries. Over the past 36 hours, the organisation received notice that about half of those contracts had been cancelled, said its U.S. executive director Hannah Guedenet.



&#8220;If you want to cut funding,&#8221; Guedenet said &#8220;&#8230; there&#8217;s a way to responsibly do that. And that is not what&#8217;s being done. This is complete disregard for human life.&#8221;



US Supreme Court allows Trump&#8217;s freeze of foreign aid funding temporarily.



(Reporting by Nellie Peyton in Johannesburg, Jennifer Rigby in London, Emma Farge in Geneva and Humeyra Pamuk in Washington; Editing by Andrew Heavens and Will Dunham)

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Services to millions of people collapse as USAID cuts contracts worldwide

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/PHOTO-2025-02-27-16-12-22-820x574.jpg" alt="" class="wp-image-591492" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/PHOTO-2025-02-27-16-12-22-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/PHOTO-2025-02-27-16-12-22-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/PHOTO-2025-02-27-16-12-22-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/PHOTO-2025-02-27-16-12-22-768x538.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/PHOTO-2025-02-27-16-12-22.jpg 1280w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Former African Development Bank Senior Vice President Swazi Tshabalala says she is ready to help transform Africa by prioritising infrastructure development and a greater role for the continent’s private sector if she is elected president next May.



South African Tshabalala is the only woman among the five candidates vying to lead the only financial institution rated triple AAA by the three major rating agencies. She is competing against Zambia’s Samuel Maimbo, Senegal’s Amadou Hott, Mauritania’s Sidi OuldTah and Chad’s Abbas Mahamat Tolli.



“Swazi Tshabalala is an exceptional leader with a proven track record in finance, infrastructure, and economic development,’’ South African Finance Minister Enoch Godongwana said in a statement backing her candidacy. ‘’Her extensive experience at the African Development Bank and beyond makes her the ideal candidate to lead the institution into a new era of financial resilience and impact-driven growth.’’



Africa’s premier finance institution elects a new President on May 29 replacing Nigeria’s Akinwumi Adesina who completes his 10-year term later in the year. Under Adesina, the AfDB championed Africa’s agriculture as a unique investment opportunity and last month launched an $8 billion World Bank-backed drive to provide power to 300 million Africans.



Tshabalala had been with the AfDB since 2018, rising to the position of Senior Vice President from 2021. Before that she held leadership roles at Old Mutual Employee Benefits, Standard Bank Group and Transnet, South Africa’s transport parastatal. From 2006 to 2014, she served as the CEO of the Industrial Development Group.



&#8220;Africa stands at a pivotal moment, and the African Development Bank must rise to meet the continent’s ambitions with bold, strategic action,’’ Tshabalalala said in a statement. ‘’My vision is to build a financially strong, results-driven AfDB that prioritises infrastructure, expands innovative financing solutions, and strengthens partnerships to unlock Africa’s full economic potential.’’



To win the AfDB presidency, a candidate needs a majority vote of both the African shareholders, who own 60 percent of the bank, and non-African shareholders referred to as non-regional members, who hold the rest.

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South Africa’s Tshabalala declares African Development Bank president candidacy

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_M2VBBFZHORKF5D3SKT6QNJABKI.avif" alt="" class="wp-image-591410"/><figcaption class="wp-element-caption">South African President Cyril Ramaphosa and Singapore Prime Minister Lee Hsien Loong (not pictured) attend a media briefing and signing ceremony at Tuynhuys to strengthen the bilateral relationship between the two countries in Cape Town, South Africa, May 16, 2023. REUTERS/Esa Alexander</figcaption></figure>



JOHANNESBURG, Feb 27 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa said on Thursday that he wanted to &#8220;do a deal&#8221; with U.S. President Donald Trump to resolve a dispute over his country&#8217;s land policy and genocide case against Israel at the World Court.



Trump cut U.S. financial assistance to South Africa in an executive order this month, citing disapproval of its approach to land reform and the International Court of Justice (ICJ) case against Washington&#8217;s close ally.



Ramaphosa told a conference organised by U.S. bank Goldman Sachs in Johannesburg that he wanted the &#8220;dust to settle&#8221; after the executive order but that the longer-term goal was to go to Washington to mend relations.



&#8220;We don&#8217;t want to go and explain ourselves. We want to go and do a meaningful deal with the United States on a whole range of issues,&#8221; Ramaphosa said. &#8220;I&#8217;m very positively inclined to promoting a good relationship with President Trump.&#8221;



Ramaphosa did not say what the deal could involve, only that it could touch on trade, diplomatic and political matters.



South Africa is not hugely dependent on U.S. aid, but some fear its preferential trade status under the U.S. African Growth and Opportunity Act (AGOA) could be under threat with Trump in the White House.



The country tries to project itself as non-aligned in geopolitical conflicts, not tying its interests too closely to those of rival powers the United States, China and Russia.



But Trump has cited the ICJ case as an example of South Africa taking positions against Washington and its allies.



(Additional reporting by Sfundo Parakozov and Bhargav Acharya; Writing by Alexander Winning; Editing by Sharon Singleton)

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South African leader wants to do a deal with Trump to resolve dispute

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3435" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/KHRWUMTKIBJ67ODN3A5LCDNGMI.avif" alt="" class="wp-image-591376"/><figcaption class="wp-element-caption">Ethiopia&#8217;s Prime Minister Abiy Ahmed speaks during the opening of the 38th Ordinary Session of the Assembly of the Heads of State and Government of the African Union at the African Union Commission (AUC) headquarters in Addis Ababa, Ethiopia, February 15, 2025. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



MOGADISHU, Feb 27 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s Prime Minister Abiy Ahmed arrived in Somalia&#8217;s capital Mogadishu on Thursday to hold discussions with President Hassan Sheikh Mohamud, Somalia&#8217;s presidency said, following a thaw in icy relations.



The relationship soured in January 2024 when Ethiopia announced plans to lease a stretch of coastline in Somalia&#8217;s breakaway Somaliland region.



Ethiopia planned to build a naval base and commercial port in exchange for possible recognition of Somaliland&#8217;s independence.



Somalia accused Ethiopia of undermining its territorial integrity, threatened to eject its peacekeepers, and strengthened ties with Ethiopia&#8217;s arch foes Egypt and Eritrea.



Mogadishu airport was hit by at least one mortar shell shortly before Abiy&#8217;s plane landed on Thursday, despite all roads around the high security complex being closed, four local residents and media said.



The two countries agreed to resolve the dispute at talks mediated by Ankara in December, pledging to find commercial arrangements to allow landlocked Ethiopia &#8220;reliable, secure and sustainable access to and from the sea.&#8221;



They also agreed to begin technical negotiations by the end of February.



&#8220;This visit marks a significant step toward strengthening the diplomatic ties between Somalia and Ethiopia, as the two leaders are scheduled to engage in discussions on key bilateral and regional matters of mutual interest,&#8221; Somalia&#8217;s presidency posted on X.



The two men smiled as they shook hands on the airport tarmac, surrounded by people waving flags of the two neighbouring countries, according to photographs shared by the presidency.



Abiy&#8217;s trip comes a month after Mohamud visited Addis Ababa.



Somalia has been in the grip of a long-running insurgency by Islamist al-Shabaab militants who have been fighting to overthrow the fragile central government.



(Reporting by Feisal Omar; Writing by Hereward Holland; Editing by Ammu Kannampilly and Christina Fincher)

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Ethiopia’s Abiy visits Somalia for talks with President Mohamud

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TIXMZFP7UVKXJH4F5XABAAHGSM.avif" alt="" class="wp-image-591347"/><figcaption class="wp-element-caption">An aerial view of Shaft 11 at Impala Platinum Mine, in Rustenburg, South Africa, November 28, 2023. REUTERS/Shafiek Tassiem/File photo</figcaption></figure>



Feb 27 (Reuters)&nbsp;&#8211;&nbsp;Impala Platinum (Implats)&nbsp;IMPJ.J&nbsp;could wind down its palladium mine in Canada earlier than planned if there is no immediate recovery in metal prices, CEO Nico Muller said after a 43% slump in first-half profit.



Palladium has registered the sharpest price decline of all platinum group metals (PGM), plunging from its March 2022 peak of about $3,440 an ounce to current levels around $921.



Muller said that Implats could close the Canada mine before the end of its remaining two years, but no final decision has been taken yet.



&#8220;I would not be surprised if, in the course of the next few months we come to a position that an accelerated and responsible wind down of that operation seems to be economically the most effective way to deal with (Impala) Canada,&#8221; Muller said on a media call.



First half profit slid to 1.85 billion rand ($100.15), hit by lower metal prices, prompting the miner to scrap dividend payments.



Muller also said that Implats is assessing some of South African mines that are struggling to make a profit.



($1 = 18.4725 rand)



(Reporting by Nelson Banya and Felix Njini; Editing by Jamie Freed, Sherry Jacob-Phillips and David Goodman)

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Impala considers early closure of Canadian palladium mine after price rout

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/434MNVWY65PJ5OEA3LY6KZZLTM.avif" alt="" class="wp-image-591306"/><figcaption class="wp-element-caption">A man walks at the Cape Town International Convention Centre during day two of the four day G20 Finance Ministers meeting in Cape Town, South Africa, February 25, 2025. REUTERS/Nic Bothma</figcaption></figure>



CAPE TOWN, (Reuters) &#8211; Japan told its G20 counterparts that free, open and rules-based trade was important to sustain global economic growth, a senior finance ministry official told reporters on the sidelines of a gathering of the group&#8217;s finance leaders on Wednesday.



Japan also called on G20 members to take &#8220;highly predictable&#8221; economic policies and bear in mind the spillovers its policies could have on other countries, the official said, warning of the negative impact policy uncertainty could have on private-sector activity.



The official made the remarks after attending the first day of the G20 finance leaders&#8217; gathering in Cape Town.



A number of finance ministers skipped the G20 gathering, and other top officials curtailed trips to a meeting marred by disputes over the main issues of climate, debt and inequality.



The absence of U.S. Treasury Secretary Scott Bessent complicated policymakers&#8217; task of seeking clues on how Washington&#8217;s threats of higher tariffs could affect the global economy and financial markets.



(Reporting by Leika Kihara; Writing by Tannur Anders; Editing by Alexander Winning and Alex Richardson)

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Japan tells G20 free, open trade crucial for global growth

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="720" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/ARNJJH4SMJLM3BEO2HJWOMQPTY.avif" alt="" class="wp-image-590908"/><figcaption class="wp-element-caption">Delegates arrive at the Cape Town International Convention Centre during the G20 Finance Ministers meeting in Cape Town, South Africa February 25, 2025. REUTERS/Nic Bothma</figcaption></figure>



CAPE TOWN, Feb 26 (Reuters)&nbsp;&#8211;&nbsp;South Africa sought to salvage international talks on tackling global poverty on Wednesday as finance chiefs from several leading economies skipped a gathering of Group of 20 nations in Cape Town held against a backdrop of foreign aid cuts.



The two-day meeting comes after the Trump administration announced plans to gut its USAID arm and Britain slashed its aid budget by 40% to divert funds towards defence spending.



Disputes over trade, the Ukraine war and how to tackle climate change have long made it hard for the G20 grouping to make serious progress on global challenges, but the latest no-shows risk further undermining its credibility.



U.S. Treasury Secretary Scott Bessent did not attend. Neither did finance ministers from China, Japan, India and Canada and the European Union&#8217;s top economic official. Others cut short their presence.



&#8220;It is now more important than ever that the members of the G20 work together,&#8221; South African President Cyril Ramaphosa said in opening remarks appealing for multilateral cooperation.



&#8220;It is vital to ensuring that the rights and interests of the vulnerable are not trampled beneath the ambitions of the powerful.&#8221;



The high-profile absences further reduce the chances of agreement on a meaningful communique at the end of the meeting.



There also seemed little hope of major progress on issues that Ramaphosa as host wanted to target: scant climate finance from rich nations and reform of a financial system seen as penalising poor countries, as well as widening inequalities.



&#8220;The absence of key officials at the G20 finance meetings further underscores the diminishing commitment to global poverty reduction at a time when it&#8217;s needed most,&#8221; said Dirk Willem te Velde, Director of the International Economic Development Group at ODI Global, calling the aid cuts &#8220;devastating news&#8221;.



<h2 class="wp-block-heading" id="h-wasted-opportunity">WASTED OPPORTUNITY</h2>



The grouping of the world&#8217;s 20 major economies was formed after the Asian financial crisis in 1999 to improve cooperation in addressing crises that spill across international borders.



G20 countries account for 85% of global gross domestic product and 75% of international trade.



South Africa&#8217;s finance minister Enoch Godongwana said the host appreciated the &#8220;scheduling challenges&#8221; facing some delegations but added: &#8220;The G20 is a year-long process with numerous engagement opportunities.&#8221;



Salvatore Nocerino, aid policy lead of Oxfam, said the non-attendances were particularly unfortunate given that the G20 was being hosted by an African country.



&#8220;It is an opportunity to really address this distrust between the (global) North and South. So I think wasting that is also not smart,&#8221; he said.



U.S. President Donald Trump&#8217;s demands that Europe step up to protect any peace deal in Ukraine and take more responsibility for its own security has forced capitals there to work out how they can ramp up defence spending from stretched budgets.



&#8220;It&#8217;s clear we are facing a more dangerous world, and I will not hide from this reality,&#8221; British finance minister Rachel Reeves said, adding that investment, free trade and reforms remained the best ways of achieving sustainable growth.



South Africa had hoped to make the G20 a platform for putting pressure on rich countries to do more to tackle climate change, and to give more towards poorer countries&#8217; transitions to green energy and adaptation to worsening weather.



Energy Minister Kgosientsho Ramokgopa told Reuters that Trump&#8217;s climate change scepticism would &#8220;reconfigure the conversation&#8221; on green energy.



&#8220;Where it leads is anyone&#8217;s guess,&#8221; he said, adding that some countries might reconsider the scale and pace of their transition from fossil fuels to green energy as a result.



Some analysts said the retreat of the G20&#8217;s biggest economy from the discussions raised questions about its relevance. Others saw an opportunity for moving ahead without the United States.



&#8220;There could very well be synergies between large portions of what&#8217;s left by excluding the U.S. on particular issues,&#8221; said Daniel Silke, director of the Political Futures Consultancy.



&#8220;It&#8217;s an opportunity for South Africa to take its leadership role.&#8221;



(Additional reporting by Wendell Roelf, Duncan Miriri, Tim Cocks and Olivia Kumwenda-Mtambo, Writing by Tim Cocks, Mark John and Joe Bavier; Editing by Bernadette Baum, Timothy Heritage, Emelia Sithole-Matarise and Catherine Evans)

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No-shows, aid cuts mar G20 meet on global poverty

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4289" height="2998" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/BTPP7WMM2NKQNMPBCCJVN5CQ7A.avif" alt="" class="wp-image-591008"/><figcaption class="wp-element-caption">Members of the M23 rebel group ride on a pickup truck as they leave their position for patrols amid conflict between them and the Armed Forces of the Democratic Republic of the Congo (FARDC), in Goma, eastern Democratic Republic of the Congo, January 29, 2025. REUTERS/Stringer/File Photo</figcaption></figure>



NAIROBI, Feb 26 (Reuters)&nbsp;&#8211;&nbsp;International sanctions against Rwanda will reduce the incentive for Kinshasa to engage in peace talks with M23 rebels who have made lightning advances in eastern Congo this year, a proscribed Rwandan minister has said.



&#8220;As they push for sanctions against Rwanda, (Congo&#8217;s president), seeing that Rwanda is being targeted, will refuse to participate in any negotiations,&#8221; James Kabarebe, a Rwandan state minister for foreign affairs, said in a speech on Tuesday.



Rwanda-backed M23 rebels have seized eastern Congo&#8217;s two largest cities over the past month in a conflict that has displaced around half a million people since January.



Last Thursday, the United States Treasury imposed sanctions on Kabarebe for his alleged role as a government liaison to the M23. He didn&#8217;t specifically refer to the sanctions against himself in his comments.



Britain said on Tuesday it would pause some bilateral aid to Rwanda and impose other diplomatic sanctions on Kigali until there was significant progress in ending hostilities and a withdrawal of all Rwandan troops from Congolese territory, estimated by the United Nations to number several thousand.



The European Union said on Monday it would review its agreement with Rwanda for strategic minerals over Kigali&#8217;s links with the rebels.



Rwanda denies providing arms and troops to M23, and says its forces are acting in self defence against the Congolese army and militias hostile to Kigali.



In his speech, Kabarebe also accused Congo&#8217;s President Felix Tshisekedi, who has refused to negotiate with M23, of offering the international community minerals in exchange for sanctions.



Congo&#8217;s presidential spokesperson Tina Salama did not immediately respond to Reuters&#8217; request for comment, but previously said that Tshisekedi has invited U.S. companies to purchase strategic raw materials directly from Kinshasa, rather than materials &#8220;smuggled&#8221; through Rwanda.



African leaders on Monday appointed the former Presidents of Kenya and Nigeria and the ex-Prime Minister of Ethiopia to mediate the ongoing peace process.



A close ally of President Paul Kagame for decades, Kabarebe has played a central part in a string of Rwanda-backed insurgencies in Congo since the mid 1990s.



The region is already reeling from a humanitarian crisis, and the latest conflict has fanned fears of a regional war like those that killed millions between 1996 and 2003, most from hunger and disease.



Eastern and Southern African countries are looking into the possibility of deploying African Union (AU) troops to secure areas controlled by M23, alongside a beefed up U.N. peacekeeping mission.



(Writing by Hereward Holland; Editing by Ammu Kannampilly and Sharon Singleton)

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Rwanda sanctions will undermine push for Congo peace talks, proscribed minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="558" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/XLEI3X4AGVKMNJXN2WUEMRICXI-820x558.jpg" alt="" class="wp-image-590973" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/XLEI3X4AGVKMNJXN2WUEMRICXI-820x558.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/XLEI3X4AGVKMNJXN2WUEMRICXI-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/XLEI3X4AGVKMNJXN2WUEMRICXI-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/XLEI3X4AGVKMNJXN2WUEMRICXI-768x522.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/XLEI3X4AGVKMNJXN2WUEMRICXI-1536x1045.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/XLEI3X4AGVKMNJXN2WUEMRICXI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A worker packs soft drinks at an outlet of retailer Checkers in Johannesburg, South Africa, November 21, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Feb 26 (Reuters)&nbsp;&#8211;&nbsp;South African inflation edged up in January in the first release since the statistics agency updated its consumer price basket, but the headline rate remains near the bottom of the central bank&#8217;s target range.



Inflation rose to 3.2% year on year in January from 3.0% in December, lower than the 3.3% forecast by economists and still well within the South African Reserve Bank&#8217;s range of 3% to 6%.



Annual core inflation, which strips out volatile items, such as food and energy, came in at 3.5% in January, in line with analysts&#8217; expectations.



South Africa&#8217;s central bank has cut interest rates at its last three monetary policy meetings, but its last move in January followed a split decision as it stressed the uncertain global backdrop.



Some analysts think the central bank will soon pause its rate-cutting cycle, though Capital Economics economist Jason Tuvey said in a research note on Wednesday that he thought there was still room for more policy easing.



&#8220;January&#8217;s CPI data will lend support to the idea that price pressures in South Africa have been brought back under control,&#8221; Tuvey wrote.



Nicky Weimar, an economist at Nedbank, said she suspected the central bank would keep its repo rate unchanged on March 20 &#8220;until the inflationary impact of the change in US economic policies becomes clearer&#8221;.



A breakdown by Statistics South Africa showed housing and utilities, food and non-alcoholic drinks, and restaurants and accommodation were among the main contributors to January&#8217;s annual inflation rate.



The statistics agency made changes to goods and services in its consumer inflation basket and updated the weights to reflect changes in spending habits. Items now in the basket include rose wine, air fryers and streaming services.



(Additional reporting by Bhargav Acharya and Tannur Anders; Editing by Alexander Winning and Tomasz Janowski)

FILE PHOTO: A worker packs soft drinks at an outlet of retailer

South Africa inflation edges up in first release since basket update

<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/U2RS4FLSUJI3FK3RB6IWAMD7XI.avif" alt="" class="wp-image-590670"/><figcaption class="wp-element-caption">People shop at a fresh food market in Oyingbo, Lagos, Nigeria December 17, 2021. Picture taken December 17, 2021. REUTERS/Nneka Chile/File Photo</figcaption></figure>



ABUJA, Feb 25 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s economy grew&nbsp;3.84% in the fourth quarter&nbsp;NGGDPQ=ECI&nbsp;of&nbsp;2024, quicker than in the three previous quarters of&nbsp;the year, statistics agency data showed on&nbsp;Tuesday.



Gross domestic product growth was higher than the 3.46% reported in the third quarter, 3.19% in the second and 2.98% in the first quarter.



But the growth rate is still short of the 6% target set by President Bola Tinubu when he took office in mid-2023 in Africa&#8217;s most populous nation.



(Reporting by Elisha Bala-Gbogbo; Editing by Alexander Winning)

U2RS4FLSUJI3FK3RB6IWAMD7XI

Nigeria’s Q4 GDP growth quickens to 3.84% y/y

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/2GXUSHW4L5NUDLFNDCTMKVPUEY.avif" alt="" class="wp-image-590628"/><figcaption class="wp-element-caption">Lesetja Kganyago, Governor of the South African Reserve Bank speaks during an interview on the sidelines of the G20 Finance Ministers meeting at the Cape Town International Convention Centre, Cape Town, South Africa, February 25, 2025. REUTERS/Nic Bothma</figcaption></figure>



CAPE TOWN, Feb 25 (Reuters)&nbsp;&#8211;&nbsp;Global trade tensions and a potential value-added tax hike in South Africa could derail two years of slowing inflation, the country&#8217;s central bank governor said on Tuesday.



Speaking on the sidelines of a meeting of G20 finance officials in Cape Town, Lesetja Kganyago said uncertain trade conditions and retaliatory tariffs could impact South Africa by tightening global financing conditions and affecting its exports.



South Africa&#8217;s G20 presidency has been overshadowed by the prospect of a global trade war since U.S. President Donald Trump&#8217;s return to the White House last month.



Japan&#8217;s finance minister has pulled out of this week&#8217;s G20 finance meeting to focus on trying to pass next year&#8217;s budget, while U.S. Treasury Secretary Scott Bessent is staying away amid a spat between Trump&#8217;s administration and South Africa.



&#8220;One thing looming large is elevated uncertainty by some of the trade measures taken by major economies,&#8221; Kganyago told Reuters in an interview.



&#8220;A combination of those could feed into the domestic price formation process and create a challenge for us where you have both a slowing global economy and a rising inflation profile at the same time,&#8221; he added.



Annual consumer inflation rose for the second month in a row in December, reaching 3.0% in ZACPIY=ECI, but it remains at the bottom end of the South African Reserve Bank&#8217;s target band of 3%-6%.



The bank began cutting interest rates in September last year and has implemented three 25-basis-point cuts&nbsp;ZAREPO=ECI&nbsp;to date. But some analysts believe it may pause its cutting cycle soon due to a deterioration in the global economic backdrop and emerging domestic risks.



Last week South Africa&#8217;s national budget was postponed for the first time in its post-apartheid history after a last-minute disagreement in the ruling coalition over a proposal to raise VAT by 2 percentage points to 17%.



Finance Minister Enoch Godongwana is expected to present a new budget on March 12 without the VAT increase.



Kganyago called the proposal to raise VAT a &#8220;self-inflicted shock,&#8221; adding that if it were implemented the central bank would respond to the second-round effects on inflation.



(Reporting by Kopano Gumbi; Additional reporting by Duncan Miriri; Editing by Alexander Winning and Christina Fincher)

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South African central bank governor says trade and tax policies pose inflation risks

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="377" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/M34ZXN6UKBNUHJLS5HD7NFP7O4.avif" alt="" class="wp-image-590622"/><figcaption class="wp-element-caption">The logo of commodities trader Glencore is pictured in front of the company&#8217;s headquarters in Baar, Switzerland, July 18, 2017. REUTERS/Arnd Wiegmann/File Photo</figcaption></figure>



Feb 25 (Reuters)&nbsp;&#8211;&nbsp;Trading houses Vitol and Glencore will receive $380 million in compensation after their gas supplier, trading firm Taleveras, won a legal battle in a London court against Nigeria’s sole liquefied natural gas (LNG) producer for non-delivery of cargoes, court documents seen by Reuters showed.



The case heard in London&#8217;s High Court and Court of Appeal is the latest in a string of lawsuits brought by buyers against sellers and producers for non-delivery of cargoes after gas rallied from lows plumbed during the COVID pandemic when Russia invaded Ukraine in February 2022.



Taleveras sued Nigerian venture, known as NLNG and involving ShellSHEL.L TotalEnergies TTEF.PA and Eni ENI.MI as partners, four years ago. These three companies are minority shareholders in NLNG, along with the Nigerian state-owned oil company which has 49%. Last week, Taleveras had NLNG&#8217;s appeal rejected, according to an official video of court proceedings.



A full written judgment is due to be released in the coming weeks.



NLNG runs Nigeria’s biggest LNG plant, which covers around 5% of global supply.



NLNG said it was reviewing the ruling and declined further comment. Shell&nbsp;and Eni declined&nbsp;to comment, while TotalEnergies did not respond to a request for comment.



Court proceedings focused on 19 cargoes that NLNG had been due to deliver to Taleveras in 2020-2021.



Taleveras had pre-sold some of these cargoes to Vitol and Glencore, according to court documents.



The trading houses took legal action against Taleveras for non-delivery, leading to a chain of litigation.



The lost appeal means NLNG will need to pay Vitol around $260 million and about $120 million to Glencore, the documents said.



Vitol and Glencore did not respond to requests for comment. It was not clear how much Taleveras would receive on top of $380 million. Taleveras declined to comment.



European benchmark gas prices&nbsp;TRNLTTFMc1&nbsp;swung between 3.63 euros ($4.14) per megawatt-hour in 2020 as demand fell because of the pandemic and 311 euros ($328) per MWh in 2022 after the invasion of Ukraine disrupted supplies to Europe.



When prices soared, some producers cut supply under long-term deals and sold those volumes at higher prices on the spot market instead, triggering a wave of complaints about legality of such actions.



In one such case, Shell SHEL.L and BP BP.L pursued arbitration against Venture Global LNG, a U.S. gas exporter, for failing to supply contracted cargoes. Venture Global cited technical issues at its LNG facilities as the reason for delayed deliveries.



In the case of Taleveras versus NLNG, Reuters could not establish the reasons NLNG cited for delays.



Taleveras was founded in 2004 by Igho Sanomi, one of Nigeria’s independent energy traders. The company is now based in Dubai.



(Reporting by Anna Hirtenstein; Additional reporting by Marwa Rashad and Isaac Anyaogu; Editing by Tomasz Janowski)

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Vitol, Glencore win $380 million award in Nigerian LNG litigation

<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, Feb 25 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s state oil firm NNPC on Tuesday announced a joint venture with Swedish tanker giant Stena Bulk and Nigerian offshore logistics leader Caverton Marine to overhaul maritime transportation in West Africa.



The newly formed company will streamline crude oil, refined products and LNG shipping across West Africa and cater to other oil producers and traders in the region with modern vessels.



The companies did not share financial details of the deal, which was signed last week.



&#8220;By combining our expertise with Stena Bulk and Caverton Marine, we are creating a robust platform that will enhance our domestic refining, import and export capabilities and strengthen Nigeria&#8217;s position in global energy logistics,&#8221; Panos Gliatis, Managing Director of NNPC Shipping, said in a statement.



Erik Hånell, President &amp; CEO of Stena Bulk, said the partnership aligns with the group&#8217;s strategy to expand its presence in key growth markets.



Nigeria boasts Africa&#8217;s largest oil refinery and meets 5% of global LNG demand.



(Reporting by Isaac Anyaogu; Editing by Kirsten Donovan)

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Nigeria’s NNPC, Stena Bulk and Caverton launch new shipping venture

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/KWNFLKVDZBNCHKDHIAWQFVHUEU.avif" alt="" class="wp-image-590584"/><figcaption class="wp-element-caption">The logo of British multinational oil and gas company Shell is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo</figcaption></figure>



LONDON/SINGAPORE, Feb 25 (Reuters)&nbsp;&#8211;&nbsp;Global demand for liquefied natural gas is estimated to rise by around 60% by 2040, driven largely by economic growth in Asia, AI impact and efforts to cut emissions in heavy industries and transportation, Shell said in an annual report on Tuesday.



Demand for natural gas continues to rise globally as the world transitions to cleaner fuels. Industry forecasts LNG demand to reach between 630 million and 718 million metric tons a year by 2040, Shell said in its 2025 annual LNG outlook.



The latest view from the world&#8217;s largest LNG trader is higher than last year&#8217;s forecast, which pegged global LNG demand in 2040 at 625 million to 685 million tons per year.



&#8220;Upgraded forecasts show that the world will need more gas for power generation, heating and cooling, industry and transport to meet development and decarbonisation goals,&#8221; said Tom Summers, Shell&#8217;s senior vice president for LNG marketing and trading.



China, the world&#8217;s top LNG importer, and India are increasing LNG import capacity and gas related infrastructure to meet rising demand, Shell added.



Natural gas imports into China are forecast to rise this year as economic stimulus plans lift industrial demand, although trade tensions with the U.S. may cap growth.



China saw total natural gas imports, including pipeline supply, of 131.69 million tons last year, the highest since at least 2013. Of that volume, 76.65 million tons was LNG, according to its customs data.



In India, the International Energy Agency expects natural gas consumption to jump 60% between 2023 and 2030, doubling the country&#8217;s need for LNG imports, as domestic output is expected to grow much more slowly than demand.



While a young population and economic growth are driving an increase in gas demand in emerging markets Algeria, Egypt, Malaysia and Indonesia, domestic production in those markets is seen declining over the next 15 years by up to 50 million tons, equating to less available gas for export, the report said.



SUPPLY SIDE



To meet rising demand, particularly in Asia, more than 170 million tonnes of new LNG supply is set to be available by 2030, said Shell. The start-up timings of new LNG projects, however, are uncertain, Shell said.



Several LNG projects have seen delays over the past two years due to geopolitical tensions, regulatory hurdles, labour shortages and supply chain bottlenecks, delaying the availability of around 30 million tons of new LNG supply, the size of India&#8217;s LNG imports, to 2028.



In 2024, global LNG trading rose by only 2 million tons to 407 million tons due to constraints on development of new supply, marking the smallest annual increase in the past decade, the report said.



The report showed that anticipated supply during the period was between 7 million and 20 million tons but it undershot even the lowest end of the forecast range.



The report expects Europe&#8217;s LNG demand to grow in 2025 and beyond.



&#8220;Europe will continue to need LNG into the 2030s to balance the growing share of intermittent renewables in its power sector. In the longer term, existing natural gas infrastructure could be used to import bio-LNG or synthetic LNG and be repurposed for the import of green hydrogen,&#8221; the report said.



Significant growth in LNG supply will come from top exporter the United States, potentially reaching 180 million tons a year by 2030 and accounting for a third of global supply.



Analysts expect that together with Qatar’s massive North Field expansion project set to come online in 2026, the United States and Qatar could provide around 60% of global LNG supply by 2035.



(Reporting by Marwa Rashad in London and Emily Chow in Singapore; Editing by Sonali Paul and David Evans)

KWNFLKVDZBNCHKDHIAWQFVHUEU

Shell expects 60% rise in global LNG demand by 2040

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="463" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/2PLENK7UEVP6LHO27XU5VACMUU.avif" alt="" class="wp-image-590509"/><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 30, 2020. REUTERS/Mike Hutchings/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, Feb 25 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand was stable early on Tuesday as U.S. President Donald Trump&#8217;s tariff plans, uncertainty over fiscal policy and stance in the geopolitical arena weighed on U.S. markets.



The rand traded flat at 18.3750 against the dollar&nbsp;ZAR=D3, as of 0649 GMT. The dollar&nbsp;=USD&nbsp;last traded weaker against a basket of currencies.



&#8220;Tariff threats and the risk of counter-tariffs, uncertainty over fiscal policy given the mass retrenchments, and the U.S.&#8217; stance in the geopolitical arena&#8230; appear to be weighing on U.S. markets,&#8221; said ETM Analytics in a research note.



&#8220;Without any market-moving data to trade on, these international developments will guide much of the domestic market&#8217;s direction.&#8221;



South Africa&#8217;s composite leading business cycle indicator ZALEAD=ECI fell 1.8% month on month in December, central bank data showed on Tuesday.



Domestic-focussed investors await January&#8217;s consumer inflation figures&nbsp;ZACPIY=ECI&nbsp;on Wednesday and producer inflation data&nbsp;ZAPPIY=ECI&nbsp;for the same month on Thursday for clues on the health of Africa&#8217;s most industrialised economy.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was slightly stronger in early deals, with the yield down 1 basis point to 9.105%.



(Reporting by Tannur Anders and Sfundo Parakozov; Editing by Rashmi Aich)

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South African rand stable as markets watch Trump policy developments

JOHANNESBURG, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;Google&nbsp;GOOGL.O&nbsp;could be required to pay up to 500 million rand ($27.29 million) a year in compensation to South African media outlets after the country&#8217;s competition watchdog found the tech giant guilty of anti-competitive practices, while Meta&nbsp;META.O&nbsp;and X also face fines.



In provisional findings from a probe into market activities, released on Monday, South Africa&#8217;s Competition Commission said that&nbsp;Google&#8217;s algorithm distorts competition between news media organisations insofar as it overrepresents global news media in South Africa for search and top stories and underrepresents local language and community media.



&#8220;This inequity has materially contributed to the erosion of the media in South Africa over the past 14 years and will continue to do so unless remedied,&#8221; the watchdog&#8217;s report said.



To remedy this, it recommended that&nbsp;Google&nbsp;compensate the South African news media by 300 million to 500 million rand annually for a three to five-year period, &#8220;whilst putting in place changes to search that will sustainably create shared value with the media through increases in referral traffic.&#8221;



The watchdog will publish a final report later this year, with all parties concerned given until April&nbsp;7&nbsp;to submit evidence to support their case.



Google&nbsp;said that it will review the report in detail but disagreed with the claim that it has taken disproportionate value from publishers.



&#8220;In 2023, our products like&nbsp;Google&nbsp;Search and News generated an estimated 350 million rand in referral traffic value for South African publishers while we earned less than 19 million rand from ads displayed next to news queries,&#8221;&nbsp;Google&nbsp;said in a statement.



&#8220;Alongside this, we have invested in products, training and partnerships to support publishers and the broader news ecosystem, and will continue to do so.&#8221;



On social media companies, the Competition Commission recommended Meta-owned Facebook and X stop &#8220;deprioritising South Africa news media posts with links&#8221; in the home feed, For You and Lastestfeed algorithm and restore referral traffic to the media.



It wants Meta and&nbsp;Google&#8217;s YouTube to improve the ability of news media to monetize their content on these platforms through increases in revenue share.



If all these companies fail to implement these remedies within six months after the final report, a 5-10% digital advertising tariff or levy will be imposed, according to the report.



Meta was not immediately available for comment.



The remedies only apply to the South African operations of these companies, the Commission said.



($1 = 18.3215 rand)



(Reporting by Nqobile Dludla; Editing by Susan Fenton)

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Google, Meta face penalties for anti-competitive behaviour towards South African news media

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/ZVW7NKNERBPHZKW4NK6ZSJEQLM.avif" alt="" class="wp-image-590235"/><figcaption class="wp-element-caption">A general view of the cityscape of Addis Ababa, Ethiopia, April 24, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s&nbsp;central bank said on Monday it was conducting a foreign exchange auction for $60 million, with the sale open to all banks.



In July 2024, Ethiopia&#8217;s central bank removed restrictions on the foreign currency market, a crucial step towards securing funding from the International Monetary Fund and making progress on a long-delayed debt overhaul.



The National Bank of Ethiopia said the auction was being held to offset what could become excessive money supply growth.



In December 2023, Ethiopia which is struggling with high inflation and chronic foreign currency shortages, became the third economy on the African continent in as many years to default on its debt.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa; Editing by Andrew Cawthorne and Susan Fenton)

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featured

Services to millions of people collapse as USAID cuts contracts worldwide

South Africa’s Tshabalala declares African Development Bank president candidacy

South African leader wants to do a deal with Trump to resolve dispute

Ethiopia’s Abiy visits Somalia for talks with President Mohamud

Impala considers early closure of Canadian palladium mine after price rout

Japan tells G20 free, open trade crucial for global growth

No-shows, aid cuts mar G20 meet on global poverty

Rwanda sanctions will undermine push for Congo peace talks, proscribed minister says

South Africa inflation edges up in first release since basket update

Nigeria’s Q4 GDP growth quickens to 3.84% y/y

South African central bank governor says trade and tax policies pose inflation risks

Vitol, Glencore win $380 million award in Nigerian LNG litigation

Nigeria’s NNPC, Stena Bulk and Caverton launch new shipping venture

Shell expects 60% rise in global LNG demand by 2040

South African rand stable as markets watch Trump policy developments

Google, Meta face penalties for anti-competitive behaviour towards South African news media

Ethiopia central bank holds $60 million foreign exchange auction

News Tips

Advertise With Us

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