<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-820x547.jpg" alt="" class="wp-image-451705" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The headquarters of the African Development Bank (AfDB) are pictured in Abidjan, Ivory Coast, January 30, 2020.REUTERS/Luc Gnago</figcaption></figure>



JOHANNESBURG, Feb 16 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s economic growth fell to 3.2% last year from 4.1% in 2022, the African Development Bank said on Friday, but it projected higher growth this year for all regions except central Africa.



The AfDB said political instability and China&#8217;s economic slowdown were compounding the shocks of COVID-19 and Russia&#8217;s war in Ukraine.



The final figure for 2023 was below the 3.4% growth the AfDB had forecast in November. It also cut its regional growth estimates for central and north Africa, amid a recession in oil producer Equatorial Guinea and the aftermath of devastating flooding in Libya.



&#8220;The shocks buffeting African economies since 2020 have damaged growth, with long-term implications,&#8221; the bank said in a report.



Despite the shocks buffeting the region, 15 African countries posted economic growth of more than 5% last year, the AfDB said, including Ethiopia, which is restructuring its external debt, Ivory Coast, Democratic Republic of Congo, Mauritius and Rwanda.



The bank forecast faster growth in all regions except for central Africa in 2024, with southern Africa seen as remaining the laggard at 2.2% compared with 5.7% in east Africa.



Southern Africa&#8217;s &#8220;sluggish performance reflects the continued economic stagnation in South Africa,&#8221; the bank said, with the region&#8217;s largest economy, which holds national elections this year, predicted to grow 1.1% in 2024, up from 0.8% last year.



&#8220;This underwhelming economic situation has aggravated the country&#8217;s persistently high unemployment, poverty, and inequality and prevented it from reaping democratic dividends in the 30 years since the end of White minority rule,&#8221; AfDB said.



Nigeria, West Africa&#8217;s largest economy, is set to grow 2.9% in 2024, up 0.4 percentage points from last year as a sharply devalued currency pushes up inflation, exacerbating a cost of living crisis.



In Egypt, high inflation and foreign exchange shortages are forecast to drag growth down to 3.7% this year, versus 4% in 2023.



(Reporting by Rachel Savage;)

The headquarters of the African Development Bank (AfDB) are pictured in Abidjan, Ivory Coast

Africa’s economic growth fell to 3.2% in 2023, says African Devt Bank

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s government said on Thursday that it would buy back more than $1.4 billion of its $2 billion international bond maturing in June, announcing the results of a tender offer it launched last week.



The East African country has been on the radar of investors because they feared it might not be able to repay due to its strained public finances.



This week Kenya sold a new $1.5 billion Eurobond at great cost to fund the buyback of a large portion of the $2 billion bond.



The government said in a regulatory notice that it would buy $1.443 billion in aggregate principal amount of the bond, slightly more than the maximum tender offer it had announced on Tuesday.



It will buy investors&#8217; holdings back at par, or face value.



An accrued interest payment will be paid in addition to the purchase price, the notice said.



Confidence that the Eurobond would be repaid has lifted the local shilling currency KES= in recent days, helping it recover to its strongest level against the dollar since June 2023 on Thursday.



However the double-digit yield Kenya was forced to pay on the $1.5 billion bond sold this week is an indication that it is still seen as risky by investors.



The pressure on the Kenyan government&#8217;s finances has forced it to try to squeeze every shilling it can from taxpayers, angering voters who had supported the current government on the premise it would lower the cost of living.



But it benefits from international backing, including from the International Monetary Fund, which boosted its support programme by $941 million in January.



(Reporting by George Obulutsa and Alexander Winning; Additional reporting by Rachel Savage; Editing by Kirsten Donovan, Andrew Heavens and Alex Richardson)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya to buy back over $1.4 bln of bond that had unnerved investors

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-820x547.jpg" alt="" class="wp-image-428991" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/AIFLZ6H3FJJ7LBTWCWOBKCFBCM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is considering the introduction of state police in its 36 states to bolster its national police force as it struggles to contain widespread violence and insecurity, the information minister said on Thursday.



An Islamist insurgency in the northeast, kidnappings for ransom, deadly farmer-herder clashes in the central belt and separatist and gang violence in the southeast are some of the challenges faced by Nigeria&#8217;s police force.



President Bola Tinubu met the country&#8217;s state governors to discuss insecurity, which is hurting farmers and contributing to high food prices and inflation.



The federal government and the state governments agreed that a state police force was necessary, marking &#8220;a significant shift&#8221; in approach, Information Minister Mohammed Idris told reporters after the meeting.



This is the first time that Nigeria&#8217;s federal and state governments have agreed on the need to set up state police to reinforce the more than 300,000-strong national police force in Africa&#8217;s most populous nation.



Nigerian Police Inspector General Kayode Egbetokun said last year at least 190,000 more officers were needed to secure the country adequately. He said the force was well below the United Nations&#8217; recommended ratio of one police officer to about 450 citizens.



Some states, like Lagos, have annual budgets the size of small African countries, and have long advocated for their own state police, saying this would help combat insecurity.



Ikemesit Effiong of risk consultancy SBM Intelligence said establishing state police would not solve the whole problem.



&#8220;Expanding the police force is one thing, fundamentally reframing the architecture and focus of policing from retribution and state control to investigation and crime prevention is quite another,&#8221; Effiong said.



(Reporting by Felix Onuah; Editing by Ros Russell)

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

Nigeria mulls state policing to combat growing 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/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



ACCRA, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s new finance minister, Mohammed Amin Adam, pledged on Thursday to keep its $3 billion International Monetary Fund (IMF) programme on track as it aims to finish restructuring its overseas debt before an election in December.



President Nana Akufo-Addo replaced Ken Ofori-Atta with Adam, a petroleum economist who was minister of state at the finance ministry, in a cabinet reshuffle after criticism of the ex-banker&#8217;s leadership during the West African country&#8217;s worst economic crisis in a generation.



Ofori-Atta negotiated the IMF bailout loan to address the crisis, which saw inflation and debt servicing costs spiral upwards in 2022. He was, alongside Adam, seeking relief on about $13 billion owed to private bondholders when he was removed.



&#8220;There will not be any delays in the ongoing debt negotiations with bondholders because I have been part of the process,&#8221; Adam, once deputy minister of energy in charge of petroleum, said in a telephone interview.



&#8220;The advisers remain the same and the targets have not changed,&#8221; he said, noting that he was involved in talks from the start.



With national elections approaching in December, some analysts fear the new minister could relax fiscal consolidation to bolster the electoral fortunes of the ruling party.



&#8220;There will be no reversal on the IMF programme of fiscal consolidation. Revenue mobilization will be aggressive, backed by new reforms at the Ghana Revenue Authority,&#8221; Adam said.



He also said spending would be efficient and directly benefit Ghanaians.



&#8220;I am a pro-reform person,&#8221; Adam said. &#8220;And therefore strongly support the structural benchmarks under the IMF programme&#8221;.



The IMF has expressed its support for the new minister.



The World Bank board last month approved $300 million for Ghana, after it reached a deal to restructure $5.4 billion of loans with its official creditors.



Ghana is entitled to a three-part, $900 million Development Policy Operation loan from the World Bank and Adam told a local radio station earlier on Thursday that negotiations for the next disbursement were about to start.



(Reporting by Maxwell Akalaare Adombila, Editing by Rachel Savage, Alison Williams and Alex Richardson)

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

Ghana’s new finance minister pledges to keep IMF programme on track

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders-820x547.jpeg" alt="" class="wp-image-456384" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/The-Elders.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Written by: 



<ul class="wp-block-list">
<li>Mary Robinson, former President of Ireland, and Chair of The Elders</li>



<li>Gordon Brown, former Prime Minister of the United Kingdom</li>



<li>Annie Lennox, Singer-songwriter and political activist</li>



<li>Charles Oppenheimer, grandson of J. Robert Oppenheimer</li>



<li>Ban Ki-moon, Former UN Secretary-General and Deputy Chair of The Elders</li>



<li>Sir Richard Branson, Co-founder, Virgin Group</li>



<li>Christoph Heusgen, Chair of the Munich Security Conference</li>
</ul>



Our world is in grave danger. We face a set of threats that put all humanity at risk. Our leaders are not responding with the wisdom and urgency required.    



The impact of these threats is already being seen: a rapidly changing climate, a pandemic that killed millions and cost trillions, wars in which the use of nuclear weapons has been openly raised. &nbsp;



There could be worse to come. Some of these threats jeopardise the very existence of life on earth. We do not yet know how significant the emerging risks associated with Artificial Intelligence will be.&nbsp;&nbsp;



We are at a precipice. &nbsp;



The signatories of this letter call on world leaders to work together to address these existential threats more decisively. We welcome people of all communities, generations, and political views to join us in asking for courageous decision-making &#8211; for the sake of our common future. &nbsp;



The knowledge and resources to address these challenges exist. But too many of our leaders lack the political will or capability to take decisive action. They seek short-term fixes over long-term solutions.  &nbsp;



In a year when half the world’s adult population face elections, we urge all those seeking office to take a bold new approach. We need long-view leadership from decision-makers who understand the urgency of the existential threats we face, and believe in our ability to overcome them. &nbsp;



Long-view leadership means showing the determination to resolve intractable problems not just manage them, the wisdom to make decisions based on scientific evidence and reason, and the humility to listen to all those affected. Long-view leaders must have the moral strength to address both current concerns and long-term risks, often at the expense of vested interests.  &nbsp;



Such values should be common to all political leaders. But they are woefully missing in so many. We need leaders, women and men, who consistently demonstrate the courage to:  &nbsp;



<ol class="wp-block-list">
<li>Think beyond short-term political cycles and deliver solutions for both current and future generations.  &nbsp;</li>



<li>Recognise that enduring answers require compromise and collaboration for the good of the whole world.  &nbsp;</li>



<li>Show compassion for all people, designing sustainable policies which respect that everyone is born free and equal in dignity and rights. &nbsp;</li>



<li>Uphold the international rule of law and accept that durable agreements require transparency and accountability.   &nbsp;</li>



<li>Commit to a vision of hope in humanity’s shared future, not play to its divided past. &nbsp;</li>
</ol>



These principles of long-view leadership can inform urgent changes in policy. Governments can get to work now to agree how to finance the transition to a safe and healthy future powered by clean energy, relaunch arms control talks to reduce the risk of nuclear war, save millions of lives by concluding an equitable pandemic treaty, and start to build the global governance needed to make AI a force for good, not a runaway risk. &nbsp;



As leaders prepare to gather in New York in September for the UN Summit of the Future, it is time to change direction. The biggest risks facing us cannot be tackled by any country acting alone. Yet when nations work together, these challenges can all be addressed, for the good of us all. &nbsp;



Despite the seriousness of these existential threats, hope remains. Our best future can still lie ahead of us. We call on leaders to take the long view, and show the courage to lead us to that better future.

The-Elders

Open letter calling on world leaders to show long-view leadership on existential threats

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-820x547.jpeg" alt="" class="wp-image-456371" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107350975-1703235128856-gettyimages-1245866118-70395549-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People shopping on Oxford Street in London. Picture date: Thursday December 29, 2022. (Photo by James Manning/PA Images via Getty Images) James Manning &#8211; Pa Images | Pa Images | Getty Images</figcaption></figure>



LONDON — The U.K. economy slipped into a technical recession in the final quarter of last year, initial figures showed Thursday.



The Office for National Statistics said U.K. gross domestic product shrank by 0.3% in the final three months of the year, notching the second consecutive quarterly decline.



Though there is no official definition of a recession, two straight quarters of negative growth is widely considered a technical recession.



Economists polled by Reuters had produced a consensus forecast of -0.1% for the October to December period.



All three main sectors of the economy contracted in the fourth quarter, with the ONS noting declines of 0.2% in services, 1% in production and 1.3% in construction output.



Across the whole of 2023, the British GDP is estimated to have increased by just 0.1%, compared to 2022. For the month of December, output shrank by 0.1%.



U.K. Finance Minister Jeremy Hunt said that high inflation remains “the single biggest barrier to growth,” since it is forcing the Bank of England to keep interest rates firm and stymie economic growth.



“But there are signs the British economy is turning a corner; forecasters agree that growth will strengthen over the next few years, wages are rising faster than prices, mortgage rates are down and unemployment remains low,” he added.



Inflation has come down markedly in the U.K., but remains well above that of the country’s economic peers and the Bank of England’s 2% target, squeezing household finances. The headline consumer price index reading came in at 4% year-on-year in January.



<h3 class="wp-block-heading" id="h-shallow-and-short-lived-recession">‘Shallow and short-lived’ recession</h3>



Marcus Brookes, chief investment officer at Quilter Investors, said that the figures most likely indicate that the recession will be a “potentially shallow and short-lived one that may not reflect the true state of the economy,” which is set to experience a “muted recovery” throughout 2024.



“U.K. GDP contracting in both December and the fourth quarter of 2023 is mainly due to persistently high inflation, structural weaknesses in the labour market and low productivity growth, but also adverse weather conditions,” Brookes said via email.



“These factors affected the performance of the services and construction sectors, which are the main drivers of the U.K. economy.”



He noted that some of these hindrances are temporary and have already started to ease, with the inflation print of January undershooting forecasts for a reacceleration.



“Over the coming months, we expect inflation to fall, potentially easing the pressure on U.K. households, and supporting the recovery of the consumer-driven economy,” Brookes added.



“The key indicator to watch is inflation in the services sector, which accounts for the bulk of the UK’s economic activity and employment and reflects the strength of wage growth and consumer demand, which are crucial for the U.K.’s recovery.”



Neil Birrell, chief investment officer at Premier Miton Investors, said Thursday’s figure and the softer-than-expected inflation data “may give rise to some concern over economic strength in the coming year.”



“Most sectors of the economy were weak, but the optimists will point to the fact that there is plenty of scope to cut interest rates should the current trend in inflation and growth accelerate.”

107350975-1703235128856-gettyimages-1245866118-70395549

UK economy slipped into technical recession at the end of 2023

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



JOHANNESBURG, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Senegal&#8217;s diversified funding sources mean it could be better placed than some countries to navigate investor concerns sparked by political uncertainty, after President Macky Sall delayed a presidential election, the International Monetary Fund said.



A significant portion of Senegal&#8217;s funding is on concessional terms, and a planned reduction in issuing more expensive syndicated loans will minimise its dependence on volatile private debt, a spokesperson for the fund said in emailed comments.



The abrupt postponement of the Feb. 25 vote until December plunged the once-stable country into crisis, intensifying a backlash against what many see as a bid to extend Sall&#8217;s mandate and undermine one of the remaining democracies in coup-hit west Africa.



Three people were killed and around 270 reportedly detained during the protests that swept the capital Dakar and several other Senegalese cities late last week, raising fears of protracted unrest.



&#8220;Recent political developments in Senegal have created some uncertainty, potentially impacting investor confidence and economic activity,&#8221; the IMF spokesperson said.



&#8220;While potential investor caution could lead to higher interest rates and tighter financial conditions, &#8230; Senegal may be better positioned than some to navigate potential investor concerns due to its diversified and less volatile funding sources.&#8221;



In a December report, the IMF noted that Senegal had borrowed more in 2023 to cover its 2024 financing needs, &#8220;in order to avoid interest rate spikes as the 2024 presidential elections approach&#8221;.



That caution could pay dividends.



&#8220;Senegal does not plan further debt issuance in 2024, a move that would require parliamentary approval,&#8221; the IMF spokesperson said.



Nonetheless, Senegal needs to stay on track with planned economic reforms in order to maintain debt sustainability, the IMF said.



Senegal&#8217;s public debt-to-GDP ratio climbed to an estimated 79.6% last year but was forecast to fall to 72.5% this year, the IMF said in December.



Senegal secured a three-year loan of about $1.9 billion from the IMF in June last year.



(Reporting by Rachel Savage; Editing by Alexander Winning and Michael Perry)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

Senegal ‘better positioned than some’ to navigate investor concern, says IMF

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-820x547.jpg" alt="" class="wp-image-456343" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/YIOWDZP565M7BIVJMFIUBVBNVQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Judges at the International Court of Justice (ICJ) rule on emergency measures against Israel following accusations by South Africa that the Israeli military operation in Gaza is a state-led genocide, in The Hague, Netherlands, January 26, 2024. REUTERS/Piroschka van de Wouw/File Photo</figcaption></figure>



JERUSALEM, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s latest request to the World Court against a possible offensive&nbsp;by Israel&nbsp;in southern Gaza serves Hamas and is an attempt to stop Israel from defending itself, the Israeli Foreign Ministry said on Wednesday.



South Africa on Tuesday asked The International Court of Justice (ICJ) to consider whether Israel&#8217;s plan to extend its offensive in Gaza into the city of Rafah requires additional emergency measures to protect Palestinians&#8217; rights.



Israel has said it is planning to expand its ground assault into Rafah, where over a million Palestinians have sought refuge from the offensive that has laid waste to much of the Gaza Strip since Hamas militants attacked Israel on Oct. 7.



&#8220;South Africa continues to represent the interests of the Hamas terrorist organization and is trying to deny Israel the fundamental right to defend itself and its citizens,&#8221; said Foreign Ministry spokesperson Lior Haiat.



The ICJ last month ordered Israel to take all measures within its power to prevent its troops from committing genocide against Palestinians in Gaza, in a case brought by South Africa.



&#8220;Israel is committed to upholding international law, including facilitating the transfer of humanitarian aid and preventing harm to innocents, while the Hamas terrorists are hiding behind the civilian population in the Gaza Strip and are holding 134 people hostage,&#8221; Haiat said on X.



Israel has denied all allegations of genocide in connection with its war against Islamist armed group Hamas, which is sworn to Israel&#8217;s destruction, and has asked the court to reject the case outright, saying it was baseless.



The court has not yet ruled on the core of the case brought by South Africa &#8211; whether genocide has occurred in Gaza. But it recognised the right of Palestinians in Gaza to be protected from acts of genocide.



(Reporting by Maayan Lubell; editing by Diane Craft)

FILE PHOTO: World Court rules on Gaza emergency measures in Israel genocide case, in The Hague

Israel says South Africa serving Hamas in latest bid to World Court

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-820x547.jpg" alt="" class="wp-image-428233" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/7KVHJR6UA5PHZGXNL4DBLFNXXE-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People buy and sell vegetables at Mile 12 International Market in Lagos, Nigeria May 13, 2022. REUTERS/Temilade Adelaja</figcaption></figure>



ABUJA, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is planning to set up a national commodity board to regulate the price of grains and other items, as rising food costs stoke double-digit inflation in a country where smallholder farmers dominate production.



Nigeria&#8217;s annual inflation hit a nearly three-decade high of 28.92% in December as food prices surged, adding to a worsening cost of living crisis. Inflation data for January is due on Thursday.



Vice President Kashim Shettima said on Tuesday that the National Commodity Board would maintain a strategic food reserve that could be used to reduce volatility and stabilise prices and tackle escalating food inflation in Africa&#8217;s most populous nation.



Food inflation, which accounts for the bulk of Nigeria&#8217;s inflation basket, rose to 33.93% in December from 32.84% a month earlier, with higher prices across a broad range of items including bread, fish, meat, fruit and eggs.



Shettima said the government will revitalise food supply in the short-term through measures such as the distribution of fertiliser and grain to farmers and households, to counter the effect of removing a costly but popular fuel subsidy.



President Bola Tinubu last May embarked on Nigeria&#8217;s boldest reforms in decades by scrapping the fuel subsidy and devaluing the currency to try to revive economic growth.



But growth is yet to pick up while inflation has worsened.



Widespread kidnapping and banditry in farming areas has also pushed up food prices.



Shettima said the government will engage its &#8220;security architecture&#8221; to protect both farms and farmers, so they can return and work without fear of attack.



He added that concessionary funds will be granted to farmers while the government will drive irrigation to ensure year-round food production.



Nigeria scrapped marketing boards that guaranteed farmers minimum prices in the 1980s as part of reforms to end subsidies, promote exports and stabilise markets after prices rose on informal channels.



(Reporting by Felix Onuah; Writing by Chijioke Ohuocha; Editing by Kirsten Donovan)

People buy and sell vegetables at Mile 12 International Market in Lagos

Nigeria plans commodity board to regulate food prices as inflation soars

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="613" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-820x613.jpg" alt="" class="wp-image-456099" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-820x613.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-300x224.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-768x574.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-1536x1148.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/RIELM4GLH5MVFJ5WWSKVIFDXJM-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People queue to withdraw money from a local bank in central Harare, Zimbabwe, August 24, 2023. REUTERS/Philimon Bulawayo</figcaption></figure>



HARARE, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund (IMF) on Wednesday encouraged Zimbabwe to speed up currency reforms at the end of a staff visit, saying authorities should move towards a market-driven exchange rate and remove distortions currently in place.



The visit discussed Zimbabwe&#8217;s request for an IMF staff-monitored programme, part of the southern African country&#8217;s efforts to re-engage with the international financial community by demonstrating a track record of sound economic policies.



Zimbabwe has not been able to secure financing from the likes of the IMF for more than two decades due to arrears in servicing its debt to lenders including the World Bank, the African Development Bank and European Investment Bank.



&#8220;The IMF is currently precluded from providing financial support to Zimbabwe due to its unsustainable debt situation &#8230; and official external arrears,&#8221; the IMF said in a statement.



&#8220;An IMF financial arrangement would require a clear path to comprehensive restructuring of Zimbabwe&#8217;s external debt, including the clearance of arrears and a reform plan that is consistent with durably restoring macroeconomic stability.&#8221;



Zimbabwe&#8217;s central bank and finance ministry have said they are working on measures to stabilise the Zimbabwean dollar, which has fallen about 40% against the U.S. dollar since the start of the year.



One option being considered is linking the exchange rate to assets such as gold.



The IMF said policymakers should eliminate a restriction on the 10% allowable trading margin for pricing domestic transactions and narrow the central bank&#8217;s legal mandate to core functions.



Addressing a joint press conference with the IMF, Zimbabwe&#8217;s Finance Minister Mthuli Ncube said officials agreed the local currency needed to be more reflective of market conditions.



The Zimbabwean dollar was relaunched in 2019 after a decade of dollarisation, but it rapidly lost value and the use of foreign currencies in domestic transactions was reauthorised soon after.



Central bank Governor John Mangudya said the focus of an upcoming monetary policy statement would be stabilising the exchange rate.



(Editing by Alexander Winning, Kirsten Donovan)

People queue to withdraw money from a local bank in central Harare

IMF says Zimbabwe should speed up currency reforms

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="484" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E.jpg" alt="" class="wp-image-422637" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/U7GSX2DBZNPOLFHLJ3TVW2S62E-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Ghana&#8217;s Finance Minister Ken Ofori-Atta speaks during a news conference in Accra, Ghana December 13, 2022. REUTERS/Cooper Inveen</figcaption></figure>



ACCRA, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s President Nana Akufo-Addo has replaced the finance minister in a cabinet reshuffle amid criticism of his handling of the country&#8217;s economic&nbsp;problems.



The move, announced on Wednesday by the president&#8217;s office, comes ahead of an election in December.



Outgoing finance minister Ken Ofori-Atta has been overseeing the government&#8217;s debt restructuring efforts as the West African country tries to emerge from its worst economic crisis in a generation.



Akufo-Addo&#8217;s office said Ofori-Atta would be replaced by Mohammed Amin Adam, currently the minister of state at the finance ministry.



Amin Adam previously served as the deputy energy minister responsible for the petroleum sector.



Akufo-Addo chose Ofori-Atta as his finance minister when he became head of state in 2017, pledging to create jobs, fight poverty and boost economic growth by cutting taxes and red tape.



Ofori-Atta has been heavily criticised by protesters and lawmakers from the opposition and his own party for his handling of&nbsp;Ghana&#8217;s&nbsp;economic woes.



(Reporting by Christian Akorlie and Maxwell Akalaare Adombila; Writing by Anait Miridzhanian and Nellie Peyton; Editing by Alexander Winning and Angus MacSwan)

Ghana’s Finance Minister Ken Ofori-Atta speaks during a news conference in Accra

Ghana president replaces finance minister in reshuffle

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-820x547.jpeg" alt="" class="wp-image-456040" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Pro-EU demonstrators protest outside Parliament against Brexit on the fourth anniversary of Britain’s official departure from the European Union in London, United Kingdom on January 31, 2024. Future Publishing | Getty Images</figcaption></figure>



LONDON — Post-Brexit Britain has “significantly underperformed” other advanced economies since the 2016 EU referendum, according to new analysis from Goldman Sachs, which aims to quantify the economic cost of the Leave vote.



In a note last week entitled “The Structural and Cyclical Costs of Brexit,” the Wall Street bank estimates that the U.K. economy grew 5% less over the past eight years than other comparable countries.



The true hit to the British economy could be anywhere from 4% to 8% of real gross domestic product (GDP), however, the bank said, acknowledging the difficulties of extracting the impact of Brexit from other simultaneous economic events including the Covid-19 pandemic and the 2022 energy crisis. Real GDP is a growth metric that has been adjusted for inflation.



Goldman Sachs attributed the economic shortfall to three key factors: reduced trade; weaker business investment; and labor shortages as a result of lower immigration from the EU.



The U.K. voted 52% to 48% to leave the EU on June 23, 2016, but officially exited the union on Jan. 31, 2020.



Over that period until today, U.K. goods trade has underperformed other advanced economies by around 15% since the Leave vote, according to the bank’s estimates, while business investment has fallen “notably short” of pre-referendum levels.



Meantime, immigration from the EU has fallen — a key pledge of the Vote Leave campaign — only to be replaced by a less economically active cohort of non-EU migrants, primarily students, the research said.



“Taken together, the evidence points to a significant long-run output cost of Brexit,” the report’s authors said.



The bank noted the reduction in trade was in line with expectations and the underperformance in investment was “more pronounced” that anticipated. However, it said the shifts in immigration patterns posed the most important cyclical repercussions for the U.K. economy — and inflation in particular.



“The post-Brexit change in immigration flows has reduced the elasticity of labor supply in the U.K., contributing to the post-pandemic surge in inflation and pointing to more cyclical labor market and inflation pressures going forward,” the report said.



U.K. real GDP per capita has barely risen above pre-Covid levels and currently stands 4% above the mid-2016 level, it said. That compares to 8% for the euro zone area and 15% for the U.S.



Meantime, the U.K. has recorded higher inflation over the period, with U.K. consumer prices rising 31% since mid-2016 compared with 27% in the U.S. and 24% in the euro zone, it added.



While the report noted that new non-EU trade agreements could potentially mitigate the costs of Brexit, estimates suggest that the benefit is likely to be small.



The British government estimates that its free trade agreement with Australia will boost U.K. GDP by 0.08% per year, while the economic impact of a new trade deal with Switzerland is unclear.



Meantime, the timelines for prospective new trade deals with major partners such as the U.S. and India have not yet been announced.

107372713-1707821086281-gettyimages-1968040821-20240131-dsc_3484

Brexit Britain has ‘significantly underperformed’ other advanced economies, Goldman Sachs says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727-820x461.jpeg" alt="" class="wp-image-442452" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107352936-1704115855740-gettyimages-1460414638-vcg111420025727.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker tying copper wire rods before loading them onto a truck in Huai’an, Jiangsu Province of China.
Vcg | Visual China Group | Getty Images</figcaption></figure>



Feb 14 (Reuters)&nbsp;&#8211;&nbsp;Prices of most non-ferrous metals eased on Wednesday, weighed down by a stronger dollar after hotter-than-expected U.S. inflation data dampened expectations for early interest rate cuts from the Federal Reserve.



Three-month copper on the London Metal Exchange&nbsp;CMCU3&nbsp;was down 0.8% at $8,195.50 a metric ton, as of 0531 GMT.



The dollar traded near three-month highs against major peers as traders pushed back bets for a first Fed rate cut following surprisingly hot U.S. inflation figures overnight.&nbsp;USD/



A stronger U.S. currency makes dollar-priced metals more expensive for holders of other currencies.



&#8220;Base metals prices are trading lower due to strong U.S. CPI numbers which weighed on expectations of sooner and deeper rate cuts,&#8221; ANZ analyst Soni Kumari said.



Federal funds futures currently price in no rate cut in March and a lower than 50% chance of easing in May, according to LSEG&#8217;s rate probability app.



Data on Tuesday showed U.S. consumer prices increased more than expected in January amid rises in the costs of shelter and healthcare.



Copper, widely used in power and construction, is down more than 4% this month on concerns about demand from top consumer China and its property sector in particular, though activity is muted this week as China celebrates the Lunar New Year.



&#8220;We remain positive on copper due to renewed supply challenges. Tight concentrate market, created by recent mine closures, have seen smelter processing fees falling sharply,&#8221; ANZ&#8217;s Kumari said.



&#8220;Following years of relentless growth, Chinese smelters are now being forced to postpone new plants, bring forward maintenance and even cut production outright amid heavy financial losses. This could impact refined copper production.&#8221;



In other metals, LME aluminium&nbsp;CMAL3&nbsp;slipped 0.6% to $2,212 a ton, nickel&nbsp;CMNI3&nbsp;was steady at $16,270, zinc&nbsp;CMZN3&nbsp;fell 0.7% to $2,299.50, while lead&nbsp;CMPB3&nbsp;rose 0.4% to $2,005. Tin&nbsp;CMSN3&nbsp;dropped 1.4% to $27,200.



For the top stories in metals and other news, click



TOP/MTL&nbsp;or&nbsp;MET/L



(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala)

107352936-1704115855740-gettyimages-1460414638-vcg111420025727

Most base metals fall on stronger dollar after US inflation data

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-820x524.jpg" alt="" class="wp-image-455807" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-1536x981.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/WPW75XVHCBK5VLWJPUHDR5PTJM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A women uses an iPhone mobile device as she passes a lighted Apple logo at the Apple store at Grand Central Terminal in New York City, U.S., April 14, 2023. REUTERS/Mike Segar</figcaption></figure>



BRUSSELS, Feb 13 (Reuters)&nbsp;&#8211;&nbsp;Apple&nbsp;AAPL.O&nbsp;has won an exemption for its iMessage and Microsoft&nbsp;MSFT.O&nbsp;for its Bing search engine from new EU tech rules after the companies convinced antitrust regulators their services are not gateways for businesses to reach end-users.



The European Union&#8217;s Digital Markets Act&nbsp;(DMA), which takes effect in three weeks&#8217; time, requires Microsoft, Apple, Alphabet&#8217;s&nbsp;GOOGL.O&nbsp;Google, Amazon&nbsp;AMZN.O, Meta Platforms&nbsp;META.O&nbsp;and ByteDance to allow third-party apps or app stores on their platforms and make it easier for people to switch to rivals.



The companies are also prohibited from favouring their services over rivals.



Following a five-month investigation, the European Commission found iMessage, Bing, Edge and Microsoft Advertising &#8220;did not qualify as gatekeeper services,&#8221; the EU executive said in a statement.



The Commission said Apple&#8217;s App Store, iOS operating system and Safari browser will continue to be classified as gatekeepers as will Microsoft&#8217;s Linkedin social network and Windows operating system.



It made &#8220;a thorough assessment of all arguments, taking into account input by relevant stakeholders&#8221;, the Commission said without providing details of the companies&#8217; arguments.



Apple had said iMessage usage is negligible, even on its devices, compared to rival messaging services in the EU and that iMessage is not an important channel for businesses to reach users in the bloc.



&#8220;Consumers today have access to a wide variety of messaging apps, and often use many at once, which reflects how easy it is to switch between them,&#8221; an Apple spokesperson said.



Microsoft said that Bing, Edge and Microsoft Advertising operate as challengers in the market and are of relatively small scale, meaning they are not important gateways for business users.



&#8220;We will continue to engage with the Commission and industry at large to ensure Microsoft&#8217;s other designated platforms comply fully with the DMA,&#8221; a Microsoft spokesperson said.



Lazar Radic, an antitrust expert at the International Center for Law and Economics, said: &#8220;It is a good sign that the Commission has considered market realities, instead of just slapping the &#8216;gatekeeper&#8217; label on iMessage because it fulfills certain quantitative thresholds.



&#8220;This suggests the Commission is capable of avoiding the temptation to over-regulate.&#8221;



However, the&nbsp;Coalition for Open Digital Ecosystems (CODE), whose members include Google, Meta Platforms&nbsp;META.O&nbsp;and Qualcomm&nbsp;QCOM.O,&nbsp;disagreed with the&nbsp;Commission&#8217;s decision&nbsp;to exempt&nbsp;services such as iMessage.



&#8220;Today’s surprising decision undermines the objectives of the DMA, as well as its potential to improve choice and contestability for all Europeans,&#8221; it said in a statement.



(Reporting by Bart Meijer and Foo Yun Chee; Editing by Barbara Lewis and Keith Weir)

women uses her iPhone mobile device as she passes a lighted Apple logo at the Apple store in New York

Apple, Microsoft win exemptions for iMessage, Bing from EU rules

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ-820x461.jpeg" alt="" class="wp-image-455790" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Inflation rose more than expected in January as stubbornly high shelter prices weighed on consumers, the Labor Department reported Tuesday.



The consumer price index, a broad-based measure of the prices shoppers face for goods and services across the economy, increased 0.3% for the month, the Bureau of Labor Statistics reported. On a 12-month basis, that came out to 3.1%, down from 3.4% in December.



Economists surveyed by Dow Jones had been looking for a monthly increase of 0.2% and an annual gain of 2.9%.



Excluding volatile food and energy prices, so-called core CPI accelerated 0.4% in January and was up 3.9% from a year ago, unchanged from December. The forecast had been for 0.3% and 3.7% respectively.



Shelter prices, which comprise about one-third of the CPI weighting, accounted for much of the increase. The index for that category rose 0.6% on the month, contributing more than two-thirds of the headline increase, the BLS said. On a 12-month basis, shelter increased 6%.



Food prices moved higher as well, up 0.4% on the month. Energy helped offset some of the increase, down 0.9% due largely to a 3.3% slide in gasoline prices.



Stock market futures slid sharply following the release. Futures tied to the Dow Jones Industrial Average were off more than 250 points and Treasury yields surged higher.



Even with the rise in prices, inflation-adjusted earnings increased 0.3% for the month. However, adjusted for the decline in the average workweek, real weekly earnings fell 0.3%. Real average hourly earnings rose 1.4% from a year ago.



“Inflation is generally moving in the right direction,” said Bright MLS Chief Economist Lisa Sturtevant. “But it’s important to remember that a lower inflation rate does not mean that prices of most things are falling — rather, it simply means that prices are rising more slowly. Consumers are still feeling the pinch of higher prices for the things they buy most often.”



The release comes as Federal Reserve officials look to set the proper balance for monetary policy in 2024. Though financial markets have been looking for aggressive interest rate cuts, policymakers have been more cautious in their public statements, focusing on the need to let the data be their guide rather than preset expectations.



Fed officials expect inflation to recede back to their 2% annual target in large part because they think shelter prices will decelerate through the year. January’s increase could be problematic for a central bank looking to take its foot off the brake for monetary policy at its tightest in more than two decades.



“The much-anticipated CPI report is a disappointment for those who expected inflation to edge lower allowing the Fed to begin easing rates sooner rather than later,” said Quincy Krosby, chief global strategist at LPL Financial. “Across the board numbers were hotter than expected making certain that the Fed will need more data before initiating a rate cutting cycle.”



Generally, the inflation data had been encouraging, even if annual rates remain well above the Fed’s 2% target. Moreover, core inflation, which officials believe is a better guide of long-run trends, has been even more stubborn as housing costs have held higher than anticipated.



In recent days, policymakers including Chair Jerome Powell have said the broader strength of the U.S. economy gives the Fed more time to process data is it doesn’t have to worry about high rates crushing growth.



Market pricing prior to the CPI release indicated a tilt towards the first rate cut coming in May, with a likely total of five quarter-percentage point moves lower before the end of 2024, according to CME Group data. However, several Fed officials have said they think two or three cuts are more likely.



Outside of the jump in shelter costs, the rest of the inflation picture was a mixed bag.



Used vehicle prices declined 3.4%, apparel costs fell 0.7% and medical commodities declined 0.6%. Electricity costs rose 1.2% and airline fares increased 1.4%. At the grocery store, ham prices fell 3.1% and eggs jumped 3.4%.



This is breaking news. Please check back here for updates.

107365401-1706390936186-gettyimages-1958536825-AFP_34H26WJ

Prices rose more than expected in January as US inflation won’t go away

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-820x548.jpg" alt="" class="wp-image-455760" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-1536x1027.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/SASCQ4QDRBPHVFIDDQZIJW3XRM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: President of Senegal Macky Sall delivers a national statement at the World Climate Action Summit during the United Nations Climate Change Conference (COP28) in Dubai, United Arab Emirates, December 1, 2023. REUTERS/Amr Alfiky</figcaption></figure>



DAKAR, Feb 13 (Reuters) &#8211; Senegal&#8217;s communications ministry told mobile operators to suspend internet access on Tuesday, ahead of a planned silent march by activist groups, which was banned by authorities, over the abrupt postponement of a presidential election.



The announcement just weeks ahead of the planned Feb. 25 vote that it would be postponed, triggered violent clashes last week that resulted in the death of three young people and multiple arrests.



Parliament has voted to hold the election on Dec. 15.



The delay spurred opposition members&#8217; concerns as it extended President Macky Sall&#8217;s mandate in an unprecedented break with Senegal&#8217;s democratic tradition.



It was unclear whether the march would take place after authorities on Monday banned it, citing logistical concerns.



The civil society and religious groups that called the demonstration will hold a press conference later on Tuesday to announce next steps, spokesman Amadou Samb told Reuters.



The vote&#8217;s postponement dismayed many in Senegal, one of West Africa&#8217;s more stable democracies, in a region where military takeovers and constitutional manoeuvring have forced democracy into retreat in many countries in recent years.



In a statement, the ministry blamed hateful online messages for the deaths and material damage incurred during the recent demonstrations.



In the capital Dakar, police in riot gear on Friday fired tear gas, stun grenades and what appeared to be rubber bullets at protesters who were burning tyres and throwing stones, a Reuters reporter said.



Amnesty International and the U.N. human rights office called on the Senegalese government to investigate the killings and police brutality against protesters.



At least 266 people have been arrested across the country, including journalists, spokesperson for the U.N. High Commissioner for Human Rights Liz Throssell said.



West Africa&#8217;s regional bloc ECOWAS on Monday sent a parliamentary diplomatic mission to Senegal to discuss the political situation in the country.



(Reporting by Bate Felix, Alessandra Prentice, Emma Farge and Portia Crowe; Writing by Anait Miridzhanian; Editing by Bernadette Baum)

FILE PHOTO: Senegal President Macky Sall

Ahead of planned march over vote delay, Senegal suspends internet access

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-820x547.jpg" alt="" class="wp-image-455675" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/THZQRJPZIFI3JPNGWNL6YVEHR4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Burkina Faso&#8217;s interim President Ibrahim Traore attends a meeting with Russia&#8217;s President Vladimir Putin following the Russia-Africa summit in Saint Petersburg, Russia, July 29, 2023. Alexander Ryumin/TASS Host Photo Agency via REUTERS/File Photo</figcaption></figure>



JOHANNESBURG/NIAMEY, Feb 13 (Reuters)&nbsp;&#8211;&nbsp;Days after Burkina Faso, Mali and Niger announced last month they were quitting the West Africa political union ECOWAS, Burkina Faso&#8217;s military ruler Ibrahim Traore was already naming his next target: the region&#8217;s CFA franc currency.



&#8220;It&#8217;s not just the currency. Anything that maintains us in slavery, we&#8217;ll break those bonds,&#8221; the 35-year-old army captain turned coup leader said in an interview, posted on YouTube.



The three countries jointly announced on Jan. 28 they were pulling out of the Economic Community of West African States (ECOWAS) after it pressured them to restore constitutional order following a string of coups.



Having already kicked out French soldiers and rolled back a U.N. mission in Mali, these states have consistently shown they value sovereignty over expediency.



Their attitude towards the euro-pegged CFA franc appears no different, although economists and experts say dumping the CFA franc would be riskier and significantly more complicated than withdrawing from ECOWAS, a move seen as a bold, if potentially ill-advised, act of defiance.



Last November, the finance ministers of Burkina Faso, Mali and Niger said they would weigh the option of setting up a monetary union and top officials from all three countries have, to varying degrees, voiced support for abandoning the currency.



The head of the Niger junta, Abdourahamane Tiani, said in an interview on state television on Sunday that abandoning the CFA franc would be a sign of sovereignty and a necessary step in moving away from French &#8220;colonisation&#8221;.



To do so, however, would mean much more than simply printing new banknotes.



A newly created central bank would need to manage a delicate transition away from the CFA franc, formulate monetary policy, and decide what to do about more than $4.6 billion in outstanding CFA-denominated regional bonds.



<h2 class="wp-block-heading" id="h-the-french-robbed-us">&#8216;THE FRENCH ROBBED US&#8217;</h2>



The CFA franc currencies &#8211; one West African and another for Central Africa &#8211; sit at the heart of an emotional debate over sovereignty and development in French-speaking Africa.



Proponents hail the CFA franc&#8217;s peg to the euro as a guarantee of macroeconomic stability in one of the world&#8217;s most volatile regions.



Critics denounce it as a brake on growth and an outdated vestige of French colonial rule: until a 2019 reform, countries were required to hold a portion of their foreign reserves with the French Treasury.



But never since its inception in 1945 has there been the prospect of such a mass exodus.



&#8220;The French have robbed us with the CFA franc. African countries must definitively break with this currency,&#8221; said Omar Issoufou, a 25-year-old Nigerien who is studying electrical engineering in the capital Niamey.



The military takeovers that have swept across the arid Sahel region were driven by anger over Islamist violence, which Mali&#8217;s U.N. mission and a sprawling French anti-militant operation had failed to snuff out.



Punishment for the putsches &#8211; the imposition of economic sanctions by ECOWAS, including freezing of some of Mali and Niger&#8217;s assets held by the regional central bank &#8211; fuelled tensions between the new regimes and the West African Economic and Monetary Union, known by its French acronym UEMOA.



&#8220;The moment UEMOA became a weapon of war &#8230; I can understand why these three countries moved to clearly free themselves from their engagements towards the Union,&#8221; Hamma Hamadou, a former head of Niger&#8217;s tax authority, told Reuters.



Beyond ideological issues of sovereignty and practical concerns related to sanctions, some view moving away from the CFA franc as an opportunity.



&#8220;The CFA franc has been very detrimental to these countries over the long run,&#8221; said Ndongo Samba Sylla of International Development Economics Associates, a network of economists focused on the Global South. &#8220;They have lower inflation and extra exchange rate stability, but they&#8217;ve suffered from an over-valued currency.&#8221;



All three countries have largely agricultural economies. But their inability to set monetary policy has left their exports uncompetitive, he said, and hindered industrial development.



The peg to the euro, meanwhile, makes little sense when the bulk of West Africa&#8217;s external trade is done in dollars, he added.



<h2 class="wp-block-heading" id="h-great-depression">&#8216;GREAT DEPRESSION&#8217;</h2>



Withdrawing from ECOWAS is already looking easier said than done. Disentangling their economies and finances from UEMOA will be even more delicate.



UEMOA&#8217;s eight members deposit their foreign exchange reserves with the Dakar-based regional central bank. Those reserves are mutualised as are liabilities, making a determination of how much each country would be able to walk away with a difficult calculation.



Then there&#8217;s the question of CFA-denominated debt. Burkina Faso has over 1.2 trillion CFA francs ($1.99 billion) in outstanding bonds. Mali has slightly over 1 trillion CFA francs, while it&#8217;s 498 billion CFA francs for Niger.



&#8220;We will enter into a zone of turbulence if these countries pull out,&#8221; said one financial expert involved in regional debt issuances, who asked not to be named due to market sensitivity.



There was no clarity, he said, on where the bonds would be listed, whether they would remain in CFA francs or even if the new currency would be convertible.



&#8220;There would be a lot of problems for the holders of these sovereign bonds,&#8221; he said.



The turmoil would likely leave the three states cut off from future financing from regional and international capital markets, experts said. Burkina Faso already called off a bond auction in the wake of its ECOWAS withdrawal announcement due to a lack of interest.



Uncertainty could provoke capital flight and an immediate depreciation of a new currency. Imports could become prohibitively expensive, fuelling run-away inflation.



&#8220;I think you&#8217;re taking 10% to 20% off your GDP,&#8221; said Charlie Robertson, head of macro strategy at London-based FIM Partners. &#8220;Leaving the single currency is bringing on the Great Depression,&#8221; he said, adding it would be the worst policy mistake the countries could make.



In light of these risks, the juntas are approaching the currency question more carefully than their ECOWAS withdrawal.



Two government officials from the countries told Reuters that the committee charged with studying a new monetary union, while still planned, had not yet met.



Prime Minister Choguel Maiga of Mali &#8211; the only one of the three to have ever issued its own currency &#8211; has urged patience.



When Mali exited UEMOA in 1962 in the wake of independence, its new currency was at parity with the CFA franc, but upon its return to the union in 1984 was worth only half as much.



To ensure lessons have been learned, Maiga says the committee needs time to assess all the implications before the country draws up plans for a new currency with its two neighbours.



&#8220;This is what I say to the Malians,&#8221; Maiga told business leaders last month. &#8220;Sure, you have this passion. You want it. But this is strategic.&#8221;



($1 = 604.0000 CFA francs)



(Reporting by Joe Bavier and Boureima Balima; Additional reporting by Loucoumane Coulibaly in Abidjan, Moussa Aksar in Niamey, Giulia Paravicini in Nairobi and Leigh Thomas in Paris; Editing by Susan Fenton)

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Ahead of planned march over vote delay, Senegal suspends internet access

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