<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="511" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-820x511.jpg" alt="" class="wp-image-455659" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-820x511.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-768x479.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-1536x958.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/JKREOAPTKNJGHK4TSAYLUIJ7NA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Displaced Congolese people are reflected on a puddle, at the Muchacha primary school, where they live after recently fleeing from their Shasha village following clashes between M23 rebels and the Armed Forces of the Democratic Republic of the Congo (FARDC) in Sake, the Democratic Republic of Congo February 6, 2024. REUTERS/Arlette Bashizi/File Photo</figcaption></figure>



JOHANNESBURG, Feb 12 (Reuters)&nbsp;&#8211;&nbsp;South Africa will send 2,900 troops as part of its contribution to the Southern African Development Community (SADC) force deployed to tackle armed groups in eastern Democratic Republic of Congo, the president&#8217;s office said in a statement on Monday.



The one-year deployment will cover the period between Dec. 15. 2023 and Dec. 15, 2024, and will cost around 2 billion rand ($105.75 million), the statement said.



The 16-member state SADC approved the eastern Congo mission in May last year to help Congo, the world&#8217;s top supplier of cobalt and Africa&#8217;s top copper producer, address instability and deteriorating security in its restive eastern region.



Decades of conflicts in eastern Congo between myriad rival armed groups over land and resources has killed hundreds of thousands of people and displaced more than 7 million.



The SADC force has an offensive mandate to support Congo&#8217;s army fight armed groups. It will include troops from Malawi, South Africa and Tanzania.



The deployment comes as Congo battles Tutsi-led M23 rebels whose attacks and advances in recent days, is threatening the North Kivu provincial capital, Goma.



($1 = 18.9133 rand)



(Writing by Bate Felix; Editing by Marguerita Choy)

Thousands more flee rebel advance in eastern Congo

South Africa to deploy 2,900 troops to fight armed groups in eastern Congo

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="584" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-820x584.jpg" alt="" class="wp-image-455387" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-820x584.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-300x214.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-126x90.jpg 126w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-768x547.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-1536x1094.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/62G224WUNFIBRLU2K6S7VS3YFE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Zimbabwe&#8217;s Finance Minister Mthuli Ncube stands with a briefcase at the Parliament Building in Mt Hampden on the day he presents the 2024 National Budget, Harare, Zimbabwe November 30, 2023.REUTERS/Philimon Bulawayo/FILE PHOTO</figcaption></figure>



HARARE, Feb 12 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&nbsp;is working on new&nbsp;measures to stabilise its local currency including linking the exchange rate to hard assets such as gold and creating a currency board, Finance Minister Mthuli Ncube said on Monday.



The Zimbabwean dollar has fallen about 40% since the start of the year,&nbsp;hurt by increased foreign-currency demand from civil servants being paid December bonuses and weaker commodity prices denting inflows.



Last week President Emmerson Mnangagwa said authorities were looking to introduce a &#8220;structured currency&#8221;, without explaining how that would work, and the central bank governor said that work was ongoing.



&#8220;The idea going forward is to make sure that we manage the growth of liquidity which has a high correlation to money supply growth and inflation. The way to do that is to link the exchange rate to some hard asset such as gold,&#8221; said Ncube.



&#8220;To do that you have to have some sort of currency board type system in place where the growth of the domestic liquidity is constrained by the value of the asset that is backing the currency,&#8221; he said in a press briefing.



More announcements will come in due course, he said, adding that he believed the new measures would offer &#8220;a lasting solution to the currency volatility&#8221;.



The Southern African country is still scarred by memories of hyperinflation under longtime leader Robert Mugabe.



The government relaunched a local currency in 2019 after a decade of dollarisation, but it rapidly lost value and authorities reauthorised the use of foreign currencies in domestic transactions soon after.



(Reporting by Nyasha Chingono; Writing by Nellie Peyton, Editing by Gareth Jones and Ed Osmond)

Zimbabwe’s Finance Minister Mthuli Ncube stands with a briefcase at the Parliament Building in Mt Hampden on the day he presents the 2024 National Budget, Harare

Zimbabwe to link exchange rate to hard assets, create currency board

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



Feb 12 (Reuters)&nbsp;&#8211;&nbsp;A gauge of emerging market stocks was marginally lower in light trading on Monday, with Indian shares amongst leading fallers, while Israel&#8217;s shekel dipped after ratings agency Moody&#8217;s downgraded the country&#8217;s credit rating.



MSCI&#8217;s index for EM stocks&nbsp;.MSCIEF&nbsp;edged 0.1% lower by 0918 GMT, on track for its third straight session decline, while currencies&nbsp;.MIEM00000CUS&nbsp;were largely flat on the day.



Israel&#8217;s shekel ILS= fell 0.4% against the dollar after Moody&#8217;s on Friday downgraded the country&#8217;s credit rating, citing material political and fiscal risks from its war with the Palestinian militant group Hamas.



The rating was cut to &#8220;A2&#8221;, which is five notches above investment grade, while its credit outlook was kept at negative, meaning a further downgrade is possible.



&#8220;Against the background of the security situation, a notch decrease in creditworthiness appears also rather unspectacular and would only follow market pricing rather than cause it,&#8221; Michel Nies, an economist at Citi, wrote in a note.



&#8220;However, the negative outlook and the statement for the latter might be more concerning in the sense that an end to hostilities would not necessarily lead to a reversal of the downgrade.&#8221;



Activity was mostly muted due to holidays in major hubs including mainland China, Singapore, South Korea, Taiwan and Malaysia.



In Europe, official data showed Turkey&#8217;s unemployment rate fell 0.1 percentage point month-on-month to 8.8% in December, edging back towards the lowest level in a decade which it hit in October.



The lira&nbsp;TRY=&nbsp;was mostly stable against the dollar, while equities&nbsp;.XU100&nbsp;gained 0.9%, lifted by rising materials shares.



Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;eased 0.3% against the Euro after rising as much as 0.6% in the previous session, while South Africa&#8217;s rand&nbsp;ZAR=&nbsp;edged 0.1% higher, on track for its first daily advance in four sessions.



In the Gulf, Saudi Arabia&#8217;s benchmark stock index .TASI gained 0.2% after Israel said it had &#8220;concluded&#8221; a series of strikes on southern Gaza.



The International Monetary Fund said on Sunday Middle East economies were lagging below growth projections due to oil production cuts and the Israel-Hamas conflict, even as the global economic outlook remained resilient.



Meanwhile, stocks in Pakistan .KSE fell as much as 2.8% after the country&#8217;s national elections ended with no party winning a majority in parliament.



Equities in India .NSEI were down 0.6%, dragged lower by declining energy shares. .BO



(Reporting by Shashwat Chauhan in Bengaluru; Editing by Ros Russell)

istockphoto-1076949610-612×612-1

Stocks edge lower in holiday affected trade; Israel’s shekel down after rating cut

<figure class="wp-block-image size-large"><img decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/05/Herbert-Wigwe-Group-CEO-Access-Bank-Plc1-781x800.jpg" alt="" class="wp-image-417434"/></figure>



Feb 10 (Reuters)&nbsp;&#8211;&nbsp;Six people, including the group chief executive of one of Nigeria&#8217;s largest banks, were killed in a helicopter crash in Southern California on Friday, authorities and the banking group said.



Six people were on board the helicopter when it crashed around 10 p.m. Friday (0600 GMT Saturday) near Nipton, California, the U.S. Federal Aviation Administration said in a statement.



Access Holdings said its CEO&nbsp;Herbert&nbsp;Wigwe, his wife and son were among those who died in the crash.



&#8220;We extend our deep and sincere sympathies to his family and loved ones,&#8221; Access Holdings Chairman Abubakar Jimoh said in a statement on Sunday, adding that the company will soon appoint an acting CEO.



Local media reported that the Nigerian Exchange Group&#8217;s former Chairman Abimbola Ogunbanjo also died in the crash.



The San Bernardino County Sheriff’s Department said the scene of the crash was determined to be east of the 15-Freeway, near Halloran Springs Road, adding that no survivors had been located as of Saturday.



The FAA identified the helicopter as a Eurocopter EC 130 and said it would investigate along with the National Transportation Safety Board.



The helicopter was headed to Las Vegas when it crashed near a border city between Nevada and California, according to multiple reports.



(Reporting by Surbhi Misra, Jyoti Narayan in Bengaluru and MacDonald Dzirutwe in Lagos; Editing by Andrea Ricci and Sharon Singleton)

Herbert-Wigwe-Group-CEO-Access-Bank-Plc1

Nigeria’s Access Bank Group CEO among six dead in California helicopter crash

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/VWGGGHRVGFNNBKICEKKB2G2CXI.jpg" alt="" class="wp-image-419501" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/08/VWGGGHRVGFNNBKICEKKB2G2CXI.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/VWGGGHRVGFNNBKICEKKB2G2CXI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/08/VWGGGHRVGFNNBKICEKKB2G2CXI-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A bitcoin representation is seen in a file photo, in Paris, France, June 23, 2017. REUTERS/Benoit Tessier/File Photo</figcaption></figure>



<a href="https://www.cnbc.com/quotes/BTC.CM=/">Bitcoin</a>&nbsp;marched higher to end the week, with its price breaching the $47,000 level for the first time in almost two years.&nbsp;



On Friday the flagship cryptocurrency rose more than 4% to $47,307.00, according to Coin Metrics, a level not seen since March 2022.&nbsp;<a href="https://www.cnbc.com/quotes/ETH.CM=/">Ether</a>&nbsp;advanced 3% to $2,511.75.&nbsp;



Bitcoin trading volume and sentiment have been suppressed over the past two weeks as investors worried about big outflows from the&nbsp;<a href="https://www.cnbc.com/quotes/">Grayscale Bitcoin ETF</a>&nbsp;and a deeper pullback in its price ahead of an expected rip higher this year. Nevertheless, bitcoin’s now up 10% for the week, while ether is on track for a 9% gain.



Positive sentiment appears to be returning now as the GBTC outflows have slowed. Additionally, momentum from the S&amp;P 500 briefly touching 5,000 Thursday for the first time ever may be spilling over to crypto.



“The recent price appreciation of bitcoin could be attributed to recent inflows into the spot ETFs, the prospect of the halving around the corner, which tends to generate optimism from investors as prices often shoot&nbsp; up after, and general market momentum,” said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs. “In the past, there have been parallels between bitcoin and tech stocks. Lower rates, falling inflation, earnings growth and indices like the S&amp;P 500 hitting groundbreaking levels certainly improve risk sentiment for the asset class.”



The move pulled crypto equities higher in premarket trading. Crypto exchange&nbsp;<a href="https://www.cnbc.com/quotes/COIN/">Coinbase</a>&nbsp;and bitcoin proxy&nbsp;<a href="https://www.cnbc.com/quotes/MSTR/">Microstrategy</a>&nbsp;each gained more than 6%, while the biggest miners,&nbsp;<a href="https://www.cnbc.com/quotes/RIOT/">Riot Platforms</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/quotes/MARA/">Marathon Digital</a>, rose 10% and 11%, respectively.



Bitcoin is nearing a key resistance level, which Fairlead Strategies earlier this week identified at $48,600. Hitting that level would open the door to a new all-time high, the firm said.



On Thursday, bitcoin&nbsp;<a href="https://www.cnbc.com/2024/02/08/bitcoin-rises-above-45000-its-highest-level-in-almost-a-month.html">passed $45,000 for the first time since Jan. 12</a>, the day after U.S. bitcoin ETFs began trading. The cryptocurrency has struggled to maintain its pre-ETF highs but has avoided falling to as low as $36,000, as expected. It has not fallen below $39,000 in the past month.

FILE PHOTO: Bitcoin representation is seen in an illustration picture taken at La Maison du Bitcoin in Paris

Bitcoin breaks above $47,000 for the first time since March 2022

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="566" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-820x566.jpg" alt="" class="wp-image-454325" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-820x566.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-768x531.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-1536x1061.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/BSTAKVMSK5IGJO7IEXSJPOTKVQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African President Cyril Ramaphosa delivers his 2024 state of the nation address in Cape Town, South Africa, February 8, 2024. REUTERS/Esa Alexander/Pool</figcaption></figure>



JOHANNESBURG, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s President Cyril Ramaphosa used a major speech in parliament on Thursday to play up his party&#8217;s achievements over the last 30 years, but gave little detail about his plans to address the country&#8217;s current major challenges.



Ramaphosa&#8217;s African National Congress (ANC) party, which has governed since Nelson Mandela led it to victory in the first post-apartheid democratic election in 1994, is heading into its most competitive campaign yet.



Many polls indicate it will lose its absolute parliamentary majority in a vote expected to be held between May and August, forcing it to choose a coalition party to hold onto power.



South Africa is facing record power shortages and a logistics crisis at its rail and port operator Transnet which have strangled business activity and slowed growth in Africa&#8217;s most industrialised economy.



In his annual State of the Nation Address, Ramaphosa acknowledged these problems. But he laid out few new solutions, and was occasionally met with jeers from lawmakers.



&#8220;Over the last three decades &#8230; we have transformed the lives of millions of South Africans, providing the necessities of life and creating opportunities that never existed before,&#8221; Ramaphosa said.



He portrayed the ANC as having guided South Africa safely through challenges such as the COVID-19 pandemic and rampant corruption, and said the last five years had been a time of &#8220;rebuilding and renewal&#8221;.



The ANC came to power as the liberation movement that fought racist rule in South Africa. But many of today&#8217;s young voters were born after freedom was won and have grown up instead in an era marked by disappointment and disillusionment with the country&#8217;s leaders.



South Africa remains among the most unequal countries in the world with a gaping wealth disparity. Repeated corruption scandals have tarnished the party and undermined its moral authority in the eyes of many. The unemployment rate is at its highest ever, with more than 30% of South Africans out of work.



Many of South Africa&#8217;s economic woes stem from years of mismanagement and under-investment in state-owned enterprises, which Ramaphosa pledged to reform when he took office in 2018.



&#8220;The effects of state capture continue to be felt across society, from the shortage of freight locomotives to crumbling public services, from the poor performance of our power stations to failed development projects,&#8221; said Ramaphosa.



State capture is a term for the kind of systemic political corruption that defined the era of Ramaphosa&#8217;s predecessor Jacob Zuma. But some lawmakers jeered when he touted his corruption-fighting record. Ramaphosa survived his own corruption scandal in 2022.



In one bit of policy news, he said the state would extend and improve social grants it introduced during the COVID pandemic, without giving further details.



John Steenhuisen, the leader of the main opposition Democratic Alliance party, called the speech &#8220;a laundry list of recycled projects and promises that have been made since 2018 that haven&#8217;t come to fruition.&#8221;



Analysts had predicted ahead of the address that it was unlikely to move markets.



&#8220;People know what the state of the nation is. It&#8217;s not good,&#8221; said Louw Nel, senior political analyst at Oxford Economics Africa.



(Additional reporting by Wendell Roelf in Cape Town; Editing by Joe Bavier and Daniel Wallis)

South African President Cyril Ramaphosa’s state of the nation address in Cape Town

South Africa’s Ramaphosa touts ANC history in state of nation address

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="538" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-820x538.jpg" alt="" class="wp-image-454107" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-820x538.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-768x504.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-1536x1008.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/UV3YUMQW55JE3G5VZUFUJTFGZE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Trafigura logo is pictured in the company entrance in Geneva March 11, 2012. REUTERS/Denis Balibouse</figcaption></figure>



LUSAKA, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;The United States will provide more funds for the construction of the Lobito Corridor, a rail link to export metals from Central Africa&#8217;s Copperbelt, including a link for Zambia, U.S. energy envoy Amos Hochstein said.



Washington has been supporting the project linking mineral-rich Democratic Republic of Congo (DRC) and Zambia to Lobito port in Angola. The link seeks to bypass logistics bottlenecks in South Africa that have held up copper and cobalt exports &#8211; metals vital to the energy transition away from fossil fuels.



In 2022, a consortium led by global commodities giant Trafigura, Portugal&#8217;s Mota-Engil&nbsp;MOTA.LS&nbsp;and Vecturis SA of Belgium was awarded a 30-year concession for railway services and support logistics on the Lobito Corridor. The consortium plans to spend $455 million in Angola and $100 million in the DRC on equipment, operations and infrastructure maintenance.



Additional funding is required to extend the 1,700 km (1,060 miles) line into Zambia in the second phase.



&#8220;We have committed to finance $250 million for the Angola phase one. I expect that we will commit additional resources in the same range for the second phase,&#8221; Hochstein said late Wednesday in an interview ahead of an investment forum on the project in Zambia.



The first phase involved upgrading the rail line on the Angolan side, and the second phase will involve building a new multibillion-dollar rail through Zambia and beyond, he said.



&#8220;I expect that we will start seeing some significant volumes using the rail by June-July,&#8221; he said, without giving figures.



The U.S. and its partners have also mobilised close to $1 billion to expand the Lobito Corridor by developing a new 800 km (500 mile) rail line to further connect Zambia to the network, he said during the opening of the investment forum on Thursday.



&#8220;With the Africa Finance Corporation (AFC) as the private-sector lead developing the project, we aim to break ground in 2026 and have an operational rail between eastern Angola across northwestern Zambia by 2028,&#8221; he said.



The AFC had financing commitments from the U.S., the European Union and African Development Bank (AfDB), which would bring in extra private sector financing, he said.



Hochstein welcomed the announcement on Wednesday by mining firm Ivanhoe Mines&nbsp;IVN.TO&nbsp;that it had signed up to use the rail line for its copper exports from the DRC.



&#8220;That&#8217;s critically important because it shows commitment by the private sector to this project. It will also make financing cheaper,&#8221; Hochstein said.



He also said the U.S. was contemplating other similar projects in Africa and elsewhere.



&#8220;Within Africa, I expect to have at least one more in the next year,&#8221; Hochstein said, without specifying where.



(Reporting by Chris Mfula; Editing by Nelson Banya and Mark Potter)

FILE PHOTO: Trafigura logo is pictured in the company entrance in Geneva

US to commit more funds to African rail link for metal exports

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="469" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-820x469.jpg" alt="" class="wp-image-454063" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-820x469.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-300x172.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-157x90.jpg 157w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-768x440.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-1536x879.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the capital city of Kampala in Uganda, July 4, 2016. REUTERS/James Akena</figcaption></figure>



KAMPALA, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s central bank raised 1.3 trillion shillings ($339 million) in a rare private placement Treasury bond auction this week, against a target of 1.5 trillion shillings, results of the auction showed on Thursday.



The private placement bond auction was the first since June 2022.



The bank typically sells government bonds monthly through open auctions, but in 2020 began selling some bonds using private placements where it invites only specific banks to take part in the offer as opposed to customary open auctions.



In this week&#8217;s auction, three-year, five-year, 10-year, 15-year and 20-year Treasury bonds were on offer and the central bank received bids worth 2.3 trillion shillings.



The debt notes are due to mature at various dates between 2026 and 2043.



Eight banks were invited to participate in the auction, including local units of global lenders Standard Bank, Standard Chartered, Citibank and Absa.



($1 = 3,830.0000 Ugandan shillings)



(Reporting by Elias Biryabarema; Editing by Bhargav Acharya and Mark Potter)

A general view shows the capital city of Kampala in Uganda

Uganda’s central bank nets $339 mln in rare private placement debt auction

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-820x575.jpg" alt="" class="wp-image-454022" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-820x575.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-1536x1078.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man shows off Zimbabwean currency notes outside a grocery store in Harare, Zimbabwe, March 17, 2022. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s central bank and finance ministry are working on measures to stabilise the local currency, the central bank governor said.



The Zimbabwean dollar has fallen about 40% since the start of the year, hurt by increased foreign-currency demand from civil servants being paid December bonuses and weaker commodity prices denting inflows.



That has caused inflation to accelerate in an economy still scarred by memories of hyperinflation under longtime leader Robert Mugabe.



Earlier this week President Emmerson Mnangagwa said authorities were looking to introduce a &#8220;structured currency&#8221;, without explaining how that would work.



&#8220;What His Excellency the President said is to provide forward guidance to the market on the thrust of the monetary policy statement that the Bank and Treasury are working on,&#8221; Reserve Bank of Zimbabwe Governor John Mangudya told Reuters late on Wednesday.



&#8220;The President would like to see durable stability of prices and the exchange rate in the economy.&#8221;



&#8220;Currently the economy is growing in an inflationary environment, an environment that the Bank needs to appropriately attend to,&#8221; the central bank governor added.



He did not say when the monetary policy statement with the new measures would be released.



The government relaunched a local currency in 2019 after a decade of dollarisation, but it rapidly lost value and authorities reauthorised the use of foreign currencies in domestic transactions soon after.



Independent economist Prosper Chitambara said people had little faith in the Zimbabwean dollar.



Chitambara said: &#8220;Economic agents have lost confidence in the local currency and that spurs demand for the U.S. dollar. Restoration of confidence in the currency will take time.&#8221;



(Reporting by Nyasha Chingono; Editing by Alexander Winning and Jan Harvey)

FILE PHOTO: Zimbabwe’s poor feel the impact of far away Ukraine war

Zimbabwe working on measures to stabilise currency, central bank governor says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-820x547.jpg" alt="" class="wp-image-453994" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/GettyImages-1684034006-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NEW YORK, NEW YORK &#8211; SEPTEMBER 23: Ethiopia&#8217;s Deputy Prime Minister Demeke Mekonnen Hassen speaks during the United Nations General Assembly (UNGA) at the United Nations headquarters on September 23, 2023 in New York City. Heads of state and governments from at least 145 countries are gathered for the 78th UNGA session amid the ongoing war in Ukraine and natural disasters such as earthquakes, floods and fires around the globe. (Photo by David Dee Delgado/Getty Images)</figcaption></figure>



ADDIS ABABA, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s parliament on Thursday approved the appointment of intelligence service chief Temesgen Tiruneh as deputy prime minister, replacing Demeke Mekonnen, who had served in the role for 11 years, the government said.



In addition, parliament accepted the nomination of Taye Atske Selassie, a former ambassador to the United Nations, as foreign minister. Demeke had also served as foreign minister since 2020.



Temesgen, who has coordinated the government&#8217;s response to a conflict that broke out last year in the Amhara region, was elected in late January to succeed Demeke as a vice president of the ruling Prosperity Party.



A vice president of the party typically serves as deputy prime minister.



Ethiopia&#8217;s national security adviser Redwan Hussein was chosen to replace Temesgen as head of the National Intelligence and Security Service (NISS) &#8211; Ethiopia&#8217;s top spy agency.



A long-time ally of Abiy, Redwan was also the lead government negotiator during the peace deal brokered in Pretoria to end the civil war in the Tigray region in 2022.



His previous experience includes serving as a state minister at the foreign affairs ministry, and also as Ethiopia&#8217;s ambassador to Eritrea.



Demeke has been a face of continuity during a turbulent period in Ethiopian politics. He was appointed deputy prime minister after the death of longtime Prime Minister Meles Zenawi in 2012 and survived a reorganisation of the ruling party after Abiy came to power in 2018.



Abiy appointed Demeke as foreign minister days after civil war broke out in November 2020 in the northern Tigray region. The conflict lasted two years and killed tens of thousands of people.



Mekdes Daba, a former World Health Organization official, has also been appointed to replace Lia Tadesse as health minister, the Ethiopian Broadcasting Corporation said.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa and Bhargav Acharya; Editing by Aaron Ross and Andrew Cawthorne)

World Leaders Gather In New York For The United Nations General Assembly

Ethiopia intelligence head Temesgen approved as deputy prime minister

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-820x547.jpg" alt="" class="wp-image-424839" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/M2VBBFZHORKF5D3SKT6QNJABKI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><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 7 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa will announce the date of this year&#8217;s general election later this month, his spokesman said on Wednesday.



&#8220;If you count from tomorrow, the president will announce the election date within 15 days,&#8221; Ramaphosa&#8217;s spokesperson Vincent Magwenya told reporters.



Political analysts say record power cuts, poor service delivery and high levels of unemployment are likely to hurt the governing African National Congress (ANC) party that Ramaphosa, 71, leads, threatening the loss of its parliamentary majority for the first time since the end of apartheid in 1994.



Ramaphosa, who has struggled to rekindle economic growth since taking over from his scandal-plagued predecessor Jacob Zuma in 2018, will seek a second term as president.



Voters will elect a new National Assembly as well as the provincial legislature in each of the country&#8217;s nine provinces.



The National Assembly elects the president after the vote.



(Reporting by Anait Miridzhanian; Editing by Alexander Winning, Kirsten Donovan)

South African President Ramaphosa hosts Singapore PM Hsien Loong in Cape Town

South Africa’s Ramaphosa to announce election date this month – spokesman

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MC7FDCOQBBLITG5FO5FSMOK76M.jpg" alt="" class="wp-image-422361" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MC7FDCOQBBLITG5FO5FSMOK76M.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MC7FDCOQBBLITG5FO5FSMOK76M-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/MC7FDCOQBBLITG5FO5FSMOK76M-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A delegate stands near a banner during the 55th National Conference of the ruling African National Congress (ANC) at the Nasrec Expo Centre in Johannesburg, South Africa December 18, 2022. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Feb 7 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s African National Congress (ANC) party has a 75% chance of losing its majority in this year&#8217;s national elections, slated to be the most closely contested in the country&#8217;s democratic history, Standard Bank&#8217;s chief economist said on Wednesday.



The ANC has a 65% probability of getting between 45% and 50% of the vote and a 10% chance of falling below that, Goolam Ballim told a press briefing at which he set out the bank&#8217;s &#8220;early&#8221; election forecasts. He did not explain its methodology.



Cyril Ramaphosa is seeking a second term as president as his party risks losing its parliamentary majority for the first time since Nelson Mandela&#8217;s victory in 1994 ushered in democracy after decades of apartheid.



&#8220;(A) 45-50% (vote share) would intimate that the president will likely secure a second term,&#8221; Ballim said. &#8220;We don&#8217;t suspect that the election will derail&#8230; the reform agenda.&#8221;



Standard Bank&#8217;s forecast has the main opposition Democratic Alliance at 22.5%, the left-wing Economic Freedom Fighters at 11%, the KwaZulu-Natal-centred Inkatha Freedom Party at 6% and the right wing Freedom Front Plus at 2.5%.



Rolling power cuts known as loadshedding will start to ease this year, with GDP growth forecast to pick up from 0.6% in 2023 to 1.2% this year, Ballim said.



The electricity shortages will still crimp growth in 2024 by up to 1 percentage point, Ballim said, while problems at state-owned rail and ports firm Transnet that have limited exports, will take 0.5 to 1 percentage point off.



(Reporting by Rachel Savage and Nqobile Dludla, Editing by Angus MacSwan)

South Africa’s ANC gathers to vote on new leader

South Africa’s ANC has 75% chance of losing majority – Standard Bank

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



Feb 7(Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks pushed higher on Wednesday, as Chinese markets extended their rebound on hopes of further support from authorities, while Argentinian assets were in focus after a setback for President Javier Milei&#8217;s economic reform bill.



MSCI&#8217;s index for emerging market equities&nbsp;.MSCIEF&nbsp;was up 0.3% by 0946 GMT, after hitting its highest level since Jan. 3 earlier in the session.



China&#8217;s blue-chip CSI 300 Index&nbsp;.CSI300&nbsp;rose 1% while the Shanghai Composite index&nbsp;.SSEC&nbsp;ended up 1.4%, both pulling further away from recent five-year lows.



A raft of steps announced by Chinese authorities, including curbs on short-selling, have helped steady the country&#8217;s sagging stock markets in the last few sessions and hopes for more powerful market rescue measures have increased.



South Korea&#8217;s benchmark KOSPI&nbsp;.KS11&nbsp;index also jumped 1.3%.



Meanwhile, investors were watching Argentinian assets after a major economic reform package championed by libertarian President Javier Milei was set to be sent back to a legislative committee for consideration, marking a major setback for the bill.



Argentina&#8217;s dollar-denominated bond maturing in 2041&nbsp;040114HV5=1M&nbsp;fell 0.61 cents to trade at 33.683 cents on the dollar.



&#8220;We think the catalyst for the bonds will be progress on (or hurdles to) the legislative agenda and the signals it sends over popular support for Milei&#8217;s adjustment plan. Implementation risks will then follow,&#8221; analysts at Tellimer said in a note.



A basket of EM currencies&nbsp;.MIEM0000CUS&nbsp;was flat while the dollar&nbsp;=USD&nbsp;retreated from a three-month high.



Risk-sensitive EM currencies have been under pressure in 2024 as hawkish remarks from policymakers have led traders to dial back bets of early rate cuts from the Federal Reserve.



Most regional currencies will struggle to recoup this year&#8217;s losses against the dollar in coming months, a Reuters poll of FX strategists found.



Poland&#8217;s monetary policy decision is also on tap, with the central bank expected to keep its main interest rate on hold at 5.75% at 1300 GMT.



The Polish zloty&nbsp;EURPLN=&nbsp;was up 0.2% versus the euro while stocks in Warsaw&nbsp;.WIG&nbsp;advanced 0.3%.



Elsewhere, Sri Lanka expects to implement a debt restructuring framework within the first six months of 2024, the country&#8217;s president said on Wednesday.



(Reporting by Amruta Khandekar; editing by Christina Fincher)

World map with charts and graphs as symbols of global finance

Stocks nudge higher on China stimulus signals, Argentina in focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg" alt="" class="wp-image-426709" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE.jpg 1457w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ugandan President Yoweri Museveni attends a session of the Russia-Africa summit in Saint Petersburg, Russia, July 28, 2023. Mikhail Tereshchenko/TASS Host Photo Agency via REUTERS/File Photo</figcaption></figure>



KAMPALA, Feb 7 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s public debt stock is seen hitting 49.2% of gross domestic product (GDP) by the end of the current fiscal year ending in June, up from 46.9% a year earlier, the finance ministry said.



The East African country&#8217;s debt levels have been rising due chiefly to government spending on public infrastructure.



The central bank has been among those warning that debt costs are increasingly crowding out priorities like education and health.



The finance ministry said in a report published late on Tuesday that the country faced &#8220;moderate risk of debt distress,&#8221; linked to slow growth in exports and debt-service costs eating up a growing chunk of revenues.



Last fiscal year Uganda used around a third of its tax revenues to service its public debt. As of June 2023, total domestic and external debt stood at $23.66 billion.



Ugandan President Yoweri Museveni&#8217;s government has taken on large credit lines, especially from China, to fund infrastructure projects like roads and power plants, which officials say are needed to fuel economic growth.



(Reporting by Elias Biryabarema; Editing by Alexander Winning and Sharon Singleton)

A session of the Russia-Africa summit in Saint Petersburg

Uganda says public debt stock to hit nearly 50% of GDP by June

<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 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s&nbsp;shilling exchange rate has overshot its equilibrium rate and there is scope for the central bank to support it, the central bank governor said on Wednesday.



The bank raised the benchmark lending rate KECBIR=ECI by 50 basis points to 13.0% on Tuesday, citing sticky inflation and lingering pressure on the local currency.



The shilling weakened more than 20% against the dollar last year and has fallen to more record lows this year. In the past, the central bank has said it has no preferred rate for the shilling and only intervenes to reduce volatility.



&#8220;It is my view now that the exchange rate has overshot the equilibrium rate. So there could be scope for central bank to support the exchange rate going forward,&#8221; Thugge said.



He added that the bank raising its key rate could also contribute to the shilling strengthening.



Thugge said the economy&nbsp;will likely expand at a slightly faster pace this year, helped by improved performance in agriculture and the services sector.



He added that the economy was forecast to grow 5.7% this year versus 5.6% last&nbsp;year. In&nbsp;December, the central bank had forecast the economy to grow 5.9% in 2024.



(Reporting by George Obulutsa; Editing by Jacqueline Wong, Christopher Cushing and Andrew Heavens)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya central bank governor: there is scope to support shilling

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT-1.jpeg" alt="" class="wp-image-410779" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT-1.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT-1-140x80.jpeg 140w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption class="wp-element-caption">Transnet
Bloomberg | Bloomberg | Getty Images</figcaption></figure>



CAPE TOWN, Feb 6 (Reuters)&nbsp;&#8211;&nbsp;South African state-owned rail and port operator Transnet has told the government it needs more time and cannot meet deadlines beginning next month in a roadmap to address the country&#8217;s logistic problems, its acting chief executive said on Tuesday.



Transnet has struggled to provide adequate freight rail and port services because of equipment shortages and maintenance backlogs after years of under-investment. Rampant cable theft and vandalism have also damaged the network.



Exporters, including South Africa&#8217;s miners, say they have lost millions of dollars as a result with knock-on effects for the economy, but Transnet said trying to rush solutions would not help.



&#8220;We are currently in discussion with the National Treasury and the shareholder on some of the dates,&#8221; Transnet Acting CEO Michelle Phillips told Reuters on the sidelines of the Investing in African Mining Indaba in Cape Town.



&#8220;We have provided alternate dates because if you go to the logistics roadmap, there are a number of transactions with dates, a number of them speak to March of this year, it can&#8217;t be done by me and I don&#8217;t think we can do it as Transnet,&#8221; she said.



In December, the government approving funding for Transnet together with the Freight Logistics Roadmap that plans for greater private sector involvement in the country&#8217;s rail and port networks.



Its provisions also include the creation of a separate infrastructure management unit and a timeframe that envisages appointing an infrastructure manager by March 2024 and allowing requests from private players for rights to operate parts of the freight rail network from April.



The utility has yet to announce replacements after the group CEO and head of the flagship freight rail subsidiary left last October. The Transnet board chairman has said the vacancies could be filled by the end of this month.



Phillips said Transnet supported the proposed reforms but was concerned that if things were rushed &#8220;we are going to make mistakes&#8221;.



&#8220;We have engaged and they (shareholders) are considering our request. I would want to give them the space to consider,&#8221; she said.



&#8220;My focus really at this moment is to get operations at the right levels so that we can satisfy our customers, while at the same time working on the future,&#8221; she said.



(Editing by Nelson Banya and Barbara Lewis)

106917267-1627376925447-gettyimages-969639316-SOUTH_AFRICA_PORT-1

South Africa’s Transnet says logistic reforms cannot be rushed

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-820x551.jpg" alt="" class="wp-image-422104" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U-1536x1032.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/12/W3TRJMXBPRNATIXO27SFJRC77U.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of IMF at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo</figcaption></figure>



The International Monetary Fund says financing conditions for sub-Saharan African economies are likely to remain constrained for a while amid continued capital outflows from the region.



&#8220;Global financing conditions, even if&nbsp;they&#8217;ve&nbsp;eased a little bit, remained&nbsp;fairly difficult&nbsp;for most countries as&nbsp;evidenced&nbsp;by continued pressure on foreign exchange rates for example,’’ the Washington-based lender’s Africa Department Director Abebe Selassie told reporters. &#8220;Capital flows also&nbsp;remain&nbsp;attenuated,&nbsp;notwithstanding&nbsp;Cote&nbsp;D&#8217;Ivoire&#8217;s&nbsp;recent issuance a couple of weeks ago.’’



The U.S. Federal Reserve and other global central banks are pushing back against expectations of early interest rate cuts, keeping dollar inflows strong. Africa, along with other emerging markets has as a result seen strong outflows while most countries have been unable to access global capital markets in what the IMF has called a funding squeeze.



Resilient U.S. consumer spending, even after 500 basis points in rate increases has anchored higher U.S. rates, pushing bets the U.S. Federal Reserve may begin cutting rates in March to May or the second half the year.



The IMF however says its 2024 forecast for sub-Saharan Africa growth remains unchanged at 3.8% versus the 3.3% percent estimate made last October at its annual meetings in Marrakech, Morocco. Inflation is seen decelerating to 6 percent versus 4 percent in 2023.



&#8220;Also encouraging is that we see both domestic and foreign investment picking up through 2023, which bodes well for activity in 2024,’’ Selassie said. &#8220;On the policy side, also, we have seen governments making a&nbsp;strenuous effort&nbsp;to stabilize public debt, and our estimates now suggest that public debt will have stabilized at around the 60% mark following about a decade of sustained increase in public debt levels.’’



The IMF last week upgraded its global economic growth forecast on the back of stronger than seen expansion in the United States and China, the world’s largest economies, and select large emerging markets.



Chief Economist Pierre-Olivier Gourinchas last week said a so-called soft landing was in sight as global inflation slowed while overall growth and trade reflected resilience though lower than historical averages.



Global trade was expected to expand by&nbsp;3.3% in 2024 and 3.6% in 2025, well below the historical average of 4.9%, with gains weighed down by&nbsp;thousands of fresh trade restrictions.



The tighter financing conditions were also slowing economic reforms needed to boost growth across the region, said Selassie. To counter this, the fund had so far disbursed about $3 billion of $19 billion set aside to back reforms.



The reforms had also been slowed by the lack of more progress on the Common Framework, with Zambia still struggling to finalize its debt restructuring. Concessions would be needed on both sides, he added.

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featured

South Africa to deploy 2,900 troops to fight armed groups in eastern Congo

Zimbabwe to link exchange rate to hard assets, create currency board

Stocks edge lower in holiday affected trade; Israel’s shekel down after rating cut

Nigeria’s Access Bank Group CEO among six dead in California helicopter crash

Bitcoin breaks above $47,000 for the first time since March 2022

South Africa’s Ramaphosa touts ANC history in state of nation address

US to commit more funds to African rail link for metal exports

Uganda’s central bank nets $339 mln in rare private placement debt auction

Zimbabwe working on measures to stabilise currency, central bank governor says

Ethiopia intelligence head Temesgen approved as deputy prime minister

South Africa’s Ramaphosa to announce election date this month – spokesman

South Africa’s ANC has 75% chance of losing majority – Standard Bank

Stocks nudge higher on China stimulus signals, Argentina in focus

Uganda says public debt stock to hit nearly 50% of GDP by June

Kenya central bank governor: there is scope to support shilling

South Africa’s Transnet says logistic reforms cannot be rushed

IMF says sub-Saharan Africa financing conditions tough, outflows continue

News Tips

Advertise With Us

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