<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/HV3OXVMTAJNSBPE3ZZLYUIZMTM-820x547.jpg" alt="" class="wp-image-428778" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/HV3OXVMTAJNSBPE3ZZLYUIZMTM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian naira banknotes are seen in this picture illustration, September 10, 2018. Picture taken September 10, 2018. REUTERS/Afolabi Sotunde/Illustration/File Photo</figcaption></figure>



ABUJA, Jan 31 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s naira dropped to a record low against the dollar on the official market on Tuesday, FMDQ Exchange data showed on Wednesday, slipping below rates on the unofficial parallel market in intra-day trades.



The naira fell as low as 1,531 to the dollar during trading on Tuesday, FMDQ data showed, compared with 1,460 naira quoted on the parallel market. The currency later closed at 1,482.57 naira on the official market, according to FMDQ.



The latest fall occurred after market regulator FMDQ OTC Securities Exchange said its methodology for calculating closing rates on the currency was revised last Friday to include more data, and that the levels on its computation had changed.



The naira has lost around 40% since the start of the year. Its official exchange rate has been drifting towards the parallel market level as foreign currency shortages in the West African nation funnel demand to unofficial sources.



The central bank has warned lenders about underreporting transactions on the financial market, leading to misinformation, attempts to create price distortions and market manipulation, and said such activity would be sanctioned.



On Wednesday the currency eased on the forwards market, with traders quoting the dollar as low as 1,650 in a year&#8217;s time.



(Reporting by Chijioke Ohuocha; Editing by Jan Harvey)

FILE PHOTO: Nigerian naira banknotes are seen in this picture illustration

Nigerian naira hits record low of 1,531 to dollar on official market – FMDQ

<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>



LONDON/JOHANNESBURG, Jan 30 (Reuters)&nbsp;&#8211;&nbsp;The African Development Bank (AfDB) has sold its long-awaited hybrid capital note, the first financing of its kind for multilateral development banks, which are under increasing pressure to find ways to boost their lending.



The G20 group of major economies has urged multilateral lenders to explore hybrid financing structures, to try to maximise balance sheets and increase funding to help developing economies with crises including climate change.



The $750 million perpetual hybrid note has a 5.75% coupon, tighter than the 6.375% guidance. The deeply subordinated, debt-like equity instrument has a lower credit rating than the lender&#8217;s AAA-rated bonds and can be redeemed by investors after 10.5 years or every five years thereafter.



&#8220;This is not a one-off transaction, it is definitely one of many more transactions to come,&#8221; said Hassatou N&#8217;Sele, VP Finance and Chief Financial Officer for the AfDB Group, declining to give more details on future issuance plans.



&#8220;We are establishing hybrid capital issued by AAA rated multilateral development banks as a new asset class &#8230; Other MDBs have indicated an interest in exploring hybrid capital.&#8221;



After an investor roadshow in September, the AfDB delayed the launch amid rising borrowing costs and choppy markets.



BNP Paribas and Goldman Sachs structured and coordinated the issuance, while Barclays and BofA Securities joined as bookrunners. S&amp;P Global rates the notes an AA-minus.



Damian Saunders, FIG Syndicate at BNP Paribas, said the transaction attracted a broad range of investors from private banks to asset managers and specialist credit funds.



&#8220;It was clearly a big learning curve for all parties involved and that includes the investor side as well – investors had to go away and decide how to price this risk,&#8221; Saunders said.



The AfDB&#8217;s acting treasurer told Reuters in November the bank has the capacity to issue $4 billion-$5 billion of hybrid capital bonds, but would be &#8220;progressive&#8221; with one or two transactions per year.



The terms of the hybrid note allow for a permanent principal writedown if the AfDB faces stress and needs shareholders to increase its capital, while coupon payments also can be skipped.



(Reporting by Karin Strohecker and Rachel Savage, Additional reporting by Rodrigo Campos, Editing by Marguerita Choy)

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

African Development Bank sells hybrid note in development finance first

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO-820x461.jpeg" alt="" class="wp-image-451521" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



JOHANNESBURG/WASHINGTON, Jan 30 (Reuters) &#8211; The International Monetary Fund on Tuesday edged its forecast for global economic growth higher, upgrading the outlook for both the United States and China &#8211; the world&#8217;s two largest economies &#8211; and citing faster-than-expected easing of inflation.



The IMF&#8217;s chief economist, Pierre-Olivier Gourinchas, said the global lender&#8217;s updated World Economic Outlook showed that a &#8220;soft landing&#8221; was in sight, but overall growth and global trade still remained lower than the historical average. However the fund downgraded its Sub-Saharan Africa forecast on subpar growth in Nigeria and South Africa, the region&#8217;s largest economies.



&#8220;The global economy continues to display&nbsp;remarkable&nbsp;resilience, with inflation declining steadily and growth holding up. The chance of a &#8216;soft landing&#8217; has increased,&#8221;&nbsp;Gourinchas&nbsp;told reporters in Johannesburg, adding, &#8220;We are very far from a global recession scenario.&#8221;



But he cautioned that the base of&nbsp;expansion&nbsp;was slow and risks remained, including geopolitical tensions in the Middle East and attacks in the Red Sea that could disrupt commodity prices and supply chains.



Delays in announced fiscal consolidation in what Gourinchas called &#8220;the biggest global election year in history&#8221; could boost economic activity but might also spur inflation, he added.



The IMF said the improved outlook was supported by stronger private and public spending despite tight monetary conditions, as well as increased labor force participation, mended supply chains and cheaper energy and commodity prices.



The IMF forecast global growth of 3.1% in 2024, up two-tenths of a percentage point from its October forecast, and said it expected unchanged growth of 3.2% in 2025. The historical average for the 2000-2019 period was 3.8%.



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 IMF stuck with its October forecast for headline inflation of 5.8% for 2024, but lowered the 2025 forecast to 4.4% from 4.6% in October. Excluding Argentina, which has seen inflation spike, global headline inflation would be lower, Gourinchas said.



Advanced economies should see average inflation of 2.6%, down four-tenths of a percentage point from the October forecast, with inflation set to reach central bank targets of 2% in 2025. By contrast, inflation would average 8.1% in emerging market and developing economies in 2024, before easing to 6% in 2025.



The IMF said average oil prices would drop 2.3% in 2024, versus the 0.7% decline it had predicted in October, and said prices were expected to drop 4.8% in 2025.



<h2 class="wp-block-heading" id="h-red-sea-attacks">RED SEA ATTACKS</h2>



&#8220;Staying on the path to a soft landing will not be easy,&#8221; Gourinchas said, noting that&nbsp;new commodity price spikes from geopolitical shocks, including&nbsp;continued attacks on shipping in the Red Sea, could prolong tight monetary conditions.



Gourinchas told reporters the IMF was watching developments in the Middle East closely, but the broader economic impact&nbsp;appeared&nbsp;&#8220;relatively limited&#8221;&nbsp;as of now.



&#8220;It doesn&#8217;t seem to represent, as of now, a major source of potentially reigniting supply-side inflation,&#8221; he&nbsp;said.



The United States got one of the biggest upgrades in the January update of the IMF outlook, with its GDP now forecast to expand by 2.1% in 2024 versus the 1.5% forecast in October. Growth was expected to ease to 1.7% in 2025.



Gourinchas credited fiscal support and consumer spending for the upgrade, but said the IMF had&nbsp;warned&nbsp;Washington that some of its subsidies from domestic producers and other industrial policies could violate global trade rules.



The euro area got a downgrade, and was now expected to grow just 0.9% in 2024 and 1.7% in 2025, with the biggest European economy &#8211; Germany &#8211; expected to see minimal GDP growth of 0.5% in 2024 instead of the 0.9% forecast in October.



China&#8217;s GDP was expected to grow by 4.6% in 2024, an upward revision of four-tenths of a percentage point from October, and 4.1% in 2025. Gourinchas said the boost reflected significant fiscal support from the authorities, and a less-severe-than-expected slowdown stemming from the property sector.



The U.S. Federal Reserve, European Central Bank and Bank of England were expected to&nbsp;start lowering interest rates gradually in the second half of 2024, Gourinchas said, adding, &#8220;We are not quite there yet.&#8221;



The Bank of Japan was expected to maintain low interest rates, and that was &#8220;appropriate,&#8221; but the IMF had told it to be ready to raise rates if inflation spiked, he said.



Gourinchas added that markets had been &#8220;excessively optimistic&#8221; on the prospects for early interest rate cuts by major central banks, and a repricing could increase long-term interest rates and trigger more rapid fiscal consolidation that would weigh on growth prospects.



Emerging market and developing economies&nbsp;were expected to grow by&nbsp;4.1% in 2024, with&nbsp;emerging&nbsp;and developing Europe getting an upgrade due to&nbsp;stronger-than-expected growth in Russia on the back of&nbsp;military spending for the war in Ukraine.



Russia&#8217;s GDP was expected to grow 2.6% in 2024, 1.5 percentage points more than expected in October, with growth seen easing to 1.1% in 2025. The IMF said there could be further revisions since the numbers were preliminary and there were questions about the extent of Russia&#8217;s fiscal stimulus.



Negative growth in Argentina depressed the forecast for the Latin America and Caribbean region, with growth seen dropping to 1.9% in 2024, four-tenths of a percentage point lower than in October. Growth should edge higher to 2.5% in 2025, the IMF said.



Gourinchas said the global outlook reflected more balanced upside and downside risks, with the risk of a wider conflict in the Middle East offset by the prospect that lower fuel prices could help inflation fall faster than expected.



&#8220;We see them as broadly balanced at this point,&#8221; he said, noting that a lot of the downside risks &#8211; especially with respect to disinflation &#8211; seen a year ago had not materialized.



(Reporting by Andrea Shalal; Editing by Paul Simao)

107223161-1681220740794-gettyimages-1243887539-IMF_WORLD_ECO

IMF lifts 2024 global growth outlook, lowers Sub-Saharan Africa

<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/FQSWANA64BMHTLLIX6FC6NZVV4-820x547.jpg" alt="" class="wp-image-451490" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FQSWANA64BMHTLLIX6FC6NZVV4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A backdrop is prepared for a group photo session as West African leaders meet to discuss transitional roadmap for Mali, Burkina Faso and Guinea, in Accra, Ghana, July 3, 2022. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



DAKAR, Jan 30 (Reuters) &#8211; A decision by Mali, Burkina Faso and Niger to quit West Africa&#8217;s economic and political bloc reverses decades of regional integration, leaving millions of people in limbo, and is likely to deepen the three junta-led countries&#8217; ties with Russia.



The move to withdraw from the 15-member Economic Community of West African States (ECOWAS) could yet take time to implement, opening a door for negotiations.



But, if carried through, it is set to disrupt the region&#8217;s trade and services flows, worth nearly $150 billion a year.



It also raises questions over millions of nationals from the three poor and landlocked nations who settled in neighbouring states as the bloc allows visa-free travel and right to work.



Ivory Coast alone is home to more than 5 million people from Burkina Faso, Mali and Niger.



Niger shares 1,500 km of border with Nigeria and 80% of its trade is done with its richer neighbour, said Seidik Abba, president of the Paris-based CIRES think tank.



Ghana, Togo and Benin also have a big diaspora from Niger.



&#8220;If they decide to go ahead and leave, it will become a very big problem, economically and politically, and the stakes are the highest for the people from these three countries,&#8221; he said.



More than a dozen analysts and Africa diplomats consulted by Reuters agreed the trio&#8217;s stance on ECOWAS underscored tumult across a region where armies have struggled to contain Islamist militants since seizing power in several countries.



Meanwhile, Russia has been extending its influence at the expense of former colonial power France, regional heavyweight Nigeria and the United States.



Earlier this month, Russia and Niger, ruled by a junta since a coup last year, agreed to develop military ties. Russian military personnel flew into Burkina Faso&#8217;s capital Ouagadougou last week to ensure the safety of the country&#8217;s military leader. Russia&#8217;s Wagner mercenary group also has 1,000 fighters in Mali.



The three military-ruled countries jointly announced their departure on Sunday, accusing ECOWAS of abandoning its founding ideals and falling under the influence of foreign powers.



They said the bloc had offered little support against Islamic insurgencies that have killed thousands and displaced over 2 million.



<h2 class="wp-block-heading" id="h-empty-threat">EMPTY THREAT</h2>



ECOWAS has responded to a wave of coups in the region since 2020 with sanctions that the juntas have called &#8220;illegal and inhumane.&#8221; The bloc also threatened to use force to restore constitutional rule in Niger, but did not follow through.



On Monday, ECOWAS chair Nigeria said the &#8220;unelected&#8221; military authorities of the three countries were letting their people down, but added it remained willing to engage with them.



Established in 1975, ECOWAS has sought to promote economic and political cooperation within the fragmented region, home to a mix of former French and British colonies.



Mucahid Durmaz, senior West Africa analyst at risk intelligence company Verisk Maplecroft, said he now expects increased tariffs and new restrictions on the movement of people, goods and money.



The move by the trio is likely the &#8220;silliest own goal since the United Kingdom voted for Brexit,&#8221; said Charlie Robertson, head of macro strategy at London-based investment management company FIM Partners, referring to Britain&#8217;s departure from the European Union.



&#8220;The three countries were already among the poorest in ECOWAS, and indeed the world – and leaving won&#8217;t help,&#8221; he said, adding the trio account for just 8% of the bloc&#8217;s gross domestic product.



Under ECOWAS rules, leaving the bloc takes at least a year, so those living outside their home countries should not face immediate consequences.



But in a worst-case scenario, &#8220;we could see one of the major movements of people that we have seen in decades &#8211; citizens across the subregion packing their things and heading back home,&#8221; said Kwesi Aning, a Ghana-based security analyst.



Gilles Yabi, founder of West African think tank WATHI, said the trio had stopped short of announcing their withdrawal from the regional monetary and economic union that uses the CFA franc, something that would have an even bigger impact.



&#8220;I think Mali, Niger and Burkina Faso know that it&#8217;s not easy – it&#8217;s not possible actually – to withdraw from the monetary union, when you don&#8217;t have your own system in place, a new currency in place, for example,&#8221; he said.



<h2 class="wp-block-heading" id="h-embargo-on-ourselves">&#8216;EMBARGO ON OURSELVES&#8217;</h2>



In Mali&#8217;s capital, Bamako, tailor Adama Coulibaly welcomed the juntas&#8217; decision, saying it was normal for the countries to take matters into their own hands because ECOWAS had failed.



But health worker Nagnouma Keita was apprehensive. &#8220;Our three states cannot survive on their own, especially since they have no access to the sea. I believe that, in reality, we are imposing an embargo on ourselves,&#8221; she said.



Some analysts said ECOWAS had been too swift to punish the juntas, having previously failed to call out civilian leaders, in Ivory Coast and Guinea among others, who extended their rule through problematic elections or referendums.



Threatening military intervention against the juntas but failing to act also reduced the bloc&#8217;s credibility, they said.



For years, security experts have said countries in the region must work closer – sharing more intelligence – to tackle the spreading insurgencies that are feeding off poverty, neglect and abuse as much as ideology.



Instead, the latest crisis at ECOWAS highlights the growing rift between the Western-allied elected governments and military-run countries increasingly relying on Russia and China.



&#8220;The departure from ECOWAS will have catastrophic consequences for the ability to respond to the many security challenges facing this region,&#8221; said Abba.



(Reporting by Bate Felix, David Lewis and Giulia ParaviciniAdditional reporting by Tiemoko Diallo and Boureima Balima, editing by Silvia Aloisi and Andrew Cawthorne)

FILE PHOTO: West African leaders hold summit to discuss roadmap for Mali, Burkina Faso and Guinea

West Africa’s ‘Brexit’ moment spells trouble for the region

<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/XYLRJGDDEBIFFEYH3ILGDOLHJM-820x547.jpg" alt="" class="wp-image-424605" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/XYLRJGDDEBIFFEYH3ILGDOLHJM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man counts Nigerian naira notes in a market place as people struggle with the economic hardship and cashflow problems ahead of Nigeria&#8217;s Presidential elections, in Yola, Nigeria, February 22, 2023. REUTERS/Esa Alexander/File Photo</figcaption></figure>



ABUJA, Jan 30 (Reuters)&nbsp;&#8211;&nbsp;Nigerian non-deliverable currency forwards fell sharply to record lows against the U.S. dollar on Tuesday, mirroring falls on the official spot market, LSEG data showed.



Non-deliverable currency forwards, derivative products used to hedge against future exchange rate moves, indicated markets expected the naira&#8217;s exchange rate at 1,427.50 to the dollar in one month&#8217;s time&nbsp;NGNNDFOR=.



FMDQ Exchange data on Monday showed the naira had fallen to a record low of 1,421 per dollar on Friday on the thinly traded official market, below levels seen on the unofficial parallel market, where the currency trades freely.



On Monday, Nigeria&#8217;s central bank warned lenders about under reporting transactions on the financial market, leading to misinformation, attempts to create price distortions and market manipulation, and said such activity would be sanctioned.



The naira&#8217;s official exchange rate had been drifting towards the parallel market level as the central bank is yet to clear outstanding amounts owed in forward deals, worsening a shortage of foreign currency in Africa&#8217;s biggest economy.



The central bank still has about $5 billion in forwards that have matured, after it paid $2.5 billion to manufacturers and importers. The backlog has been a major concern for investors despite assurances by the Central Bank of Nigeria (CBN) that it would clear them.



Other maturities on the forwards market on Tuesday also fell, with traders quoting the currency as low as 1,626.18 naira per dollar in a year&#8217;s time.



(Reporting by Chijioke Ohuocha; Editing by Ed Osmond and Mark Potter)

FILE PHOTO: Man counts Nigerian naira notes in a market place ahead of Nigeria’s Presidential elections in Yola

Nigeria’s naira hits new lows vs dollar on forwards market – LSEG data

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



Jan 30 (Reuters)&nbsp;&#8211;&nbsp;Equities in emerging economies lost momentum on Tuesday as markets in China and Hong Kong were hit by growing property sector concerns, while the Hungarian forint was subdued in the run-up to a widely expected local rate cut.



MSCI&#8217;s index for emerging market (EM) stocks had shed 0.7% by 0912 GMT, coming off a two-week high hit in the prior session.



Heavyweight China .CSI300 and Hong Kong .HSI stocks fell 1.8% and 2.3% respectively, as the liquidation of property giant China Evergrande triggered fresh concerns over China&#8217;s heavily indebted real estate sector.



&#8220;The Evergrande headlines yesterday serve as a reminder that there are no quick fixes for the property sector and the measures announced by policymakers to support local equity markets&#8230;are not proving effective,&#8221; Chris Turner, global head of markets at ING wrote in a note.



China&#8217;s 10-year government bond yieldsCN230026=, CN10YT=RR slid below 2.47% to their lowest levels since June 2002 as markets bet the country would ease monetary policy to support its faltering economy.



Most other Asian bourses were also in the red as an uptick in oil prices due to tensions in the Middle East raised concerns about prolonged inflationary pressures ahead of the U.S. Federal Reserve&#8217;s interest rate announcement due on Wednesday.



Commentary from the central bank following the decision will be a key catalyst for risky EM assets as it will influence bets about the timing of U.S. rate cuts, which have been scaled back this month.



Equities in Turkey&nbsp;.XU100, South Africa&nbsp;.JTOPI, Poland&nbsp;.WIG&nbsp;and Romania&nbsp;.BETI&nbsp;climbed between 0.2% and 0.6%.



In currencies, the Hungarian forint EURHUF= was down 0.1%, languishing at near four-month lows against the euro ahead of a local monetary policy decision due at 1300 GMT. The National Bank of Hungary is expected to cut its base rate by 100 basis points to 9.75%, according to a Reuters poll.



The Czech crown EURCZK= slipped 0.1% while the benchmark ten-year bond yield CZ10YT=RR fell to 3.904%. Data showed the Czech economy rose 0.2% on a quarterly basis in the last three months of 2023.



A broader gauge of EM currencies&nbsp;.MIEM00000CUS&nbsp;edged up 0.2%.



The South African rand ZAR= slipped 0.1%, while the Thai baht THB=TH, South Korean won KRW= and Taiwan dollar TWD=TP rose between 0.2% and 0.5% against the dollar.



(Reporting by Amruta Khandekar; editing by Jason Neely)

Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering

Stocks sputter on China property sector woes, Hungary in focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-820x562.jpg" alt="" class="wp-image-451375" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-768x526.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/FTDTXBVVGNK4ROM6N5ELSNCWHI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Economic Community of West African States (ECOWAS) court signage and logo is pictured in Abuja, Nigeria February 16, 2022. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria on Monday said the &#8220;unelected&#8221; military authorities in Niger, Mali, and Burkina Faso were letting their people down with their joint decision to leave the Economic Community of West African States (ECOWAS).



Nigeria, which is the current chair of the political and economic bloc, was commenting for the first time on the three junta-led countries&#8217; Sunday announcement that they were immediately quitting the nearly 50-year-old regional alliance.



The Nigerian foreign ministry in a statement said those seeking to leave ECOWAS were not acting in good faith.



&#8220;Instead, unelected leaders engage in a public posturing to deny their people the sovereign right to make fundamental choices over their freedom of movement, freedom to trade and freedom to choose their own leaders,&#8221; it said.



ECOWAS has so far declined to comment on the move, which could further weaken the bloc as it struggles to contain a democratic retreat in the West Africa region.



Mali and Niger&#8217;s foreign ministries earlier informed the ECOWAS Commission of their decision in written notices dated on Monday, which were seen by Reuters.



Nigeria said it remained willing to engage with the three nations.



Their exit decision, announced in a simultaneous joint statement on national television channels, is a blow to the bloc&#8217;s regional integration efforts after it suspended the three following coups.



(Reporting by Felix Onuah in Abuja, Fadimata Kontao in Bamako, Boureima Balima in Niamey; Writing by Nellie Peyton and Alessandra Prentice; Editing by Chris Reese and Sandra Maler)

Ecowas court hearing on whether Nigeria’s Twitter ban violated rights, in Abuja

ECOWAS chair Nigeria slams juntas’ move to quit bloc

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="539" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-820x539.jpg" alt="" class="wp-image-428505" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-1536x1009.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigeria-aims-to-cut-number-of-taxes-to-fewer-than-10-official-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows Nigeria&#8217;s Central Bank headquarters in Abuja, Nigeria November 22, 2020. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank has injected $500 million to clear outstanding foreign exchange demand backlog, it said in a statement on Monday.



Africa&#8217;s biggest economy has about $7 billion in forex forwards that have matured, a major concern for investors as foreign currency shortages continue to weigh down the naira currency, despite assurances by the Central Bank of Nigeria (CBN) that it would clear the backlog.



Earlier this month, it paid about $2 billion of the backlog across sectors such as manufacturing, aviation, and petroleum, CBN spokesperson Hakama Sidi Ali said.



This is a developing story&#8230;



(Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; Editing by Jon Boyle)

FILE PHOTO: A view shows Nigeria’s Central Bank headquarters in Abuja

Nigeria’s central bank injects $500 million to clear FX backlog -statement

<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/K3R6TLCHVRIXXEGLDCVETAAITQ-820x547.jpg" alt="" class="wp-image-451111" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/K3R6TLCHVRIXXEGLDCVETAAITQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Italy&#8217;s newly appointed Prime Minister Giorgia Meloni speaks to the media following a meeting with Italian President Sergio Mattarella at the Quirinale Palace in Rome, Italy October 21, 2022. REUTERS/Guglielmo Mangiapane</figcaption></figure>



ROME, Jan 29 (Reuters)&nbsp;&#8211;&nbsp;Italian Prime Minister Giorgia Meloni called for a new partnership with Africa on Monday, unveiling a long-awaited plan aimed at boosting economic ties, creating an energy hub for Europe and curbing immigration.



Speaking at a one-day summit attended by more than two dozen African leaders and European Union officials, Meloni outlined a series of initiatives, pledging an initial 5.5 billion euros ($5.95 billion), including state guarantees.



&#8220;We believe it is possible to envision and write a new chapter in the history of our relationship, a cooperation among equals, far from any predatory imposition or charitable stance towards Africa,&#8221; Meloni said in an opening speech.



However, the proposal got a cool response from some of those present, with Moussa Faki Mahamat, chairman of the African Union Commission, saying he wished Africa had been consulted first.



&#8220;I want to insist here on the need to move from words to actions. You can well understand that we can no longer be satisfied with mere promises that are often not kept,&#8221; he said, standing alongside Meloni in Italy&#8217;s ornate Senate.



Among the African leaders present were the presidents of Tunisia, Senegal, Kenya, the Republic of Congo and Somalia. In all, 45 African states were represented at various levels.



Critics have said that heavily indebted Italy cannot hope to compete with the likes of China, Russia and Gulf states, that are all looking to boost their presence in Africa, which is home to many of the world&#8217;s natural resources.



While Rome claims ownership of the plan, which it has named after the late Enrico Mattei, who founded state oil company Eni, Meloni said her government would look to help from the private sector and international bodies such as the European Union.



Underscoring that point, European Commission President Ursula von der Leyen, European Council President Charles Michel and the head of the EU Parliament were all at the Rome meeting.



&#8220;The Mattei Plan&#8230; fits perfectly into our European Global Gateway worth 150 billion euros. This is our plan for Africa,&#8221; von der Leyen told Monday&#8217;s gathering, referring to an infrastructure project unveiled in 2021.



<h2 class="wp-block-heading" id="h-energy-needs">ENERGY NEEDS</h2>



Meloni has made the Mattei plan a central plank of her foreign policy since taking office in late 2022.



Energy needs lie at the heart of the initiative, with Rome looking to serve as a gateway into European markets for natural gas from Africa that has become vital after Russia&#8217;s invasion of Ukraine made diversification of supplies a priority for the EU.



Eni, Italy&#8217;s largest importer of natural gas, has already countered lower Russian supplies by shipping increased volumes from Africa, where it has had a presence for decades.



The company has said Algeria, Egypt and Libya will be Italy&#8217;s main gas suppliers for the next few years.



But Meloni also said Europe had to bolster industry and agriculture in Africa to strengthen local economies as a way of persuading disaffected young Africans from migrating north.



Some 157,600 boat migrants reached Italy last year, the largest number since 2016, undermining Meloni&#8217;s electoral pledge to halt the flow of unauthorised arrivals.



Most departed from North African countries such as Tunisia and Libya, many fleeing poverty and conflict in sub-Saharan Africa and the Middle East.



&#8220;Mass immigration will never be stopped, human traffickers will never be defeated if we do not address the many causes that push a person to leave their home,&#8221; Meloni told the summit. &#8220;This is exactly what we intend to do.&#8221;



(Writing by Crispian Balmer; Editing by Alex Richardson and Sharon Singleton)

Italy’s newly appointed Prime Minister Giorgia Meloni speaks to the media following a meeting with Italian President Sergio Mattarella, in Rome

Italy’s Meloni seeks new partnership with Africa, funds limited

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-820x547.jpeg" alt="" class="wp-image-451066" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The PlayStation DualSense controller and PlayStation 5 console. Jakub Porzycki | Nurphoto | Getty Images</figcaption></figure>



Sony is making a bold bet on Africa’s video game industry.&nbsp;



The Japanese consumer electronics and gaming giant has invested an undisclosed sum into Carry1st, a video game studio based in Cape Town, South Africa, via its Sony Innovation Fund venture arm, Carry1st told CNBC exclusively.&nbsp;



The deal is a strategic investment that will see the two companies partner on a range of commercial opportunities. For now, the two companies are in the “exploratory stages” of that partnership.



Cordel Robbin-Coker, CEO and co-founder of Carry1st, said talks with the Sony Innovation Fund began about eight to nine months ago, and that his pitch to the PlayStation console maker was that Africa is the next big market to find growth in video games.&nbsp;



“As large companies like Sony that have really strong footholds in tier-one and tier-two markets start thinking about where the next billion customers and gamers are going to come from, our pitch is that Africa is a prime market for that,” Robbin-Coker told CNBC in an interview.&nbsp;



“We believe very firmly that there is an incredibly underrated console opportunity in Africa,” Robbin-Coker said, citing countries like Nigeria, Morocco and Algeria as places where console adoption is rising a lot.&nbsp;



Sony is coming into an emerging gaming market with blistering growth potential. Sub-Saharan Africa’s gaming industry is expected to generate over $1 billion for the first time in 2024, according to research from Carry1st and venture capital firm Konvoy. 



Many gamers in Africa are buying consoles on “gray” markets — in other words, from vendors who’ve imported consoles from overseas to resell them locally, Robbin-Coker added.&nbsp;



<h2 class="wp-block-heading" id="h-expanding-playstation-in-africa-nbsp"><a></a>Expanding PlayStation in Africa&nbsp;</h2>



One aspect of Carry1st’s partnership with Sony was about helping the games and entertainment giant expand PlayStation’s footprint in Africa. 



Sony forecast it would sell a record 25 million PlayStation 5 units in its 2023 fiscal year, which would mark the best year for any PlayStation console in history. The PS5 was initially blighted by shortages due to a scarcity of chips and supply chain disruptions.



Sony’s bet with its stake in Carry1st is that Africa will be the next major market to drive growth in PS5 sales.



“Our hope is that we can help [Sony] to expand their reach of PlayStation in the region and support them in a range of ways, including broader go-to-market strategies, as well as digital payments,”&nbsp;Robbin-Coker told CNBC.



He noted Carry1st could take advantage of the changing console business model, where sales have gone from primarily in-store payments for physical consoles and games to a more online experience marked by digital downloads, free-to-play games, and in-app purchases.&nbsp;



Carry1st’s localized payment service Pay1st allows African gamers to buy games using local infrastructure, bank accounts, and payment methods including M-Pesa and mobile wallets. Game makers can monetize their games on Carry1st, the company’s online marketplace for games and add-on content.&nbsp;



<h2 class="wp-block-heading"><a></a>Original games in the pipeline&nbsp;&nbsp;</h2>



Carry1st, founded in 2018, specializes in developing mainly social and casual puzzle-based mobile games for an African audience.  



Carry1st currently only makes and scales games for other clients, like Activision. But the company is now planning to develop its own original titles this year, with development underway on three new games.&nbsp;&nbsp;



Little is known about the original games for now, but Robbin-Coker says he is “very confident” about the road map for Carry1st’s original titles, and that he “firmly believes” the company is on track to launch its debut first-party game sometime in 2024.&nbsp;



Carry1st is still an early-stage startup, but its growth has been on a tear in recent years. Carry1st says its revenues climbed nearly ninefold between 2021 and 2023. Carry1st said it was unable to give a fuller picture of its financials given the sensitivity of the numbers.&nbsp;



Carry1st works with the likes of Activision, Supercell and Riot Games to bring Western game franchises like “Call of Duty: Mobile” and “Valorant” to Africa.&nbsp;



The company is behind the mobile games “Mancala Adventures,” “SpongeBob Krusty Cook-Off” — made in partnership with Nickelodeon — “Ludo Blitz” and “Mine Rescue.”&nbsp;



Sony’s investment in Carry1st marks the first financial commitment of its new flagship African venture fund, Sony Innovation Fund: Africa, which launched in October 2023 to invest in early-stage startups in Africa’s entertainment industry.&nbsp;



Sony Ventures Corporate, Sony’s venture arm, allocated an initial $10 million to its Africa fund.&nbsp;&nbsp;



Carry1st’s latest deal adds to its list of venture backers, with another top name on the cap table. Andreessen Horowitz, Bitkraft Ventures, Google, Riot Games, and rapper Nas have so far backed the company with $60 million of funding to date.&nbsp;

107283162-1691491519512-gettyimages-1580920005-porzycki-playstat230806_nph3Q

Sony is making a bold bet on an African gaming startup to boost PlayStation’s reach in the continent

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="756" height="426" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3.jpg" alt="" class="wp-image-417686" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3.jpg 756w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/ecowas-3-160x90.jpg 160w" sizes="auto, (max-width: 756px) 100vw, 756px" /><figcaption class="wp-element-caption">Economic Community of West African States (ECOWAS) flag is pictured during an extraordinary summit of ECOWAS to hear reports from recent missions to Mali, Burkina Faso and Guinea following military coups in those countries, in Accra, Ghana March 25, 2022. REUTERS/Francis Kokoroko</figcaption></figure>



NIAMEY/BAMAKO, Jan 28 (Reuters)&nbsp;&#8211;&nbsp;Niger, Mali and Burkina Faso, three West African states led by the military, said on Sunday they are immediately leaving the Economic Community of West African States (ECOWAS), a regional economic bloc that has been urging them to return to democratic rule.



The decision by the three, announced in a simultaneous joint statement on their national television channels, is a blow to the bloc&#8217;s regional integration efforts after it suspended the three following coups.



The move could further weaken ECOWAS which has struggled to contain a democratic retreat in the West Africa region.



In response to the withdrawal ECOWAS said it is yet to receive any formal notification about the withdrawal and declined further comment.



The bloc had previously said it does not recognise the military-led governments, vowing that coups would no longer be tolerated after the military takeovers in Mali, Burkina Faso and Guinea and an attempted coup in Guinea-Bissau.



Since the coups &#8211; and despite sanctions, negotiations and threats of military intervention &#8211; the military leaders have failed to provide a clear timetable for a return to constitutional rule.



Instead, they have hardened their rhetoric against the bloc and accused it of being influenced by external powers. The three have also cut military and other ties with former colonial master France, and turned to Russia for security support.



<h2 class="wp-block-heading" id="h-existential-fight">EXISTENTIAL FIGHT</h2>



The military leaders have argued they want to restore security before organising elections, as the three Sahel nations struggle contain insurgencies linked to al Qaeda and Islamic State.



&#8220;After 49 years, the valiant peoples of Burkina Faso, Mali, and Niger regretfully and with great disappointment observe that the (ECOWAS) organization has drifted from the ideals of its founding fathers and the spirit of Pan-Africanism,&#8221; Colonel Amadou Abdramane, Niger junta spokesman, said in the statement.



&#8220;The organization notably failed to assist these states in their existential fight against terrorism and insecurity,&#8221; Abdramane added.



Bakary Sambe, regional director of the Timbuktu Institute think tank, said there were clear signs that the junta-led states were moving towards a split from the bloc, as they strengthen ties between themselves and created a new alliance.



It is unclear for now how the decision by the landlocked junta states, will impact the 15-member regional bloc where goods and citizens move freely.



According to the bloc&#8217;s treaty, member states wishing to withdraw must give a written one-year notice. It is unclear for now if the three states have done so. The treaty say they must continue to abide by its provisions during the year-long period.



The three are also members of the eight-nation West African Monetary Union (UEMOA) which uses the West Africa CFA franc currency pegged to the Euro.



The monetary union, following decisions by ECOWAS leaders after the coups in Mali and Niger, had cut off their access to the regional financial market, and the regional central bank. It later restored Mali&#8217;s access but Niger remains suspended.



(Reporting by Tiemoko Diallo, Boureima Balima, Felix Onuah and MacDonald Dzirutwe; Writing by Bate Felix; Editing by William Maclean and David Holmes)

ecowas-3

Three West African junta-led states quit ECOWAS regional block

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="564" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-820x564.jpg" alt="" class="wp-image-450156" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-820x564.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-768x528.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-1536x1056.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/53MYQVJSWZK5NPKRMJWOEC3ACQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of the International Court of Justice (ICJ) on the day of the trial to hear a request for emergency measures by South Africa, who asked the court to order Israel to stop its military actions in Gaza and to desist from what South Africa says are genocidal acts committed against Palestinians during the war with Hamas in Gaza, in The Hague, Netherlands, January 11, 2024. REUTERS/Thilo Schmuelgen</figcaption></figure>



THE HAGUE, Jan 26 (Reuters)&nbsp;&#8211;&nbsp;The World Court on Friday ordered Israel to take action to prevent acts of genocide as it wages war against Hamas militants in the Gaza Strip, but it stopped short of calling for an immediate ceasefire.



Ruling on a case brought by South Africa, the court said Israel must ensure its forces did not commit genocide and take measures to improve the humanitarian situation for Palestinian civilians in the enclave.



In the ruling, 15 of the 17 judges on the International Court of Justice (ICJ) panel voted for emergency measures which covered most of what South Africa asked for, with the notable exception of ordering a halt to Israeli military action in Gaza.



Israel&#8217;s military operation has laid waste to much of the densely populated enclave and killed more than 25,000 Palestinians in nearly four months, according to Gaza health authorities.



Israel unleashed its assault after a cross-border rampage on Oct. 7 by Hamas militants. Israeli officials said 1,200 people were killed, mostly civilians, and 240 taken hostage.



The court said it was &#8220;gravely concerned&#8221; about the fate of the hostages in Gaza and called on Hamas and other armed groups to immediately release them without conditions.



But the ruling, welcomed by Palestinians, will still be an embarrassment for Israel and its closest allies, including the United States.



Israel had asked the court to reject the case outright, saying it respects international law and has a right to defend itself.



&#8220;The state of Israel shall&#8230;take all measures within its power to prevent the commission of all acts within the scope of Article II of the Genocide convention,&#8221; the court said.



Israel must report back to it on what steps it was taking in a month&#8217;s time,&nbsp;it said.



Israeli Prime Minister Benjamin Netanyahu said the charge of genocide leveled against Israel was &#8220;outrageous&#8221; and said it would do whatever is necessary to defend itself.



&#8220;The vile attempt to deny Israel this fundamental right is blatant discrimination against the Jewish state, and it was justly rejected,&#8221; he said in a statement.



But while the ICJ&#8217;s decisions are final and without appeal, the court has no way to enforce them.



The court did not rule at this stage 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.



South Africa&#8217;s deputy president Paul Mashatile and Justice Minister Ronald Lamola were seen cheering and dancing at a gathering of the governing African National Congress party following the court&#8217;s verdict.



South Africa argued two weeks ago that Israel&#8217;s aerial and ground offensive was aimed to bring about &#8220;the destruction of the population&#8221; of Gaza.



The 1948 Genocide Convention, enacted in the wake of the mass murder of Jews in the Nazi Holocaust, defines genocide as &#8220;acts committed with intent to destroy, in whole or in part, a national, ethnical, racial or religious group&#8221;.



Acts of genocide named in the convention include killing members of the group, causing serious bodily or mental harm to members of the group and deliberately inflicting conditions of life calculated to bring about the destruction of the group in whole or in part.



(Reporting by Stephanie van den Berg in The Hague, Anthony Deutsch and Bart Meijer in Amsterdam; Writing by Ingrid Melander; Editing by Angus MacSwan)

A general view of the International Court of Justice (ICJ) on the day of the trial to hear a request for emergency measures by South Africa, who asked the court to order Israel to stop its military actions in Gaza, in The Hague

World Court says Israel must take steps to prevent acts of genocide in Gaza

<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/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-820x547.jpg" alt="" class="wp-image-450088" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Israeli soldiers fire a mortar, as the conflict continues between Israel and the Palestinian Islamist group Hamas, on the border with the central Gaza, Israel January 22, 2024. REUTERS/Amir Cohen</figcaption></figure>



WASHINGTON, Jan 25 (Reuters)&nbsp;&#8211;&nbsp;U.S. Secretary of State Antony Blinken spoke on Thursday with South African Foreign Minister Naledi Pandor about the war in Gaza, a day ahead of a ruling at the World Court on urgent measures in a case in which Israel is accused of genocide.



<h2 class="wp-block-heading" id="h-why-it-is-important">WHY IT IS IMPORTANT</h2>



U.N. judges on Friday will rule on South Africa&#8217;s request for emergency measures against Israel, which is accused at the International Court of Justice of state-led genocide for its military operation in Gaza.



Friday&#8217;s ruling will not deal with the core accusation of the case &#8211; whether genocide occurred &#8211; but will focus on the urgent intervention sought by South Africa.



<h2 class="wp-block-heading" id="h-key-quotes">KEY QUOTES</h2>



In a call on Thursday, Blinken reaffirmed U.S. support &#8220;for Israel&#8217;s right to ensure the terrorist attacks of October 7 can never be repeated,&#8221; the U.S. State Department said in a statement.



Blinken and Pandor also discussed the need to protect civilian lives in Gaza, and ensure regional peace that &#8220;advances the establishment of an independent Palestinian state,&#8221; according to the State Department. It added the two also reaffirmed U.S.-South Africa bilateral ties.



<h2 class="wp-block-heading" id="h-context">CONTEXT</h2>



South Africa has requested an immediate halt to Israel&#8217;s military operation, which has laid waste to much of the enclave and killed more than 25,000 people or over 1% of Gaza&#8217;s 2.3 million population, according to the local health authorities.



Israel rejects the accusations from South Africa and says it has a right to defend itself following the Oct. 7 attack on Israel by Palestinian Islamist group Hamas, which governs Gaza. Israeli officials say that in that attack 1,200 people were killed and 240 taken hostage.



South Africa has asked for nine emergency measures, which act like a restraining order while the court hears the case in full, which could take years. The court is not bound to follow South Africa&#8217;s requests and could order its own measures if it finds it has jurisdiction at this stage of the case.



(Reporting by Kanishka Singh in Washington; Editing by Jacqueline Wong)

G6G5NOTLSVLUDDBEN6SGCUY2BY-2-1

US, South Africa discuss Gaza war ahead of ruling on measures in genocide case

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107355390-1704724879173-gettyimages-1896093454-vcg111472304231-820x462.jpeg" alt="" class="wp-image-450070" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107355390-1704724879173-gettyimages-1896093454-vcg111472304231-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107355390-1704724879173-gettyimages-1896093454-vcg111472304231-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107355390-1704724879173-gettyimages-1896093454-vcg111472304231-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107355390-1704724879173-gettyimages-1896093454-vcg111472304231-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/107355390-1704724879173-gettyimages-1896093454-vcg111472304231.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">SUIXI, CHINA &#8211; DECEMBER 30: An employee works on the production line of aluminum foil at a workshop of Anhui Limu New Material Technology Co., Ltd on December 30, 2023 in Suixi County, Huaibei City, Anhui Province of China. (Photo by Li Xin/VCG via Getty Images) Vcg | Visual China Group | Getty Images</figcaption></figure>



Global commodity markets are in a “super squeeze” amid supply disruptions and lack of investment — and it’s only going to get worse as geopolitical and climate risks exacerbate the situation, HSBC said.



“For some time now we have described global commodity markets as being in a ‘super-squeeze,’” its chief economist Paul Bloxham told CNBC.



A commodity “super squeeze” is denoted by higher prices driven by supply constraints more than a robust growth in demand, he explained.



“If it’s a supply constraint that’s driving high commodity prices, it’s a very different story for global growth,” said via Zoom. Higher prices as a result of a super squeeze are “not as positive.”



“We see the deeper ‘super-squeeze’ factors on the supply-side as still set to play a key role in keeping commodity prices elevated,” he said, outlining factors like political uncertainties, climate change and the lack of investments into the green energy transition.



Geopolitical risks include the ongoing Israel-Hamas conflict in Gaza and the Ukraine war, which have hampered global trade, as seen in shipping disruptions from the recent Houthi attacks in the Red Sea.



Another reason is climate change, which disrupts supply chains as well as commodities supply, especially in the agricultural space.



“The super squeeze could be deeper, or more prolonged if geopolitical, climate change or energy transition related supply disruptions are larger than expected,” he added.



<h2 class="wp-block-heading" id="h-lack-of-investments"><a></a>Lack of investments</h2>



The world’s pursuit of a net-zero carbon future is fueling demand for energy transition metals such as copper and nickel, Bloxham pointed out.



However, there are insufficient investments allocated to procuring these critical minerals, leading to a sharper supply squeeze on energy transition metals — in particular copper, aluminum and nickel, he said.



As energy transition ramps up, markets could be looking at a shortage of a slew of metals like graphite, cobalt, copper, nickel and lithium in the next decade, the Energy Transitions Commission said in a report in July.



At the recent COP28 climate change conference, more than 60 countries backed a plan to triple global renewable energy capacity by 2030, in what is largely deemed as a step forward for energy transition and a further boost in demand for metals required for that transition. 



“Large-scale mining projects can take 15-20 years, and the last decade has seen a lack of investment in exploration and production for key energy transition materials,” the report said.



Annual capital investments in these metals averaged $45 billion in the last two decades, and must rise to around $70 billion each year through to 2030 to ensure an ample stream of supply, according to the ETC report.



Without more investment in new capacities, supply will be constrained, HSBC’s Bloxham said, adding that “for any given amount of demand,” it should be expected that commodity prices will stay more elevated than in the past.



“That seems to be playing out across many of the commodities at the moment.”



Technology could also be a gamechanger if a development came along and made it much easier to extract the metals used in the battery space, Bloxham added.



He did not say how long it will take global commodity markets to move out of the squeeze, but one way out of it — which would also push commodity prices lower — is a “bigger and deeper [economic] downturn globally,” he said.



“Commodities are notoriously volatile asset classes, with a long history that is prone to a short squeeze and the current landscape points to more of the same,” said Brian Luke, senior director and head of commodities at S&amp;P Dow Jones Indices. He highlighted that extreme weather events and geopolitics have also impacted the agricultural and energy commodity baskets.



<h2 class="wp-block-heading"><a></a>Metals most impacted</h2>



Analysts say metals will likely see the most upside.



Bloxham noted that aside from clean energy metals, iron ore was also on his list due to falling inventory and a lack of investments into expanding capacity.&nbsp;



Iron ore has seen a price jump of over 24% in the last year, according to data from FactSet. The benchmark 62%-grade iron ore last traded at $135.48 per ton.



“The reason why [iron ore] has a sudden squeeze-up is because inventory has been very low,”&nbsp;said Bank of America Securities’ head of Asia -Pacific basic materials, Matty Zhao.



She noted that in spite of China’s property crisis, steel production has continued, fueling demand for iron ore and coking coal, which are integral to steelmaking.



China, which makes around 55% of the world’s steel, produced 874.7 million tons of steel in the first 10 months of 2023 — up 1.4% across the same period in 2022.



<h2 class="wp-block-heading"><a></a>What squeeze?</h2>



While risks remain, one analyst is of the view that commodity markets are still “adequately supplied” for the most part.



“The commodity markets are currently focused on slumping demand due to the sluggish global economy. As such, there’s not too much concern about supplies,” said Arlan Suderman, chief commodities economist at financial services firm StoneX.



Oil, for one, saw an increase in global oil inventories in 2023.



Some are still hoping that a rebound in Chinese demand will help.



“A resurgence from Asia will go a long way in determining if commodities will have a breakout year,” said S&amp;P’s Luke, adding that 2023 saw a year of unfulfilled demand from China which weighed heavily on commodity markets.&nbsp;

107355390-1704724879173-gettyimages-1896093454-vcg111472304231

Commodity markets are in a ‘super squeeze’ — and higher prices could be here to stay

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="598" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-820x598.jpg" alt="" class="wp-image-449839" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-820x598.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-300x219.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-123x90.jpg 123w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-768x560.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-1536x1120.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/LYNXMPEG2U1ZJ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Opposition Movement for Democratic Change (MDC) leader Nelson Chamisa attends a media briefing in Harare, Zimbabwe, January 29, 2019. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Jan 25 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s main opposition leader Nelson Chamisa quit his Citizens Coalition for Change (CCC) party on Thursday, two years to the day after its formation, saying it had been hijacked by the ruling ZANU-PF in a power grab.



&#8220;Fellow citizens, this is to officially and under my hand inform you that, with immediate effect I no longer have anything to do with CCC,&#8221; Chamisa wrote in a lengthy statement posted on his X account.



The CCC party, which enjoys huge urban support, won 103 of the 280 seats in Zimbabwe&#8217;s main house of Parliament and swept most of the urban councils in last year&#8217;s general election.



However, several CCC lawmakers and councillors have been ejected from their seats by an official claiming to the party&#8217;s secretary general, but who Chamisa and the CCC say is an imposter.



Efforts to reverse the recalls in the courts have failed. The CCC accuses ZANU-PF, in power since independence in 1980, of using the courts to destroy the opposition.



ZANU-PF has dismissed the accusations, but has benefited from the recalls after winning most of the resultant by-elections.



&#8220;The CCC has to all intents and purposes been criminally handed over to ZANU-PF,&#8221; Chamisa said in his statement.



The ZANU-PF spokesperson could not immediately be reached for comment.



It was not immediately clear if lawmakers and councillors loyal to Chamisa would quit their posts in solidarity, a move which would trigger a wave of by-elections.



Chamisa&#8217;s emergence as successor to long-time opposition leader Morgan Tsvangirai, who died in 2018, triggered leadership battles and splits within Zimbabwe&#8217;s main opposition movement.



He formed the CCC in January 2022 after losing a series of court battles over control of the Movement for Democratic Change (MDC), which first emerged in 2000 as the biggest threat to ZANU-PF&#8217;s stranglehold on power.



The 45-year-old lawyer and pastor, who rejected his narrow losses in the last two presidential elections to President Emmerson Mnangagwa, did not give details of his next move, but hinted at forming a new opposition movement.



(Reporting by Nyasha Chingono; Editing by Olivia Kumwenda-Mtambo and Andrew Heavens)

FILE PHOTO: Opposition Movement for Democratic Change leader Nelson Chamisa attends a media briefing in Harare

Zimbabwe opposition leader Chamisa quits ‘hijacked’ party

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-820x541.jpg" alt="" class="wp-image-425628" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-1536x1013.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/E2LAHPZEEFN6VLWP7WHSXPENYQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logo of South Africa&#8217;s central reserve bank is seen during the delivery of a keynote address by South Africa&#8217;s central bank governor, Lesetja Kganyago, at the University of the Witwatersrand in Johannesburg, South Africa, November 1, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



PRETORIA, Jan 25 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s central bank maintained its key lending rate as economists expected on Thursday, saying it did not yet see a clear disinflation trend that would justify cutting rates.



It was the fourth meeting in a row that the bank&nbsp;left&nbsp;its repo rate&nbsp;ZAREPO=ECIon hold&nbsp;at 8.25%.



All&nbsp;20&nbsp;economists polled by Reuters had forecast that the rate would be left unchanged.



Thursday&#8217;s&nbsp;decision was unanimous, South African Reserve Bank (SARB) Governor Lesetja Kganyago told a news conference, introducing a new member of the Monetary Policy Committee, David Fowkes.



Inflation fell for a second month to 5.1% year on year in December from 5.5% in November, remaining within the central bank&#8217;s target range of 3%-6%.



The bank said&nbsp;previously that it wanted&nbsp;to see inflation sustainably around the midpoint of its target range, which is 4.5%, before considering rate cuts.



The central bank said&nbsp;on Thursday that the&nbsp;return to its inflation target had been slow.



&#8220;There isn&#8217;t a discernible trend that shows that inflation is declining towards (the midpoint of) our target,&#8221;&nbsp;Kganyagotold reporters.



Growth and&nbsp;inflation forecasts were little changed since the&nbsp;November rate meeting, with the bank flagging&nbsp;on Thursday&nbsp;that electricity, port, and rail constraints continued to pose serious risks to&nbsp;the economy.



Another potential source of uncertainty is this year&#8217;s national election, which will be the seventh since the dawn of democracy at the end of apartheid.



Political analysts say the governing African National Congress could lose its parliamentary majority for the first time since 1994 and have to enter into a coalition with other parties.



Economists from Alexforbes, Bank of America and HSBC all expect the SARB to begin cutting rates in July and ease policy gradually with between 75 basis points to 125 basis points of cuts this year. David Omojomolo at Capital Economics expects rates to be cut by 50 basis points this year.



(Additional reporting by Anait Miridzhanian and Olivia Kumwenda-Mtambo in JohannesburgEditing by Alexander Winning, Alexandra Hudson)

FILE PHOTO: South Africa’s central bank governor to delivers keynote address

South African central bank wants clearer disinflation trend before cutting rates

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="548" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-820x548.jpg" alt="" class="wp-image-449759" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-820x548.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-1536x1026.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/ADWRYTY7WJPOLMGWKXWU6MGBEY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Containers are seen stacked up on the container ship MSC Maria Elena at the port of Antwerp, Belgium September 23, 2022. REUTERS/Yves Herman/File Photo</figcaption></figure>



Jan 25 (Reuters)&nbsp;&#8211;&nbsp;Australian mining giant BHP Group&nbsp;BHP.AX&nbsp;said on Thursday that the Red Sea disruptions are forcing some of its freight service providers to take alternative routes, such as Africa&#8217;s Cape of Good Hope, while others still prefer the Red Sea with additional controls.



&#8220;The Red Sea is one of the key shipping routes in the world, however, the majority of BHP&#8217;s shipments do not go through this route,&#8221; and there have been no major business disruptions so far, the world&#8217;s largest listed miner said in a statement.



The move follows reports from companies such as oil major BP&nbsp;BP.L&nbsp;and Shell&nbsp;SHEL.L&nbsp;that have paused transits through the Red Sea as strikes on commercial vessels by the Iran-aligned Houthis have stymied trade between Europe and Asia.



Some shipping companies have instructed vessels to reroute via a slower and more expensive Cape of Good Hope.



Some 320 million tons of bulk commodities sail through the Suez Canal and through the Red Sea, accounting for 7% of global dry bulk trade, Gerard Ang, BHP&#8217;s head of maritime iron ore, said at an industry conference in Singapore earlier on Thursday.



In the short term, this could lead to a squeeze in tonnage supply in the North Atlantic market which translates to a more volatile, dry bulk market for shipping, Ang added.



The Wall Street Journal earlier reported that BHP is diverting almost all of its shipments from Asia to Europe away from the Red Sea.



The miner, with operations spread across Australia, Chile, Brazil, the U.S. and Canada, primarily produces copper, iron ore and metallurgical coal. It generated $1.96 billion in revenue from Europe in 2023, around 3.6% of its total revenue of $53.82 billion.



&#8220;From a long-term perspective, we don&#8217;t really see a big profound impact on the trade,&#8221; Ang said.



(Reporting by Clara Denina, Florance Tan, Chandni Shah, Sameer Manekar and Swati Verma; Editing by Savio D&#8217;Souza, Sonia Cheema and Eileen Soreng)

featured

Nigerian naira hits record low of 1,531 to dollar on official market – FMDQ

African Development Bank sells hybrid note in development finance first

IMF lifts 2024 global growth outlook, lowers Sub-Saharan Africa

West Africa’s ‘Brexit’ moment spells trouble for the region

Nigeria’s naira hits new lows vs dollar on forwards market – LSEG data

Stocks sputter on China property sector woes, Hungary in focus

ECOWAS chair Nigeria slams juntas’ move to quit bloc

Nigeria’s central bank injects $500 million to clear FX backlog -statement

Italy’s Meloni seeks new partnership with Africa, funds limited

Sony is making a bold bet on an African gaming startup to boost PlayStation’s reach in the continent

Three West African junta-led states quit ECOWAS regional block

World Court says Israel must take steps to prevent acts of genocide in Gaza

US, South Africa discuss Gaza war ahead of ruling on measures in genocide case

Commodity markets are in a ‘super squeeze’ — and higher prices could be here to stay

Zimbabwe opposition leader Chamisa quits ‘hijacked’ party

South African central bank wants clearer disinflation trend before cutting rates

Red sea attacks push BHP to divert some shipping via African coast

News Tips

Advertise With Us

featured

Nigerian naira hits record low of 1,531 to dollar on official market – FMDQ

African Development Bank sells hybrid note in development finance first

IMF lifts 2024 global growth outlook, lowers Sub-Saharan Africa

West Africa’s ‘Brexit’ moment spells trouble for the region

Nigeria’s naira hits new lows vs dollar on forwards market – LSEG data

Stocks sputter on China property sector woes, Hungary in focus

ECOWAS chair Nigeria slams juntas’ move to quit bloc

Nigeria’s central bank injects $500 million to clear FX backlog -statement

Italy’s Meloni seeks new partnership with Africa, funds limited

Sony is making a bold bet on an African gaming startup to boost PlayStation’s reach in the continent

Three West African junta-led states quit ECOWAS regional block

World Court says Israel must take steps to prevent acts of genocide in Gaza

US, South Africa discuss Gaza war ahead of ruling on measures in genocide case

Commodity markets are in a ‘super squeeze’ — and higher prices could be here to stay

Zimbabwe opposition leader Chamisa quits ‘hijacked’ party

South African central bank wants clearer disinflation trend before cutting rates

Red sea attacks push BHP to divert some shipping via African coast

News Tips

Advertise With Us

Newsletters