<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="498" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-820x498.jpg" alt="" class="wp-image-429061" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-820x498.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-300x182.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-768x467.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-1536x933.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/LGH7TDQ2DNN3FKFRGO2SVYRP34-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows the Nairobi Expressway undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, in Nairobi, Kenya May 8, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Nov 16 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund has reached a staff-level agreement with Kenya, unlocking immediate access to a $682.3 million tranche and boosting the current lending programme by $938 million, the fund said on Thursday.



The East African nation is grappling with acute liquidity challenges caused by uncertainty over its ability to access funding from financial markets before a $2 billion Eurobond matures next June.



Its balance of payments and financial positions have also been strained by the legacy of the COVID-19 pandemic and frequent climate change-induced droughts, the fund said at the conclusion of a two-and-a-half week review mission to Nairobi.



&#8220;The tightening global financing conditions for frontier economies and global geopolitical tensions are compounding the challenges,&#8221; said Haimanot Teferra, the head of the mission.



Subject to the approval of the Washington-based fund&#8217;s executive board, Kenya will have access to a total of $3.88 billion, which would bring its total funding under the existing Extended Fund Facility and Extended Credit Facility arrangements to $4.43 billion, the IMF said.



The current programme, agreed in April 2021, was first bumped up in May by an extra $1 billion, including $544 million under the IMF&#8217;s Resilience and Sustainability Facility (RSF), and a new arrangement under the same RSF.



Kenya&#8217;s international bonds rose modestly on the news, with the $2 billion note maturing in June 2024 rising the most. It was up 0.43 cents on the dollar to 95.6 cents at 0928 GMT&nbsp;XS1028952403=TE.



Although the deal was widely expected after it was telegraphed by a senior adviser in Kenya&#8217;s presidency, it was still being viewed positively, said a Kenyan market participant who did not wish to be named.



The new IMF financing, together with expected funds from the World Bank and regional banks like Afrexim, would allow Kenya to pay maturing foreign debt without running down its hard currency reserves, said the market participant.



The additional money was more than international markets were expecting, said Thato Mosadi, a strategist at Jefferies in London.



&#8220;I am very positive that reserves could be higher than USD6.5bn following the payment of the (2024) eurobond, and even more confident now following the IMF&#8217;s augmentation,&#8221; she said.



(Reporting by George Obulutsa and Duncan Miriri; Additional reporting by Rachel Savage in Johannesburg; Editing by Christina Fincher)

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

Kenya gets additional $938 mln from IMF, soothing nerves

<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/biden-x-xi-jin-ping-820x547.jpg" alt="" class="wp-image-429054" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/biden-x-xi-jin-ping-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/biden-x-xi-jin-ping-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/biden-x-xi-jin-ping-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/biden-x-xi-jin-ping-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/biden-x-xi-jin-ping-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/biden-x-xi-jin-ping-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Joe Biden and Chinese President Xi Jinping agreed to resume high-level military communication when they met in person Wednesday for the first time in a year in San Francisco on the sidelines of the Asia-Pacific Economic Cooperation conference. FILE: President Biden/@POTUS</figcaption></figure>



BEIJING — U.S. President&nbsp;<a href="https://www.cnbc.com/joe-biden/">Joe Biden</a>&nbsp;and Chinese President&nbsp;<a href="https://www.cnbc.com/xi-jinping/">Xi Jinping</a>&nbsp;have agreed to resume high-level military communication, according to both countries.



The two leaders&nbsp;<a href="https://www.cnbc.com/2023/11/15/xi-biden-at-apec-summit-china-us-leaders-meet-in-san-francisco.html">met in person for the first time in a year</a>&nbsp;Wednesday local time in San Francisco on the sidelines of the Asia-Pacific Economic Cooperation conference.



“We’re back to direct, open, clear communications,” Biden said at a press conference after the talks.



China has conducted military exercises around Taiwan, while its navy has been engaging in aggressive maneuvers in the South China Sea in a standoff with the Philippines as both countries stake their territorial claims.



The U.S. has wanted to revive the military communication, especially after some&nbsp;<a href="https://www.cnbc.com/video/2023/06/05/us-destroyer-has-close-call-with-chinese-warship-in-the-south-china-sea.html">near-miss incidents</a>&nbsp;where China’s ships almost collided with American forces.



“Vital miscalculations on either side can cause real trouble with a country like China or any other major country,” Biden said at the post-meeting press briefing.



China’s Defense Ministry&nbsp;<a href="https://www.defense.gov/News/Transcripts/Transcript/Article/3293101/pentagon-press-secretary-air-force-brig-gen-pat-ryder-holds-an-on-camera-press/" target="_blank" rel="noreferrer noopener">declined a call with its U.S. counterpart</a>&nbsp;in early February after the discovery of an alleged Chinese spy balloon over U.S. airspace. The balloon incident delayed U.S. Secretary of State Antony Blinken’s highly anticipated trip to China by more than four months.



In June, the defense chiefs from both countries attended an annual security summit in Singapore, but they <a href="https://www.cnbc.com/2023/06/05/us-china-trade-barbs-at-security-summit-shangri-la-dialogue.html">did not have a formal meeting</a>.



When Blinken finally visited China, he said he&nbsp;<a href="https://www.cnbc.com/2023/06/20/blinken-says-he-failed-to-revive-military-to-military-talks-with-china.html">“repeatedly” raised the need for direct communication</a>&nbsp;between the two countries’ militaries but failed to revive such talks.



China has yet to name a defense minister after<a href="https://www.cnbc.com/2023/10/24/china-reportedly-ousts-defense-minister-after-two-month-absence.html">&nbsp;dismissing Gen. Li Shangfu from the position</a>&nbsp;without explanation in late October.



U.S. Secretary of Defense Lloyd Austin will meet with his Chinese counterpart when the Chinese defense chief is selected, a senior Biden administration official told reporters after the Biden-Xi summit.



As part of the agreement, senior U.S. military commanders including that of Pacific forces in Hawaii will engage with their Chinese counterparts, the official said.



The two countries also plan to establish ways for ship drivers and others to discuss incidents and, potentially, best practices, the official said.



A readout published by Chinese state media added the resumption of such military talks was “on the basis of equality and respect,” according to a CNBC translation.



<h2 class="wp-block-heading" id="h-taiwan"><a></a>Taiwan</h2>



At the presser, Biden reiterated the U.S. position that Taiwan maintains its sovereignty, despite China’s claims to the contrary.



“We maintain the agreement that there is a One-China policy and I’m not going to change that, that’s not going to change. That’s about the extent to which we discussed,” he said.



According to Chinese state media, Xi pointed out during the bilateral meeting that Taiwan has always been the “most important and sensitive” issue in China’s relations with the U.S.. He said in the report that China “takes seriously” positive statements the U.S. made during his meeting with Biden last year in Indonesia.



“The U.S. should use concrete actions to reflect its stance of not supporting ‘Taiwan independence,’ stop arming Taiwan and support China’s peaceful reunification,” state media reported. “China will ultimately be reunified and will inevitably be reunified.”



Beijing considers Taiwan part of its territory, with no right to independently conduct diplomatic relations. The U.S. recognizes Beijing as the sole government of China but maintains unofficial relations with Taiwan, a democratically self-governed island.



<h2 class="wp-block-heading">AI, fentanyl and more</h2>



Chinese state media also said the two sides agreed to establish an intergovernmental dialogue on artificial intelligence, set up a working group on drug control, “significantly” increase flights between the two countries next year and expand exchanges in areas such as education, business and culture.



The U.S. senior administration official said the Chinese were already taking action on nearly 24 companies that make precursors for&nbsp;<a href="https://www.cfr.org/backgrounder/fentanyl-and-us-opioid-epidemic" target="_blank" rel="noreferrer noopener">fentanyl — an addictive drug</a>&nbsp;that’s led to overdoses and deaths in the U.S.



Biden said at the post-meeting presser that the two leaders agreed that fentanyl production needs to be “curbed substantially.”



On artificial intelligence, however, the official said it was too early for a joint declaration by the two leaders, and noted the need to prevent the incorrect use of AI in military or nuclear operations.



<h2 class="wp-block-heading"><a></a>Trade and sanctions</h2>



The Biden administration has announced export controls and sanctions on Chinese companies in an effort to limit U.S. companies’ contribution to technology that supports China’s military.



Xi noted the export controls, investment reviews and sanctions in the meeting, and called for the U.S. to lift the sanctions and provide a non-discriminatory environment for Chinese companies, Chinese state media said.



Biden also brought up difficulties around travel harassment of Americans in China, and a business environment that wasn’t as welcoming as it was in the past, the U.S. senior administration official said.



But overall the official described the meeting as more personal than the last time the two leaders met.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I’ve just concluded a day of meetings with President Xi, and I believe they were some of the most constructive and productive discussions we’ve had. We built on groundwork laid over the past several months of diplomacy between our countries and made important progress. <a href="https://t.co/0RT1q0FZHr">pic.twitter.com/0RT1q0FZHr</a>&mdash; President Biden (@POTUS) <a href="https://twitter.com/POTUS/status/1724941601661718940?ref_src=twsrc%5Etfw">November 16, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



In a post on X, formerly known as Twitter, Biden called his day of meetings with Xi “some of the&nbsp;<a href="https://twitter.com/POTUS/status/1724941601661718940?s=20" target="_blank" rel="noreferrer noopener">most constructive and productive discussions</a>&nbsp;we’ve had.”



“We built on groundwork laid over the past several months of diplomacy between our countries and made important progress.”



— CNBC’s Christina Wilkie and Clement Tan contributed to this report.

biden-x-xi-jin-ping

U.S. and China agree to resume military talks. Takeaways from the Biden-Xi summit

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



ACCRA, Nov 15 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s finance minister said on Wednesday in a budget speech that the economy was getting back on track, pointing to a smaller budget deficit than targeted so far this year and higher economic growth than last year.



The West African country is grappling with its worst economic crisis in a generation, with a sharply weaker cedi currency&nbsp;GHS=&nbsp;and rampant inflation.



The government of the gold, oil and cocoa producer turned to the International Monetary Fund for financial support last year as it was locked out of international capital markets.



Finance Minister Ken Ofori-Atta told lawmakers on Wednesday that Ghana had recorded an overall budget deficit of 3.0% of gross domestic product (GDP) over January-August, better than a targeted deficit of 4.6% of GDP.



He said real GDP growth had averaged 3.2% in the first half of this year, an improvement on 2.9% growth in same period in 2022.



The central bank had bought gold worth more than $1 billion to boost its reserves since it launched a gold-for-reserves programme, he added.



For 2024, Ghana is targeting GDP growth of at least 2.8%, a year-end inflation rate of 15% from more than 35% in October this year&nbsp;GHCPIY=ECI&nbsp;and a primary budget surplus of 0.5% of GDP.



(Reporting by Maxwell Akalaare Adombila and Christian Akorlie; Writing by Sofia Christensen; Editing by Alexander Winning and Bate Felix)

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

Ghana’s economy getting back on track, finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QJAJECC3HVMQFBBQHIS3T7ICHI-820x615.jpg" alt="" class="wp-image-429028" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QJAJECC3HVMQFBBQHIS3T7ICHI-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QJAJECC3HVMQFBBQHIS3T7ICHI-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QJAJECC3HVMQFBBQHIS3T7ICHI-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QJAJECC3HVMQFBBQHIS3T7ICHI-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QJAJECC3HVMQFBBQHIS3T7ICHI-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/QJAJECC3HVMQFBBQHIS3T7ICHI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Customers check out at the cash register in a mall in Abuja, Nigeria, September 15, 2022. REUTERS/Afolabi Sotunde</figcaption></figure>



ABUJA, Nov 15 (Reuters) &#8211; Nigerian inflation rose for the tenth month in a row in October, increasing pressure on the new central bank governor to raise interest rates when the monetary policy committee meets for the first time since his appointment.



Consumer inflation rose to 27.33% year on year in October from 26.72% in September, its highest in about 18 years, data from the National Bureau of Statistics showed.



Olayemi Cardoso took over as governor of Nigeria&#8217;s central bank in September, after Godwin Emefiele was suspended earlier in the year.



Cardoso has pledged to pull the bank back from much-criticised fiscal interventions pursued by Emefiele that undermined the central bank&#8217;s ability to effectively manage inflation. Instead the central bank will take a &#8220;more limited advisory role&#8221; in support of the government&#8217;s economic growth agenda, Cardoso said.



Price rises for food and non-alcoholic beverages were the biggest driver of inflation in October in annual terms, the statistics bureau said.



Food inflation, which accounts for the bulk of Nigeria&#8217;s inflation basket, rose to 31.52% in October from 30.64% in September.



Inflation in Africa&#8217;s biggest economy and most populous nation has been in double digits since 2016, eroding incomes and savings.



&#8220;We are reaching almost four months since the central bank&#8217;s last policy meeting in July, a meeting which underwhelmed,&#8221; said David Omojomolo, Africa economist at research firm Capital Economics.



&#8220;The central bank will need to act with aggressive hikes to maintain its credibility and bring down inflation,&#8221; he said.



At the July monetary policy meeting, the central bank opted for a smaller-than-expected 25 basis point hike, saying it preferred a moderate increase to anchor inflation expectations while continuing to support investment.



President Bola Tinubu, who has embarked on some of Nigeria&#8217;s boldest reforms in decades, has been under pressure from labour unions as some of those reforms have contributed to price pressures.



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

Customers check out at the cash register in a mall in Abuja

Nigeria inflation rises further in October, upping pressure on new central bank head

<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>



Nov 15 (Reuters)&nbsp;&#8211;&nbsp;Emerging market assets jumped, hitting multi-month highs on Wednesday, as softer U.S. inflation data bolstered bets of an end to the Federal Reserve&#8217;s interest rate hikes, while positive Chinese economic data also boosted risk sentiment.



MSCI&#8217;s index tracking emerging market equities&nbsp;.MSCIEF&nbsp;jumped 2.3% by 0937 GMT, hitting its highest level in nearly two months.



A basket of regional currencies&nbsp;.MIEM00000CUS&nbsp;climbed 0.7%, marking the highest levels since August.



If gains hold, the broader equity index is set for its best day since June, while the FX index is on track for its best session since late March.



Data on Tuesday showed&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3ARR:220&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">U.S. consumer prices</a>(CPI) were unchanged in October and the annual rise in underlying inflation was the smallest in two years.



Cooling inflation will allow the Fed to hold off on further interest rate hikes and potentially start cutting rates by May, traders bet on Tuesday.



Investors will also monitor talks between U.S. President Joe Biden and Chinese President Xi Jinping and more U.S. economic data.



The dollar index&nbsp;=USD&nbsp;last stood at 104.260, after having slumped on Tuesday post the CPI data.



&#8220;While we agree with the peak Fed rate narrative, it is important to consider what we get from here,&#8221; Charu Chanana, market strategist at Saxo Markets said in a note.



&#8220;Growth data becomes extremely key from here and today’s (U.S.) retail sales print will be one to watch,&#8221; Chanana added.



China&#8217;s industrial output and retail sales growth beat expectations in October, but the underlying economic picture highlighted significant pockets of weakness.



Chinese shares&nbsp;.SSEC&nbsp;rose 0.6%, while blue-chips climbed&nbsp;.CSI300&nbsp;0.7%. Hong Kong shares jumped 3.9%, leading broader equity gains.



China&#8217;s central bank ramped up injections of liquidity but kept the interest rate unchanged when rolling over maturing medium-term policy loans on Wednesday, matching market expectations.



The yuan&nbsp;CNY=CFXS&nbsp;gained 0.1% against the dollar.



In Europe, Poland&#8217;s final October CPI on an annual basis came in at 6.60% compared to a previous estimate of 6.50% for the same period, data showed.



The Polish zloty&nbsp;EURPLN=&nbsp;rose 0.2% against the euro.



The South African rand&nbsp;ZAR=&nbsp;climbed 0.1% and the benchmark equity index&nbsp;.JTOPI&nbsp;jumped nearly 2% ahead of September retail sales data.



The Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;on Wednesday soared to its highest levels since early July against the dollar, boosted by continued supply of foreign currency by exporters, high interest rates and relatively strong oil prices.&nbsp;RU/RUB



The rouble was last up 1.5%.



Kenya&#8217;s shilling KES= hovered around all-time lows against the greenback on Wednesday, hurt by higher demand for dollars from importers in various sectors, amid low hard currency inflows, traders said.



On the data front, October CPI for Israel and Nigeria and third-quarter GDP for Russia and Colombia are due later in the day.



(Reporting by Siddarth S in Bengaluru; Editing by Sharon Singleton)

World map with charts and graphs as symbols of global finance

EM assets hit multi-month highs on soft US CPI, positive China data

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-820x462.jpeg" alt="" class="wp-image-429017" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kristalina Georgieva, managing director of the International Monetary Fund, at a press conference at the IMF Headquarters on April 14, 2023. Kevin Dietsch | Getty Images News | Getty Images</figcaption></figure>



SINGAPORE — Central bank digital currencies have the potential to replace cash, but adoption could take time, said Kristalina Georgieva, managing director of the International Monetary Fund on Wednesday.



“CBDCs can replace cash which is costly to distribute in island economies,” she said Wednesday at the Singapore FinTech Festival. “They can offer resilience in more advanced economies. And they can improve financial inclusion where few hold bank accounts.”



CBDCs are the digital form of a country’s fiat currency, which are regulated by the country’s central bank. They are powered by blockchain technology, allowing central banks to channel&nbsp;government payments directly to households.



“CBDCs would offer a safe and low-cost alternative [to cash]. They would also offer a bridge to go between private monies and a yardstick to measure their value, just like cash today which we can withdraw from our banks,” the IMF chief said.



The IMF has said that more than 100 countries are exploring CBDCs – or approximately 60% of countries in the world.



“The level of global interest in CBDCs is unprecedented. Several central banks have already launched pilots or even issued a CBDC,” the IMF said in a September report.



According to a 2022 survey conducted by the Bank for International Settlements, of the 86 central banks surveyed, 93% said they were exploring CBDCs, while 58% said they were likely to or may possibly issue a retail CBDC in either the short or medium term.



But as of June, only 11 countries have adopted CBDCs, with an additional 53 in advanced planning stages and 46 researching the topic, according to data from the Atlantic Council.



Referring to a 2018 speech by her predecessor Christine Lagarde, when the former IMF chief encouraged policymakers to follow the “winds of change” and explore the use of CBDCs, Georgieva said: “Five years on, I’m here to provide an update on that voyage.”



“First, countries did set sail. Many are investigating CBDCs and are developing regulation to guide digital money developments,” said Georgieva referring to the speech.



On Wednesday, the fund launched a CBDC handbook as a reference guide for policymakers around the world. Georgieva said many countries are investigating CBDCs and developing regulation to guide digital money developments.



“Second, we have not yet reached land. There is so much more space for innovation and so much uncertainty over use-cases,” Georgieva told an audience which included industry experts, investors and journalists.



“In some countries the case seems dim&nbsp;today,&nbsp;but even they should remain open to potentially deploy CBDCs&nbsp;tomorrow. Why?” said Georgieva. “This is not the time to turn back.”



“The public sector should keep preparing to deploy CBDCs and related payment platforms in the future. Fourth, these platforms should be designed from the start to facilitate cross-border payments, including with CBDCs,” the managing director said.



<h2 class="wp-block-heading" id="h-potential-of-cbdcs"><a></a>Potential of CBDCs</h2>



Countries that have issued retail CBDC include the&nbsp;Bahamas, Jamaica and Nigeria.



Singapore’s Monetary Authority of Singapore has said that cash is “generally incompatible” with the digital economy. In a 2021 report, the country’s central bank said the demand for cash as a means of payment is set to decline further.



According to the BIS, using CBDCs for cross-border payments could lower the costs of obtaining, storing and spending foreign currency, depending on design and regulations.



Georgieva also said that artificial intelligence “could amplify some of the benefits of CBDCs” by providing accurate credit scoring and personalized support.



Demand for generative AI has boomed following the release of OpenAI’s ChatGPT in November last year, which was estimated to have reached 100 million monthly active users within two months after launch.



“It could improve financial inclusion by providing rapid, accurate credit scoring based on various data. It could provide personalized support to people with low financial literacy,” said Georgieva.



“To be sure, we need to protect personal privacy and data security, and avoid embedded biases so we don’t perpetuate inequality but aim to reduce it. Managed prudently, AI could help,” she added.

107315827-1697106175586-gettyimages-1482239218-kd_10030_m5nqidl3

IMF says central bank digital currencies can replace cash: ‘This is not the time to turn back’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-820x549.jpg" alt="" class="wp-image-425202" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-768x514.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-1536x1028.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/7E5H4JHT7JIDHHBALK7PSZDXSI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African Rand coins are seen in this photo illustration . REUTERS/Mike Hutchings</figcaption></figure>



JOHANNESBURG, Nov 15 (Reuters)&nbsp;&#8211;&nbsp;The South African rand was weaker in early trade on Wednesday ahead of retail sales data in South Africa and the United States which could provide markets with fresh direction.



At 0717 GMT, the rand traded at 18.2550 against the dollar&nbsp;ZAR=D3, about 0.2% weaker than its previous close.



The dollar&nbsp;=USD&nbsp;last traded around 0.1% stronger against a basket of major currencies.



The rand jumped on Tuesday as softer-than-expected U.S. consumer inflation data boosted expectations the Federal Reserve might be done with interest rate hikes.



Like other risk-sensitive currencies, the rand often takes its cues from global drivers such as U.S. monetary policy.



Investors will look to U.S. retail sales and producer price inflation data later on Wednesday for further clues as to the state of the economy.



&#8220;Given the mood, the market would surge on any softening in the data,&#8221; said Rand Merchant Bank analysts in a briefing.



Locally, Statistics South Africa will publish the country&#8217;s September retail sales data&nbsp;ZARET=ECI&nbsp;at 1100 GMT. Analysts polled by Reuters predict a 0.1% rise in retail sales year-on-year.



South Africa&#8217;s benchmark 2030 government bond&nbsp;ZAR2030=&nbsp;was stronger in early deals, with the yield down 4 basis points to 10.195%.



(Reporting by Tannur Anders; Editing by Nellie Peyton and Mark Potter)

South African Rand coins are seen in this photo illustration

South African rand weakens ahead of retail sales data

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="498" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/YQVSSNWW2NKNTIJQBBPJS62KNY-820x498.jpg" alt="" class="wp-image-429008" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/YQVSSNWW2NKNTIJQBBPJS62KNY-820x498.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/YQVSSNWW2NKNTIJQBBPJS62KNY-300x182.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/YQVSSNWW2NKNTIJQBBPJS62KNY-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/YQVSSNWW2NKNTIJQBBPJS62KNY-768x467.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/YQVSSNWW2NKNTIJQBBPJS62KNY-1536x933.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/YQVSSNWW2NKNTIJQBBPJS62KNY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: An employee works on the assembly line in a hangar of an aircraft manufacturer Aero Vodochody near the town of Odolena Voda, Czech Republic, July 11, 2017. Picture taken July 11, 2017. REUTERS/David W Cerny/File Photo</figcaption></figure>



PRAGUE/WARSAW, Nov 15 (Reuters)&nbsp;&#8211;&nbsp;Central European defence companies are negotiating new deals to sell more weapons, military equipment and related services in Africa as they seek to poach customers looking for alternatives to Russia, companies and government officials say.



Though now part of the Western NATO alliance, former Warsaw Pact members such as the Czech Republic, then part of Czechoslovakia, delivered a steady supply of weapons to African countries during the Communist era and so are well-placed to maintain or upgrade those systems.



&#8220;The best new markets are the African ones because they still use Soviet-era equipment but now want Western technology added to it,&#8221; Jiri Hynek, president and director of industry trade group the Defence and Security Industry Association of the Czech Republic, told Reuters.



&#8220;We call it the westernization of Soviet products.&#8221;



Take Czech aircraft maker Aero Vodochody. The company is in talks to sell its L-39NG training and light attack aircraft to new buyers as well as provide upgrades for older versions, its executive vice president of sales Filip Kulstrunk told Reuters.



&#8220;We see increasing interest from new potential customers, who are looking to abandon Russian or Chinese equipment and wish to westernize their armed forces,&#8221; he said, declining to give details on which countries it was talking to.



The Czech Republic in 2022 exported ammunition, guns, aircraft and other military supplies valued at around 32 million euros to 10 sub-Saharan African countries, many which rely on Soviet-era weapons manufactured with different standards and calibres than those used in the West. This was up from just under 2 million euros in 2011.



<h2 class="wp-block-heading" id="h-ukraine-diversion">UKRAINE DIVERSION</h2>



Reuters spoke to around a half dozen Czech and Polish defence companies and government officials who described renewed efforts to carve out a bigger share of the African arms market as the Ukraine conflict diverts Russia&#8217;s attention.



While the companies declined for the most part to outline specifics or countries they were targeting for competitive reasons, deals being discussed included for guns, ammunition and other military equipment and services, they said.



Privately-held defence and civil manufacturing company Czechoslovak Group &#8211; the biggest Czech defence company &#8211; said its ability to maintain and modernize armoured vehicles using Soviet-era standards has helped it win business in Africa.



&#8220;CSG has exceptional capability to maintain and modernise military land systems of Eastern origin so that African customers needn&#8217;t depend on Russian suppliers,&#8221; spokesman Andrej Cirtek told Reuters. &#8220;We have already used this in a number of business cases in Africa.&#8221;



According to the Stockholm International Peace Research Institute, Russia overtook China as the leading arms seller in sub-Saharan Africa with a market share rising to 26% over the past five years from 2018 to 2022.



While it has not yet fully processed data on all recent exports to Africa since the start of the Ukraine war, Pieter Wezeman, a senior researcher in the organisation&#8217;s arms transfers programme, told Reuters that reliability concerns could spur some nations to look beyond Russia.



&#8220;Czech industry has the kind of expertise on former Soviet weapons which can be useful when selling equipment, components or servicing of weapons used by African countries,&#8221; he said.



Sebastian Chwalek, chief executive of Poland&#8217;s state-owned PGZ – which controls dozens of companies making weapons, ammunition, armoured transporters, unmanned air systems and other equipment – told Reuters the company has stepped up talks over the last 12 months to tap African markets.



Polish military technology company WB Group &#8211; whose products include unmanned drones and missile systems &#8211; has also seen an uptick in interest from potential African customers on its home turf over the past year.



&#8220;We attended a recent trade exposition. &#8230;in Poland where our stand was visited by numerous delegations from African countries that appeared here for the first time,&#8221; WB Group spokesman Remigiusz Wilk said.



&#8220;It is always beneficial for any other supplier if someone who previously existed on a given market disappears from it, or is less represented.&#8221;



<h2 class="wp-block-heading" id="h-trade-mission">TRADE MISSION</h2>



Underlining the push into Africa, a Czech trade mission visited Ethiopia, Kenya, Ghana and the Ivory Coast earlier this month. A key aim, said Prime Minister Petr Fiala, was boosting opportunities for the defence industry.



Czech national security advisor Tomas Pojar, who took part in the trade mission, said defence deals under discussion as a result of the trip were worth billions of crowns and included talks with Ethiopia about modernizing its aircraft and upgrading Soviet technology.



&#8220;Our focus is to re-open and strengthen relationships with our traditional partners in Africa by committing ourselves to what they want and need the most,&#8221; he told Reuters.



Tomas Kopecny, a Czech government envoy and former deputy minister of defence charged with leading business missions to Africa, added that inviting African leaders to visit Prague represented another way to stir up new defence deals.



This included the Czech-speaking president of Mozambique, whose visit in August marked the first of a sub-Saharan African leader to Prague for more than two decades, he added.



&#8220;One part of these activities also includes defence industry cooperation, since it has been an integral part of what we have engaged in together in the past,&#8221; Kopecny said.



As a nation of 10.5 million, the Czech Republic has long punched above its weight when coming to arms production and has been a leading supplier of ammunition, military equipment and other weapons to Ukraine since Russia&#8217;s 2022 invasion.



The effort to supply Ukraine has pushed Czech companies to boost production and expand supply lines, something Czech-based independent defence analyst Lukas Visingr said has burnished the region&#8217;s reputation.



&#8220;The Czech arms industry is stepping up its efforts towards certain African countries still using Soviet-style equipment but who start to see Russia as a problematic supplier,&#8221; Visingr said.



(Reporting by Michael Kahn and Anna Koper, Editing by Alex Richardson)

FILE PHOTO: An employee works on the assembly line in a hangar of an aircraft manufacturer Aero Vodochody near the town of Odolena Voda

Central Europe’s defence companies spy African opportunity

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/zCBPA-LZ-820x461.jpg" alt="" class="wp-image-428995" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/zCBPA-LZ-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/zCBPA-LZ-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/zCBPA-LZ-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/zCBPA-LZ-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/zCBPA-LZ-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/zCBPA-LZ.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



Inflation was flat in October from the previous month, providing a hopeful sign that stubbornly high prices are easing their grip on the U.S. economy.



The consumer price index, which measures a broad basket of commonly used goods and services, increased 3.2% from a year ago despite being unchanged for the month, according to seasonally adjusted numbers from the Labor Department on Tuesday. Economists surveyed by Dow Jones had been looking for respective readings of 0.1% and 3.3%.



Headline CPI had increased 0.4% in September.



Excluding volatile food and energy prices, core CPI increased 0.2% and 4%, against the forecast of 0.3% and 4.1%. The annual level was the lowest in two years, though still well above the Federal Reserve’s 2% target.



Markets spiked on the news. Futures tied to the Dow Jones Industrial Average were up 300 points as Treasury yields fell sharply. Traders also took any potential Fed interest rate hikes almost completely off the table, according to CME Group data.



“The Fed looks smart for effectively ending its tightening cycle as inflation continues to slow.&nbsp;Yields are down significantly as the last of investors not convinced the Fed is done are likely throwing in the towel,” said Bryce Doty, portfolio manager at Sit Fixed Income Advisors.



The flat reading on headline CPI came as energy prices declined 2.5% for the month, offsetting a 0.3% increase in the food index.



Shelter costs, a key component in the index, rose 0.3% in October, half the gain in September as the year-over-year increase eased to 6.7%. Within the category, owners equivalent rent, which gauges what property owners could command for rent, increased 0.4%.



Vehicle costs, which had been a key inflation component during the spike in 2021-22, fell on the month. New vehicle prices declined 0.1%, while used vehicle prices were off 0.8% and were down 7.1% from a year ago.



Airfares, another closely watched component, declined 0.9% and are off 13.2% annually. Motor vehicle insurance, however, saw a 1.9% increase and was up 19.2% from a year ago.



The report comes as markets are closely watching the Fed for its next steps in a battle against persistent inflation that began in March 2022. The central bank ultimately increased its key borrowing rate 11 times for a total of 5.25 percentage points.



While markets overwhelmingly believe the Fed is done tightening monetary policy, the data of late has sent conflicting signals.



Nonfarm payrolls in October increased by just 150,000, indicating the labor market finally is showing signs that it is reacting to Fed efforts to correct a supply-demand imbalance that has been a contributing inflation factor.



Labor costs have been increasing at a much slower pace over the past year and a half as productivity has been on the rise this year.



Real average hourly earnings — adjusted for inflation — increased 0.2% on a monthly basis in October but were up just 0.8% from a year ago, according to a separate Labor Department release.



More broadly speaking, gross domestic product surged in the third quarter, rising at a 4.9% annualized pace, though most economists expect the growth rate to slow considerably.



However, other indicators show that consumer inflation expectations are still rising, the likely product of a spike in gasoline prices and uncertainty caused by the wars in Ukraine and Gaza.



Fed Chair Jerome Powell last week added to market anxiety when he said he and his fellow policymakers remain unconvinced that they’ve done enough to get inflation back down to a 2% annual rate and won’t hesitate to raise rates if more progress isn’t made.



“Despite the deceleration, the Fed will likely continue to speak hawkishly and will keep warning investors not to be complacent about the Fed’s resolve to get inflation down to the long-run 2% target,” said Jeffrey Roach, chief economist at LPL Financial.



Even if the Fed is done hiking, there’s more uncertainty over how long it will keep benchmark rates at their highest level in some 22 years.

zCBPA-LZ

U.S. inflation was flat in October from the prior month, core CPI hits two-year low

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



ABUJA, Nov 14 (Reuters)&nbsp;&#8211;&nbsp;Nigerian President Bola Tinubu met top officials of the Islamic Development Bank (IsDB) to negotiate a &#8220;multi-billion dollar infrastructure finance facility&#8221; to help build ports and power plants, his spokesperson said on Tuesday.



Tinubu held talks with IsDB vice president Mansur Muhtar late on Monday in Mecca, Saudi Arabia, spokesperson Ajuri Ngelale said in a statement. He didn&#8217;t provide further details of the finance package sought by the Nigerian government.



&#8220;We have serious deficits in port infrastructure, power infrastructure, and agro-allied facilities,&#8221; Tinubu said in the statement.



&#8220;These deficits present unrivalled opportunity for savvy investors in a market that is by far the largest on the continent,&#8221; he said.



On Friday, Nigeria agreed to a series of investments and cooperation deals with Saudi Arabia, including a pledge by the Saudi government to make a &#8220;substantial deposit&#8221; of foreign exchange to help boost Nigeria&#8217;s forex liquidity.



Under Tinubu, Nigeria has embarked on its boldest reforms in decades, ending a costly petrol subsidy and restrictions on foreign currency trading as part of measures to boost economic growth.



Tinubu, who was sworn into office in May, has pledged to revive the economy fraught with sluggish growth, double-digit inflation, foreign currency shortages, and widespread insecurity and crude oil theft.



Muhtar said the IsDB is ready to work with the government to support big investments in Nigeria, which is expected to get a &#8220;significant share&#8221; of a $50 billion Africa investment fund announced by the bank in cooperation with the Arab Coordination Group.



The Jeddah, Saudi Arabia-based IsDB is a multilateral development bank that provides financing for infrastructure and other development projects in Muslim-majority countries.



(Reporting by Felix Onuah; Writing by Elisha Bala-Gbogbo; Editing by Christina Fincher)

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

Nigeria in talks with Islamic bank for infrastructure finance

<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/GettyImages-1581510610-820x547.jpg" alt="" class="wp-image-428983" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1581510610-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1581510610-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1581510610-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1581510610-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1581510610-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1581510610-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NIAMEY, NIGER &#8211; AUGUST 06: A coup supporter raises the flag of Niger during a demonstration at a stadium in the capital city of Niger, Niamey on August 6, 2023. The 7-day deadline given by Economic Community of West African States (ECOWAS) to the military junta on July 30 for the release and reinstatement of President Mohamed Bazum will expire before midnight. (Photo by Balima Boureima/Anadolu Agency via Getty Images)</figcaption></figure>



DAKAR, Nov 14 (Reuters) &#8211; Niger has missed payments on interest and capital totalling 187.136 billion ($304 million) CFA francs since a July coup and its suspension from regional financial markets, data from the West African regional debt management agency showed on Tuesday.



The West African monetary union debt management agency UMOA Titres said in a statement on Tuesday that the country had missed another interest payment of around 2.464 billion CFA francs ($4 million) on its debt.



&#8220;This payment incident occurs in a context where the State of Niger is subject to sanctions taken against it by the conference of heads of state and government of the West African Economic and Monetary Union,&#8221; the agency said.



Niger has been suspended from the regional financial market, and the regional central bank by the Economic Community of West African States (ECOWAS) and the West African monetary union following a military coup in July that ousted President Mohamed Bazoum.



ECOWAS has imposed severe economic and financial sanctions on the junta, including cutting off its access to the state&#8217;s accounts with the regional central bank, and has threatened to use force to restore constitutional rule.



($1 = 615.5300 CFA francs)



(Reporting by Bate Felix; Editing by Andrew Heavens and Bernadette Baum)

Demonstration of coup supporters in Niger

Niger debt default reaches $304 million due to sanctions- agency

<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>



Nov 14 (Reuters) &#8211; Most emerging markets stocks inched up while currencies were subdued on Tuesday ahead of key U.S. inflation data that could offer more clues on the Federal Reserve&#8217;s interest rate outlook.



MSCI&#8217;s index tracking emerging markets equities edged 0.2% higher, while a basket of regional currencies was muted at 0921 GMT.



&#8220;Emerging markets are trading mixed ahead of the US data &#8230; suggesting caution.&#8221; said Shaun Murison, senior market analyst at IG markets.



Financial markets will be closely watching the world&#8217;s largest economy&#8217;s October inflation data, due later in the day, with economists expecting a headline increase of 3.3%, easing from 3.7% in September.



The data comes after Fed officials including Chair Jerome Powell last week said they were still not sure that interest rates are high enough to tame inflation.



Heavyweight Chinese shares rose 0.3% ahead of key domestic economic data this week, while investors will keenly monitor talks between U.S. President Joe Biden and Chinese President Xi Jinping.



&#8220;In person talks between the leaders of the two largest economies in the world are seen as a positive at face value,&#8221; said Murison, while adding trade tensions were likely to remain.



China&#8217;s central bank is widely expected to boost its liquidity injections but keep the interest rate unchanged when it rolls over maturing medium-term policy loans on Wednesday, a Reuters survey showed.



Reuters on Tuesday reported China had ordered local governments to halt public-private partnership projects identified as &#8220;problematic&#8221; as it tries to curb municipal debt risks.



Across Central and Eastern Europe, Hungary&#8217;s economy increased by 0.9% on a quarterly basis in the third quarter as it returned to growth after tipping into recession last year, data showed, while activity in Poland, Romania and Slovakia also expanded in the period.



Against the euro, the Hungarian forint was subdued, the Romanian leu slipped 0.1%, while the Polish zloty rose 0.2%.



The South African rand strengthened 0.1% against the dollar after data showed the domestic unemployment rate fell to 31.9% in the third quarter from 32.6% in the second quarter.



The Russian rouble firmed to a 3-1/2 month high against the dollar in early trade, buoyed by exporters&#8217; foreign currency sales, high interest rates and recovering oil prices.



The rouble was last up 0.6%.



(Reporting by Siddarth S in Bengaluru Editing by Mark Potter)

istockphoto-1076949610-612×612-1

Stocks inch up, FX muted on investor caution ahead of US CPI

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="488" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/download-73.jpg" alt="" class="wp-image-428975" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/download-73.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/download-73-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/download-73-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/download-73-768x468.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">Radzuma Tshimangadzo walks holding a placard with his qualifications as he seeks a job, at an intersection in Rosebank, South Africa, June 23, 2020. REUTERS/Siphiwe Sibeko</figcaption></figure>



PRETORIA, Nov 14 (Reuters)&nbsp;&#8211;&nbsp;The number of people with jobs in South Africa surpassed the pre-COVID level in the third quarter of this year to hit its highest since 2019, statistics agency data showed on Tuesday.



Meanwhile the official unemployment rate fell to 31.9% from 32.6% in the second quarter, but it remains among the highest in the world.



Statistics South Africa said the July-to-September quarter saw the eighth consecutive employment increase, pointing to an ongoing labour market recovery from the scars of the pandemic.



&#8220;This 16.7 million (the number of employed people) actually returns us higher than the pre-COVID levels, which is the first time we are seeing that,&#8221; Statistician-General Risenga Maluleke said.



Job gains were mainly in the finance, community and social services and agriculture industries.



Sectors like mining and manufacturing have seen a rapid decline in employment in the past decade, and they recorded further job losses in the third quarter.



Manufacturing shed 50,000 jobs and mining 35,000, the data showed.



The number of unemployed people was 7.849 million in the third quarter, down from 7.921 million at the end of June.



Under an expanded definition of unemployment that includes people discouraged from seeking work, 41.2% of the labour force was jobless in July-September compared with 42.1% in April-June.



South Africa is due to hold national elections next year, with high levels of unemployment and weak economic growth perennial hot-button issues at the polls.



COSATU, the largest trade union federation in the country and an &#8220;alliance partner&#8221; of the governing African National Congress (ANC) party, said after Tuesday&#8217;s unemployment figures that the government needed to &#8220;move with speed to fix the obstacles hindering economic growth&#8221;.



After its worst-ever election result at municipal elections in 2021, the ANC faces the prospect of having to enter into a national coalition government for the first time since the end of apartheid in 1994.



(Reporting by Kopano Gumbi; Additional reporting by Tannur Anders; Editing by Alexander Winning and Christina Fincher)

download-73

South African employment surpasses pre-COVID level in third quarter

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107229932-1682347932426-gettyimages-1401566574-_02a9324-820x462.jpeg" alt="" class="wp-image-428969" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107229932-1682347932426-gettyimages-1401566574-_02a9324-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107229932-1682347932426-gettyimages-1401566574-_02a9324-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107229932-1682347932426-gettyimages-1401566574-_02a9324-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107229932-1682347932426-gettyimages-1401566574-_02a9324-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/107229932-1682347932426-gettyimages-1401566574-_02a9324.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">New York city skyline Alexander Spatari | Moment | Getty Images</figcaption></figure>



Goldman Sachs predicts the global economy will top expectations in 2024, driven by strong income growth and confidence that the worst of rate hikes is already over.



The investment bank forecasts the world economy to expand 2.6% next year on an annual average basis, above the 2.1% consensus forecast of economists polled by Bloomberg. The U.S. is expected to outpace other developed markets again with estimated growth of 2.1%, Goldman said.



Goldman also believes that the bulk of the drag from monetary and fiscal tightening policies is over.



To curtail rising inflation, the U.S. Federal Reserve started its aggressive rate hike campaign in March 2022 as inflation climbed to its highest levels in 40 years. Last Thursday, Fed Chair Jerome Powell said he is “not confident” the Fed has done enough to tackle inflation, and suggested that more rate hikes may be necessary.



Goldman said policymakers in developed markets are unlikely to cut interest rates before the second half of 2024 unless economic growth comes in weaker than estimated.



The bank noted inflation has also continued to cool across G10 and emerging market economies, and is expected to ease further.



“Our economists forecast this year’s decline in inflation to continue in 2024: sequential core inflation is predicted to fall from 3% now to an average 2-2.5% range across the G10 (excluding Japan),” the report stated.



<h2 class="wp-block-heading" id="h-global-factory-activity"><a></a>Global factory activity</h2>



The investment bank also expects global factory activity to recover from a recent slump as headwinds are set to dissipate this year. Goldman noted global manufacturing activity has been weighed down by a weaker-than-expected rebound in Chinese manufacturing and the European energy crisis, as well as an inventory cycle that had to correct for overbuilding last year.



Global production has been in a slump for most of the year. S&amp;P Global’s gauge of worldwide manufacturing activity came in at 49.1 in September. A reading below 50 indicates a contraction in activity. Additionally, China’s Caixin/S&amp;P Global manufacturing PMI fell to 49.5 in October from 50.6 in September, marking the first contraction since July.



Manufacturing activity should recover somewhat in 2024 from a subdued 2023 pace, Goldman economists led by chief economist Jan Hatzius said, especially as “spending patterns normalize, gas-intensive European production&nbsp;finds a trough, and inventories-to-GDP ratios stabilize.”



<h2 class="wp-block-heading"><a></a>Big economies to avoid recession</h2>



Rising real income also contributed to Goldman’s positive growth outlook.



“Our economists have a positive outlook for real disposable income growth at a time of much lower headline inflation and still-strong labor markets,” Goldman wrote in a release based on the report. While they hold the view that U.S. real income growth is set to slow from its strong 2023 pace of 4%, it is still purported to support consumption and GDP growth of at least 2%.



“We continue to see only limited recession risk and reaffirm our 15% U.S. recession probability,” Hatzius continued in the outlook report, owed in part to the real disposable income growth.



In September, the bank had cut their forecast for a U.S. recession from 20% to 15% on the basis of cooling inflation and a resilient labor market.



While rate hikes and fiscal policy will still continue to weigh on the growth across G10 economies, Hatzius is confident that the worst of that “drag” is already over.



“Both the Euro area and the UK are expected to have a meaningful acceleration in real income growth — to around 2% by end-2024 — as the gas shock following Russia’s invasion of Ukraine fades,” the economists also noted.

107229932-1682347932426-gettyimages-1401566574-_02a9324

World economy to perform better than expected in 2024, says Goldman Sachs

<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/GYBDMAWD7JPHZNI5FAKUIQVG7A-820x547.jpg" alt="" class="wp-image-428965" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GYBDMAWD7JPHZNI5FAKUIQVG7A-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GYBDMAWD7JPHZNI5FAKUIQVG7A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GYBDMAWD7JPHZNI5FAKUIQVG7A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GYBDMAWD7JPHZNI5FAKUIQVG7A-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GYBDMAWD7JPHZNI5FAKUIQVG7A-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GYBDMAWD7JPHZNI5FAKUIQVG7A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Leader of Liberia&#8217;s ruling party Coalition for Democratic Change(CDC), President and former soccer player George Weah, speaks to the press after casting his vote during the presidential elections in Monrovia, Liberia, October 10, 2023. REUTERS/Carielle Doe</figcaption></figure>



MONROVIA, Nov 14&nbsp;&#8211;&nbsp;Liberians&nbsp;started voting early on&nbsp;Tuesday in a runoff election between President George Weah and former vice president Joseph Boakai,&nbsp;who were&nbsp;neck-and-neck in the first round&nbsp;of voting but&nbsp;below the 50% needed to secure an outright victory.



Former soccer star Weah won 43.83% of the vote, against Boakai&#8217;s 43.44% &#8211; a razor-thin margin that has raised expectations of a closely fought second round.



A Reuters reporter saw queues of people at five polling stations in the capital Monrovia.



&#8220;We want to thank all Liberians who left their bed this morning. Stay on the line and vote,&#8221; the head of the national elections commission, Davidetta Browne-Lansanah, told state radio.



Incumbent&nbsp;Weah has&nbsp;asked voters for more time to make good on his first-term promises to root out corruption and improve livelihoods. The West African nation is still suffering the fallout from two civil wars between 1989 and 2003, and the 2013-16 Ebola epidemic that killed thousands of people.



Meanwhile Boakai has campaigned on the need to rescue the nation from what he calls mismanagement by Weah&#8217;s administration, which has been dogged by graft scandals.



Both Weah and Boakai have received endorsements from candidates who lost in the first round.



A key point will be who the 6% of voters whose ballots were invalidated in the first round favour in the run-off.



Although generally peaceful, the electoral period saw a few clashes between rival factions, and any alleged irregularities in the second round could potentially fuel unrest.



The economy grew 4.8% in 2022, driven by gold production and a relatively good harvest, but more than 80% of the population still face moderate or severe food insecurity, the World Bank said in July.



(Writing by Alessandra Prentice and Anait Miridzhanian; Editing by Hugh Lawson and Bernadette Baum)

FILE PHOTO: Presidential elections in Liberia

Liberians vote in tight presidential run-off

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-820x547.jpg" alt="" class="wp-image-428955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/546MOFRIYJJINKF26GSAMYOGXY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NAIROBI, KENYA &#8211; OCTOBER 31: William Ruto, President of the Republic of Kenya, gives a speech a State Banquet at State House, along with distinguished guests from Kenya and the United Kingdom on October 31, 2023 in Nairobi, Kenya. Chris Jackson/Pool via REUTERS/File Photo</figcaption></figure>



NAIROBI, Nov 13 (Reuters)&nbsp;&#8211;&nbsp;Negotiators working on the world&#8217;s first treaty to curb plastic pollution need to hurry up and strike a deal, Kenyan&nbsp;President William Ruto said on Monday at the start of talks in Nairobi.



The world produces about 400 million metric tonnes of plastic waste annually&nbsp;and less than 10% of it is recycled, according to the&nbsp;U.N.&nbsp;Environment Programme.



At least 14 million metric tonnes ends up in the ocean every year, the International Union for Conservation of Nature says, while more piles up in landfills.



International delegates meeting in the Kenyan capital Nairobi for the third round of talks will consider a list of possible measures to include in the treaty.



&#8220;I urge all the negotiators to recall that 2024 is only six weeks away and (there) are only two other meetings to go,&#8221; Ruto said at the opening of the talks.



Governments agreed in March 2022 to put together a treaty on controlling plastic pollution by the end of next year.



In Nairobi,&nbsp;delegates will be haggling over whether to stick to their broad mandate of addressing the entire life cycle of plastics, including production, or to&nbsp;prioritise&nbsp;plastic waste management.



The talks need to come up with a first draft agreement, outlining commitments to reducing the plastic menace, and a financing scheme for its implementation, said Carroll Muffett, president of the Centre for International Environmental law.



&#8220;We need to navigate extraordinary risks over the week ahead,&#8221; he said, citing attempts to derail and delay the talks by some members states in previous rounds.



Kenya is among those who want a strong, binding agreement on the manufacture and use of plastics, having&nbsp;enacted several laws banning certain uses of plastics, such as for shopping bags, since 2017.



&#8220;We must change the way we consume, the way we produce and how we dispose our waste,&#8221; Ruto said. &#8220;Change is inevitable. This instrument that we are working on, is the first domino in that change. Let us bring it home.&#8221;



The plastics&nbsp;industry and oil and petrochemical exporters like Saudi Arabia do not want plastic use curtailed, arguing that the global deal should promote improved&nbsp;the&nbsp;recycling and reuse of plastic.



&#8220;The vast majority of countries are eager to advance the negotiations to get the job done,&#8221; said Pamela Miller, Co-Chair of the International Pollutants Elimination Network, a global public interest organization.



&#8220;On the other hand a small group of like-minded countries of mainly major fossil fuel, petrochemical and plastic exporters like Saudi Arabia and Russia are actively attempting to take us backwards.&#8221;



Saudi and Russian delegates were not immediately available to comment.



(Reporting by Duncan Miriri; additional reporting by Gloria Dickie in London; editing by Hugh Lawson and Mark Heinrich)

Britain’s King Charles III and Queen Camilla Visit Kenya

Kenya president urges progress on global treaty against plastic pollution

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="512" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-820x512.jpg" alt="" class="wp-image-428950" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-820x512.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-768x480.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-1536x960.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/E3N5RWFN2JI4PNEOQDCLQKKFOU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: European Union flags fly outside the EU Commission headquarters in Brussels, Belgium September 19, 2019. REUTERS/Yves Herman/File Photo</figcaption></figure>



BRUSSELS, Nov 13 (Reuters)&nbsp;&#8211;&nbsp;The European Union will make a &#8220;substantial&#8221; financial contribution to a new international fund addressing the destruction caused by climate change, the EU&#8217;s executive Commission said on Monday.



The world-first climate &#8220;loss and damage&#8221; fund is set to be launched during the United Nations COP28 climate summit to be held Nov. 30-Dec. 12 in Dubai in the United Arab Emirates.



&#8220;The Commissioner is ready to announce substantial financial contribution by the EU and its member states to the loss &amp; damage fund at COP28 in the context of an ambitious outcome at COP28,&#8221; the European Commission and the UAE&#8217;s incoming COP28 president said in a joint statement, referring to EU Climate Commissioner Wopke Hoekstra.



The EU did not specify the size of its planned contribution.



The 27-nation bloc also plans to commit funding at COP28 to help countries meet a pledge to triple global renewable energy capacity by 2030, the statement said.



Finance is one of the biggest issues at the annual U.N. climate talks. The EU move could help grease the wheels for other deals at COP28, where countries will consider whether to phase out fossil fuels and take other steps to cut emissions.



Adnan Amin, CEO of the COP28 summit, said the aim was to secure several hundred million U.S. dollars for it by the end of the event. He said he was &#8220;hopeful&#8221; that the COP28 host, the UAE, would also make a contribution.



&#8220;There is an active discussion going on in the UAE, a positive discussion, about whether we would be participants in this,&#8221; Amin told Reuters.



Countries agreed at last year&#8217;s U.N. climate talks to launch the climate damage fund, a deal hailed as a breakthrough by more vulnerable, developing nations that have long demanded support to cope with climate-driven damage from drought, floods and rising seas.



So far, no country has made a specific financial pledge to the fund, though some have signalled interest.



U.S. climate envoy John Kerry said Washington would put &#8220;several millions of dollars into the fund at the COP&#8221;, speaking during the Bloomberg New Economy Forum in Singapore last week.



The UAE is among a handful of high per-capita income countries that are not obliged to contribute to U.N. climate funds, but are facing pressure from European states to do so.



(Reporting by Kate Abnett; additional reporting by Bart Meijer; editing by Gareth Jones and Mark Heinrich)

featured

Kenya gets additional $938 mln from IMF, soothing nerves

U.S. and China agree to resume military talks. Takeaways from the Biden-Xi summit

Ghana’s economy getting back on track, finance minister says

Nigeria inflation rises further in October, upping pressure on new central bank head

EM assets hit multi-month highs on soft US CPI, positive China data

IMF says central bank digital currencies can replace cash: ‘This is not the time to turn back’

South African rand weakens ahead of retail sales data

Central Europe’s defence companies spy African opportunity

U.S. inflation was flat in October from the prior month, core CPI hits two-year low

Nigeria in talks with Islamic bank for infrastructure finance

Niger debt default reaches $304 million due to sanctions- agency

Stocks inch up, FX muted on investor caution ahead of US CPI

South African employment surpasses pre-COVID level in third quarter

World economy to perform better than expected in 2024, says Goldman Sachs

Liberians vote in tight presidential run-off

Kenya president urges progress on global treaty against plastic pollution

EU pledges ‘substantial’ contribution to COP28 climate damage fund

News Tips

Advertise With Us

featured

Kenya gets additional $938 mln from IMF, soothing nerves

U.S. and China agree to resume military talks. Takeaways from the Biden-Xi summit

Ghana’s economy getting back on track, finance minister says

Nigeria inflation rises further in October, upping pressure on new central bank head

EM assets hit multi-month highs on soft US CPI, positive China data

IMF says central bank digital currencies can replace cash: ‘This is not the time to turn back’

South African rand weakens ahead of retail sales data

Central Europe’s defence companies spy African opportunity

U.S. inflation was flat in October from the prior month, core CPI hits two-year low

Nigeria in talks with Islamic bank for infrastructure finance

Niger debt default reaches $304 million due to sanctions- agency

Stocks inch up, FX muted on investor caution ahead of US CPI

South African employment surpasses pre-COVID level in third quarter

World economy to perform better than expected in 2024, says Goldman Sachs

Liberians vote in tight presidential run-off

Kenya president urges progress on global treaty against plastic pollution

EU pledges ‘substantial’ contribution to COP28 climate damage fund

News Tips

Advertise With Us

Newsletters