<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/MXX5ZK4ZHFIZXDB32HX222DIAQ-1-820x546.jpg" alt="" class="wp-image-428061" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/MXX5ZK4ZHFIZXDB32HX222DIAQ-1-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/MXX5ZK4ZHFIZXDB32HX222DIAQ-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/MXX5ZK4ZHFIZXDB32HX222DIAQ-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/MXX5ZK4ZHFIZXDB32HX222DIAQ-1-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/MXX5ZK4ZHFIZXDB32HX222DIAQ-1-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/MXX5ZK4ZHFIZXDB32HX222DIAQ-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Robotic arms assemble cars in the production line for Leapmotor&#8217;s electric vehicles at a factory in Jinhua, Zhejiang province, China, April 26, 2023. China Daily via REUTERS</figcaption></figure>



MARRAKECH, Morocco, Oct 10 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund on Tuesday cut its growth forecasts for China and the euro area and said overall global growth remained low and uneven despite what it called the &#8220;remarkable strength&#8221; of the U.S. economy.



The IMF left its forecast for global real GDP growth in 2023 unchanged at 3.0% in its latest World Economic Outlook (WEO), but cut its 2024 forecast by 0.1 percentage point to 2.9% from its July forecast. World output grew 3.5% in 2022.



IMF chief economist Pierre-Olivier Gourinchas told reporters the global economy continued to recover from the COVID-19 pandemic, Russia&#8217;s invasion of Ukraine and last year&#8217;s energy crisis, but growth trends were increasingly divergent across the globe, and prospects for medium-term growth were &#8220;mediocre.&#8221;



Gourinchas said the forecasts generally pointed to a soft landing, but the IMF remained concerned about risks related to the real estate crisis in China, volatile commodity prices, geopolitical fragmentation, and a resurgence in inflation.



A fresh unexpected risk emerged in the form of the Israel-Palestinian conflict just as finance officials from 190 countries gathered in Marrakech for the annual meetings of the International Monetary Fund and World Bank,&nbsp;but came after the IMF&#8217;s quarterly outlook update was locked down on Sept. 26.



Gourinchas told Reuters it was too early to say how the major escalation in the long-running conflict would affect the global economy: &#8220;Depending how the situation might unfold, there are many very different scenarios that we have not even yet started to explore, so we can&#8217;t make any assessment at this point yet.&#8221;



Stronger growth is being throttled by the lingering impact of the pandemic, Russia&#8217;s war in Ukraine and increasing fragmentation, along with rising interest rates, extreme weather events and shrinking fiscal support, the IMF said. Total global output in 2023 is slated to be 3.4%, or roughly $3.6 trillion, below pre-pandemic projections.



&#8220;The global economy is showing resilience. It&#8217;s not knocked out by the big shocks it&#8217;s experienced in the last two or three years, but it&#8217;s not doing too great either,&#8221; Gourinchas told Reuters in an interview.&nbsp;&#8220;We see a global economy that is limping along and it&#8217;s not quite sprinting yet.&#8221;



The medium-term outlook is no better. The IMF is projecting growth of 3.1% in 2028, well below the 4.9% five-year forecast it had on the eve of the global financial crisis in 2008-2009.



&#8220;You have uncertainty. You have geoeconomic fragmentation, low productivity growth, and low demographics. You put all these things together and you have a slowdown in medium-term growth,&#8221; he told Reuters.



<h2 class="wp-block-heading" id="h-not-quite-there-on-inflation">NOT QUITE THERE ON INFLATION</h2>



Inflation continued to decline around the globe due to a fall in energy prices and to a lesser extent food prices. It is expected to drop to an annual average of 6.9% in 2023, from 8.7% in 2022, and to 5.8% in 2024.



Core inflation, excluding food and energy prices, is coming down more gradually, and should drop to 6.3% in 2023, from 6.4% in 2022, and to 5.3% in 2024, given still-tight labor markets and stickier-than-expected services inflation, the IMF said.



&#8220;We&#8217;re not quite there,&#8221; Gourinchas said in a separate meeting with reporters, adding the IMF was warning monetary authorities not to ease interest rates too soon.



Labor markets were generally quite buoyant and unemployment rates were at historical lows in most advanced economies, but there was not much evidence of a wage-price spiral that could trigger a second round of price inflation,&nbsp;even with a major strike by U.S. autoworkers in the United States.



&#8220;We&#8217;re not seeing strong signs of an out-of-control sequence of wages chasing prices and prices chasing wages,&#8221; he said.



The IMF said uncertainty had narrowed considerably since its April forecasts were released, but there were still more downside than upside risks for 2024. The chance of growth falling below 2% &#8211; which has only occurred five times since 1970 &#8211; was now seen at 15%, compared with 25% in April.



The IMF noted that investment was uniformly lower than before the pandemic, with businesses showing less appetite for expansion and risk-taking amid rising interest rates, withdrawal of fiscal support and stricter lending conditions.



Gourinchas said the fund was advising countries to remain vigilant on monetary policy until inflation was durably coming down toward targets, while urging them to rebuild thin fiscal buffers to address future challenges or shocks.



<h2 class="wp-block-heading" id="h-us-growth-beating-pre-pandemic-forecasts">US GROWTH BEATING PRE-PANDEMIC FORECASTS</h2>



The IMF raised its forecast for growth in the United States, the world&#8217;s largest economy, by 0.3 percentage point to 2.1% for 2023, and by 0.5 percentage point to 1.5% for next year, citing stronger business investment and growing consumption. That makes the U.S. the only major economy to beat pre-pandemic forecasts.



In China, by contrast, GDP was expected to expand 5.0% in 2023 and 4.2% in 2024, reflecting respective downward revisions of 0.2 and 0.3 percentage point, mainly due to the country&#8217;s real estate crisis and weak external demand.



Gourinchas said &#8220;forceful action&#8221; was needed in China to clean up the real estate sector and while authorities had taken some steps, more work was needed. &#8220;If that doesn&#8217;t happen, then there is a chance that that problem could fester and become worse,&#8221; he said.



The IMF also cut its growth estimates for the euro area to 0.7% in 2023 and 1.2% in 2024, down from respective July forecasts of 0.9% and 1.5%.



The UK, which like the euro area has been hit hard by the shock of high energy prices, saw its growth forecast raised by 0.1 percentage point to 0.5% for 2023, but cut by 0.4 percentage point to 0.6% for 2024.



Japan is expected to see growth of 2.0% in 2023, a 0.6 percentage point upward revision, buoyed by pent-up demand, a surge in inbound tourism, its accommodative monetary policy and a rebound in auto exports, the IMF said. It left Japan&#8217;s 2024 growth outlook unchanged at 1.0%.



(Reporting by Andrea Shalal; Editing by Andrea Ricci)

MXX5ZK4ZHFIZXDB32HX222DIAQ-1

IMF says global economy ‘limping along,’ cuts growth forecast for China, euro area

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107306302-1695688601427-gettyimages-1230255793-AFP_8XJ9FN-820x547.jpeg" alt="" class="wp-image-428057" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107306302-1695688601427-gettyimages-1230255793-AFP_8XJ9FN-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107306302-1695688601427-gettyimages-1230255793-AFP_8XJ9FN-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107306302-1695688601427-gettyimages-1230255793-AFP_8XJ9FN-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107306302-1695688601427-gettyimages-1230255793-AFP_8XJ9FN-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107306302-1695688601427-gettyimages-1230255793-AFP_8XJ9FN-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107306302-1695688601427-gettyimages-1230255793-AFP_8XJ9FN-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A woman spreads cocoa beans during the sun-drying process in the backyard of her house in Asikasu, Ghana on December 19, 2020. Cristina Aldehuela | Afp | Getty Images</figcaption></figure>



El Nino is here to stay — and that’s bad news for cocoa crops which are highly sensitive to weather changes.&nbsp;



Frequent extreme weather events caused by El Nino and climate change hurts cocoa production. Hotter temperatures and shifts in rainfall patterns can also damage cocoa pod development and promote the spread of pests and diseases.



According to the the latest El Nino-Southern Oscillation Outlook, El Nino is expected to last through January to March 2024, with a 71% chance it will intensify from November to January. 



An intensified and frequent El Nino effect could significantly reduce the amount of arable land for cocoa cultivation. This not only poses a threat to food security, but also endangers the livelihoods of farmers, especially those in West African countries, which are most at risk from extreme weather changes.



“El Nino conditions are often historically associated with drier conditions in West Africa where three-quarters of the world’s cocoa is produced,” Jonathan Haines, research director at Gro Intelligence told CNBC.



<h2 class="wp-block-heading" id="h-top-cocoa-producers"><a></a>Top cocoa producers</h2>



Cocoa comes from the seed of the cacao tree and is an essential ingredient for chocolates.



But it’s not only used in food and confectionery. Cocoa butter — a byproduct of cocoa processing — is also widely used in the pharmaceutical industry for skincare products and cosmetics.



Africa accounts for nearly 75% of global cocoa production, while the Americas — including Brazil and Ecuador — make up 20%, according to the International Cocoa Organization. Asia-Pacific produces the remaining 5%, with Indonesia and Papua New Guinea being the largest producers in the region.



West Africa’s Cote d’Ivoire — or the Ivory Coast — is the world’s largest cocoa producer, accounting for about 44% of global production, while neighboring Ghana accounts for about 14%.



<h2 class="wp-block-heading"><a></a>Cost of climate change</h2>



As temperatures soar, more and more suitable cacao cultivation areas will be pushed uphill by 2050, according to Climate.gov, a climate change science and information portal run by the National Oceanic and Atmospheric Administration.



With the optimal altitude for cacao cultivation expected to rise, cocoa farmers may be forced to move harvests to higher ground.



“Cocoa farmers facing critical decisions may start looking to higher-altitude regions where the weather is more favorable for cocoa cultivation, or some may decide to leave cocoa cultivation altogether,” Kerry Daroci, the cocoa sector lead at the Rainforest Alliance, told CNBC.



The financial damage of climate change can be extremely costly, especially since top cocoa-producers like Ivory Coast, Ghana and Indonesia, are vulnerable to extreme weather conditions.



According to a report by the Economist Intelligence Unit, a high intensity El Nino may result in severe economic disruption across Africa. Businesses in the agricultural sector are also at risk from an increase in farm input prices that can drive up overhead costs.



The financial cost of El Nino and climate change remains unquantified for Cote d’Ivoire and Ghana. However, as profits from cocoa make up 70% to 100% of Ghanaian cocoa producers’ income, any decline in yields will have a substantial impact on their livelihoods, said Daroci from the Rainforest Alliance.



West African producers aren’t the only ones impacted.



“In Indonesia, climate change is reducing productivity by approximately 50%, leading to an estimated loss of $666 per hectare, affecting up to one million hectares,” Daroci added. 



As it stands, cocoa prices have already surged to “high premiums,”&nbsp;according to the International Cocoa Organization.



At the end of August, cocoa futures settled at $3,730 per tonne in London, and $3,633 per tonne in New York, ICCO’s latest data showed. That’s a 78% jump from $2,095 per tonne in London a year ago and a nearly 50% year-on-year surge from $2,427 per tonne in New York.



“This represents the highest nearby contract price for the 2022/23 season,” the report said.



Prices of cocoa are at their highest in 50 years, according to a Reuters report.



<h2 class="wp-block-heading"><a></a>Adaptation and mitigation</h2>



Climate change is not a new phenomenon, but the impact of an intensified El Nino&nbsp;this year has made it more&nbsp;urgent to stem its adverse impact on cocoa production.



“We have reached a juncture in the climate crisis where harm reduction is no longer enough,” said Daroci.



Agricultural adaptation and mitigation efforts are some ways to tackle specific climate threats — but they&nbsp;can be&nbsp;costly.



Climate adaptation refers to adjusting processes and structures to prevent or minimize potential damages caused by climate change. Mitigation involves lessening the impact of climate change by cutting down on emissions of greenhouse gases.



“Research indicates that investments in these initiatives must triple by 2030 and quadruple by 2050,” Daroci said. “This would result in a total investment of up to $8.1 trillion over time, with an annual investment rate of $536 billion in the future.”



“Despite the urgent need to invest in nature-based solutions, a significant funding gap remains,” she added.



Separately, a report by the Environmental Protection Agency — an independent agency of the U.S. government responsible for environmental protection matters — underscored financing as a key challenge to investing in adaptation in Ghana.



“The understanding of climate change in main cocoa producing countries like West Africa and Indonesia, is very rudimentary,”&nbsp;Steffany Bermudez, policy advisor at the International Institute for Sustainable Development, told CNBC.



<h2 class="wp-block-heading"><a></a>Helping cocoa farmers</h2>



Additionally, adaptation methods often do not have immediate returns, and that deters financial institutions from investing in these areas.&nbsp;



“Private sector capital can be instrumental in the adoption of actions to adapt to climate change,” Bermudez said, adding that support from the private sector can be “a bridge for engagement with key financiers to build the sector’s resilience.”



Projects and initiatives organized by non-profit organizations can also help alleviate the financial burden on cocoa farmers learning to adapt to climate change.



The Rainforest Alliance, a non-governmental organization, started the Restore project — or Resilient Ecosystems and Transforming Rural Cocoa Economies, in Cote d’Ivoire and Ghana.



The project has set aside $7 million&nbsp;to help&nbsp;15,000 farmers manage 50,000 hectares of farmland, and aims to expand tree cover in cocoa production landscapes across the two countries.&nbsp;



Even though the challenges for cocoa farmers are mounting, there could be some reprieve.&nbsp;



Cocoa cultivation may fare better than expected this year, as higher levels of&nbsp;rain&nbsp;ease the impact of elevated droughts from El Nino,&nbsp;Haines from Gro Intelligence said.



“Precipitation in Cote d’Ivoire and Ghana has actually been very strong in 2023 … In Ghana, rainfall in cocoa areas is at its highest level since at least 2001 by a strong margin,”&nbsp;Haines told CNBC.



— CNBC’s Joanna Tan contributed to this report.

107306302-1695688601427-gettyimages-1230255793-AFP_8XJ9FN

Cocoa farmers face mounting challenges as El Nino rages on

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-820x540.jpg" alt="" class="wp-image-426244" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-768x506.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-1536x1011.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/JKK4U4FI75J2VM5E4QCERD5FFA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: World Bank President Ajay Banga looks on after his visit to Vidya Samiksha Kendra at Gandhinagar, India, July 16, 2023. REUTERS/Amit Dave/</figcaption></figure>



MARRAKECH, Morocco, Oct 9 (Reuters)&nbsp;&#8211;&nbsp;World Bank President Ajay Banga will come under pressure this week to focus on climate change, but the former Mastercard CEO first needs to get shareholders in line on how to grow the bank.



Banga, just 130 days into the job, has a mandate to broaden the multilateral development lender&#8217;s mission to tackle global crises including climate change, pandemics and fragile states.



But with annual climate transition finance needs estimated at up to $3 trillion for emerging market and low-income economies by 2030, development advocates are calling on him to make tackling global warming the priority at his first World Bank and International Monetary Fund (IMF) annual meetings.



A G20-commissioned panel of experts recommended in July that the World Bank and other multilateral development banks (MDBs) increase annual lending by $260 billion, more than three times their current pace, to help meet climate needs.



&#8220;We&#8217;d love to shareholders see come out with a strong endorsement of that target and a plan to push that forward,&#8221; said Amy Dodd, development policy director at ONE Campaign.



Banga, however, has said the major step from the meetings in Morocco will be the long-awaited shareholder endorsement of modifying the bank&#8217;s anti-poverty mission statement.



The move to add &#8220;on a livable planet&#8221; has been in process for a year, and the development community is eager for next steps to maintain momentum and scale up financing quickly.



The World Bank in April lowered its equity-to-loan ratio to boost lending by $50 billion over 10 years. But many further steps are more complicated and need countries to decide how much taxpayer funds they are willing to contribute or put at risk.



&#8220;I&#8217;m very skeptical that there&#8217;s going to be a big step forward on the size of the institution in Marrakech,&#8221; said Clemence Landers, a former U.S. Treasury official now with the Center for Global Development in Washington.



This group on Monday published a new scorecard for MDB reforms, saying that broad changes are &#8220;firmly in play&#8221; but progress in implementing them has been limited.



<h2 class="wp-block-heading" id="h-complex-moves">COMPLEX MOVES</h2>



For now, the U.S. wants countries to back loan guarantees by the World Bank, with President Joe Biden pushing a request that Congress approve $2.1 billion in new funding that could unlock $25 billion in new concessional loans over a decade.



A World Bank report to be considered in Marrakech estimates that $10 billion in guarantee commitments could boost lending by $60 billion over that period.



But no other major shareholders have joined the U.S. move, which is viewed as a more palatable alternative for U.S. lawmakers to a general capital increase as this would likely lead to a bigger Chinese shareholding at the bank.



British officials have expressed support for a capital increase, but Germany has favored more issuance of hybrid capital, a debt-like instrument, that the World Bank estimates could add another $40 billion in new lending over a decade.



A bigger move would boost lending against the World Bank&#8217;s &#8220;callable capital,&#8221; a cushion of emergency funds pledged by shareholders but not paid-in, but this would require some countries to change laws.



Banga has said the move is complex and will take time to negotiate. But the payoff could be huge, with the Rockefeller Foundation estimating a lending increase of some $900 billion over a decade if ratings agencies modified their evaluations.



A U.S. Treasury official told Reuters that the department is working to develop rules for callable capital so that decisions could be made by April 2024.



<h2 class="wp-block-heading" id="h-plumbing">PLUMBING</h2>



Banga has played down the lending increases and emphasized his efforts to make the 16,000-strong organization more nimble and focused on projects with measurable impacts, saying he wants &#8220;to fix the plumbing&#8221;.



Other World Bank presidents, including Jim Yong Kim, were unable to meaningfully reform the bank, which Banga has called &#8220;dysfunctional&#8221;, despite a talented and dedicated staff.



&#8220;He is shaking things up,&#8221; said a senior official at the U.S. Treasury, which nominated him for the job.



While the Indian born American citizen&#8217;s approach has caused some internal friction, according to bank staff, Banga, 63, has received high marks for pushing the envelope.



&#8220;Banga had a good start,&#8221; said Michael Krake, who represents Germany on the World Bank&#8217;s executive board.



&#8220;Let Banga be Banga. Good leaders take thoughtful risks and also make some mistakes,&#8221; Krake added.



(Reporting by David Lawder; Editing by Alexander Smith)

World Bank chief Banga unveils new plans to boost lending ‘firepower’

World Bank’s Banga faces pressure on resources, shareholder schisms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="566" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CFJEWCQLPRMAJNE3CCN6SBKIMI-820x566.jpg" alt="" class="wp-image-428003" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CFJEWCQLPRMAJNE3CCN6SBKIMI-820x566.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CFJEWCQLPRMAJNE3CCN6SBKIMI-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CFJEWCQLPRMAJNE3CCN6SBKIMI-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CFJEWCQLPRMAJNE3CCN6SBKIMI-768x531.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CFJEWCQLPRMAJNE3CCN6SBKIMI-1536x1061.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/CFJEWCQLPRMAJNE3CCN6SBKIMI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People, believed to be migrants, walk in Dungeness, Britain, August 16, 2023. REUTERS/Toby Melville/File Photo</figcaption></figure>



LONDON, Oct 9 (Reuters)&nbsp;&#8211;&nbsp;Government lawyers will on Monday tell Britain&#8217;s top court that it should overturn a ruling which declared unlawful a plan to deport migrants to Rwanda, one of Prime Minister Rishi Sunak&#8217;s key policies.



In June, London&#8217;s Court of Appeal concluded that the scheme to send tens of thousands of migrants more than 4,000 miles (6,400 km) to East Africa was not lawful, saying Rwanda could not be treated as a safe third country.



The court ruled that those sent to Rwanda would be at risk of being sent home where they could face persecution despite having a legitimate asylum claim. This would make the policy unlawful under Britain&#8217;s Human Rights Act (HRA), which made the European Convention on Human Rights (ECHR) part of British law.



The decision dealt a massive blow to the Conservative Sunak&#8217;s pledge to stop thousands of migrants from arriving in small boats on the English south coast.



Over three days this week, the government will argue at the United Kingdom&#8217;s Supreme Court that the ruling was wrong, while those representing migrants from Syria, Iraq, Iran, Vietnam and Sudan want the judges to conclude the scheme itself is unlawful.



The political stakes are high and the outcome, with a final ruling likely by year-end, could have far-reaching consequences.



Sunak, whose Conservatives are trailing by about 20 points in opinion polls ahead of an election expected next year, has made a vow to &#8220;stop the boats&#8221; one of his five priorities as he seeks to turn around his party&#8217;s fortunes.



Surveys show that immigration, a key factor in the 2016 referendum vote for Britain to leave the European Union, remains a major concern for voters, and that the vast bulk of the public think the government is handling the issue badly.



The government&#8217;s first planned Rwanda deportation flight had been due to leave in June last year, but was blocked at the last minute by an injunction from the European Court of Human Rights until all the UK legal action had been concluded.



Many in Sunak&#8217;s party want Britain to pull out of the ECHR to prevent any repeat, while in a speech to party faithful last week Home Secretary (interior minister) Suella Braverman labelled the Human Rights Act, &#8220;the Criminal Rights Act&#8221;.



&#8220;I am confident that our approach complies with our international obligations,&#8221; Sunak told the Conservative conference. &#8220;But know this, I will do whatever is necessary to stop the boats.&#8221;



The court case comes as governments around the world wrestle with how to cope with the arrival of hundreds of thousands of migrants fleeing war zones or seeking better lives in the West.



In the United States, President Joe Biden&#8217;s administration said it would add sections to a border wall to stave off record crossings from Mexico, while in Europe, governments are grappling with how to cope with the arrival of hundreds of thousands of migrants from Africa, Asia and the Middle East.



The EU&#8217;s 27 leaders met last week with migration top of the agenda following the arrival of an estimated 250,000 migrants this year, with Germany introducing border checks to crack down on people smugglers.



(Reporting by Michael Holden and Sam Tobin; editing by Mark Heinrich)

FILE PHOTO: People, believed to be migrants, arrive in Dungeness

UK top court to hear government appeal on Rwanda migrant plan

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-820x547.jpg" alt="" class="wp-image-424241" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/QOM6DFY4YFKBTJHWK36SCHU26U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo in Washington, United States, September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



ACCRA, Oct 6 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund and Ghana&#8217;s government have reached a staff-level agreement on the first review of a $3 billion loan programme, paving the way for a disbursement of $600 million once it is approved by the IMF&#8217;s executive board.



&#8220;To ensure timely completion of the review, the country needs official creditors to quickly reach agreement on a debt treatment in line with the financing assurances they provided in May 2023,&#8221; the IMF said in a statement on Friday.



The West African country asked the IMF for financial support last year as it grappled with its worst economic crisis in a generation brought on by spiralling public debt.



The three-year extended credit facility is contingent on domestic and external debt restructuring, spending cuts and other fiscal adjustments. Ghana received a first $600 million tranche of the loan in May.



The IMF noted that growth had been more resilient than initial expectations, with declining inflation, a more stable exchange rate and better fiscal and external positions.



Ghana is on track to lower the fiscal primary deficit on a commitment basis by about 4 percentage points of GDP in 2023, it said, adding that spending had remained within programme limits.



Ghana is currently negotiating with bilateral and commercial international creditors and aims to cut around $10.5 billion in interest payments on its external debt over the next three years.



At the end of 2022, its debts to countries including China and members of the Paris Club of creditor nations were $5.4 billion of the $20 billion external debt due to be restructured, according to a government presentation to investors. The total external debt stock was about $30 billion.



Prices of Ghana&#8217;s international dollar bonds&nbsp;XS2325742166=TE,&nbsp;XS2115122538=TE,&nbsp;XS1297557412=TE&nbsp;rose up to 0.9 cents on the dollar on Friday. They have been rising gradually since March on hopes a restructuring deal can be achieved, although they had suffered a minor relapse this week due to a widespread selloff in global debt markets.



(Reporting by Bhargav Acharya; Additional reporting by Marc Jones; Writing by Sofia Christensen and Rachel Savage; Editing by Alexander Winning and Sharon Singleton)

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

IMF staff, Ghana agree first review of $3 bln programme

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-820x547.jpg" alt="" class="wp-image-416649" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">IMF managing director Kristalina Georgieva speaks during a panel discussion at the COP26 UN Climate Summit in Glasgow on November 3, 2021. (Photo by Daniel LEAL / AFP) (Photo by DANIEL LEAL/AFP via Getty Images)</figcaption></figure>



Oct 5 (Reuters)&nbsp;&#8211;&nbsp;Stronger demand for services and progress on lowering inflation have increased the chances that the global economy can escape recession, but fiscal and financial risks abound, IMF chief Kristalina Georgieva said on Thursday.



Georgieva, setting the stage for next week&#8217;s annual meetings of the International Monetary Fund and World Bank, said successive shocks since 2020 had slashed $3.7 trillion from global output, current growth remained well below pre-pandemic levels, and medium-term growth prospects had weakened further.



Stubborn inflation meant interest rates would have to remain &#8220;higher for longer&#8221; and economic fragmentation threatened to hit emerging and developing economies hardest, she said.



In remarks prepared for a speech in Abidjan, Ivory Coast, Georgieva said the IMF&#8217;s new World Economic Outlook, coming out on Tuesday, would show a slow and uneven recovery, with stark differences emerging in trends across the globe.



&#8220;The world economy has shown remarkable resilience, and the first half of 2023 has brought some good news, largely because of stronger-than-expected demand for services and tangible progress in the fight against inflation,&#8221; Georgieva said in the prepared remarks. &#8220;This increases the chances for a soft landing for the global economy. But we can’t let our guard down.&#8221;



Georgieva said the current pace of growth was &#8220;quite weak,&#8221; well below the 3.8% pre-pandemic average, and inflation would likely remain above target in some countries until 2025.



&#8220;Fighting inflation is the No. 1 priority,&#8221; Georgieva said, noting that high prices undermined consumer and investor confidence, and hit the poorest people in society hardest.



&#8220;Winning the fight against inflation requires interest rates to remain higher for longer,&#8221; she said. &#8220;It is paramount to avoid a premature easing of policy, given the risk of resurging inflation.&#8221;



Georgieva said expectations of a “soft landing” had helped boost various asset prices, but a rapid resurgence of inflation could lead to a sharp tightening of financial conditions.



The IMF chief&#8217;s somber message comes days before finance ministers and central bankers from 190 countries gather in Marrakech for a week of meetings about the risks facing the global economy.



The meetings are the first on the African continent since they were held in Nairobi, Kenya in 1973, and they will take place not far from the epicenter of a devastating earthquake in Morocco that killed 2,900 people.



Georgieva underscored stark differences in growth dynamics, noting that the United States is the only major economy that had seen output return to pre-pandemic levels, and calling out India and Ivory Coast as other bright spots.



But most advanced economies are slowing and economic activity in China, the world&#8217;s second-largest economy, remains below expectations, she said, with many other countries struggling with &#8220;anemic growth.&#8221;



Economic fragmentation &#8211; marked by protectionism, export controls and a retreat from global trade &#8211; threatened to further undermine growth prospects, especially for emerging and developing economies, she said.



Many countries also faced significant fiscal risks and urgently needed to rebuild their buffers, with Africa and other regions seeing a further rise in debt burdens.



She said banks were also facing pressures and called for urgent steps to strengthen the global financial safety net. IMF analysis showed that 100 emerging and low-income countries &#8211; including most African nations &#8211; lacked sufficient resources and access to swap lines, leaving them exposed in the event of a financial crisis, she said.



The IMF, which has provided about $320 billion in financing to 96 countries since the pandemic, also needed to bolster its lending capacity, Georgieva said, urging member countries to act to increase its quota resources.



She also called for the fund&#8217;s stronger members to step in with more financing for the Poverty Reduction and Growth Trust, which serves the poorest members, as well as its new $40 billion Resilience and Sustainability Trust, which provides longer-term financing for climate reforms.



(Reporting by Andrea Shalal; Editing by Andrea Ricci)

BRITAIN-UN-CLIMATE-COP26

IMF chief Georgieva: soft landing possible, but fiscal, debt risks abound

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="588" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/JWX54NKNGNM6DD624ERQ6VJLGM-820x588.jpg" alt="" class="wp-image-427960" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/JWX54NKNGNM6DD624ERQ6VJLGM-820x588.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/JWX54NKNGNM6DD624ERQ6VJLGM-300x215.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/JWX54NKNGNM6DD624ERQ6VJLGM-126x90.jpg 126w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/JWX54NKNGNM6DD624ERQ6VJLGM-768x551.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/JWX54NKNGNM6DD624ERQ6VJLGM-1536x1101.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/JWX54NKNGNM6DD624ERQ6VJLGM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Soccer Football &#8211; FIFA Virtual Council Meeting &#8211; Zurich, Switzerland &#8211; October 4, 2023 FIFA President Gianni Infantino during the meeting FIFA/Handout via REUTERS</figcaption></figure>



Rabat, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;After five failed attempts to become World Cup hosts, Wednesday&#8217;s announcement that Morocco will share the honours with Spain and Portugal in 2030 will lift spirits in the north African country a month after the devastating earthquake that killed nearly 3,000 people.



The World Cup may also provide a boost to the Moroccan economy, which was already under increasing pressure due to a severe drought and high inflation rates, according to a World Bank report.



FIFA, in a&nbsp;surprise announcement&nbsp;a year earlier than planned, said Morocco, Portugal and Spain &#8212; the sole bid put forward &#8212; would host the 2030 tournament but added that Uruguay, Argentina and Paraguay would each host a match to mark the tournament&#8217;s centenary.



Observers said the ease of travel between Morocco and the two Iberian countries was important in the bid.



&#8220;The geographic proximity between them contributed to the decision to organise jointly, and in the recent period joint organisation has become commonplace and this indicates that football brings us together more than it divides us,&#8221; said Muhammad Suhail, an analyst at BeIN Sports.



Morocco lost bids to be sole hosts in 1994, 1998 and 2006. FIFA&#8217;s decision to limit the bids to Africa for the 2010 finals raised Moroccan hopes but in the end South Africa became the first country on the continent to host the World Cup.



Morocco tried again for 2026 but the tournament was awarded to a joint bid by the United States, Canada and Mexico.



Joining forces with Spain and Portugal will have increased their chances of hosting the tournament, in addition to the support of Saudi Arabia who decided to focus on a 2034 bid instead of 2030.



Morocco also successfully hosted the Women&#8217;s Africa Cup of Nations last year, with its team reaching the final where they lost 2-1 to South Africa.



Last year&#8217;s performance by Morocco&#8217;s men in the Qatar World Cup, when they became the first African side to reach the semi-finals, will have done them no harm either.



On their way to fourth place, Morocco defeated Spain on penalties in the last 16, then beat Portugal 1-0 in the quarter-finals.



&#8220;There is a football competition between the three teams, and instead of the struggle to qualify from the group stage, there will be a collective effort to make the tournament a success; from competition to love and cooperation,&#8221; Suhail said.



(Additional reporting Mohamed Msiyeh in Rabat, editing by Clare Fallon)

FIFA Virtual Council Meeting

Morocco finally succeed in sixth attempt to host the World Cup

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-820x547.jpg" alt="" class="wp-image-427955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s President William Ruto attends the Sustainable Development Goals (SDG) Summit at United Nations headquarters in New York City, New York, U.S., September 18, 2023. REUTERS/Caitlin Ochs/File Photo</figcaption></figure>



NAIROBI, Oct 4 (Reuters) &#8211; Kenya&#8217;s President William Ruto on Wednesday reshuffled eight members of his cabinet, and folded the foreign affairs ministry into the office of the chief minister.



The changes were necessary, Ruto said, to &#8220;optimise performance and enhance delivery as set out in the administration&#8217;s manifesto&#8221;.



Ruto has faced a series of nationwide protests over the high cost of living and tax hikes since he took power in August 2022.



Foreign minister Alfred Mutua was transferred to the ministry of tourism and wildlife, while trade minister Moses Kiarie Kuria was moved to the ministry of public service.



The foreign ministry was brought under the portfolio of the prime cabinet secretary Musalia Mudavadi.



Mutua has been the public face of Kenya&#8217;s offer to contribute 1,000 policemen to Haiti as part of a multinational security mission that the United Nations authorized to help fight violent gangs that have largely overrun the capital of the Caribbean country.



Ruto rose to power on a promise to champion the interests of impoverished &#8220;hustlers&#8221;, but his critics said tax rises on petrol and housing would hurt Kenyans already struggling to afford basic commodities such as maize flour. (Reporting by Hereward Holland)

FILE PHOTO: Sustainable Development Goals (SDG) Summit at United Nations headquarters in New York

Kenya President reshuffles cabinet, swaps foreign affairs minister

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



The World Bank says Sub-Saharan African growth may drop by as much as a percentage point this year, hit by rising instability, weak growth in its biggest countries and worsening global economic uncertainty.



In its latest Africa’s Pulse report, the bank forecasts real gross domestic product will decelerate to 2.5% in 2023, from 3.6% in 2022. This as Africa’s most industrialized nation, South Africa, is expected to expand by 0.5% in 2023, stunted by energy and logistical bottlenecks. The region’s biggest oil producing nations, Nigeria and Angola, are projected to grow at 2.9% and 1.3% respectively, due to lower international prices and currency pressures affecting oil and non-oil activity.



“The region’s poorest and most vulnerable people continue to bear the economic brunt of this slowdown, as weak growth translates into slow poverty reduction and poor job growth,” Andrew Dabalen, World Bank Chief Economist for Africa said in a statement accompanying the report.



Africa’s commodity-dependent economies are taking the brunt of lower metal prices as global growth slows after the U.S. Federal Reserve jacked up interest rates to combat the highest inflation in close to four decades. Russia’s invasion of Ukraine has also increased geo-political tensions and destabilized global supply chains and trade flows.



The bank says in per capita terms, growth in Sub-Saharan Africa has not increased since 2015 and the region runs the risk that the average annual growth rate per capita may contract by 0.1% over the 2015-2025 decade, thus potentially marking for a lost decade.



More than half of the region&#8217;s countries &#8211; 28 out of 48 &#8211; have seen their 2023 growth forecasts revised downward from the World Bank&#8217;s April estimates.



However the inflation picture is improving, the bank said, forecasting average consumer prices may decline to 9.3% in 2022 to 7.3% in 2023. It says fiscal balances are also looking healthier in African countries pursuing prudent and coordinated macroeconomic policies.



Key to bolstering a turnaround in the region’s growth prospects and create jobs for its millions of youth will be reforms to enable the growth of the private sector, investment in education and the prioritization of girls and women in economic activity, the report says.



 “The urgency of the jobs challenge in Sub-Saharan Africa is underscored by the huge opportunity from demographic transitions that we have seen in other regions,” said Nicholas Woolley, World Bank Economist and contributor to the report. “This will require an ecosystem that facilitates private-sector development and firm growth, as well as skill development that matches business demand.”

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

World Bank Says Sub-Saharan Africa Growth to Slow to 2.5% This Year

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-820x547.jpg" alt="" class="wp-image-408693" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-154793099-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A sign stands at the entrance to the offices of Anglo American Plc in the Marshalltown district of Johannesburg, South Africa, on Friday, Oct. 26, 2012. Anglo American Plc Chief Executive Officer Cynthia Carroll , the first woman, external hire and non-South African to hold the job, will quit after Anglo lost $14 billion in value in the more than five years she was in charge. Photographer: Chris Ratcliffe/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;Anglo American said it is cutting corporate office jobs across several countries, as unions said its South African iron ore business plans to lay off scores of workers at its head office.



The global mining giant had started reorganising its operations in May, a spokesperson told Reuters on Wednesday.



&#8220;We expect a potential reduction in corporate office roles across a number of countries,&#8221; the spokesperson added, without giving further details of the size or location of the cuts.



Livhuwani Mammburu, spokesperson for the National Union of Mineworkers, earlier told Reuters that Anglo&#8217;s&nbsp;AAL.L&nbsp;Kumba Iron Ore&nbsp;KIOJ.J&nbsp;plans to cut 183 jobs, mostly at its head office, as it faces challenges in moving sufficient volumes to ports as a result of rail constraints in South Africa.



The job cuts could be pared back to about 141 if the restructuring plan is successful, Mammburu said, adding the labour group opposed the plans.



&#8220;Kumba said it&#8217;s embarking on a restructuring and the main reasons they are giving is they are not able to transport more iron ore to the port due to the problems with Transnet,&#8221; Mammburu said, referring to the state-owned logistics company.



The miner&#8217;s iron ore exports have been throttled by frequent disruptions, often caused by locust swarms, on the rail line operated by Transnet. The disruptions have recently been worsened by cable thefts and derailments.



As a result, Kumba has been forced to stockpile more iron ore at mines. Kumba&#8217;s profit in the six months through June fell by 17% due to the rail challenges and softer prices.



(Reporting by Felix Njini and Nelson Banya; Editing by Louise Heavens, Mark Potter and Alexander Smith)

Anglo American Plc’s South African Headquarters As CEO Cynthia Carroll Quits

Anglo American cutting head office jobs in several countries

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg" alt="" class="wp-image-419915" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters in Washington, D.C., U.S., on Tuesday, April 19, 2022. The International Monetary Fund (IMF) slashed its world growth forecast by the most since the early months of the Covid-19 pandemic, and projected even faster inflation, after Russia invaded Ukraine and China renewed virus lockdowns. Photographer: Al Drago/Bloomberg via Getty Images</figcaption></figure>



LONDON, Oct 4 (Reuters)&nbsp;&#8211;&nbsp;High interest rates, growing investor risk aversion and borrowing that ballooned in recent years have left a range of developing economies mired in debt crises. Helping them claw out of this will be a key agenda item at the annual IMF and World Bank meetings in Morocco&#8217;s tourist hub of Marrakech which kicks off next week.



Below is a look at countries facing debt troubles, listed in alphabetical order.



<h2 class="wp-block-heading" id="h-egypt">EGYPT</h2>



North Africa&#8217;s largest economy needs to repay some $100 billion of hard-currency debt over the next five years. Cairo currently spends over 40% of revenues on interest payments; financing needs for fiscal 2023/204 stand at $24 billion.



Egypt has a $3 billion IMF programme and has devalued the pound by roughly 50% since February 2022. But a $2 billion privatisation plan has been slow, and it has delayed the removal of electricity subsidies.



Elections, scheduled for December, lower the chances of painful reforms, analysts said, and support from wealthy Gulf nations is key to ensuring financing needs are met.



<h2 class="wp-block-heading" id="h-ethiopia">ETHIOPIA</h2>



The COVID-19 pandemic hammered Ethiopia&#8217;s economy, and a two-year civil war from November 2020 heightened the pain with the country losing duty-free access to the U.S. amid rights abuse allegations.



Ethiopia requested a restructuring in early 2021 under the G20 Common Framework &#8211; set up during the pandemic to try to streamline debt overhauls.



In August, China allowed partial debt payment suspension. Last month ratings agency Moody&#8217;s changed Ethiopia&#8217;s outlook to stable from negative on expectations of quick progress through the Common Framework.



<h2 class="wp-block-heading" id="h-ghana">GHANA</h2>



Ghana defaulted on most external debt in late 2022 amidst its worst economic crisis in a generation, becoming the fourth country to seek a rework under the Common Framework.



Its progress in restructuring both domestic debt and $30 billion in external debt has been fairly swift and it secured a $3 billion IMF bailout in May.



Ghana&#8217;s finance minister has said he expects to reach a deal with international bondholders by year-end. Still, protesters have taken to the streets of Accra recently over rising living costs, unemployment and economic hardship.



<h2 class="wp-block-heading" id="h-kenya">KENYA</h2>



The East African nation&#8217;s public debt stood at 67.4% of GDP at the end of 2022, according to the World Bank, putting it at high risk of debt distress.



President William Ruto&#8217;s government has moderated spending and proposed a raft of tax hikes, assuaging some concerns over imminent default. But surging oil prices have boosted inflation, and the currency has lost more than 16% against the dollar this year, casting doubt on his ability to press on with reforms.



Kenya, which has to repay a $2 billion eurobond next year, is in talks with both the African Development Bank and the World Bank for budgetary support.



<h2 class="wp-block-heading" id="h-lebanon">LEBANON</h2>



Lebanon has been in default since 2020 with few signs it will resolve its economic meltdown anytime some.



The IMF last month welcomed central bank changes, including phasing out a controversial exchange platform and curbing monetary financing of the government. But it said deeper reforms were needed amid the country&#8217;s &#8220;difficult and unstable&#8221; outlook.



The IMF has warned that if the status quo continues, public debt could reach 547% of GDP by 2027.



<h2 class="wp-block-heading" id="h-pakistan">PAKISTAN</h2>



Pakistan needs upwards of $22 billion to service external debt and pay bills for fiscal year 2024. A caretaker administration is in charge with elections scheduled for January. Inflation and interest rates are at historic highs, and it is struggling to rebuild from devastating 2022 floods.



In June, it reached an 11th-hour deal for a $3 billion IMF bridge loan. Saudi Arabia and the UAE followed with a total of $3 billion cash infusions.



Reserves by end-September were enough to make it to elections but there are questions how long it will be able to avoid default without huge support, observers say.



<h2 class="wp-block-heading" id="h-sri-lanka">SRI LANKA</h2>



Sri Lanka defaulted on international debt in May 2022 after the pandemic drained its tourism-dependent economy of crucial cash to pay for imported food, fuel and medicine.



The crisis-hit island nation announced a debt overhaul plan at the end of June and has continued to make progress.



But the parties continue to spar over how much of a hit domestic banks and investors in state-owned enterprises (SOEs) should take. The next tranche of a $2.9 billion IMF bailout package could be delayed over a potential government revenue shortfall.



<h2 class="wp-block-heading" id="h-tunisia">TUNISIA</h2>



Multiple shocks since a 2011 revolution have pressed the North African nation into a full-blown economic crisis.



Most debt is internal, but a $500 million eurobond matures this month, and credit ratings agencies have said Tunisia could default.



President Kais Saied has slammed the terms required to unlock a $1.9 billion IMF loan as &#8220;diktats&#8221; and rejected 127 million from the European Union as too small.



The tourist season narrowed the current account deficit and Saudi Arabia pledged $500 million in support. But citizens continue to grapple with food and medicine shortages.



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



Ukraine froze debt payments after Russia&#8217;s invasion in 2022, and said it is likely to decide early next year whether to try to extend that agreement or begin looking at alternatives.



Top institutions estimate the post-war rebuild cost will be at least 1 trillion euros, and the IMF estimates Ukraine needs $3-$4 billion a month to keep the country running.



Recently, the economy has shown signs of recovery, with inflation slowing and business sentiment improving. But political shifts elsewhere &#8211; including the United States &#8211; have cast doubt on the durability of international support.



<h2 class="wp-block-heading" id="h-zambia">ZAMBIA</h2>



The first African country to default during the COVID-19 pandemic, Zambia&#8217;s years of restructuring delays made it a symbol of the problems with the Common Framework.



A repair plan finally appeared imminent after Zambia clinched a $6.3 billion debt rework deal with the Paris Club creditor nations and China, its other big bilateral lender, in June. Zambia expects to finalise a debt memorandum by year-end.



($1 = 323.5000 Sri Lankan rupees)



(Reporting By Libby George; Editing by Shri Navaratnam)

IMF And World Bank Headquarters During Virtual Spring Meetings

Developing countries facing a debt crunch

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K-820x462.jpeg" alt="" class="wp-image-427904" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Britain’s Prime Minister Rishi Sunak listens to a speaker address delegates at the annual Conservative Party Conference in Manchester, northern England, on October 2, 2023. Oli Scarff | Afp | Getty Images</figcaption></figure>



MANCHESTER, ENGLAND — U.K. Prime Minster Rishi Sunak appears a leader on rocky ground as growing disunity from within his Conservative government is giving rise to more radical factions, even as the party gears up for a General Election next year.



The discord Sunak sought to assuage when he assumed leadership of the party last year following a series of Tory psychodramas has resurfaced this week as ministers assembled in Manchester, England, for the annual Conservative Party Conference.



Members of Parliament (MPs), including Liz Truss, Britain’s shortest-serving prime minister, voiced their disapproval of Sunak’s leadership — or perceived lack thereof — while faction leaders have urged donors to defund the party until major reforms are made.



The rebellion comes as the Tories face stiff competition from the opposition Labour Party, which continues to lead in opinion polls, and party pushback promises to dominate Sunak’s leadership in the lead up to the election, likely due this time next year.



<h2 class="wp-block-heading" id="h-truss-leads-the-rebellion"><a></a>Truss leads the rebellion</h2>



Truss, the Ronald Reagan enthusiast who lasted just 44 days in office, stole the show as the conference got underway in earnest Monday, attracting a crowd of hundreds as she admonished Sunak’s policies and again made the case for immediate tax cuts.



The ex-prime minister, whose low-tax agenda led to the implosion of her government last year, retains significant support among party faithfuls — many of whom voted her into power — and at least 60 MPs have now joined her Conservative Growth Group.



The MPs backing Truss’ vision to “make Britain grow again” account for less than a fifth of total elected Conservative MPs, but their number is roughly equivalent to Sunak’s parliamentary majority, posing potential risks to the prime minister’s ability to govern.



Among the rebel members is former Home Secretary Priti Patel, who on Sunday said her party was “at a crossroads,” adding that it was Sunak who had “undermined [the Conservatives’] ability to govern.”



Patel was speaking at a gala dinner hosted by the Conservative Democratic Organisation — a faction closely aligned with former Prime Minister Boris Johnson — whose founder, Lord Peter Cruddas, used the event to urge members to cut donations to the Conservative Party until it undergoes reform.



“I’ve had enough of this,” Lord Cruddas said, adding that members “should not blindly support a Conservative Party that no longer represents our values,” and is “headed for electoral disaster.”



The CDO considers the effective ousting of Truss and Johnson, and the later default installation of Sunak, as anti-democratic and against the will of the party membership.



Brexit proponent Nigel Farage, former leader of the populist, right-wing U.K. Independence Party (UKIP), was also in attendance and later said that a wing of the Conservative Party is “very much coming in [his] direction.”



“That’s what the great battle’s going to be after they lose the next General Election: which wing of the party wins,” Farage said of the Conservatives in a Tuesday interview with the News Agents podcast.



<h2 class="wp-block-heading"><a></a>A struggling Conservative brand</h2>



The rising discord from within the party is also reflected in public sentiment, with many Britons expressing their dissatisfaction with the Tories’ 13-year stronghold.



Recent opinion polls show Labour with a 20-point lead over the Conservatives, only a slight narrowing from July.



“The Conservative brand is struggling,” Gideon Skinner, head of politics research in public affairs at market research firm IPSOS, said Monday. “Two-thirds [of voters] think it’s time for a change, and that’s the real struggle that the Conservative Party has to turn around.”



According to IPSOS’s latest data, almost two-thirds (61%) of voters see the Conservatives as out of date, while just one-fifth (21%) see them as fit to govern. Nearly three-quarters (73%), meanwhile, see Sunak, Britain’s richest prime minister in modern history, as out of touch.



It comes as Britain struggles with still high inflation and falling living standards, which have led to ongoing industrial action over working conditions and pay.



Thousands of medical professionals marched outside of the conference Tuesday, demanding fairer wages, while the latest strikes by train workers on Wednesday will disrupt travel for the second time this week.



“There’s this bleak public mood which is combined with the worsening public brand of the Conservatives, all leading to this sense that it’s time for a change,” Skinner said.



Later Wednesday, Sunak is expected to use his headline speech at the close of the conference to reassert his authority and outline a number of new policies that he hopes will help him win support from both the electorate and his own party.

107311023-1696369600615-gettyimages-1701837503-AFP_33XB68K

UK PM Rishi Sunak’s leadership on rocky ground as party rebellion mounts

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="592" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-820x592.jpg" alt="" class="wp-image-423201" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-820x592.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-300x217.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-125x90.jpg 125w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-768x554.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-1536x1109.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-1234493050-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">General view of the flag of Kenya at Shiokaze Park on the fourteenth day of the Tokyo 2020 Olympic Games in Japan. Picture date: Friday August 6, 2021. (Photo by Mike Egerton/PA Images via Getty Images)</figcaption></figure>



NAIROBI, Oct 3 (Reuters) &#8211; Kenya&#8217;s cabinet on Tuesday ordered all ministries and state departments to cut 10% of their operational budgets for the 2023/24 (July-June) fiscal year, the presidency said.



The East African nation is facing deepening economic challenges due to growing debt repayments, rising interest rates and high taxes that have curbed consumer demand.



&#8220;As part of the administration&#8217;s fiscal consolidation plan that seeks to contain the fiscal deficit, cabinet sanctioned the reduction of the recurrent budget of each ministry and state department by 10%,&#8221; the presidency said in a statement.



The changes will be made through a supplementary budget, it said.



The cabinet also rescinded a government purchase of 60% of shares in Telkom Kenya from London-based private equity firm Helios, the presidency said, escalating a row that erupted after a presidential election in August last year.



The decision seeks to reverse a deal struck in the last months of President Uhuru Kenyatta&#8217;s administration, which nationalised the telecoms operator for a price of 6 billion shillings ($40.43 million).



Kenyatta&#8217;s administration argued it was necessary to buy out Helios due to the strategic nature of Telkom.



The company is the smallest operator after Safaricom and Bharti Airtel, but it runs some key assets relied on for government communications, including a national fibre-optic network.



President William Ruto&#8217;s government has cried foul over the transaction and even opened a parliamentary inquiry into it.



Helios was not immediately available for comment.



($1 = 148.4000 Kenyan shillings) (Reporting by Duncan Miriri Editing by Alison Williams and Mark Potter)

Tokyo 2020 Olympic Games – Day Fourteen

Kenya orders 10% budget cuts, rescinds Telkom Kenya deal with Helios

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OE2LCFDS7FPTLDBCRCJRUB7UIQ-820x547.jpg" alt="" class="wp-image-427887" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OE2LCFDS7FPTLDBCRCJRUB7UIQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OE2LCFDS7FPTLDBCRCJRUB7UIQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OE2LCFDS7FPTLDBCRCJRUB7UIQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OE2LCFDS7FPTLDBCRCJRUB7UIQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OE2LCFDS7FPTLDBCRCJRUB7UIQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/OE2LCFDS7FPTLDBCRCJRUB7UIQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The logo and trading information for Lazard Ltd appear on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 24, 2019. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



LONDON, Oct 3 (Reuters)&nbsp;&#8211;&nbsp;Countries going through a sovereign default need a debt rework mechanism that grants timely relief, even if that means finding a solution outside the G20&#8217;s programme, an executive at Lazard&#8217;s sovereign advisory team said.



As adviser to the governments of Ghana, Zambia and Sri Lanka, Lazard plays a key role in a number of critical debt restructurings at a time when emerging markets more widely face renewed pressure from growing debt burdens and rising global borrowing costs.



The G20 Common Framework &#8211; a mechanism designed to provide a swift and comprehensive debt overhaul to poor nations buckling under debt burdens after the COVID-19 shock &#8211; was launched by the G20 in late 2020. Zambia, Ghana and Ethiopia are currently reworking their debt under the programme, which has been widely criticised for slow progress that has left countries in limbo.



Meanwhile Sri Lanka, too wealthy to qualify for the framework, has seen comparatively swifter progress so far in its debt overhaul.



&#8220;If the choice is between three years in the Common Framework process or a year and a half in an ad-hoc process, I would much prefer the ad-hoc process,&#8221; Pierre Cailleteau, a managing director at Lazard, told Reuters in an interview.



&#8220;Clearly what matters for our government clients is to have in place a mechanism that really helps them strike a deal and move on,&#8221; he said.



Analysts have blamed in part the increase in the number of different creditors that debt-distressed countries now need to negotiate with, from Chinese policy and commercial banks, to international and in some cases local bondholders.



But countries signing up to the programme might have also overestimated the degree to which creditors and other parties in the process were aligned, said Cailleteau.



&#8220;The Common Framework was originally presented as if there was a full agreement behind it and a complete understanding of what it entailed. That I don’t think is true,&#8221; he said.



&#8220;From the beginning there were different interpretations, different degrees of commitment, different understanding of the rules that should apply.&#8221;



A number of efforts have been made to streamline and quicken debt restructuring proceedings. The Global Sovereign Debt Roundtable was launched late last year and held meetings in February, April and September.



Another meeting of the roundtable &#8211; which brings together official and private creditors as well as governments and international lenders such as the International Monetary Fund (IMF) &#8211; is scheduled for the World Bank IMF annual meeting in Morocco which kicks off next week.



While the Common Framework might eventually evolve to become that smooth and swift mechanism, in the interim a pragmatic but principled solution would have to be found to bring countries&#8217; debt back to sustainable levels as prescribed by the IMF, Cailleteau said.



&#8220;That’s ok, even if it’s not under the aegis of the Common Framework.&#8221;



(Reporting by Jorgelina do Rosario, Karin Strohecker and Rachel Savage, editing by Susan Fenton)

The logo and trading information for Lazard Ltd appear on a screen on the floor at theNYSE in New York

Top adviser Lazard says countries need debt mechanism to ‘strike a deal and move on’

<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>



Oct 3 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks slid to a near seven-month low on Tuesday as worries about higher-for-longer U.S. interest rates gained steam, though Hungary&#8217;s forint got a lift from a report that the European Union would free up some funding for the country.



MSCI&#8217;s index tracking emerging market equities&nbsp;.MSCIEF&nbsp;tumbled 1.0% to its lowest level since mid-March, while currencies&nbsp;.MIEM00000CUS&nbsp;fell 0.2% against the dollar by 8:57 GMT.



Risk sentiment across markets took a dip with U.S Treasury yields hitting 16-year highs on robust economic data and as several U.S. Federal Reserve officials cautioned monetary policy will need to stay tight for a while.



In Asia, Hong Kong&#8217;s main stock index .HIS tumbled 2.7% as investors returned to markets following a public holiday, with shares of Evergrande3333.HK jumping 28.1% in volatile trade, after being suspended last Thursday amid news of a probe into the embattled developer&#8217;s chairman.



Turkey&#8217;s lira TRYTOM=D3 traded at 27.5 to the dollar after data showed annual consumer price inflation in September climbed to 61.53%, just below expectations and rising for a third consecutive month in response to recent tax hikes and lira weakness.



The modest rise in inflation &#8220;provides the first signs that the inflation spike is close to levelling off,&#8221; said William Jackson, Chief Emerging Markets Economist at Capital Economics in a note.



&#8220;But the central bank’s work isn’t over and we still expect a further 1,000bp of interest rate hikes by early next year.&#8221;



In central and eastern Europe, the Hungarian forintEURHUF= was up 0.2% against the euro after a report said the European Commission intends to unfreeze funding of about 13 billion euros ($13.61 billion) to the country before the end of November.



The funding had been suspended due to long-running disputes with Brussels.



Poland&#8217;s zloty&nbsp;EURPLN=&nbsp;was up 0.1% ahead of a local monetary policy decision on Wednesday, where most economists expect a 25 basis points interest rate cut.



Focus was also on Ukraine after its central bank said it would bring in a more flexible exchange rate from Tuesday, relaxing the official peg it has had throughout the war with Russia in a move to boost the economy. The Ukranian hryvnia UAH= was up 0.9% against the dollar.



Elsewhere, Indonesia&#8217;s central bank has intervened in the foreign exchange market to manage the supply and demand of U.S. dollars, an official told Reuters on Tuesday. The rupiah IDR= slipped 0.3%.



(Reporting by Amruta Khandekar, editing by Deborah Kyvrikosaios)

World map with charts and graphs as symbols of global finance

Stocks tumble to near 7-month low, Forint gains on EU funds report

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-820x615.jpg" alt="" class="wp-image-427875" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Nigerias-labour-unions-suspend-indefinite-strike-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Members of the Nigerian Labour Union, holding flags and placards, gather to protest against fuel price hike and rising costs, in Abuja, Nigeria August 2, 2023. REUTERS/Abraham Achirga</figcaption></figure>



ABUJA, Oct 2 (Reuters) &#8211; Nigeria&#8217;s biggest labour federations on Monday said they were suspending an indefinite strike that was set to begin on Tuesday after last minute talks with President Bola Tinubu&#8217;s government, which had warned that the action could damage the economy.



Tinubu is under pressure to ease economic hardships after he scrapped a decades-old petrol subsidy and allowed the naira currency to depreciate, leading to soaring prices in Africa&#8217;s biggest economy and major oil producer.



The government agreed a temporary wage increase for government workers, a three-month income subsidy for 15 million poor households and a pause in a value-added tax on diesel, among several concessions to prevent the strike.



In return, unions will suspend the strike for 30 days while negotiations continue, including on a new minimum wage for all Nigerian workers.



&#8220;After 30 days if these issues are not implemented &#8230; it will show bad faith on the side of government,&#8221; Joe Ajaero, the leader of Nigeria Labour Congress, the country&#8217;s largest federation, told reporters. (Reporting by Felix Onuah, writing by MacDonald Dzirutwe, Editing by Rosalba O&#8217;Brien)

Members of the Nigerian Labour Union protest against fuel price hike and rising costs, in Abuja

Nigeria’s labour unions suspend indefinite strike

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-820x574.jpg" alt="" class="wp-image-427865" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-768x538.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-1536x1076.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/3FJWW72S7VLMHIATYDNMZI7MY4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s Minister of Petroleum Diezani Alison-Madueke addresses delegates at the opening of the Nigeira Oil &amp; Gas 2014 conference in Abuja, March 18, 2014, REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



LONDON, Oct 2 (Reuters)&nbsp;&#8211;&nbsp;A former Nigerian oil minister appeared in court in London on Monday charged with receiving bribes in the form of cash, luxury goods, flights on private jets and the use of high-end properties in Britain in return for awarding oil contracts.



Diezani Alison-Madueke was Nigeria&#8217;s minister for petroleum resources between 2010 and 2015, during the administration of former president Goodluck Jonathan.



Appearing at Westminster Magistrates Court, she spoke only to give her name, date of birth and address. She was not asked to formally enter a plea, although her lawyer Mark Bowen told the court she would be pleading not guilty.



She is the second high-profile Nigerian politician to face prosecution in Britain in recent years, following James Ibori, a former state governor who was convicted of fraud and money-laundering in 2012 and received a 13-year jail sentence.



Nigeria is Africa&#8217;s top oil producer but it suffers from systemic corruption in the political class which has hampered development and prevented its oil wealth from benefitting wider society.



Alison-Madueke was arrested in London in 2015, shortly after stepping down as minister, and was charged in August with six bribery offences. She has spent the past eight years on police bail, living in St John&#8217;s Wood, an expensive area of London.



The charges against her, read out in court, all related to events alleged to have taken place in London.



Prosecutor Andy Young said she was alleged to have accepted a wide range of advantages in cash and in kind from people who wanted to receive or continue to receive the award of oil contracts which he said were worth billions of dollars in total.



The advantages included a delivery of 100,000 pounds ($121,620) in cash, the payment of private school fees for her son, and the use and refurbishment of several luxurious properties in London and in the English countryside.



They also included the use of a Range Rover car, payment of bills for chauffeur-driven cars, furniture, and purchases from the upmarket London department store Harrods and from Vincenzo Caffarella, which sells Italian decorative arts and antiques.



District Judge Michael Snow granted Alison-Madueke bail but imposed terms including an 11 p.m. to 6 a.m. curfew, an electronic tag to be worn at all times and a 70,000-pound surety to be paid before she could leave the court building.



Her next court appearance will be at Southwark Crown Court, which deals with serious criminal cases, on Oct. 30.



Britain, Nigeria&#8217;s former colonial ruler, has long been a destination of choice for affluent members of the Nigerian political elite seeking to enjoy the benefits of their wealth.



London is a global money-laundering hub but it remains rare for public figures like Alison-Madueke to face prosecution for corruption-related offences.



($1 = 0.8222 pounds)



(Reporting by Estelle Shirbon; Editing by Jan Harvey and Angus MacSwan)

FILE PHOTO: Nigeria’s Minister of Petroleum Diezani Alison-Madueke addresses delegates at the opening of the Nigeira Oil & Gas 2014 conference in Abuja

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featured

IMF says global economy ‘limping along,’ cuts growth forecast for China, euro area

Cocoa farmers face mounting challenges as El Nino rages on

World Bank’s Banga faces pressure on resources, shareholder schisms

UK top court to hear government appeal on Rwanda migrant plan

IMF staff, Ghana agree first review of $3 bln programme

IMF chief Georgieva: soft landing possible, but fiscal, debt risks abound

Morocco finally succeed in sixth attempt to host the World Cup

Kenya President reshuffles cabinet, swaps foreign affairs minister

World Bank Says Sub-Saharan Africa Growth to Slow to 2.5% This Year

Anglo American cutting head office jobs in several countries

Developing countries facing a debt crunch

UK PM Rishi Sunak’s leadership on rocky ground as party rebellion mounts

Kenya orders 10% budget cuts, rescinds Telkom Kenya deal with Helios

Top adviser Lazard says countries need debt mechanism to ‘strike a deal and move on’

Stocks tumble to near 7-month low, Forint gains on EU funds report

Nigeria’s labour unions suspend indefinite strike

Former Nigerian oil minister faces bribery charges in London court

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