<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-820x462.jpeg" alt="" class="wp-image-427512" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">In an aerial view, oil storage tanks are shown at the Enterprise Sealy Station on August 28, 2023 in Sealy, Texas.
Brandon Bell | Getty Images News | Getty Images</figcaption></figure>



Oil prices surged to their highest level in over a year during Asian trading hours, after crude stocks at a key storage hub fell to their lowest since July last year.



Crude inventories in Cushing, Oklahoma fell to 22 million barrels in the fourth week of September — hovering close to the operational minimum, according to data from the U.S. Energy Information Administration (EIA). That’s a drop of 943,000 barrels compared to the prior week.



The U.S. West Texas Intermediate futures touched $95.03 per barrel during Asia trading hours, marking the highest since August 2022. It was last trading at $94.61 per barrel. Global benchmark Brent rose 1.05% to $97.56 a barrel.



“Today’s price action seems to be Cushing driven, as it reaches a 22 million bbl low, the lowest level since July 2022,” Bart Melek, managing director of TD Securities, told CNBC.



If the inventories continue to dip below those levels, it’s going to be “rough” getting crude out into the market, Melek said on CNBC’s “Street Signs Asia.”



He forecasts that oil prices will continue to remain at “high level” for the rest of the year, with an upside risk if global oil cartel OPEC+ continues to keep supplies tight.



<h2 class="wp-block-heading" id="h-robust-deficit-in-sights"><a></a>‘Robust deficit’ in sights</h2>



The global oil markets are looking at a “pretty robust deficit” on top of an already significant shortfall this quarter, Malek said, citing the oil production cuts implemented by OPEC and its allies.



In September, OPEC+ kingpin Saudi Arabia&nbsp;<a href="https://www.cnbc.com/2023/09/05/saudi-arabia-to-extend-voluntary-cut-of-1-million-barrels-per-day-until-the-end-of-the-year.html">extended its 1 million barrel per day voluntary crude oil production cut</a>&nbsp;until the end of the year. It brings Saudi’s crude output to near 9 million barrels per day.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
We do think that prices could keep up near these levels for quite some time. But I don’t think it’s too permanent. And we might have seen the end of this rally.
<cite>Bart Melek MANAGING DIRECTOR, TD SECURITIES</cite></blockquote>



Additionally, Russia has pledged to extend its 300,000 barrels per day export reduction until the end of December.



Malek also highlighted how refinery throughputs will see a decline in the coming months as refinery maintenance season approaches. The&nbsp;<a href="https://www.lawinsider.com/dictionary/refinery-crude-throughput" target="_blank" rel="noreferrer noopener">refinery crude throughput</a>&nbsp;refers to the volume of crude oil a refinery can produce during a given period of time.



“We do think that prices could keep up near these levels for quite some time. But I don’t think it’s too permanent. And we might have seen the end of this rally.”



It will not be in OPEC’s interest if prices go a lot higher to triple digits, as they will be worried about long term demand destruction, Malek pointed out.



“We do think they will ultimately signal, as we get closer to the end of the year, that they may be very well done with these strong measures to limit supply,” he projected.



<figure class="wp-block-image"><img decoding="async" src="https://fm.cnbc.com/applications/cnbc.com/resources/styles/skin/special-reports/cnbci_promo/images/telegram_24.png" alt=""/></figure>



Get more from CNBC. Breaking news and updates on&nbsp;<a href="https://t.me/cnbci" target="_blank" rel="noreferrer noopener">Telegram</a>.



<a href="https://www.cnbc.com/2023/09/20/goldman-raises-international-oil-price-forecast-to-100-a-barrel.html">Forecasts</a><a href="https://www.cnbc.com/2023/09/15/oil-to-hit-100-analysts-expect-a-return-to-triple-digits-before-2024.html">&nbsp;</a><a href="https://www.cnbc.com/2023/09/20/goldman-raises-international-oil-price-forecast-to-100-a-barrel.html">for $100 per barrel oil</a>&nbsp;have been swirling on the horizon in recent days.&nbsp;<a href="https://www.cnbc.com/2023/09/20/goldman-raises-international-oil-price-forecast-to-100-a-barrel.html">Goldman Sachs recently raised</a>&nbsp;its 12-month Brent forecast from $93 per barrel to $100 on the back of “modestly sharper inventory draws,” the investment bank wrote in a recent note dated September 20.



“Overall, we believe that OPEC will be able to sustain Brent in an $80 to $105 range in 2024,” the Goldman report added, citing strong demand growth from the Asia region.
</blockquote>

107301361-1694772546411-gettyimages-1645429909-01-dji_fly_20230819_001040_826_1692423298462_photo-_sbqq89ar

Oil prices surge to highest level in more than a year

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-820x523.jpg" alt="" class="wp-image-427744" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-1536x980.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/U72WAYHOJJPY5GXIUT4NSNDVHY-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Soccer Football &#8211; Africa Cup of Nations &#8211; Final &#8211; Senegal v Egypt &#8211; Olembe Stadium, Yaounde, Cameroon &#8211; February 6, 2022 General view of the Africa Cup of Nations trophy on display before the match REUTERS/Mohamed Abd El Ghany/File Photo </figcaption></figure>



CAIRO, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Morocco were awarded the hosting of the 2025&nbsp;Africa&nbsp;Cup of Nations finals on Wednesday, replacing Guinea who were stripped of the right to host the tournament last year,&nbsp;while the 2027 rights were handed to a co-bid from Kenya, Tanzania and Uganda.



Morocco won by default after Algeria, Zambia and a joint bid from Benin and Nigeria all withdrew before the vote of the Confederation of&nbsp;African Football&#8217;s executive committee in Cairo on Wednesday.



The north&nbsp;African country was a runaway favourite and will see the decision as a boost to their hopes of co-hosting the 2030 World Cup with Portugal and Spain but victory for the joint East&nbsp;African bid for 2027 was a surprise.



It returns the finals to the region for the first time since 1976 as they beat Botswana, Egypt and Senegal in a vote. Algeria were also a candidate but withdrew on Tuesday.



Kenya had previously been awarded the hosting in 1996 but were stripped because of poor preparation. The country only recently had a long FIFA ban for government interference in the running of their football federation lifted.



“The tournament has to be spread around the regions and contribute to the development of football,” CAF president Patrice Motsepe said.



The 2025 finals will be only the second time that Morocco will host&nbsp;Africa&#8217;s most popular sporting event, almost four decades after the previous time in 1988.



<h2 class="wp-block-heading" id="h-vigorously-condemned">VIGOROUSLY CONDEMNED</h2>



Morocco were to have hosted the 2015 Cup of Nations finals but pulled out amid concerns over the spread of the Ebola virus in west&nbsp;Africa. It was a decision vigorously condemned at the time by CAF, who banned the country from&nbsp;African competition for two years.



But Morocco have since embarked on a diplomatic charm offensive across the continent, using football to develop ties. They have hosted a variety of CAF events at women’s and age group level and also allowed many&nbsp;African countries, who have been slapped with bans on hosting international games because of poor pitch or stadium conditions, to use stadia in Morocco.



When Morocco last hosted the Cup of Nations, it was an eight team event played in only two venues, Casablanca and Rabat.



For 2025 they have proposed using six stadiums, in Agadir, Casablanca, Fes, Marrakech, Rabat and Tanger.



The hosting of the Cup of Nations has had a checkered history in the last decade, starting with South&nbsp;Africa&nbsp;stepping into replace war-torn Libya in 2013.



In 2014 Guinea were award the right to host the 2023 finals, along with Cameroon (2019) and Ivory Coast (2021).



But Cameroon were declared not ready for the 2019 finals, so Egypt stepped in. Cameroon then hosted the 2021 edition, delayed by one year by the COVID-19 pandemic.



Ivory Coast were supposed the host the 2023 event in June but it has been postponed by six months because of concerns over the rainy season in West&nbsp;Africa.



The next Cup of Nations finals are being held from January 13-February 11.



(Writing by Mark Gleeson in Cape Town; Editing by Christian Radnedge, Bernadette Baum and Pritha Sarkar)

U72WAYHOJJPY5GXIUT4NSNDVHY-2

Soccer-Morocco and East African co-bid to host future Africa Cup of Nations finals

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="499" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-820x499.jpg" alt="" class="wp-image-427732" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-820x499.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-768x468.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-1536x936.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/V23ILMSJMNN2RL62T7LQBERPAI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s Finance Minister Njuguna Ndung&#8217;u presents the Government Budget for the 2023/24 fiscal year inside the Parliament building in Nairobi, Kenya June 15, 2023. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s struggle with a heavy debt load and pressure on its hard currency reserves is not unique since other nations are facing the same situation, its finance minister said on Wednesday.



Njuguna Ndung&#8217;u was responding to a research note by U.S. investment bank JPMorgan which&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3B211Y&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">said</a>&nbsp;on Tuesday that the East African nation was &#8220;walking a tightrope&#8221; to avoid a crisis due to a maturing dollar bond and persistent currency weakness.



&#8220;All low- and middle-income countries are walking a tightrope given the current economic constraints globally. The Kenyan case is being featured because of the Eurobond 2024,&#8221; the minister told Reuters, referring to a bond maturing next June.



The upcoming Eurobond maturity &#8220;should not be a big deal&#8221;, Ndung&#8217;u said, since Kenya can use its reserves at the central bank to pay off the debt.



&#8220;That will not (however) solve the persistent negative shocks that low- and middle-income countries are facing. A more well mapped set of solutions will be needed,&#8221; he said.



During his speech to the United Nations General Assembly in New York last week, Kenya&#8217;s President William Ruto called for an extension of the tenor of low income countries&#8217; sovereign bonds, to help them avert a financial crisis.



He also called for the provision of a 10-year grace period, and for the creation of special drawing rights for those countries at the International Monetary Fund, to be allocated on a need basis, instead of the usual entitlement mechanism.



(Reporting by Duncan Miriri; Editing by Mark Potter)

Kenya’s Finance Minister Njuguna Ndung’u presents the Government Budget for the 2023/24 fiscal year in Nairobi

‘Tightrope’ debt situation not unique to Kenya, finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-820x461.jpg" alt="" class="wp-image-427724" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/XI6BVC5D2NOH3ML2JQE6YT7CPE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The new logo of the privatised Nigeria oil company is seen at the NNPC Mega Gas Station in Abuja, Nigeria August 30, 2022. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



LONDON, Sept 27 (Reuters)&nbsp;&#8211;&nbsp;Afrexim Bank is tapping oil traders to finance a much-needed $3 billion loan to Nigeria&#8217;s state oil company to help shore up the sliding naira currency, three sources told Reuters.



Afrexim approached traders in recent weeks&nbsp;seeking their&nbsp;interest in funding the oil-backed loan to state oil company NNPC LTD, the sources said. It is now working to craft terms that it will offer to the trading houses.



&#8220;There is a lot of interest, but they need to see terms,&#8221; one oil executive close to the talks told Reuters. The executive added that oil prices climbing past $90 per barrel would help drive interest in the deal.



Traders who put up cash would be repaid in physical cargoes of oil. The bank is working to determine what amount of oil to offer those traders in exchange for the financing, one of the sources said.



An NNPC spokesman did not respond to a request for comment. Afrexim did not immediately comment.



The loan, announced by NNPC in August, is a key part of efforts to support the naira, which hit an all-time low of 1,000 to the dollar on the black market on Tuesday. Officials have said that the central bank has a nearly $7 billion backlog in naira forwards. This is limiting the availability of dollars on the official market, forcing businesses and individuals to seek them on the black market.



Shortly after taking office in May, President Bola Tinubu announced long-sought reforms that allowed the official naira rate to fall versus the dollar and fuel prices to roughly triple. In June, the naira was close to the black market level, but the gap has since widened.



Tinubu also allowed pump prices to more than triple, which cut fuel smuggling and took pressure off state oil company NNPC to import petrol. But NNPC is still using oil cargoes to repay some of the oil trading firms that had contracts to supply gasoline in exchange for crude, limiting its immediate access to oil.



(Reporting By Libby George and Julia Payne; editing by Timothy Gardner)

FILE PHOTO: The new logo of the privatised Nigeria oil company is seen at the NNPC Mega Gas Station in Abuja

Afrexim turns to oil traders for $3 billion loan to Nigeria’s NNPC -sources

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-820x462.jpeg" alt="" class="wp-image-427707" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Thilina Kaluthotage | Nurphoto | Getty Images</figcaption></figure>



Meta’s Threads real-time messaging app is struggling to attract new users like it did during its blockbuster July debut.



The Twitter clone now ranks near the bottom of the most popular social media platforms, ahead of only Tumblr, as measured by the number of U.S. users, according to Insider Intelligence’s first Threads forecast, published Tuesday.



Insider Intelligence said it expects Threads to have 23.7 million U.S. users in 2023, far behind Facebook, Instagram and TikTok, which have 177.9 million, 135.2 million and 102.3 million users, respectively. Its closest rival, X, will have 56.1 million U.S. users in 2023, the forecast said, which means that Threads will have less than half of the U.S. user base of the messaging app formerly known as Twitter.



For the U.S. market, the analyst firm said Threads will continue to “rank second-to-last among social networks” through 2025.



Meta did not respond to a request for comment.



The new forecast joins a growing list of third-party estimates from mobile analytics firms such as Sensor Tower and Similarweb that have recently documented declining usage of Threads.



When Threads debuted, it rapidly gained millions of users due in part to its easy sign-up process for existing Instagram users. The messaging app also benefited by being a mainstream alternative to X, which several analyst firms including Insider Intelligence have said is losing users amid the ownership of Tesla chief Elon Musk.



“Threads received an initial boost from Twitter’s missteps, but it can’t rely on X defectors to continue to grow,” Insider Intelligence principal analyst Jasmine Enberg said in a statement.



If Musk decides to charge all X users a monthly subscription fee, as he said during a recently livestreamed talk with Israeli Prime Minister Benjamin Netanyahu, Meta could have a “clearer avenue to monetize Threads,” Enberg said.



“Assuming Musk doesn’t backtrack, the move will likely alienate more X users and potentially increase advertiser interest in Threads,” Enberg added.



Still, Meta CEO Mark Zuckerberg has previously said that the company has no plans to monetize Threads until it’s bigger and more established.



The social networking giant has been releasing several new features for Threads intended to make it more compelling, such as a desktop version and a search tool. Indeed, both advertisers and creators have previously told CNBC that Threads needs certain features such as analytics tools to become a more robust platform that they will invest time and money into.



Enberg said Threads needs to establish an identity that’s “more than an extension of Instagram or an alternative to X” in order to become a major player in the social media market.



“TikTok was able to break through largely because it offered users a unique new social experience,” Enberg said, referring to the ByteDance-owned short-video app’s rise to prominence.

107268892-1688996618217-gettyimages-1513200328-kaluthotage-notitle230707_npKjG

Meta’s Threads struggles to grow amid rivalry with Elon Musk’s X, ranking ahead of only Tumblr

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="350" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg" alt="" class="wp-image-400879" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1040865674-612x612-1-300x172.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Stock market report. 3d illustration</figcaption></figure>



Sept 26 (Reuters)&nbsp;&#8211;&nbsp;Concerns over U.S. monetary policy and growing jitters about China&#8217;s property sector pushed stocks in emerging markets to a six-month low on Tuesday, while investors awaited another likely rate cut by Hungary.



MSCI&#8217;s index for emerging market (EM) equities&nbsp;.MSCIEF&nbsp;was down 0.9% by 8:43 GMT, falling for a second straight day and hitting its lowest level since March.



China Evergrande Group 3333.HK tumbled for the second day in a row, down 8.1%, after a unit of the embattled property developer missed an onshore bond repayment. Hong Kong&#8217;s broader property shares index .HSMPI fell 2.2%.



Stocks in mainland China .CSI300 slipped 0.6%, while China&#8217;s yuan CNY=CFXS held steady against the dollar after the central bank set the official guidance rate at its widest against market estimates.



Both EM stocks and currencies&nbsp;.MIEM00000CUS, down 0.2% on Tuesday, have been pressured in recent days by hawkish signals from the Federal Reserve and other major central banks.&nbsp;The two asset classes&nbsp;are on track for losses in the third quarter.



Among other EM currencies, the Hungarian forint&nbsp;EURHUF=&nbsp;edged up 0.1% against the euro, coming off a near three-week low.



The National Bank of Hungary is expected to cut its one-day quick deposit rate by a further 100 basis points to 13% at 12:00 GMT, according to a Reuters poll, as inflation decelerates and the economy slows.



&#8220;(In terms of) what the inflation will do in 2024, we see a lot of upside risks and we are expecting inflation to stay above 5% on average,&#8221; said Peter Virovacz, senior economist at ING Bank Hungary.



&#8220;That&#8217;s why the National Bank of Hungary needs to remain hawkish and they need to keep the interest rate environment high. We are expecting the forward guidance to be hawkish today.&#8221;



The Turkish lira &lt;TRYTOM=D3 weakened to a record low beyond 27.236 against the dollar, due to inflationary pressure, bringing its year-on-year losses to more than 31%.



S&amp;P said late on Monday it was expecting tight monetary policy in emerging markets to have a more noticeable impact on demand in coming quarters and that they would likely grow below trend for the remainder of 2023 and into 2024.



South Africa&#8217;s rand ZAR= slipped 0.7%. Data showed the country&#8217;s composite leading business cycle indicator rose 0.1% month-on-month in July.



(Reporting by Amruta Khandekar; Editing by Anil D&#8217;Silva)

Stock market report. 3d illustration

Stocks at six-month lows, forint inches up ahead of rate decision

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-820x547.jpg" alt="" class="wp-image-427690" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Banking-group-IIF-to-proceed-with-annual-meeting-in-earthquake-hit-Morocco-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man uses a hammer as he stands among rubble, in the aftermath of a deadly earthquake, in Talat N&#8217;Yaaqoub, Morocco, September 16, 2023. REUTERS/Ammar Awad/File Photo</figcaption></figure>



WASHINGTON, Sept 25 (Reuters) &#8211; The Institute of International Finance said on Monday it would still hold its annual membership meeting in Marrakech on Oct. 12-14, following the World Bank and International Monetary Fund decision to stick to their own Morocco meeting plans after a devastating Sept. 8 earthquake.



The IIF, the global banking industry&#8217;s premier trade group, said its parallel meeting would bring together central bankers, policymakers and top finance executives to discuss key issues, including the global economic outlook, climate transition finance and emerging market debt.



The group said it will offer its members opportunities to support local vendors and artisans in the Marrakech community and donate to World Central Kitchen&#8217;s relief efforts in Morocco, its designated charity for the meetings.



The 6.8-magnitude earthquake centered 45 miles (72 km) from Marrakech killed more than 2,900 people and damaged nearly 60,000 homes in 2,930 villages, mostly in the High Atlas mountains, with a total population of 2.8 million people, the Moroccan government said on Friday.



Marrakech suffered some damage in its ancient Medina quarter, but more modern parts of the city, including hotels and the IMF-World Bank venue, are intact. The IMF, World Bank and IIF meetings are jointly expected to bring more than 10,000 people to Marrakech.



IIF President and CEO Tim Adams said in a statement that the meetings in Marrakech come &#8220;at a time when our mission of fostering financial stability and sustainable growth is more critical than ever.&#8221;



&#8220;The global financial industry is the engine of economic growth and resilience. And this year, our mission takes on an added layer of significance following the tragic earthquake in Morocco,&#8221; Adams said.



Among policy makers on the IIF&#8217;s meeting agenda are Bank of England Governor Andrew Bailey, European Commission financial services commissioner Mairead McGuinness, European Central Bank policymaker Francois Villeroy de Galhau and Monetary Authority of Singapore Managing Director Ravi Menon. (Reporting by David Lawder Editing by Bill Berkrot)

FILE PHOTO: Aftermath of a deadly earthquake

Banking group IIF to proceed with annual meeting in earthquake-hit Morocco

<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>



Sept 22 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks recovered from a four-day losing streak at the end of a week packed with major central bank decisions, while the Indian rupee firmed after JPMorgan&#8217;s plans to include the country&#8217;s local bonds in its debt index.



MSCI&#8217;s index for emerging market equities&nbsp;.MSCIEF&nbsp;rose 0.8% by 0853 GMT on Friday, bouncing off a recent three-month low, but was on track for weekly declines of 2.2%.



Pressuring emerging markets this week was a jump in U.S Treasury yields as investors assessed potential for an additional rate hike from the Federal Reserve and fewer cuts next year following revised projections from the central bank.



Most Asian stock markets were higher on Friday, led by equities in Hong Kong .HSI and mainland China .CSI300, up 2.3% and 1.8% respectively following reports of China&#8217;s measures to promote the development of the private economy.



China is considering relaxing the rules that cap foreign ownership in domestic publicly traded firms, Bloomberg News reported on Friday.



Emerging market currencies&nbsp;.MIEM00000CUS&nbsp;edged 0.1% higher but shed 0.2% for the week.



The dollar =USD, meanwhile, was on track for its tenth consecutive weekly increase while the yen JPY=EBS dropped as the Bank of Japan maintained ultra-low interest rates on Friday.



India&#8217;s rupee INR= climbed 0.3% against the dollar after JPMorgan JPM.Nsaid it will include the country in its widely tracked emerging market debt index, setting the stage for billions of dollars of inflows into the world&#8217;s fifth-largest economy.



JPMorgan&#8217;s decision could push India&#8217;s benchmark 10-year bond yield to sub-7% levels in the coming months, Citi and Bank of America said on Friday.



Barclays strategists forecast the inclusion implies direct inflows of $20-$25 billion over the next 18-21 months.



&#8220;The INR rallied on the index inclusion news, but still faces headwinds from a firm USD, elevated US yields and higher oil prices,&#8221; the strategists said in a note.



The South African rand ZAR= strengthened 0.6% versus the dollar and was on track for a weekly gain of nearly 1% despite a drop in the previous session after the country held interest rates steady.



Among central and eastern European currencies, the Polish zloty PLNEUR= rose 0.2% against the euro, ahead of a credit ratings review by Moody&#8217;s. The currency has outperformed its regional peers this week and is on track for weekly gains of 1%.



(Reporting by Amruta Khandekar. Editing by Jane Merriman)

istockphoto-1076949610-612×612-1

Stocks recover from Fed jolt, India to join JPMorgan bond index

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/4UNUX7FQ65IZBCL7HMEZC5KRYA-820x547.jpg" alt="" class="wp-image-427655" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/4UNUX7FQ65IZBCL7HMEZC5KRYA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/4UNUX7FQ65IZBCL7HMEZC5KRYA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/4UNUX7FQ65IZBCL7HMEZC5KRYA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/4UNUX7FQ65IZBCL7HMEZC5KRYA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/4UNUX7FQ65IZBCL7HMEZC5KRYA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/4UNUX7FQ65IZBCL7HMEZC5KRYA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Ahmed Tinubu addresses the 78th Session of the U.N. General Assembly in New York City, U.S., September 19, 2023. REUTERS/Eduardo Munoz/File Photo</figcaption></figure>



UNITED NATIONS, (Reuters) &#8211; Nigerian President Bola Tinubu urged the United Nations to become more proactive in addressing his African nation&#8217;s poverty and security issues and helping to fight illicit resource extraction, his spokesman said on Thursday.



Tinubu raised the issues when he met U.N. Secretary-General Antonio Guterres on Wednesday on the sidelines of the U.N. General Assembly in New York, his spokesman Ajuri Ngelale said in a statement.



The Nigerian leader said malign actors who engage in illicit activities, including resource and weapons smuggling, exploit&nbsp;Africa&#8217;s vast mineral wealth and undermine its stability.



&#8220;We are facing the great challenge of scavengers ravaging our lands and oppressing our people on illegal mines, taking our gold and mineral wealth back to developed economies by stealth and violence,&#8221; the statement cited Tinubu as saying.



&#8220;We will now be aggressive and we will question motives. We will stop what is happening,&#8221; he said, urging &#8220;effective collaboration&#8221; with the U.N.



Tinubu called for the United Nations to evolve from a global discussion platform into a proactive coordination centre, highlighting the urgency of addressing poverty and security issues.



In response, Guterres acknowledged the need for comprehensive reform within the U.N. to address institutional weaknesses and improve decision-making power for developing nations, according to the statement.



&#8220;We now recognize the need to reform the institution to represent the world as it is today,&#8221; Guterres was quoted as saying.



In a speech at the U.N. General Assembly on Tuesday, Tinubu, who chairs the West African bloc ECOWAS, assailed military coups that have swept through West Africa and pledged to help re-establish constitutional order in Niger.



(Reporting by Felix Onuah in Abuja; Writing by Elisha Bala-Gbogbo; Editing by Howard Goller)

FILE PHOTO: 78th UNGA General Debate at UN HQ in New YorK

Nigeria’s Tinubu urges UN to help curb exploitation of Africa’s resources

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="558" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-459296780-820x558.jpg" alt="" class="wp-image-403905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-459296780-820x558.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-459296780-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-459296780-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-459296780-1536x1045.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/GettyImages-459296780-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">An embossed logo of South Africa&#8217;s Reserve Bank sits on a document folder during a news conference with Lesetja Kganyago, governor of South Africa&#8217;s reserve bank, in Pretoria, South Africa, on Thursday, Nov. 20, 2014. Reserve Bank Governor Lesetja Kganyago kept South African borrowing costs unchanged in his debut policy meeting as Reserve Bank governor, reinforcing his pledge for continuity. Photographer: Dean Hutton/Bloomberg via Getty Images</figcaption></figure>



PRETORIA, Sept 21 (Reuters) &#8211; The South African Reserve Bank (SARB) held its key interest rate steady on Thursday, but policymakers cited continued risks to the inflation outlook.



The central bank kept its main lending rate unchanged at 8.25%, the second meeting in a row that the bank has left its repo rate on hold.



Nearly all analysts polled by Reuters had forecast that the rate would be left unchanged.



The SARB&#8217;s monetary policy committee has stressed that it wanted to see inflation sustainably around the midpoint of its target range of 3%-6% before considering rate cuts.



Governor Lesetja Kganyago said on Thursday that risks to the inflation outlook were assessed to the upside, with a high risk that food price inflation would pick up later in 2024.



He added that in the absence of sustained increases in energy supply in South Africa, electricity prices continued to present clear inflation risks.



&#8220;When you have one supply shock, you can just easily see through it,&#8221; said Kganyago. &#8220;When it&#8217;s a multiplicity of shocks, it starts to filter more quickly into other parts.&#8221;



Inflation edged up to 4.8% year-on-year in August from 4.7% in July, data showed on Wednesday, remaining well within the central bank&#8217;s target range.



(Reporting by Anait Miridzhanian, Bhargav Acharya and Kopano Gumbi; Additional reporting by Rachel Savage and Nellie Peyton; Graphic by Promit Mukherjee; Editing by Alexander Winning and Olivia Kumwenda-Mtabo)

South Africa’s New Reserve Bank Governor Lesetja Kganyago

South Africa holds key rate but policymakers still flag inflation risks

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-820x547.jpg" alt="" class="wp-image-426413" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/YDIKUITJQBO5LKBTKO2ZYRWSXY-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The Central Bank of Nigeria&#8217;s logo is seen on its headquarters building in Abuja, Nigeria, January 22, 2018. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, Sept 21 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank said on Thursday that it had delayed an interest rate meeting that had been planned for next week and that it would schedule a new meeting later.



In a statement on its website, the Central Bank of Nigeria did not say why the Sept. 25-26 meeting of its Monetary Policy Committee was delayed and a new date would be set later.



The postponement comes days after President Bola Tinubu nominated a new central bank governor and four new deputy governors. The Senate is yet to hold confirmation hearings for Tinubu&#8217;s picks.



In July, the central bank opted for a small rate hike at the first monetary policy meeting since Tinubu suspended central bank governor Godwin Emefiele.



Emefiele oversaw a much-criticised system of multiple exchange rates used to keep the local naira currency&nbsp;NGN=D1&nbsp;artificially strong and lent directly to businesses to try to boost growth in&nbsp;Africa&#8217;s biggest economy.



Tinubu criticised the central bank&#8217;s policies under Emefiele at his inauguration in May, saying they needed &#8220;thorough house-cleaning&#8221;.



(Reporting by Camillus Eboh; Editing by Alexander Winning and Bernadete Baum)

FILE PHOTO: The Central Bank of Nigeria’s logo is seen on its headquarters in Abuja

Nigeria central bank postpones next week’s policy meeting

<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>



Sept 21 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks hit an over three month low on Thursday as risk sentiment waned after the U.S. Federal Reserve stiffened its hawkish monetary policy stance, while investors awaited interest rate decisions from Turkey and South&nbsp;Africa.



After the Fed left rates unchanged as widely expected, markets focused on the possibility of borrowing costs staying significantly tighter through 2024 than previously expected after the central bank&#8217;s updated quarterly projections.



MSCI&#8217;s gauge for emerging market equities&nbsp;.MSCIEF&nbsp;slid 1.3% to its lowest since early June, while currencies&nbsp;.MIEM00000CUS&nbsp;slid 0.3% by 8:48 GMT against a steady dollar.



China&#8217;s blue-chip CSI 300 Index&nbsp;.CSI300&nbsp;index hit an over ten-month low while Hong Kong&#8217;s Hang Seng Index&nbsp;.HSI&nbsp;dropped 1.3%.



A slew of regional monetary policy decisions will also grab focus later on Thursday, with Turkey expected to deliver a 500 basis point hike at 1100 GMT, taking the benchmark weekly repo rate to 30%, according to a Reuters poll.



The lira&nbsp;TRYTOM=D3&nbsp;was flat at 27.039 to the dollar, having drifted weaker in recent days after a jump late in August following a shock 750 basis point rate hike from the Turkish central bank.



After a historic currency crash in late 2021 and given surging inflation, President Tayyip Erdogan set aside years of opposition to tight monetary policy and publicly backed it this year.



&#8220;We have&#8230; reached a crucial juncture where the interest rate level may not yet be high enough to be labelled &#8220;restrictive&#8221; for the ongoing inflation rate,&#8221; said Tatha Ghose, FX analyst at Commerzbank in a note.



Erdogan &#8220;could be showing support now, but there could come a moment of truth leading up to the 2024 local elections, where he reverses stance,&#8221; Ghose added.



Later in the day, markets await the South African central bank&#8217;s monetary policy decision where the regulator is widely expected to keep the repo rate on hold at 8.25%. The rand ZAR= was flat ahead of the decision due at 1300 GMT.



In central and eastern Europe, Poland&#8217;s zloty EURPLN= slipped 0.1% against the euro after data showed nominal retail sales in constant prices fell 2.7% in August, lesser than market expectations.



Hungary&#8217;s forint HUFEUR= fell 0.3% versus the euro after central bank Governor Gyorgy Matolcsy said the country&#8217;s headline inflation rate, currently the highest in the European Union, can fall to an annual 7% by the end of this year.



(Reporting by Johann M Cherian and Amruta Khandekar in Bengaluru; Editing by Sharon Singleton)

World map with charts and graphs as symbols of global finance

Stocks hit 3-month low; Turkey, South Africa central bank decisions eyed

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/PICJOSJU3ZIDPGUR5CMU73CAGM-820x547.jpg" alt="" class="wp-image-427633" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/PICJOSJU3ZIDPGUR5CMU73CAGM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/PICJOSJU3ZIDPGUR5CMU73CAGM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/PICJOSJU3ZIDPGUR5CMU73CAGM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/PICJOSJU3ZIDPGUR5CMU73CAGM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/PICJOSJU3ZIDPGUR5CMU73CAGM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/PICJOSJU3ZIDPGUR5CMU73CAGM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Gabon coup leader General Brice Oligui Nguema is sworn in as interim president during his swearing-in ceremony, in Libreville, Gabon, September 4, 2023. REUTERS/Stringer/File Photo</figcaption></figure>



LONDON, Sept 21 (Reuters) &#8211; When Gabon&#8217;s General Brice Oligui Nguema ousted his distant cousin last month, he became the eighth military leader who has taken power by force in Africa since 2020. But one aspect about the country was different: it had sold a sizeable amount of bonds on international capital markets, and had just weeks prior sealed continental Africa&#8217;s first debt-for-nature swap.



The putsch not only sent Gabon&#8217;s bonds tumbling 10%, but also hit those issued by a number of other countries including neighbouring Cameroon, as jittery investors scanned for who might be next.



The apparent coup trend is adding to other major concerns deterring many investors from&nbsp;Africa&nbsp;&#8211; a wave of debt crises, tense geopolitics and an extreme vulnerability to climate change.



&#8220;Nearly all markets in that region are paying some price in terms of rising cost of debt,&#8221; said Sergey Dergachev, portfolio manager at Union Investment.



A UNDP study dated July shows how the costs add up. It estimated Guinea&#8217;s 2008 coup and one in Mali in 2012 wiped a combined $12-$13.5 billion off the two countries&#8217; economies over a 5-year period. This represented 76% of Guinea&#8217;s 2008 gross domestic product and almost half of Mali&#8217;s 2012 GDP, the study calculated.



There have been scores of coups and attempted coups in recent decades including in Thailand, Ecuador, Egypt and Turkey.



Investors in those markets reacted reflexively &#8211; sell first, think later.



Gabon&#8217;s coup not only hurt its bonds, it also ratcheted up the interest rate premium, or &#8216;spread&#8217;, investors demand to hold bonds in JPMorgan&#8217;s multi-country &#8220;Nexgem&#8221;&nbsp;Africa&nbsp;index, a move that has still not fully retraced.



Cameroon has been particularly sensitive. Its bonds have lost more ground than Gabon&#8217;s since the coup. The country&#8217;s President Paul Biya has ruled for over 40 years through crackdowns and contested elections and wants his son to take over.



In focus too is Senegal, whose President Macky Sall recently ruled out running for a third term after violent unrest, and Congo Republic which had to quash weekend rumours of an overthrow while President Denis Sassou Nguesso &#8211; in power for 38 years &#8211; was in New York for the U.N. General Assembly.



<h2 class="wp-block-heading" id="h-unequal-coups">UNEQUAL COUPS</h2>



&#8220;Certainly there&#8217;s a lot of eyeballs on this (coup) theme right now,&#8221; said Eamon Aghdasi, a sovereign analyst at investment firm GMO, who co-authored a recent paper on whether democracy matters to debt investors.



&#8220;As a bondholder, the worst-case scenario is that a new government comes in and repudiates the previous government&#8217;s debt&#8221;.



There is no sign of Gabon&#8217;s new leaders repudiating debt, though payments on bonds have run into trouble elsewhere, such as Niger.



Credit ratings usually suffer too. Fitch and Moody&#8217;s have put Gabon on a downgrade warning since the Aug. 30 overthrow. Agencies slashed ratings for Burkina Faso, Mali and Niger, although further afield, Thailand&#8217;s never budged despite two coups in the last two decades.



&#8220;Coups, in general, in&nbsp;Africa&nbsp;or anywhere else, can cause problems for debt repayment partly because of the potential for sanctions,&#8221; S&amp;P Global analyst Ravi Bhatia said, adding that vital international support can also get shelved.



<h2 class="wp-block-heading" id="h-rising-costs">RISING COSTS</h2>



Gabon, where the Bongo family had ruled for nearly 60 years amid stark inequality, has yet to face the kinds of sanctions imposed on Mali, Guinea, Burkina Faso and Niger &#8211; although its International Monetary Fund programme was already off track.



Moody&#8217;s cited the rise in oil prices in its decision to hold off on a full downgrade, as well as Gabon&#8217;s membership of the Central&nbsp;African monetary union (CFA franc), which shields it from currency volatility.



The country&#8217;s bond spreads have eased somewhat since investors&#8217; initial panic and could recover entirely, some analysts say, if it makes its first post-coup bond payment on time next month.



&#8220;You may get a situation where bondholders might say, if it&#8217;s a change away from long-term single leaderships, then it may well be a turn for the better,&#8221; said Simon Quijano-Evans, chief economist with Gemcorp. &#8220;As long as elections and democracy come back&#8221;.



Broadly though, concerns about sovereign stability across&nbsp;Africa&nbsp;loom large. This year&#8217;s &#8220;Fragile States Index&#8221; published by non-profit The Fund for Peace rated 46&nbsp;African countries as at least somewhat unstable.



Even in Kenya, a solid democracy on the other side of the continent, investors warn that general risk aversion could push up the cost of issuing a new bond.



(Reporting By Libby George and Marc Jones, additional reporting by Karin Strohecker; Editing by Emelia Sithole-Matarise)

FILE PHOTO: Gabon coup leader General Brice Oligui Nguema is sworn in as interim president in Libreville

Counting the cost of contagion fears from Africa coups

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-820x547.jpg" alt="" class="wp-image-419784" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/6YWINGPVCBJ6LCCI4MJOOGWZ5I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s President-elect William Ruto speaks after the Supreme Court upheld his win in Nairobi, Kenya September 5, 2022. REUTERS/Monicah Mwangi</figcaption></figure>



Sept 20 (Reuters)&nbsp;&#8211;&nbsp;Haiti and Kenya established diplomatic relations on Wednesday, according to a statement on social media platform X by Ariel Henry, prime minister of the Caribbean nation.



The move comes amid international discussions over the possibility of Kenya leading a United Nations-backed multinational security force to help police fight escalating gang warfare in Haiti.



The United Nations Security Council could vote on the multinational force for Haiti in about a week, Brian Nichols, U.S. assistant secretary for western hemisphere affairs, said in an interview with Voice of America this week.



Henry&#8217;s government first sought international assistance last October, but despite repeated calls from the United Nations, the request went unanswered until Kenya said it was prepared to lead such a group in July.



With scarce resources, Haiti&#8217;s police have been battling powerful gangs now estimated to control large parts of the country.



Kenyan President William Ruto and Henry witnessed the signing of the pact establishing ties at the Kenyan mission in New York.



&#8220;As the leading nation in the U.N.-backed security mission in Haiti, we are committed to deploying a specialised team,&#8221; Ruto said in a statement issued by his office.



The team would assess the situation and&nbsp;prepare&nbsp;strategies to ensure long-term solutions, he added.



(Reporting by Valentine Hilaire in Mexico City and George Obulutsa in Nairobi; Editing by Kylie Madry and Clarence Fernandez)

Kenya’s top court to deliver verdict on disputed presidential election

Haiti, Kenya set up diplomatic ties

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/KYJW4AVU6RIG7KNMEUDZMCQXNQ.jpg" alt="" class="wp-image-427616" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/KYJW4AVU6RIG7KNMEUDZMCQXNQ.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/KYJW4AVU6RIG7KNMEUDZMCQXNQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/KYJW4AVU6RIG7KNMEUDZMCQXNQ-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">A general view of the Makola market, one of the country&#8217;s largest trading centres in Accra, Ghana March 26, 2022. REUTERS/Francis Kokoroko</figcaption></figure>



ACCRA, Sept 20 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s economic growth slowed slightly to 3.2% year-on-year in the second quarter compared with a downwardly revised 3.3% growth rate in the first quarter, the country&#8217;s statistics agency said on Wednesday.



The gold-, oil- and cocoa-producing nation has been battling its worst economic crisis in a generation brought on by spiralling public debt.



It sealed a $3 billion, three-year loan programme with the International Monetary Fund in May.



The government has forecast economic growth will slow to 1.5% this year from 3.1% in 2022. First-quarter growth was revised down to 3.3% from a previous estimate of 4.2%, the Ghana Statistical Service said on Wednesday.



Growth in the second quarter was driven by the mining, agriculture, health, transport, and information technology sectors.



Agriculture grew by 6.0% and the services sector 6.3%, while industry contracted 1.9%. The construction sub-sector contracted by 11.7%, the biggest drop in five years.



The statistics agency also said producer inflation&nbsp;GHPPIY=ECI&nbsp;slowed to 28.3% in annual terms in August, down from a revised 32.9% in July.



(Reporting by Christian Akorlie and Maxwell Akalaare Adombila; Writing by Nellie Peyton; Editing by Alexander Winning and Tomasz Janowski)

People make trade in Accra

Ghana’s second quarter economic growth dips vs revised first quarter

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017. REUTERS/Thomas White/Illustration</figcaption></figure>



JOHANNESBURG, Sept 20 (Reuters) &#8211; The South African rand edged higher in early trade on Wednesday ahead of local consumer price index (CPI) data and an interest rate announcement from leaders in the world&#8217;s biggest economy.



At 0615 GMT, the rand traded at 18.9000 against the dollar , more than 0.1% above its previous close.



The dollar last traded around 0.02% stronger against a basket of global currencies.



At 0800 GMT, Statistics South Africa will release the country&#8217;s August consumer inflation data.



Analysts polled by Reuters predict a 4.8% year-on-year rise in inflation, within the central bank&#8217;s target range of 3% to 6%.



The U.S. Federal Reserve is due to announce its main interest rate decision later on Wednesday, giving hints at the health of the world&#8217;s biggest economy.



&#8220;The rand is trading solidly in tight ranges with little risk today, but tonight&#8217;s Fed should give it new multi-week direction,&#8221; said Rand Merchant Bank analysts in a research note.



Focus will be on the Fed&#8217;s tone and economic forecasts, RMB added, adding that a hawkish tone would weaken the rand.



On Thursday the South African Reserve Bank will announce its main interest rate decision.



South Africa&#8217;s benchmark 2030 government bond was slightly weaker in early deals, with the yield up 1 basis point to 10.495%. 



(Reporting by Tannur Anders; Editing by Gareth Jones)

Illustration photo of South African rand

Rand edges higher ahead of local CPI, Fed rate decision

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-820x547.jpg" alt="" class="wp-image-425798" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/L6UULG4GG5NIDGTBYMBIPOWQRY-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>



UNITED NATIONS, Sept 19 (Reuters) &#8211; Nigerian President Bola Tinubu said on Tuesday he was seeking to re-establish constitutional order to address political and economic problems in neighboring Niger following a July coup and welcomed any support for the process.



Tinubu is chairman of the main West African bloc ECOWAS, which has been trying to negotiate with the Niger military junta. ECOWAS has said it is ready to deploy troops to restore constitutional order if diplomatic efforts fail.



In a speech at the United Nations General Assembly in New York, Tinubu assailed military coups, which have swept through West Africa in the past few years and are sometimes cheered by citizens.



&#8220;The wave crossing parts of Africa does not demonstrate favor towards coups. It is a demand for solutions to perennial problems,&#8221; Tinubu said.



&#8220;Regarding Niger, we are negotiating with the military leaders. As chairman of ECOWAS, I seek to help re-establish democratic governance in a manner that addresses the political and economic challenges confronting that nation, including the violent extremists who seek to foment instability in our region.&#8221;



The decision by ECOWAS in August to activate a so-called standby force for a possible intervention has raised fears of an escalation that could further destabilize the insurgency-torn Sahel region.



The junta in Niger last month ordered its armed forces to go on highest alert, citing an increased threat of attack.



(Reporting by Felix Onuah in Abuja, writing by MacDonald Dzirutwe, editing by Howard Goller and Stephen Coates)

featured

Oil prices surge to highest level in more than a year

Soccer-Morocco and East African co-bid to host future Africa Cup of Nations finals

‘Tightrope’ debt situation not unique to Kenya, finance minister says

Afrexim turns to oil traders for $3 billion loan to Nigeria’s NNPC -sources

Meta’s Threads struggles to grow amid rivalry with Elon Musk’s X, ranking ahead of only Tumblr

Stocks at six-month lows, forint inches up ahead of rate decision

Banking group IIF to proceed with annual meeting in earthquake-hit Morocco

Stocks recover from Fed jolt, India to join JPMorgan bond index

Nigeria’s Tinubu urges UN to help curb exploitation of Africa’s resources

South Africa holds key rate but policymakers still flag inflation risks

Nigeria central bank postpones next week’s policy meeting

Stocks hit 3-month low; Turkey, South Africa central bank decisions eyed

Counting the cost of contagion fears from Africa coups

Haiti, Kenya set up diplomatic ties

Ghana’s second quarter economic growth dips vs revised first quarter

Rand edges higher ahead of local CPI, Fed rate decision

Nigeria’s Tinubu tells UN he seeks to restore democratic order in Niger

News Tips

Advertise With Us

featured

Oil prices surge to highest level in more than a year

Soccer-Morocco and East African co-bid to host future Africa Cup of Nations finals

‘Tightrope’ debt situation not unique to Kenya, finance minister says

Afrexim turns to oil traders for $3 billion loan to Nigeria’s NNPC -sources

Meta’s Threads struggles to grow amid rivalry with Elon Musk’s X, ranking ahead of only Tumblr

Stocks at six-month lows, forint inches up ahead of rate decision

Banking group IIF to proceed with annual meeting in earthquake-hit Morocco

Stocks recover from Fed jolt, India to join JPMorgan bond index

Nigeria’s Tinubu urges UN to help curb exploitation of Africa’s resources

South Africa holds key rate but policymakers still flag inflation risks

Nigeria central bank postpones next week’s policy meeting

Stocks hit 3-month low; Turkey, South Africa central bank decisions eyed

Counting the cost of contagion fears from Africa coups

Haiti, Kenya set up diplomatic ties

Ghana’s second quarter economic growth dips vs revised first quarter

Rand edges higher ahead of local CPI, Fed rate decision

Nigeria’s Tinubu tells UN he seeks to restore democratic order in Niger

News Tips

Advertise With Us

Newsletters