<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/B2LORCWYB5OAPJZJV2ED4FEPLM-820x547.jpg" alt="" class="wp-image-416602" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/B2LORCWYB5OAPJZJV2ED4FEPLM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/B2LORCWYB5OAPJZJV2ED4FEPLM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/B2LORCWYB5OAPJZJV2ED4FEPLM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/B2LORCWYB5OAPJZJV2ED4FEPLM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/B2LORCWYB5OAPJZJV2ED4FEPLM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Supporters of Nigeria&#8217;s All Progressive Congress demonstrate at the Eagle square, in Abuja, Nigeria, March 26, 2022. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



LAGOS, April 20 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s ruling party All Progressives Party (APC) has set its presidential primaries for May 30-31, a spokesman said on Wednesday.



Nigerian President Muhammadu Buhari will step down after serving two four-year terms following a Feb. 23, 2023 ballot.



The country&#8217;s political parties are due to pick presidential candidates by June 3. Official campaigning will begin in September, according to the country&#8217;s electoral commission.



Current Vice President Yemi Osinbajo and former Lagos state governor Asiwaju Bola Tinubu are frontrunners in the race to be the next candidate.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2W90ZF&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The primaries for governors, state house assembly, national house of representatives and the senate are slated to run from May 18 to 24.



This is a developing story&#8230;



(Reporting by Felix Onuah; Writing by Julia Payne; Editing by Sandra Maler)

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Nigeria’s ruling party APC sets presidential primaries date

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Why Food Prices Are Spiking Again

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="780" height="470" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/3214-netflix-estimates-100-million-households-are-sharing-passwords-and-suggests-a-global-crackdown-is-coming-780x470-1.jpg" alt="" class="wp-image-416587" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/3214-netflix-estimates-100-million-households-are-sharing-passwords-and-suggests-a-global-crackdown-is-coming-780x470-1.jpg 780w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/3214-netflix-estimates-100-million-households-are-sharing-passwords-and-suggests-a-global-crackdown-is-coming-780x470-1-300x181.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/3214-netflix-estimates-100-million-households-are-sharing-passwords-and-suggests-a-global-crackdown-is-coming-780x470-1-149x90.jpg 149w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/3214-netflix-estimates-100-million-households-are-sharing-passwords-and-suggests-a-global-crackdown-is-coming-780x470-1-768x463.jpg 768w" sizes="auto, (max-width: 780px) 100vw, 780px" /><figcaption>Reed Hastings, CEO of Netflix, attends a press conference in Mexico City, Mexico. Hector Vivas | Getty Images</figcaption></figure>



Today could be a dark day for your ex-boyfriend’s brother.



Netflix, the world’s largest streaming video company, warned a global crackdown on password sharing is coming. It seems like a serious warning this time, and it could mean an end to the rampant practice of borrowing a family member’s or friend’s — or loose acquaintance’s — login information.



Netflix said it estimates more than 30 million U.S. and Canadian households are using a shared password to access its content. The company said more than 100 million additional households were likely using a shared password worldwide.



In its quarterly shareholder letter, Netflix acknowledged it has purposefully allowed generous out-of-home password sharing because it helped get users hooked on the service. But with competition from Disney, Warner Bros. Discovery, Paramount Global, NBCUniversal, Apple TV+ and other streamers eating into its growth, Netflix said it wants the millions of households sharing passwords to start paying.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/google-to-set-up-first-africa-product-development-centre-in-nairobi/">Google to set up first Africa product development centre in Nairobi</a></h3>



“Our relatively high household penetration — when including the large number of households sharing accounts — combined with competition, is creating revenue growth headwinds,” Netflix said in its letter. “Account sharing as a percentage of our paying membership hasn’t changed much over the years, but, coupled with the first factor, means it’s harder to grow membership in many markets — an issue that was obscured by our COVID growth.”



Netflix reported a loss of 200,000 paid subscribers in the first quarter ended March 31 — the first time in more than 10 years Netflix has lost subscribers during a quarter. The company projected it will lose 2 million more subscribers in the second quarter.



The streaming platform currently has 222 million subscribers worldwide. It enjoyed booming growth during the pandemic, but that customer surge has subsided — and now turned negative — as Covid-19 quarantines have largely lifted.



<h2 class="wp-block-heading" id="h-planning-the-crackdown"><a></a>Planning the crackdown</h2>



Netflix has lived with password sharing because the company was, in the words of co-founder and co-CEO Reed Hastings, “doing fine” without taking any strong actions.



“In terms of [password sharing], no plans on making any changes there,” Hastings said in 2016. “Password sharing is something you have to learn to live with, because there’s so much legitimate password sharing, like you sharing with your spouse, with your kids &#8230;. so there’s no bright line, and we’re doing fine as is.”



Netflix has built a consumer friendly brand over the years, and allowing password sharing has helped with that image.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/first-covid-now-floods-empty-south-africas-eastern-beach-resorts/">First COVID, now floods empty South Africa’s eastern beach resorts</a></h3>



“Sharing likely helped fuel our growth by getting more people using and enjoying Netflix,” the company said in its shareholder note. “And we’ve always tried to make sharing within a member’s household easy, with features like profiles and multiple streams.”



But times have changed. And when the growth stops, attitudes tend to change.



Earlier this year, Netflix began testing different ways to curb password sharing in Chile, Costa Rica and Peru. Executives said on the company’s earnings call Tuesday that it could expand the model it laid out in those countries, charging extra to accounts that share passwords out of home.



Netflix didn’t outline a concrete global strategy yet but suggested global changes could come as early as 2023.

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Netflix estimates 100 million households are sharing passwords and suggests a global crackdown is coming

Focus On Presco’s expansion plans

Focus On Presco’s expansion plans, ₦50bn bond issuance program

T-Bills mute ahead of bond auction

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/107047106-NYSE-Traders-Photo-Press-20220414-1-820x547.jpg" alt="" class="wp-image-416580" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/107047106-NYSE-Traders-Photo-Press-20220414-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/107047106-NYSE-Traders-Photo-Press-20220414-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/107047106-NYSE-Traders-Photo-Press-20220414-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/107047106-NYSE-Traders-Photo-Press-20220414-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/107047106-NYSE-Traders-Photo-Press-20220414-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/107047106-NYSE-Traders-Photo-Press-20220414-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via CNBC</figcaption></figure>



The International Monetary Fund has warned of more market sell-offs as central banks try to combat higher inflation and ease back on pandemic stimulus measures.



Market players had started the year on an optimistic footing, predicting some economic momentum on the back of an easing of Covid-19 restrictions, which would likely provide a boost to stocks. However, since Russia’s unprovoked invasion of Ukraine on Feb. 24 that outlook has worsened — with further supply chain shocks and energy price rises.



“There is certainly a risk of further sell-offs,” Tobias Adrian, director for monetary and capital markets at the IMF, told CNBC Tuesday.



“The intended consequences of monetary tightening is to tighten financial conditions to slow down economic activity and I would not be surprised if we were to see a certain amount of readjustment of asset valuations going forward and that could be in equity markets as well as in corporate bond markets and sovereign markets,” he added.



<h3 class="wp-block-heading" id="h-read-more-imf-cuts-global-growth-forecasts-on-russia-ukraine-war-says-risks-to-economy-have-risen-sharply">Read more: <a href="https://www.cnbcafrica.com/2022/imf-cuts-global-growth-forecasts-on-russia-ukraine-war-says-risks-to-economy-have-risen-sharply/">IMF cuts global growth forecasts on Russia-Ukraine war, says risks to economy have risen sharply</a></h3>



The Fund’s warning comes at a time of high uncertainty for some of the key central banks.



The U.S. Federal Reserve expects to hike interest rates six more times in 2022, while the European Central Bank confirmed last week it is ending its asset purchase program in the third quarter.



However, this monetary tightening could be accelerated if inflation remains high, which could impact market moves. The euro zone, for instance, registered another record level in inflation numbers last month at 7.5% on an annual basis; and the U.S. reported its highest consumer price figures since 1981.



“The risk is rising that inflation expectations drift away from central bank inflation targets, prompting a more aggressive tightening response from policymakers,” the IMF said Tuesday at its latest World Economic Outlook report.



In its latest economic assessment, the IMF said high inflation will be around for longer than previously anticipated. It also estimated the inflation rate will reach 7.7% in the United States this year and 5.3% in the euro zone.

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IMF warns of further market sell-offs as central banks adjust policy

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="503" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/download-43.jpg" alt="" class="wp-image-416576" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/download-43.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/download-43-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/download-43-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/download-43-768x483.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption>FILE PHOTO: Diamonds are displayed at the De Beers Global Sightholder Sales (GSS) in Gaborone, Botswana, November 24, 2015. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, April 20 (Reuters) – Diamond miner De Beers has signed two mineral investment contracts with the Angolan government for licence areas in the northeast of the country, the Anglo American subsidiary said on Wednesday.



The contracts are for 35 years and give De Beers the rights to explore and mine, through two new joint ventures with Angola’s state diamond company Endiama.



De Beers will hold a “substantial” majority of the new joint ventures, the company said, without specifying a percentage. Endiama will be able to increase its equity share over time.



<h3 class="wp-block-heading" id="h-read-more-bp-eni-seek-to-raise-2-bln-for-angola-joint-venture">Read more: <a href="https://www.cnbcafrica.com/2021/bp-eni-seek-to-raise-2-bln-for-angola-joint-venture/">BP, Eni seek to raise $2 bln for Angola joint venture</a></h3>



De Beers expects to start exploration activities in the licences this year, pending regulatory approvals.



The company announced in December last year that it had applied to conduct exploration activities in the country.



“Angola has worked hard in recent years to create a stable and attractive investment environment and we are pleased to be returning to active exploration in the country,” De Beers Chief Executive Bruce Cleaver said in a statement.



Angola was the seventh biggest producer of rough diamonds in the world in 2020, according to Kimberley Process statistics. Western sanctions on the world’s biggest diamond producer, Russia, could boost demand for alternative sources of diamonds. 



(Reporting by Helen Reid, Editing by Louise Heavens and Edmund Blair)

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De Beers to explore for diamonds in Angola

T-Bills mixed despite ₦24bn OMO maturity

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/V5QM7JFVHRME5I2XIPSEBIGWGA.jpg" alt="" class="wp-image-416570" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/V5QM7JFVHRME5I2XIPSEBIGWGA.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/V5QM7JFVHRME5I2XIPSEBIGWGA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/V5QM7JFVHRME5I2XIPSEBIGWGA-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption>A view of a sign above the entrance of the Google office, ahead of presentation of the detailed investment plan for Germany, in Berlin, Germany, August 31, 2021. REUTERS/Annegret Hilse/File Photo</figcaption></figure>



NAIROBI, April 20 (Reuters)&nbsp;&#8211;&nbsp;Alphabet Inc&#8217;s Google&nbsp;GOOGL.O&nbsp;is investing in its first ever Africa product development centre in the Kenyan capital Nairobi, it said, as it positions itself to serve a growing base of internet users on the continent.



By the end of this decade, the continent will host 800 million internet users, the California-based firm said, and a third of the world&#8217;s youth population, making it an attractive investment destination.



Google is hiring engineers, product managers, user experience designers and researchers to staff the new centre, said Suzanne Frey, vice president for products, and Nitin Gajria, the head of Google Africa, in a joint blog post on Tuesday.



<h3 class="wp-block-heading" id="h-read-more-twitter-opens-first-african-office-in-ghana">Read more: <a href="https://www.cnbcafrica.com/2021/twitter-opens-first-african-office-in-ghana/">Twitter opens first African office in Ghana</a></h3>



The company is investing $1 billion in various projects on the continent over five years, its CEO Sundar Pichai said last October, to help economies accelerate their digital transformation.



It has already opened an artificial intelligence centre in Accra, Ghana, focusing on innovations that can be applied to various challenges.



Microsoft&nbsp;MSFT.O&nbsp;has also been investing in technology development hubs in Kenya and Nigeria, investing $100 million and hiring hundreds of engineers in both countries.



(Reporting by Duncan Miriri;Editing by Elaine Hardcastle)

FILE PHOTO: A view of a sign above the entrance of the Google office in Berlin

Google to set up first Africa product development centre in Nairobi

<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-1238893740-820x547.jpg" alt="" class="wp-image-416567" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1238893740-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1238893740-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1238893740-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1238893740-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1238893740-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1238893740-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Denmark&#8217;s Minister for Immigration and Integration Mattias Tesfaye speaks to the press ahead of the Extraordinary Meeting of EU Justice and Home Affairs Ministers on the Russian invasion of Ukraine, in Brussels on March 3, 2022. (Photo by François WALSCHAERTS / AFP) (Photo by FRANCOIS WALSCHAERTS/AFP via Getty Images)</figcaption></figure>



COPENHAGEN, April 20 (Reuters)&nbsp;&#8211;&nbsp;Denmark is in talks with Rwanda about&nbsp;setting up a&nbsp;new&nbsp;procedure for&nbsp;transferring asylum seekers to the east African nation, mirroring a similar move by Britain announced just last week.



Denmark, which has gained notoriety in the last decade for its increasingly harsh immigration policies, passed a law last year that allows refugees arriving on Danish soil to be moved to asylum centres in a partner country.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2NL0G9&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



But the Nordic nation, which drew the anger of human rights advocates, the United Nations and the European Commission over the move, had yet to find a partner country at that time.



&#8220;Our dialogue with the Rwandan government includes a mechanism for the transfer of asylum seekers,&#8221; Immigration Minister Mattias Tesfaye said in an emailed statement to Reuters on Wednesday.



<h3 class="wp-block-heading" id="h-read-more-imf-cuts-global-growth-forecasts-on-russia-ukraine-war-says-risks-to-economy-have-risen-sharply">Read more: <a href="https://www.cnbcafrica.com/2022/imf-cuts-global-growth-forecasts-on-russia-ukraine-war-says-risks-to-economy-have-risen-sharply/">IMF cuts global growth forecasts on Russia-Ukraine war, says risks to economy have risen sharply</a></h3>



The deal would aim to &#8220;ensure a more dignified approach than the criminal network of human traffickers that characterises migration across the Mediterranean today,&#8221; he added.



Last week, Britain said it&nbsp;planned&nbsp;to relocate thousands of asylum seekers to Rwanda,&nbsp;in a&nbsp;new deal aimed at&nbsp;smashing&nbsp;people-smuggling networks and stemming the flow of migrants.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2WC0AV&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Denmark has not yet struck a deal with Rwanda, the minister said, but immigration speakers in parliament had been summoned to a meeting on the matter on Thursday next week. The government needs parliamentary backing for a potential deal with Rwanda.



(Reporting by Nikolaj Skydsgaard;Editing by Clarence Fernandez)

BELGIUM-EU-UKRAINE-RUSSIA-CONFLICT

Denmark in talks with Rwanda on transfer of asylum-seekers

Highlights Special of the Public Leaders Programme

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/2ETT44OMDNKXNDSQCOFTSVYKFQ-820x533.jpg" alt="" class="wp-image-416563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/2ETT44OMDNKXNDSQCOFTSVYKFQ-820x533.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/2ETT44OMDNKXNDSQCOFTSVYKFQ-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/2ETT44OMDNKXNDSQCOFTSVYKFQ-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/2ETT44OMDNKXNDSQCOFTSVYKFQ-768x499.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/2ETT44OMDNKXNDSQCOFTSVYKFQ.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A search and rescue team prepares to airlift a body from the Mzinyathi River after heavy rains caused flooding near Durban, South Africa, April 19, 2022. REUTERS/Rogan Ward</figcaption></figure>



UMDLOTI, South Africa, April 19 (Reuters)&nbsp;&#8211;&nbsp;After two years of the COVID-19 pandemic keeping tourists away, South African resorts along the popular eastern Indian Ocean coastline were hoping for a bumper Easter weekend.



But torrential rain last week triggered floods and mudslides, killing more than 440 people, knocking out power and water supplies and covering the beaches in and around the main port city of Durban, KwaZulu-Natal province, with debris.



Some hotels had a third of bookings cancelled and others were forced to close during what is normally the second-busiest time of the year. Provincial authorities say they were expecting around 360,000 arrivals, but got less than half of that.



Tourism remains a big employer in a country with over 30% unemployment.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2WF05F&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;Coming out of COVID &#8230; we needed the tourists back, we were getting there, but these rains caused havoc,&#8221; financial planner Eugene Naidu told Reuters in his wrecked holiday home in the town of Umdloti, near Durban, where the walls were smeared with waist-high mud.



<h3 class="wp-block-heading" id="h-read-more-south-african-military-deployed-to-flood-ravaged-province">Read more: <a href="https://www.cnbcafrica.com/2022/south-african-military-deployed-to-flood-ravaged-province/">South African military deployed to flood-ravaged province</a></h3>



Africa&#8217;s southeastern coast is on the front line of seaborne storm systems that are being worsened by global warming, as it pushes up temperatures in the Indian Ocean, and scientists predict storms will get much worse in coming decades.



Naidu used to rent out his apartment on Airbnb and Booking.com and was fully booked in December and January. He said people like him could stand to lose a monthly income of 20,000 rand ($1,340) from holiday rentals.



Everyone in his building left on the day the mudslide started, apart from one elderly resident who had to be saved by a sea rescue team, he said.



A construction vehicle was still shifting piles of mud on the Umdloti beachfront on Tuesday, and Durban&#8217;s deserted North Beach was littered with rubbish and mangled branches.



Anthony Leeming, chief executive of hotel and resort chain Sun International&nbsp;SUIJ.J, which owns a lodge and casino in KwaZulu-Natal, told Reuters business was a lot quieter than usual.



&#8220;We had hoped for a lot better Easter. It was unfortunate,&#8221; he said. &#8220;We&#8217;re certainly hoping this will not have a long-term impact.&#8221;



($1 = 14.8962 rand)



(Additional reporting by Nqobile Dludla and Promit Mukherjee in Johannesburg,Writing by Alexander Winning,Editing by Tim Cocks and Ed Osmond)

2ETT44OMDNKXNDSQCOFTSVYKFQ

First COVID, now floods empty South Africa’s eastern beach resorts

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-820x547.jpg" alt="" class="wp-image-414305" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



The International Monetary Fund on Tuesday cut its global growth projections for 2022 and 2023, saying the economic hit from&nbsp;<a href="https://www.cnbc.com/2022/04/19/russia-ukraine-live-updates.html">Russia’s unprovoked invasion of Ukraine</a>&nbsp;will “propagate far and wide.”



The Washington-based institution is now projecting a 3.6% GDP rate for the global economy this year and for 2023. This represents a 0.8 and 0.2 percentage point drop, respectively, from its forecasts published in January.



“Global economic prospects have been severely set back, largely because of Russia’s invasion of Ukraine,” Pierre-Olivier Gourinchas, economic counsellor at the IMF, said in a blog post Tuesday, marking the release of the IMF’s latest World Economic Outlook report.



Russia launched its invasion of Ukraine on Feb. 24 with officials like NATO’s Jens Stoltenberg noting that Moscow is hoping to gain control of the whole of its neighbor.



“The effects of the war will propagate far and wide, adding to price pressures and exacerbating significant policy challenges,” Gourinchas said in his blogpost.



The&nbsp;<a href="https://www.cnbc.com/2022/04/18/world-bank-slashes-global-growth-forecast-to-3point2percent-from-4point1percent-citing-ukraine-war-.html">World Bank also cut its global growth expectations</a>&nbsp;on Monday, now estimating a growth rate for 2022 of 3.2%, down from 4.1%.



<h2 class="wp-block-heading" id="h-ukraine-to-contract-35"><a></a>Ukraine to contract 35%</h2>



The United States, Canada, the U.K. and the European Union have imposed&nbsp;<a href="https://www.cnbc.com/2022/04/05/european-union-could-ban-russian-coal-imports-sources-say.html">several rounds of sanctions targeting Russian banks, oligarchs and energy</a>.



The IMF said these penalties will have “a severe impact on the Russian economy,” which estimated that the country’s GDP will fall by 8.5% this year, and by 2.3% in 2023.



However, the fund has forecast an even bleaker assessment for the Ukrainian economy.



“For 2022, the Ukrainian economy is expected to contract by 35%,” the IMF said in its latest economic assessment, while adding that more precise analysis on the economic hit was “impossible to obtain.”



“Even if the war were to end soon, the loss of life, destruction of physical capital, and flight of citizens will severely impede economic activity for many years to come,” the organization said.



<h2 class="wp-block-heading"><a></a>Inflation concerns</h2>



More broadly, Russia’s decision to invade Ukraine has intensified supply shocks to the global economy, while also bringing about new challenges.



“Russia is a major supplier of oil, gas, and metals, and, together with Ukraine, of wheat and corn. Reduced supplies of these commodities have driven their prices up sharply,” the fund said Tuesday.



This is expected to hurt lower-income households globally and lead to higher inflation for longer than previously anticipated. The IMF estimates the inflation rate will reach 7.7% in the United States this year and 5.3% in the euro zone.



“The risk is rising that inflation expectations drift away from central bank inflation targets, prompting a more aggressive tightening response from policymakers,” the fund said.



The&nbsp;<a href="https://www.cnbc.com/federal-reserve/">U.S. Federal Reserve</a>&nbsp;expects to hike interest rates six more times in 2022, while the&nbsp;<a href="https://www.cnbc.com/european-central-bank/">European Central Bank</a>&nbsp;confirmed last week it is ending its asset purchase program in the third quarter.



However, this monetary tightening could be accelerated if inflation remains high.



The latest IMF economic outlook also points to concerns about the 5 million Ukrainian refugees who have sought support in neighboring countries, such as Poland, Romania and Moldova, and the ensuing economic pressures for these nations from supporting them.

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IMF cuts global growth forecasts on Russia-Ukraine war, says risks to economy have risen sharply

NGX All Share Index up 11.2% YTD

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="770" height="513" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/IMG-20220217-WA0001.jpg" alt="" class="wp-image-416552" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/IMG-20220217-WA0001.jpg 770w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/IMG-20220217-WA0001-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/IMG-20220217-WA0001-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/IMG-20220217-WA0001-768x512.jpg 768w" sizes="auto, (max-width: 770px) 100vw, 770px" /><figcaption>A man poses as he displays the Flutterwave homepage on a mobile phone screen in Abuja, Nigeria January 21, 2020. REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



JOHANNESBURG, April 18 (Reuters)&nbsp;&#8211;&nbsp;African start-ups attracted a record $5.2 billion in venture capital last year, bouncing back from a pandemic-induced dip in 2020 with a nearly five-fold increase in investments, according to data released by an industry group on Tuesday.



The success of companies like Nigeria&#8217;s Paystack, acquired in 2020 by U.S. payments firm Stripe, and fellow fintech Flutterwave, valued at over $3 billion, has fuelled international interest in up-and-coming businesses on the continent.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2UQ313&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;African startups raised more in 2021 alone than the preceding seven years combined,&#8221; the African Private Equity and Venture Capital Association (AVCA), which promotes private investment on the continent, wrote in a report.



Much of the investor focus has been on fintech start-ups seeking to meet the needs of the continent&#8217;s largely unbanked population. The data compiled by AVCA showed the financial sector accounted for 60% of the investments by value and nearly a third of deals by volume.



<h3 class="wp-block-heading" id="h-read-more-ukraine-war-creates-woes-but-also-an-opportunity-for-africa-afdb-pres">Read more: <a href="https://www.cnbcafrica.com/2022/ukraine-war-creates-woes-but-also-an-opportunity-for-africa-afdb-pres/">Ukraine war creates woes, but also an opportunity for Africa – AfDB Pres</a></h3>



Nigeria, a hotbed of new fintech firms, was the leading destination for venture capital in Africa last year, surpassing South Africa, the continent&#8217;s most developed economy.



Most venture capital deals were concentrated in early-stage funding rounds. However, late-stage funding ballooned in 2021, including a nearly 40-fold increase in financing raised by Series C fundraising rounds.



Fintechs Chipper Cash, MFS Africa, Yoco, and OPay together raised $833 million via Series C funding rounds.



While deals of less than $1 million represented nearly a third of transactions by volume, those worth over $50 million accounted for 62% of the total value of venture capital financing in Africa last year.



(Reporting by Joe Bavier; Editing by Pravin Char)

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African startups drew record $5.2 billion in venture capital last year – industry group

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Nigeria’s ruling party APC sets presidential primaries date

LIVE: CNBC Marathon – Documentaries and deep dives 24/7

Why Food Prices Are Spiking Again

Netflix estimates 100 million households are sharing passwords and suggests a global crackdown is coming

Focus On Presco’s expansion plans, ₦50bn bond issuance program

T-Bills mute ahead of bond auction

IMF warns of further market sell-offs as central banks adjust policy

De Beers to explore for diamonds in Angola

T-Bills mixed despite ₦24bn OMO maturity

Google to set up first Africa product development centre in Nairobi

Denmark in talks with Rwanda on transfer of asylum-seekers

Highlights Special of the Public Leaders Programme

First COVID, now floods empty South Africa’s eastern beach resorts

IMF cuts global growth forecasts on Russia-Ukraine war, says risks to economy have risen sharply

NGX All Share Index up 11.2% YTD

African startups drew record $5.2 billion in venture capital last year – industry group

Game Changers: Farming into the future

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