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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-820x547.jpg" alt="" class="wp-image-405408" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/3298090388_8ea8ea9c2a_k.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Standard Bank, photo: via Flickr</figcaption></figure>



JOHANNESBURG, March 11 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s Standard Bank&nbsp;SBKJ.J&nbsp;is trying to convince the Industrial and Commercial Bank of China (ICBC)&nbsp;601398.SS&nbsp;to buy its 40% stake in their London-based joint venture, CEO Sim Tshabalala said on Friday.



Standard Bank has been trying to get out of ICBC Standard Bank (ICBCS), a relic of its failed bid to become a global emerging markets lender, for some time, but been restricted by the terms of its agreement with ICBC, which owns the other 60%.



Standard Bank could not exercise an option to sell a 20% stake back to ICBC until the Chinese bank exercised its own option to buy the other 20% from Standard Bank. But ICBC&#8217;s option has now expired, Tshabalala said during Standard Bank&#8217;s annual results presentation.



&#8220;[Discussions] have commenced to try and convince them to acquire the asset from us,&#8221; he said, adding it was not possible to say when those might conclude.



<h3 class="wp-block-heading" id="h-read-more-south-africa-s-nedbank-expects-to-meet-2023-profit-target-ahead-of-schedule">Read more: <a href="https://www.cnbcafrica.com/2022/south-africas-nedbank-expects-to-meet-2023-profit-target-ahead-of-schedule/">South Africa’s Nedbank expects to meet 2023 profit target ahead of schedule</a></h3>



Losses at ICBCS have dragged on Standard Bank&#8217;s earnings in recent years, and the venture now faces risks related to exposure to entities that are both directly and indirectly impacted by Russia&#8217;s war in Ukraine. Standard Bank said ICBCS could not yet assess the impact on its 2022 results.



Standard Bank warned that the war could also impact financial markets, trade, transport logistics, food and commodity prices on the African continent, threatening the recovery from COVID-19.



The bank itself has some&nbsp;&#8220;limited direct exposure&#8221; to Russia and Ukraine and was actively ensuring it complied with all local and international laws, it added.



It reported a 57% jump in 2021 headline earnings per share &#8211; the main profit measure in South Africa &#8211; to 1,573 cents. South Africa&#8217;s top banks have enjoyed a dramatic rebound in performance as bad debt charges related to COVID-19 have faded.



Standard Bank declared a final dividend&nbsp;of 511 cents per&nbsp;share. Its shares were up&nbsp;1% by 0925 GMT.



($1 = 15.0403 rand)



(Reporting by Emma Rumney; editing by Sherry Jacob-Phillips and Jason Neely)

Standard Bank, photo: via Flickr

South Africa’s Standard Bank in talks to exit JV with China’s ICBC

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/3GWDNGQOXFNXFLSFVBIVOM3ATM-820x547.jpg" alt="" class="wp-image-415821" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/3GWDNGQOXFNXFLSFVBIVOM3ATM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/3GWDNGQOXFNXFLSFVBIVOM3ATM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/3GWDNGQOXFNXFLSFVBIVOM3ATM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/3GWDNGQOXFNXFLSFVBIVOM3ATM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/3GWDNGQOXFNXFLSFVBIVOM3ATM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A woman reacts as she receives a booster shot vaccine against coronavirus disease (COVID-19), at a medical clinic makeshift tent to enhance the booster programme in Nairobi, Kenya, January 19, 2022. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, March 11 (Reuters)&nbsp;&#8211;&nbsp;Kenya lifted its remaining COVID-19 restrictions on Friday, including a ban on large indoor gatherings such as religious services and a requirement to present a negative COVID-19 test for arriving air passengers.



Though Kenyans should continue heeding public health measures such as handwashing and social distancing, face masks are no longer mandatory in public and all quarantine measures for confirmed COVID-19 cases are halted with immediate effect, Health Minister Mutahi Kagwe told a news conference.



For the past month the East African country&#8217;s COVID-19 test positivity rate has remained below 1%, he added, attributing this to the rising number of Kenyans opting to get vaccinated.



In November, the government announced that proof of vaccination would be required by Dec. 21 to access schools, transport, state offices, hotels, bars, restaurants, national parks and wildlife reserves. <a href="https://www.reutersconnect.com/all?search=all%3AL1N2SD134&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



<h3 class="wp-block-heading" id="h-read-more-new-covid-19-vaccine-rule-catches-many-kenyans-by-surprise">Read more: <a href="https://www.cnbcafrica.com/2021/new-covid-19-vaccine-rule-catches-many-kenyans-by-surprise/">New COVID-19 vaccine rule catches many Kenyans by surprise</a></h3>



But a court blocked the move amid uncertainty over who would police it or what to do about people unable to access vaccines. The minister did not mention the order in his remarks on Friday.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2SZ4S5&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Kenya, with a population of 54 million, has recorded less than 35 daily COVID infections over the past week, according to government statistics. About 323,000 infections, and 5,600 deaths, have been recorded throughout the pandemic&nbsp;since 2020.



Nearly 29% of Kenyan adults are fully vaccinated, more than most countries in sub-Saharan Africa.



(Reporting by Maggie Fick Editing by Mark Heinrich)

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Kenya lifts remaining COVID restrictions￼

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/article-image-1-820x429.png" alt="" class="wp-image-415816" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/article-image-1-820x429.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/article-image-1-300x157.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/article-image-1-160x84.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/article-image-1-768x402.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/article-image-1.png 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



With banks providing loans as far back as in Babylon in 1800 BC, and ‘modern’ banking coming about in the 1470s, banks have not been the fastest innovators.



However, the past 10 years has seen more advanced products and more adoption of disruptive technology than in the previous 100 years, where traditional bricks and mortar, large branch network, limited product financial institutions have given way to mobile, agile, multi-currency, e-banking, global, internet driven service providers.



And it is not only the service delivery method that has changed so dramatically, but the pace of change, sparked by the inclusive nature and tech-savvy social media generation demanding faster, more diverse, secure services.



The demand for data, information and financial services, and the technology to support vast data consumption now, has only been made possible by the advent of high-speed networks, smart phones and technology companies, translating those needs, enabling anyone, anywhere to trade international equities, bonds and derivatives, arrange a mortgage, make deposits, trade crypto currency, electronically sign and send vital documents, at the click of a button.



Whilst the past 20 years may be the era of Internet Banking, 2020 onwards has launched the decade of crypto.



As of January 2022, there were approximately 10,000 cryptocurrencies&nbsp;in existence, many created for specific purposes with solid use cases, and others as speculative investment tools with spectacular volatility, few investors and even less volume.



Always a case of buyer beware, some earlier coin offerings experienced bad press through hacking, loss of consumer confidence, no activity, price collapse and where the mere mention of blockchain sent the investment community into a frenzy.



And how times have changed, with much more consumer demand, as, like bond and equity offerings, new coins are coming to market via initial exchange and security token offerings following extended due diligence by the trading platform.



Much has been written about crypto coin volatility, with a prime example being Bitcoin with value over USD 67,000 in November 2021 and currently trading around USD 36,000. &nbsp;However, in the past, the equities markets have also produced spectacular returns and losses, albeit across different timelines and remain considered a safer haven than crypto markets



Whilst the 1929 wall street crash witnessed significant falls such as RCA common stock from $505 to $26 and DuPont from $217 to $80), black swan events have also elevated stock markets. For example, Alcoa experienced 12 month returns of 217%, and risk averse long term portfolio holders have borne fruit with Monster, with shares at 2$ in 2005, hitting $140 in 2015, and the darling of the equities market Amazon, with canny investors buying at USD 2 in the 1990s, where today they trade at USD3,500. Whilst equities still represent a more stable investment platform, crypto has captured a new imagination with a new demographic.



With an almost baffling choice of cryptocurrencies, the key issue will be the ability to seamlessly cash out of low volatility, low value stock and move in and out of fiat currency in deciding which type of coin best suits a long-term strategy.



So, with a requirement for a more stable, digital crypto instrument, the latest area of investor interest and some may say hype, is asset tokenisation. Blockchain technology remains the vital component, the mechanism and enabler to underpin crypto transactions.



Asset tokenization is where digital tokens are used to fractionalize ownership of assets. Physical items are reflected on the blockchain which manages ownership rights – and anything from property to university degrees and from gold to stocks can be tokenised, with over 500M USD already tokenized in real estate.



These tokens are created during a so-called STO (Security Token Offering), in which the real estate is essentially split up into digital, tradable assets stored on a blockchain.



The idea of fractional real estate ownership is nothing new. Since 1960, REITs (Real Estate Investment Trusts) were introduced in the United States and by pooling investors’ capital, the real estate market suddenly became much more accessible and makes it possible to invest in the underlying asset without having to buy or manage the entire property.



Fast forward to 2022 and a the advent of tokenisation, where real estate is fractionized into small pieces, namely called tokens. &nbsp;



What are the benefits? Global increases in property prices, expensive bank rates, less monetization opportunities, languishing assets earning low interest, high costs of ownership with less people able to afford current and future prices all of these can be managed, by fractionising and tokenization.



And as digital tokens on a blockchain can be securely and efficiently transferred without a middleman, trading&nbsp;of these asset-backed tokens suddenly becomes much easier and cheaper, leading to increased liquidity.



It’s easy to see why investors of all sizes are enthusiastic about this development. With a much lower market entry point with less initial investment, the global real estate market is valued at around $280 trillion, making it one of the largest, most illiquid, and non-transparent markets on earth. And post pandemic, in an era of rising costs, there are many distressed assets where such an investment approach may provide an economic lifeline to owners, and competitive opportunities for smaller investors.



One can almost imagine the scenario where an investor might be able to purchase two tokens in a block or apartments in Chennai, ten tokens of a factory in Malaysia, and three tokens of a flat in Hong Kong- all payable in coins, through a single platform.



Recognising this opportunity, Euro Exim Bank are investigating the tokenization of such assets and looking at offering several unique coins, asset backed by investment grade instruments in an easy to trade blockchain-based token.



Whilst the industry is always on the lookout for the next best thing, we believe the tokenisation projects will position the bank as a crypto provider of choice, with provenance, security, assurance, and value.



In addition to our strategy on coins and tokens, our journey towards full digitisation of documents and digitalisation of processes across the extensive trade ecosystem continues apace.



Our lofty ambitions and aspirations are to be the premier provider of trade and crypto currency services through coins and tokens, contributing to better customer experience with fast cross border payments, low transaction fees, efficient settlement, and management of platforms, will facilitate access to distributed financial services for the unbanked, ultimately enabling digital financial inclusion.



By Dr. Graham Bright, Head – Compliance and Operations, Euro Exim Bank

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What next for crypto and Asset tokenization?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-820x547.jpg" alt="" class="wp-image-415808" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MicrosoftTeams-image-8-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Black woman in an African market receiving payment via contactless transfer from a customer using their mobile phones. Photo: via Shutterstock</figcaption></figure>



An Africa-wide regulatory platform is needed to harness the continent&#8217;s potential for innovation in financial technology, according to members of the AFIS Advisory Board, a network of leading financial industry decision-makers in Africa.



Financial innovation is an extraordinary growth engine for Africa. The continent&#8217;s fintechs raised approximately $1.3 billion in investment in 2021 alone with players like OPay and Interswitch in Nigeria and Wave in Senegal reaching unicorn status (valuations of over $1 billion). Their success is based on a promise that previously seemed out of reach: to give hundreds of millions of Africans access to financial services.



Yet the rapid growth of fintechs has also raised concerns among the public and regulators alike. In Kenya, <a>one in five borrowers </a><a href="#_msocom_1">[ON1]</a>&nbsp;using fintech platforms have difficulty repaying their loans, a rate twice as high as in the conventional banking sector. In Nigeria, the National Information Technology Development Agency (NITDA) is concerned about the protection of user data and the sometimes-questionable collection practices of fintechs.



Appropriate regulation providing checks and balances while supporting these new financial players to develop is thus of paramount importance to extend financial services to the 57% of unbanked Africans. Consumer protection will be essential both to create confidence among new users of financial services and to ensure a level playing field with traditional banking players.



This is why we are convinced that it is necessary to develop a pan-African regulatory platform to keep pace with rapid technological progress. This platform, which would bring together central banks, fintechs, traditional banks and insurers, would help harmonise licensing rules in Africa, develop financial inclusion and better protect consumers.



To achieve this, we have identified several levers to activate.



<h2 class="wp-block-heading" id="h-pan-african-regulatory-platform">Pan-African regulatory platform</h2>



National central banks are the overseers of financial regulation but face ample challenges keeping pace with innovation. This is a bottleneck for fintechs, banks and insurers looking to expand financial inclusion across Africa through blockchain, P2P-lending or other emerging technologies.



The Central Bank of Morocco (Bank Al Maghrib) for instance introduced a regulatory framework for payment institutions in 2014 but has since acknowledged the rules had been unclear for fintechs hoping to break into the Moroccan market. The bank has now opened an innovation office to have an open dialogue with fintechs, helping it to explain and if needed adapt current regulation accordingly.



We see scope for a pan-African platform allowing regular discourse between financial innovators and central banks. A pan-African platform would allow central banks to abreast of financial innovation and help harmonise national regulatory frameworks. This could allow financial innovations to operate seamlessly in multiple African markets and more rapidly reach Africa’s underserved population.



Existing innovation hubs, incubators and fintech networks across the continent could be leveraged for input from startups, while associations such as the Association of African Central Banks (AACB) can help the regulators unite. The platform could also be a win for consumer protection by bringing novel technologies currently outside of central bank licensing regulations &#8211; such as mobile money lending – within its scope without harming innovation.



<h2 class="wp-block-heading">Converging sandbox regulatory frameworks</h2>



We also encourage regulatory sandboxes &#8211; permitting fintechs to test financial product innovations without regulatory constraints – to converge regionally.Regulatory sandboxes first emerged in the UK in 2015. The idea has since expanded globally and is gaining pace in Africa. Sierra Leone, Kenya, Rwanda and Mozambique were early African adopters, while Ghana this year launched a sandbox pilot and Nigeria introduced a regulatory framework. Sandboxes can be a vehicle to introduce and scale financial innovation, while offering SMEs working capital and creating an ecosystem for other players to innovate with similar products.



Yet the sandboxes emerging in a small handful of African countries have been at national level and have been slow and expensive to setup. Africa’s sandboxes also vary widely in eligibility criteria, length, and priority financial innovations. This can deter credible innovators from applying and creates a barrier for a tried and tested financial innovation coming out of a sandbox in one country to expand to another.



A regional or pan-African sandbox framework could open the possibility of cross border sandboxes arrangements, allowing an innovation to be trialled in multiple countries at once. Two years ago, the Central Bank of West African States launched a FinTech Task Force, which has among its objectives a West African sandbox spanning multiple countries. We encourage further arrangements across the continent.



<h2 class="wp-block-heading">Mobilising industry associations</h2>



The AFIS Board finally urges regulators to leverage international and pan-African industry associations to support Africa’s financial innovation infrastructure. Sandboxes, innovation hubs and incubators are cost and resource intensive for regulators and have taken significant time to roll-out in some African nations.



Cash-constrained regulatory authorities can do more to call upon African and international industry associations resources for capital and operational support. The&nbsp;Global Financial Innovation Network&nbsp;(GFIN), the Africa Fintech Network, the African Crowdfunding Association and West Africa Bankers Association are among the associations that could be mobilised.



We conclude that a pan-African regulatory platform and harmonised sandboxes, both reinforced by industry associations, will create a robust and dynamic regulatory infrastructure that can catalyse financial inclusion across the continent. Financial innovation cannot work in the long term without the confidence of both consumers and governments. The sustainable financial inclusion of hundreds of millions of Africans depends on it.



<hr class="wp-block-separator"/>



<a id="_msocom_1"></a>

Black,Woman,In,An,African,Market,Receiving,Payment,Via,Contactless

Fintech: Pan-Africa regulatory platform needed to boost financial inclusion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/MPF7BMV4R5MXDJET5ZICNYYGKY-820x547.jpg" alt="" class="wp-image-413817" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/MPF7BMV4R5MXDJET5ZICNYYGKY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/MPF7BMV4R5MXDJET5ZICNYYGKY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/MPF7BMV4R5MXDJET5ZICNYYGKY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/MPF7BMV4R5MXDJET5ZICNYYGKY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/MPF7BMV4R5MXDJET5ZICNYYGKY.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>South African President Cyril Ramaphosa addresses a press conference after the G20 Compact with Africa conference at the Chancellery in Berlin, Germany August 27, 2021. Tobias Schwarz/Pool via REUTERS/File Photo</figcaption></figure>



CAPE TOWN, March 10 (Reuters)&nbsp;&#8211;&nbsp;President Cyril Ramaphosa&nbsp;said on Thursday South Africa had been asked to mediate in the Russia-Ukraine conflict, and that he had told&nbsp;his Russian counterpart Vladimir Putin&nbsp;in a phone call it should be settled through negotiations.



Ramaphosa did not say who had made the request or give more details on how he planned to work with the two sides.



&#8220;Based on our relations with the Russian Federation and as a member of BRICS, South Africa has been approached to play a mediation role,&#8221; Ramaphosa&nbsp;said,&nbsp;referring to the emerging market group of Brazil, Russia, India, China and South Africa.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2V33WF&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



There were no immediate announcements from Moscow or Kyiv confirming South Africa&#8217;s role.



<h3 class="wp-block-heading" id="h-read-more-south-africa-sees-food-inflation-opportunity-from-russia-ukraine-war">Read more: <a href="https://www.cnbcafrica.com/2022/south-africa-sees-food-inflation-opportunity-from-russia-ukraine-war/">South Africa sees food inflation, opportunity from Russia-Ukraine war</a></h3>



Talks between Ukraine and Russia&#8217;s foreign ministers on Thursday failed to bring any respite in the conflict as hundreds of thousands of civilians remained trapped in Ukrainian cities sheltering from Russian air raids and shelling.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VD1QO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



South Africa&#8217;s ruling African National Congress has strong historical ties to the former Soviet Union, which provided training and support to anti-apartheid activists during the Cold War era.



South Africa has also tended to punch above its weight diplomatically since its relatively peaceful transition to democracy in 1994.



Ramaphosa said in a statement on his LinkedIn page he had talked with Putin by phone.



&#8220;I outlined our position on the conflict &#8230; as well as our belief that the conflict should be resolved through mediation and negotiation between the parties and &#8211; if need be &#8211; with the help of agencies that can help,&#8221; Ramaphosa said.



(Reporting by Wendell Roelf; Editing by Andrew Heavens)

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/W2O6CWZWAJNK5N5WDZVQRZKNTI-820x547.jpg" alt="" class="wp-image-415792" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/W2O6CWZWAJNK5N5WDZVQRZKNTI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/W2O6CWZWAJNK5N5WDZVQRZKNTI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/W2O6CWZWAJNK5N5WDZVQRZKNTI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/W2O6CWZWAJNK5N5WDZVQRZKNTI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/W2O6CWZWAJNK5N5WDZVQRZKNTI.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Coronavirus disease (COVID-19) treatment pill Paxlovid is seen in boxes, at Misericordia hospital in Grosseto, Italy, February 8, 2022. REUTERS/Jennifer Lorenzini</figcaption></figure>



JOHANNESBURG, March 10 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s top public health agency has agreed a memorandum of understanding with Pfizer&nbsp;PFE.N&nbsp;to&nbsp;bring supplies&nbsp;of the pharmaceutical firm&#8217;s Paxlovid antiviral COVID-19 pills&nbsp;to the&nbsp;continent, its director said on Thursday.



Data from a mid-to-late stage study in November showed Paxlovid was nearly 90% effective in preventing hospitalisations and deaths compared to placebo, in adults at high risk of severe illness.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N2SZ0UA&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



John Nkengasong, head of the Africa Centres for Disease Control and Prevention (CDC),&nbsp;also said&nbsp;it was&nbsp;still talking to Merck&nbsp;MRK.N&nbsp;about obtaining supplies of its molnupiravir COVID pill and a call was scheduled for&nbsp;this week about that.



&#8220;For the Pfizer situation, we have the MOU. The memorandum of understanding is with the legal office at the AU (African Union),&#8221; said Nkengasong. The Africa CDC is&nbsp;an AU agency.



&#8220;Once that is cleared we will formally make an announcement with Pfizer and provide details,&#8221; he told an online media briefing.



A World Health Organization panel last week backed the use of molnupiravir for high-risk patients such as the immunocompromised, the unvaccinated, older people and those with chronic diseases.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2V444L&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Merck&#8217;s pill has been in lower demand than the Pfizer medication because of comparatively low efficacy and potential safety issues for certain groups. <a href="https://www.reutersconnect.com/all?search=all%3AL1N2U81SK&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



<h3 class="wp-block-heading" id="h-read-more-dozens-of-firms-to-make-cheap-version-of-merck-covid-pill-for-poorer-nations">Read more: <a href="https://www.cnbcafrica.com/2022/africa-cdc-says-it-will-talk-to-merck-about-covid-pill-pfizer-talks-advanced/">Dozens of firms to make cheap version of Merck COVID pill for poorer nations</a></h3>



South Africa&#8217;s government has said it was not planning to buy Merck&#8217;s pill for cost reasons, despite the drug gaining approval from the country&#8217;s health regulator.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2US5AH&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Nkengasong said African countries should be using a combination of public health measures, vaccines, testing and the Pfizer and Merck treatments in their efforts to overcome the COVID-19 pandemic this year.



&#8220;These molecules have a very unique role to play in a campaign to fight against this terrible pandemic,&#8221; he said.



Nkengasong expressed a concern about countries where vaccination rates were still very low, which include most African countries, saying people should not be complacent as the virus still posed a grave risk.



&#8220;Of course the war going on in Ukraine has taken a lot of attention away from COVID, which is unfortunate because COVID has now killed close to 6 million people,&#8221; he said.



&#8220;If the deaths of 6 million people doesn&#8217;t shake us, then I don&#8217;t know what can shake us in our humanity.&#8221;



(Reporting by James Macharia Chege; Writing by Estelle Shirbon)

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-820x547.jpg" alt="" class="wp-image-415788" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GMDI47JB5VI3JGQGXZUZPHUHSM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>FILE PHOTO: A man stands on a boat as coal barges queue to be pulled along Mahakam river in Samarinda, East Kalimantan province, Indonesia, August 31, 2019. REUTERS/Willy Kurniawan</figcaption></figure>



LAUNCESTON, Australia, March 10 (Reuters)&nbsp;&#8211;&nbsp;The skyrocketing price of crude oil and natural gas in Europe in the wake of Russia&#8217;s invasion of Ukraine is grabbing the bulk of headlines, but their gains look modest compared to those of thermal coal.



While coal may be exiting the electricity sector in Europe and North America, it remains the most vital source of power generation for much of Asia.



Seaborne thermal coal prices have soared to record highs in recent sessions, with the market spooked by the potential loss of Russian cargoes, flood-related supply disruptions in Australia and the threat of another Indonesian export ban.



Futures linked to the Australian benchmark Newcastle index&nbsp;NCFMc1&nbsp;ended at $415 a tonne on Wednesday, down from the recent record high of $440 on March 2.



The contract has spiked 145% since the end of last year, with much of the gain coming since the Russian invasion of Ukraine on Feb. 24, with the price closing at $237.70 a tonne the day prior.



To put coal&#8217;s gain into perspective, benchmark Brent crude futures LCOc1 closed at $112.51 a barrel on Wednesday, up 45% from the end of last year, while Dutch natural gas TRNLTTFMc1 ended at 148 euros per megawatt hour, a gain of 115% from the last trading day in 2021.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/oil-markets-hit-multiple-milestones-after-russia-sanctions/">Oil markets hit multiple milestones after Russia sanctions</a></h3>



And it&#8217;s not just paper coal markets that are on fire, the gains have been matched by some physical trades as well, with globalCOAL reporting the sale of Newcastle coal for April at a premium of $38 a tonne to the index, and for June at a premium of $48.



South African coal, which can arbitrage between European and Asian destinations, saw a March cargo trade at a premium of $30 a tonne to the index price at the country&#8217;s Richards Bay port, according to globalCOAL.



While these prices look unsustainably high, it&#8217;s worth noting that relatively small volumes are transacted on a spot basis in the coal market.



Far more common are short- and medium-term contracts, with utilities in major seaborne buyers such as Japan and South Korea preferring to negotiate prices with miners well ahead of delivery times.



However, the surging price of spot coal will eventually be reflected in these types of contracts as well, leading to significant inflation in energy costs for countries that rely on imported fuel.



While cargoes currently being loaded and sailing will have been bought at prices well below the present level, it&#8217;s likely that from April onwards the market will have to bear the full extent of spike caused by the Ukraine crisis.



<h2 class="wp-block-heading" id="h-demand-drop-coming">DEMAND DROP COMING?</h2>



As yet, there is little sign of major demand destruction, although price sensitive buyers such as India, the world&#8217;s second-biggest coal importer, are starting to see import volumes decline.



India brought in 7.33 million tonnes of thermal coal, used for power generation, in February, up slightly from 7.08 million in January, which was the weakest month since June 2020, according to data and analytics company Kpler.



India&#8217;s thermal coal imports are more usually in a range between 10 and 15 million tonnes a month, with Indonesia, South Africa and Australia the biggest suppliers.



China&#8217;s imports of thermal coal also weakened in the first two months of 2022, with Kpler showing volumes of 10.38 million tonnes in February and 10.11 million in January, down from 19.35 million in December.



Indonesia&#8217;s short-lived export ban in January would explain much of the decline in China&#8217;s imports, but Beijing has also been working hard to get domestic miners to ramp up production in order to secure energy supplies.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/oil-prices-surge-as-russia-ukraine-crisis-escalates/">Oil prices surge as Russia-Ukraine crisis escalates</a></h3>



The question for Asia&#8217;s seaborne coal market is how quickly the current unprecedented prices will translate into demand destruction.



It&#8217;s very likely that buyers such as India, Bangladesh and Pakistan will avoid buying coal as their utilities will be massively loss-making if they paid the current price, or even half of what is right now.



Utilities in Japan and South Korea have less choice, given that the alternative of liquefied natural gas (LNG) is even more expensive on a spot basis, and the surge in crude prices will filter through to oil-linked contracts in coming months as well.



GRAPHIC-Prices of seaborne thermal coal:&nbsp;<a href="https://tmsnrt.rs/3tKJOqj" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3tKJOqj</a>



The opinions expressed here are those of the author, a columnist for Reuters.



(Editing by Kim Coghill)

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