<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="402" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1Dm0ee.jpg" alt="" class="wp-image-612268" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1Dm0ee.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1Dm0ee-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1Dm0ee-160x84.jpg 160w" sizes="auto, (max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">Nurphoto | Nurphoto | Getty Images</figcaption></figure>



The dollar has been sliding and the ripple effect on other currencies has brought a mix of relief and headache to central banks around the world.



Uncertainty about U.S. policymaking has led to a flight out of the U.S. dollar and Treasurys in recent weeks, with the dollar index weakening more than 9% so far this year. Market watchers see further declines.&nbsp;



According to Bank of America’s most recent Global Fund Manager Survey, a net 61% of participants anticipate a decline in the dollar’s value over the next 12 months — the most pessimistic outlook of major investors in almost 20 years.



The exodus from U.S. assets may reflect a broader crisis of confidence, with potential spillovers such as higher imported inflation as the dollar weakens.



The drop in the greenback has led other currencies to appreciate against it, especially safe havens such as the Japanese yen, the Swiss franc as well as the euro.



Since the start of the year, the Japanese yen has strengthened over 10% against the greenback, while the Swiss franc and the euro has appreciated about 11%, according to LSEG data.



Aside from the safe havens, other currencies that have strengthened against the dollar this year include the Mexican peso, up 5.5% against the dollar, and the Canadian dollar which has appreciated over 4%. The Polish zloty has strengthened more than 9% while and Russian rouble has appreciated over 22% against the greenback.



Some emerging market currencies, however, have depreciated despite the weakness in the greenback.



The Vietnamese dong and Indonesian rupiah weakened to a record low per U.S. dollar earlier this month. The Turkish lira also hit an all-time low last week. China’s yuan hit a record low against the dollar nearly two weeks back but has since strengthened.&nbsp;



<h2 class="wp-block-heading" id="h-breathing-room-to-cut-rates"><a></a>Breathing room to cut rates?</h2>



Barring a few exceptions like the Swiss National Bank, a weakening U.S. dollar is a relief to governments and central banks around the world, analysts told CNBC.



“Most central banks would be happy to see 10%-20% declines in the U.S. dollar,” said Adam Button, chief currency analyst at ForexLive. He added that the dollar strength has been a persistent problem for years and poses a difficulty for countries with hard and soft dollar pegs.



With many emerging market countries having large dollar-denominated debt, a weaker dollar lowers real debt burden. Additionally, a softer greenback and stronger local currency tend to make imports relatively cheaper, lowering inflation and hence allowing central banks the room to cut rates to boost growth.



The recent U.S. dollar sell-off offers more “breathing room” for central banks to cut rates, said Button.&nbsp;



While a stronger local currency might help tame inflation via cheaper imports, it complicates export competitiveness particularly under renewed U.S. tariffs where Asia is exposed as the world’s largest goods producer, said Thomas Rupf, VP Bank’s co-head for Singapore and Asia chief investment officer.



Currency devaluation is likely to be more of an active consideration across emerging markets, particularly in Asia, said Nick Rees, head of macro research at Monex Europe.



However, these emerging markets and Asian central banks will need to tread a fine line, to avoid capital flight and other risks.



“Emerging markets face high inflation, debt, and capital flight risks, making devaluation dangerous,” said Wael Makarem, financial markets strategists lead at Exness.



Additionally, devaluation could be seen by the U.S. administration as a trade measure which could attract retaliation, he added.



Emerging market economies may be reluctant to cut rates as it can affect the debt burden of domestic households and firms that have borrowed in U.S. dollars, said Fitch Ratings’ director of economics, Alex Muscatelli. A weaker domestic currency can also lead to capital outflows in response to lower interest differentials with the U.S., he added.



For example, Muscatelli does not see Indonesia’s central bank cutting rates too much given the recent currency volatility, but cited that Korea and India may have space for cutting rates.



The European Central Bank took the opportunity offered by declining inflation to cut rates by another 25 basis point at its April meeting. The ECB on Thursday said that “Most measures of underlying inflation suggest that inflation will settle at around the Governing Council’s 2% medium-term target on a sustained basis.”



Another example is the Swiss National Bank, which has grappled with a strong franc for much of the past 15 years, observed Button. Exports of goods and services make up over 75% of Switzerland’s GDP and a strong franc makes Swiss goods more expensive abroad.



“If capital continues to flow in, they may have to take drastic measures to devalue,” he said. Investors flood into the franc during times of uncertainties, such as in recent weeks, strengthening the franc.



<h2 class="wp-block-heading"><a></a>Central banks are avoiding devaluation — for now</h2>



Devaluing the currency poses the risk of stoking price growth and monetary authorities will be wary of inflation staying above their targets.



The risk of higher inflation arising from currency depreciation as well as tariffs — as countries respond to U.S. levies — are likely to make central banks reluctant to pursue a path of voluntary devaluation, said Wells Fargo’s international economist and FX strategist, Brendan McKenna.



On top of that, while most foreign central banks do theoretically have the bandwidth to weaken their own currency, the likelihood is still low in the current environment, the strategist added.



Whether a country can devalue its currency is influenced by several factors: the size of its FX reserves, exposure to foreign debt, its trade balance, and sensitivity to imported inflation.&nbsp;



“Export-oriented countries with sufficient reserves and lower reliance on foreign debt would have more room to devalue – but even those are likely to tread carefully,” said McKenna.&nbsp;



The broader direction of trade negotiations will be key to how countries choose to act. Aside from China, several countries have displayed a willingness to engage in trade negotiations, and if these talks lead to lower tariffs, then central banks will not be as likely to pursue weaker currencies, he added.



In the current geopolitical climate, devaluation could also invite retaliation and risks of accusations of currency manipulation, said VP Bank’s Rupf.



Though there is still the possibility that trade tensions could lead to more protectionist outcomes, which will drive central banks toward devaluing their currencies.



“But for now, it seems the preferred action is avoiding a currency war that would only add more instability to the local and global economy,” McKenna said.

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<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/E5GSUAFYBFMNLBT3RJYNBKBCIU.jpg" alt="" class="wp-image-610556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/E5GSUAFYBFMNLBT3RJYNBKBCIU.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/E5GSUAFYBFMNLBT3RJYNBKBCIU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/E5GSUAFYBFMNLBT3RJYNBKBCIU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/E5GSUAFYBFMNLBT3RJYNBKBCIU-768x512.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: High-tension electrical power lines are seen at the Azura-Edo Independent Power Plant (IPP) on the outskirt of Benin City in Edo state, Nigeria June 13, 2018. REUTERS/Akintunde Akinleye/File Photo</figcaption></figure>



LAGOS, April 17 (Reuters)&nbsp;&#8211;&nbsp;Nigeria has achieved a 35% reduction in electricity subsidies following a tariff increase implemented last year for some users, Power Minister Adebayo Adelabu said on Thursday, easing some pressure on public finances in Africa&#8217;s most populous nation.



Nigeria&#8217;s power sector is burdened by a failing grid, gas shortages, high debt and vandalism, leading to a reliance on expensive generators for many.



The country was spending nearly 200 billion naira ($125.01 million) monthly on electricity subsidies because existing tariffs were not commercially viable.



The government last year eliminated subsidies for the 15% of customers classified as heavier users, including households and businesses consuming larger amounts of electricity.



Adelabu told a press briefing in Abuja that this targeted tariff adjustment has yielded significant results, with &#8220;the market generating an additional 700 billion naira in revenue, reflecting a 70% increase&#8221;.



This has helped alleviate the substantial financial strain on public finances, improve generation, and reduce the government&#8217;s tariff shortfall from 3 trillion naira to 1.9 trillion naira.



But the power sector still faces deep-rooted challenges. The country has an installed capacity of 13,000 megawatts, but typically produces only about a third of that, exacerbating the reliance on costly alternatives.



This situation is compounded by state-controlled power tariffs that have historically been too low for distribution companies to cover their costs and pay generating companies, leading to ballooning debts within the sector.



Debt owed to power generating companies has reached 4 trillion naira ($2.50 billion), prompting threats of plant shutdowns.



Adelabu said there were plans underway to help ease the debt burden, with the government intending to pay half of the debt this year through budgetary allocations and promissory notes that companies can discount as needed.



($1 = 1,599.8300 naira)



(Reporting by Isaac Anyaogu; Editing by Frances Kerry)

FILE PHOTO: High-tension electrical power lines are seen at the Azura-Edo IPP on the outskirt of Benin City

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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/2025/04/SVTODISKMNMFVOIO35WWZLCT7E-820x547.jpg" alt="" class="wp-image-610507" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/SVTODISKMNMFVOIO35WWZLCT7E-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/SVTODISKMNMFVOIO35WWZLCT7E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/SVTODISKMNMFVOIO35WWZLCT7E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/SVTODISKMNMFVOIO35WWZLCT7E-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/SVTODISKMNMFVOIO35WWZLCT7E-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/SVTODISKMNMFVOIO35WWZLCT7E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A logo is seen at the entrance of the building of the Bank of Botswana in the capital Gaborone in Botswana, November 26, 2015. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



GABORONE, April 17 (Reuters) &#8211; Botswana&#8217;s central bank kept its monetary policy rate unchanged for the fourth meeting in a row at 1.90% in a decision announced on Thursday.



Inflation in the Southern African country edged up to 2.8% year-on-year in March from 2.7% a month earlier.



The Bank of Botswana prefers inflation between 3% and 6% in the medium term.



(Reporting by Brian Benza and Bhargav Acharya; Writing by Tannur Anders; Editing by Sharon Singleton)

A logo is seen at the entrance of the building of the Bank of Botswana in the capital Gaborone in Botswana

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<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/TK6CHSZXDJPLLBYFHHDN2UBZGY.avif" alt="" class="wp-image-596859"/><figcaption class="wp-element-caption">South Africa&#8217;s Finance Minister Enoch Godongwana delivers his 2025 budget speech in Cape Town, South Africa, March 12, 2025. REUTERS/Esa Alexander/File Photo</figcaption></figure>



JOHANNESBURG, April 17 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s finance minister has said that failing to raise the value-added tax rate from May would cause severe harm to state finances, court papers showed, after a stand-off over the proposal risked the stability of the coalition government.



The two biggest parties in the coalition government, the African National Congress and the Democratic Alliance have been at odds over the proposal to raise VAT by 0.5 percentage points on May 1 and another 0.5 points next year.



VAT is currently at 15%.



In response to the pro-business DA challenging the legality of the VAT hike plan in court, Finance Minister Enoch Godongwana argued that any delay or removal of the VAT hike would have dire consequences on the country&#8217;s finances.



&#8220;If the rate increase is halted now, that revenue will be lost, and the state will be left without the funds needed to meet already-budgeted spending commitments,&#8221; Godongwana said in papers lodged with the court on Wednesday.



&#8220;The consequences would be severe and far-reaching. Government would be immediately forced either to cut expenditure or to increase borrowing.&#8221;



Lawmakers have the power to amend or withdraw the impending VAT hike through upcoming budget votes.



Some smaller political parties have put forward proposals that would include deeper expenditure cuts instead of a VAT hike.



Local news headlines last weekend had suggested the ANC was likely to drop its insistence on a VAT hike this year after indications that none of the parties it had been talking to would support it.



Godongwana also conceded on state broadcaster SABC on Wednesday that wrangling over a 0.5 percentage point increase in VAT might not be in the broader public interest.



South Africa&#8217;s National Treasury estimates that raising VAT will generate about 13.5 billion rand in additional revenue for the 2025/26 financial year.



(Reporting by Tannur Anders and Kopano Gumbi; Editing by Alison Williams)

TK6CHSZXDJPLLBYFHHDN2UBZGY

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<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4896" height="3264" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/Q3NXJVS5NBOAXBD3CUPARMV36I.avif" alt="" class="wp-image-610485"/><figcaption class="wp-element-caption">Miners process fine dust and soil as they search for gold at a miners settlement in Anka, Zamfara, Nigeria. April 21, 2016, REUTERS/Afolabi Sotunde/File Photo</figcaption></figure>



ABUJA, April 17 (Reuters)&nbsp;&#8211;&nbsp;Nigeria and South Africa have signed an accord to boost cooperation in mining, Nigeria&#8217;s mines minister said on Thursday, highlighting Abuja&#8217;s push to diversify its economy away from oil.



Mines Minister Dele Alake said the two countries will partner on mining, including geological mapping using drones, share mineral data, and jointly explore agro and energy minerals in Nigeria.



Besides oil, Nigeria is also rich in gold, limestone, lithium, iron ore and zinc. Nigeria has around 23 mineral deposits in commercial quantities.



Nigeria is seeking to revamp a mining sector that has long been underdeveloped, contributing less than 1% to its gross domestic product.



South Africa&#8217;s established mining expertise makes it a key partner in this effort, Alake said.



(Reporting by Camillus Eboh; Editing by Elisha Bala-Gbogbo and David Evans)

Q3NXJVS5NBOAXBD3CUPARMV36I

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<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="718" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/BTMAPI2PDRK5HKOIM4OI44VDUI.avif" alt="" class="wp-image-610467"/><figcaption class="wp-element-caption">Members of the Kimasas cooperative society, accused by Eastern Produce Kenya (EPK) of invading the Sitoi Tea Estate causing substantial financial losses to the company, pluck tea leaves at a plantation in Mosine village of Nandi County, Kenya, January 22, 2025. REUTERS/Monicah Mwang</figcaption></figure>



NANDI HILLS, Kenya, April 17 (Reuters) &#8211; A dispute between a British-owned tea plantation and a local community in western Kenya has come to the boil in what could be a sign of turbulent times ahead for tea producers facing a growing backlash over colonial-era injustices.



On the rolling green hills of the Sitoi estate in Nandi County, more than 100 residents are occupying 350 acres (140 hectares) of land, picking tea and living in huts made of mud and rusty iron sheets while grazing their cattle.



They say the land was gifted to them in 1986 by Eastern Produce Kenya. EPK, which is majority owned by London-listed Camellia Plc, says the gift was for 202 acres (82 hectares), not the 550 acres (222 hectares) that the local Kimasas farmers&#8217; cooperative claims.



Kimasas chairman Daniel Biwott said his grandfather lived on the land before it was seized by British colonists around 1905 and that reclaiming the disputed 350 acres would right a historical wrong.



&#8220;Nothing has happened all these years,&#8221; said Biwott, standing among knee-high bushes where he, his father and his grandfather once worked as EPK employees. &#8220;This is the time to solve it.&#8221;



The standoff follows several violent incidents at estates in Kenya, the world&#8217;s fourth-leading tea producer. In January, a farm belonging to Sri Lankan-owned Browns Plantations was attacked and more than 100 eucalyptus trees uprooted, according to the Kenya Tea Growers Association (KTGA).



The industry group said in a statement that &#8220;criminal gangs who appear to enjoy political cover&#8221; were behind the &#8220;Zimbabwe-like illegal land invasion&#8221; of Sitoi, referring to seizures of white-owned farms in the early 2000s.



It said EPK was losing over $200,000 per month and the incidents threaten an industry that accounts for nearly a quarter of Kenya&#8217;s export revenues and supports 5 million livelihoods.



Several people working on land issues said the attacks reflect broader frustration with a failure to remedy colonial land grabs.



&#8220;I have tried hard to use the legal system,&#8221; said Joel Kimutai Bosek, a lawyer who has brought litigation against tea companies and the UK government on behalf of local communities without success. &#8220;I think the new or coming generation will be more aggressive.&#8221;



<h2 class="wp-block-heading" id="h-few-remedies">FEW REMEDIES</h2>



During the colonial era from 1895-1963, British authorities seized vast tracts of land, much of which became tea plantations, according to a 2021 U.N. report.



Awareness of historical injustices has grown since 2010, when Kenya established the National Land Commission (NLC) to address the issue, said Samuel Tororei, who was a commissioner until 2019.



But Tororei said the commission&#8217;s effectiveness was undermined by its limited mandate and an &#8220;unholy marriage&#8221; between tea companies and political elites.



Under Kenya&#8217;s 2010 constitution, tea companies&#8217; previous 999-year leases were reduced to 99 years but activists complain the government has not used its ownership of the land to extract meaningful concessions&nbsp;in land or money for local communities.



&#8220;The underlying cause of tension is that you have overseas owners of large-scale plantations which are based on land that was taken from the community,&#8221; said Guy Chambers, managing director from 2015-2022 of Britain&#8217;s James Finlay, which had tea estates in Kenya until 2023.



Kenyan government spokespeople did not respond to requests for comment. The companies say they comply with Kenyan law&nbsp;and accuse some politicians of exploiting historical tensions to undermine their land tenures and advance personal business interests.



Other community attempts to reclaim land have yielded little. Legal options are constrained by statutes of limitations and official immunities, the U.N. report said.



The private equity firm Chambers runs and a community group in the tea-growing county of Kericho jointly bid last year for estates belonging to CVC Capital-owned CVC Lipton in an arrangement that would have fully transferred control to the community within two decades.



Lipton eventually sold to Browns. A spokesperson for Lipton said it chose the best bidder who could help raise standards in the industry. Browns did not respond to a request for comment.



In a 2019 report, the NLC called on the British government to apologise to communities in Kericho and provide reparations.



The British government has not directly responded to that call. Asked for comment, the Foreign, Commonwealth &amp; Development Office said: &#8220;We are concerned by the attacks on tea farms in Nandi and are in contact with the Kenyan authorities.&#8221;



<h2 class="wp-block-heading" id="h-dangerous-precedent">&#8216;DANGEROUS PRECEDENT&#8217;</h2>



EPK first acquired land in Nandi in 1948. It said the current dispute is not over a historical land injustice but rather a gift made on a &#8220;willing donor, willing donee basis&#8221;.



The NLC found in 2019 that all 550 acres belonged to Kimasas. EPK contested that in court, saying Kimasas&#8217; evidence was forged.



As litigation proceeded, more than 200 people,&nbsp;including a national lawmaker from the area,&nbsp;overran the disputed plot on August 3, 2023 and began plucking tea. A court issued an injunction the following day, ordering them to leave.



Most did, but many then returned. In January, squatters attacked a company car and employees, EPK said.



The company said police have not enforced the injunction, while the public prosecutor&#8217;s office told it that any prosecutions risked interfering with the civil case.



&#8220;If we allow this kind of situation where the younger generations now start saying they don&#8217;t have enough and they want more, then it is a dangerous precedent that should be stopped at all costs,&#8221; said EPK general manager Peter Goin.



The police and prosecutor&#8217;s office did not respond to requests for comment. Biwott said Kimasas felt justified occupying the land because there was no final ruling against it.



(Reporting by Jefferson Kahinju, Aaron Ross and Monicah Mwangi; Editing by Giles Elgood)

BTMAPI2PDRK5HKOIM4OI44VDUI

Kenya land standoff sends warning to foreign-owned tea estates

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-820x547.jpg" alt="" class="wp-image-505639" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-768x513.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1161864863-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A South African one rand coin sits on South African rand banknotes in this arranged photograph in Pretoria, South Africa, on Wednesday, Aug. 14, 2019. The rand ended a tumultuous week on a positive note, gaining against the dollar for a second day and heading for its first weekly advance in four as technical indicators suggested recent declines are overdone. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, April 17 (Reuters) &#8211; South Africa&#8217;s rand weakened early on Thursday against a firmer dollar, as markets awaited information on U.S. tariffs and local investors looked for news on the future of the coalition government.



At 0635 GMT, the rand traded at 18.8550 against the U.S. dollar, about 0.2% weaker than its previous close.



The dollar last traded about 0.3% stronger against a basket of currencies.



&#8220;Ahead of the Easter long weekend, investors will be reluctant to take on any significant market position. There are so many daily changes that doing so would be risky,&#8221; ETM Analytics said in a research note.



U.S. President Donald Trump met with Japanese officials on Wednesday, in one of the first rounds of face-to-face talks since his tariffs on most countries roiled markets and stoked recession fears.



Markets were also processing comments from Federal Reserve Chair Jerome Powell, who warned of the risk of slowing growth and rising prices due to tariffs.



Like other risk-sensitive currencies, the rand takes direction from global drivers such as U.S. economic policy in addition to domestic factors.



Local investors will eye developments around a budget stand-off between the two biggest parties in the coalition government, the African National Congress (ANC) and the Democratic Alliance (DA), over a proposed value-added tax (VAT) hike on May 1.



The pro-business DA voted against the budget&#8217;s fiscal framework in parliament and is challenging the VAT hike in court, raising concerns among investors over the stability of the coalition government.



&#8220;All of (South Africa&#8217;s) domestic political developments are not taking place in isolation. On the contrary, if left unresolved, they may compound an already uncertain international environment,&#8221; ETM Analytics said.



&#8220;The ZAR is therefore expected to trade cautiously with one eye on local developments and the other on the performance of the USD.&#8221;



South Africa&#8217;s benchmark 2030 government bond was firmer in early deals, with the yield down 2 basis points to 9.16%.



(Reporting by Tannur Anders; Editing by Jamie Freed)

South African Rand Rebound Snaps Streak of Weekly Losses

South African rand weaker as markets await tariff, local government news

<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>



NAIROBI, April 17 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



Asian stocks wavered on Thursday after Federal Reserve Chair Jerome Powell warned of the risk of slowing growth and rising prices due to tariffs, while the uncertainty around U.S. trade policies kept the dollar rooted near three-year lows.



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



Oil prices extended gains on Thursday on the prospect of tighter supply after Washington imposed further sanctions to curb Iranian oil trade and as some OPEC producers pledged more output cuts to compensate for pumping above agreed quotas.



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



South African assets firmed on Wednesday as uncertainty around U.S. tariffs lifted gold prices to record highs and depressed the dollar.



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



The Kenyan shilling was marginally stronger against the dollar on Wednesday, LSEG data showed.



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



The Central Bank of Kenya (CBK) will lift a decade-long moratorium on licensing new commercial banks on July 1, it said on Wednesday.



<h2 class="wp-block-heading" id="h-kenya-roads-funding">KENYA ROADS FUNDING</h2>



Kenya has received $600 million in short-term financing from commercial banks, backed by the country&#8217;s fuel levy collections from motorists, the finance minister said on Wednesday, to fund construction of roads in the face of budgetary constraints.



<h2 class="wp-block-heading" id="h-mali-economy">MALI ECONOMY</h2>



The IMF on Wednesday said it would release $129 million to Mali from its Rapid Credit Facility that will help the country address balance of payment needs following floods there.



<h2 class="wp-block-heading" id="h-gambia-economy">GAMBIA ECONOMY</h2>



The International Monetary Fund and Gambian authorities reached a staff-level agreement that would give the West African nation access to part of $100.9 mln in funding approved in 2024, the IMF said in a statement.



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



Ghana has assumed operational control of Gold Fields&#8217; Damang mine after it rejected an application from the South African company to renew its lease, the government said on Wednesday, breaking a tradition of automatically renewing licenses and calling it a critical step in the country&#8217;s &#8220;economic reset.&#8221;



<h2 class="wp-block-heading" id="h-namibia-central-bank-rate">NAMIBIA CENTRAL BANK RATE</h2>



Namibia&#8217;s central bank held its main interest rate on Wednesday, citing heightened global policy uncertainty as it raised its inflation forecasts for this year and next.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on April 17

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="410" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-820x410.jpeg" alt="" class="wp-image-610430" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-820x410.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-300x150.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-160x80.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-768x384.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828.jpeg 884w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Dilara Irem Sancar | Anadolu | Getty Images</figcaption></figure>



China last week announced it was done retaliating against U.S. President Donald Trump’s tariffs, saying any further increases by the U.S. would be a “joke,” and Beijing would “ignore” them.



Instead of continuing to focus on tariffing goods, however, China has chosen to resort to other measures, including steps targeting the American services sector.



Trump has jacked up U.S. levies on select goods from China by up to 245% after several rounds of tit-for-tat measures with Beijing in recent weeks. Before calling it a “meaningless numbers game,” China last week imposed additional duties on imports from the U.S. of up to 125%.



While the Trump administration has largely focused on pressing ahead with tariff plans, Beijing has rolled out a series of non-tariff restrictive measures including widening export controls of rare-earth minerals and opening antitrust probes into American companies, such as pharmaceutical giant DuPont and IT major Google.



Before the latest escalation, in February Beijing had put dozens of U.S. businesses on a so-called “unreliable entity” list, which would restrict or ban firms from trading with or investing in China. American firms such as PVH, the parent company of Tommy Hilfiger, and Illumina, a gene-sequencing equipment provider, were among those added to the list.



Its tightening of exports of critical mineral elements will require Chinese companies to secure special licenses for exporting these resources, effectively restricting U.S. access to the key minerals needed for semiconductors, missile-defense systems and solar cells.



In its latest move on Tuesday, Beijing went after Boeing — America’s largest exporter — by ordering Chinese airlines not to take any further deliveries for its jets and requested carriers to halt any purchases of aircraft-related equipment and parts from U.S. companies, according to Bloomberg.



Having deliveries to China cut off will add to the cash-strapped plane maker’s troubles, as it struggles with a lingering quality-control crisis.



In another sign of growing hostilities, Chinese police issued notices for apprehending three people they claimed to have engaged in cyberattacks against China on behalf of the U.S. National Security Agency.



Chinese state media, which published the notice, urged domestic users and companies to avoid using American technology and replace them with domestic alternatives.



“Beijing is clearly signaling to Washington that two can play in this retaliation game and that it has many levers to pull, all creating different levels of pain for U.S. companies,” said Wendy Cutler, vice president at Asia Society Policy Institute.



“With high tariffs and other restrictions in place, the decoupling of the two economies is at full steam,” Cutler said.



<h2 class="wp-block-heading" id="h-targeting-trade-in-services"><a></a>Targeting trade in services</h2>



China is seen by some as seeking to broaden the trade war to encompass services trade — which covers travel, legal, consulting and financial services — where the U.S. has been running a significant surplus with China for years.



Earlier this month, a social media account affiliated with Chinese state media Xinhua News Agency, suggested Beijing could impose curbs on U.S. legal consultancy firms and consider a probe into U.S. companies’ China operations for the huge “monopoly benefits” they have gained from intellectual-property rights.



China’s imports of U.S. services surged more than 10-fold to $55 billion in 2024 over the past two decades, according to Nomura estimates, driving U.S. services trade surplus with China to $32 billion last year.



Last week, China said it would reduce imports of U.S. films and warned its citizens against traveling or studying in the U.S., in a sign of Beijing’s intent to put pressure on the U.S. entertainment, tourism and education sectors.



“These measures target high-visibility sectors — aviation, media, and education — that resonate politically in the U.S.,” said Jing Qian, managing director at Center for China Analysis.



While they might be low on actual dollar impact given the smaller scale of these sectors, “reputational effects — such as fewer Chinese students or more cautious Chinese employees — could ripple through academia and the tech talent ecosystem,” he added.



Nomura estimates $24 billion could be at stake if Beijing significantly step up restrictions on travel to the U.S.

108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828

China targets U.S. services and other areas as it decries ‘meaningless’ tariff hikes on goods

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3834" height="2402" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/5OMVZV4VZBNBNI3UP6TQZXKT2M.avif" alt="" class="wp-image-583183"/><figcaption class="wp-element-caption">A general view shows people walking past the Central Bank of Kenya headquarters building along Haile Selassie avenue in Nairobi, Kenya October 9, 2017. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, April 16 (Reuters)&nbsp;&#8211;&nbsp;The Central Bank of Kenya (CBK) will lift a decade-long moratorium on licensing new commercial banks on July 1, it said on Wednesday.



The prohibition was imposed in 2015 against a backdrop of governance, risk management and operational challenges, the central bank said in a statement.



&#8220;Since then, significant strides have been made in strengthening the legal and regulatory framework for Kenya&#8217;s banking sector,&#8221; the CBK said.



A tenfold increase in the minimum core capital requirements for commercial banks to 10 billion Kenyan shillings ($77 million), which was introduced last December, will further strengthen the sector, the bank said.



($1 = 129.3500 Kenyan shillings)



(Reporting by Duncan Miriri; Writing by Hereward Holland)

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home

As the dollar falters, the world’s central banks tread a tightrope — devalue their currency or not

Why the U.S. has a shortage of air traffic controllers

Crypto’s future is built on principles, not price, says Cardano founder.

Why Bath And Body Works Is One Step Ahead Of Trump’s Tariffs

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Nigeria cuts electricity subsidies by 35% after tariff hike

Will Trump’s tariffs cause the next recession?

Botswana central bank holds main interest rate at 1.90%

South Africa finance minister says dropping VAT hike would have severe consequences

Nigeria signs minerals pact with South Africa in diversification push

Kenya land standoff sends warning to foreign-owned tea estates

South African rand weaker as markets await tariff, local government news

African Markets – Factors to watch on April 17

China targets U.S. services and other areas as it decries ‘meaningless’ tariff hikes on goods

Kenya’s cenbank to lift moratorium on new commercial bank licenses

News Tips

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