<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-820x547.jpg" alt="" class="wp-image-550863" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/GettyImages-1569339526-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A line of trucks along the N4 national highway, wait to cross South Africa&#8217;s border into Mozambique, on the outskirts of Komatipoort, South Africa, on Friday, July 14, 2023. An often impenetrable logjam of trucks laden with coal at South Africa&#8217;s crossing with Mozambique has brought chaos to the sleepy border town Komatipoort. Photographer: Leon Sadiki/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Nov 6 (Reuters) &#8211; South Africa has temporarily closed its main border crossing with Mozambique over safety concerns, its government news agency said on Wednesday, as protests against last month&#8217;s disputed election in Mozambique continue to escalate.



South Africa has closed the Lebombo port of entry in its Mpumalanga province after receiving reports of vehicles being torched on the Mozambican side, the government news agency said.



&#8220;Due to these security incidents and in the interest of public safety, the port has been temporarily closed until further notice,&#8221; it quoted Michael Masiapato, the commissioner of the Border Management Authority as saying on Tuesday night.



Masiapato said the border authority would reopen the Lebombo crossing as soon as it was safe to do so.



The latest protests in Mozambique are part of a week of demonstrations called by presidential candidate Venancio Mondlane, who came second in official results for the Oct. 9 election but claims to have won.



The protests are set to culminate in a &#8220;national shutdown&#8221; and march on the capital Maputo on Thursday.



At least 10 people have been killed and scores injured in protests in which demonstrators have burned tires, blocked roads and marched to offices of the ruling party, Frelimo. Authorities have responded with tear gas and live ammunition, according to human rights groups, and restricted access to the internet.



The electoral commission has declined to comment on opposition allegations of fraud, while Frelimo has not replied to requests for comment.



(Reporting by Bhargav Acharya and Sisipho Skweyiya in Johannesburg and Manuel Mucari in Maputo; Editing by Alexander Winning and Ros Russell)

Global Demand for Coal Is Bringing Mayhem to South African Border Town

South Africa closes main border with Mozambique as post-election protests escalate

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ADDMXWU7SBNXBLLKVIVC7QKI2I-820x547.jpg" alt="" class="wp-image-550050" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ADDMXWU7SBNXBLLKVIVC7QKI2I-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ADDMXWU7SBNXBLLKVIVC7QKI2I-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ADDMXWU7SBNXBLLKVIVC7QKI2I-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ADDMXWU7SBNXBLLKVIVC7QKI2I-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ADDMXWU7SBNXBLLKVIVC7QKI2I-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/ADDMXWU7SBNXBLLKVIVC7QKI2I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Botswana opposition leader Duma Boko smiles, after his party UDC won the general election, outside his home in Gaborone, Botswana November 1, 2024 REUTERS/Thalefang Charles</figcaption></figure>



GABORONE, Nov 1 (Reuters) &#8211; Botswana&#8217;s new president, Duma Boko, said on Friday he wanted to conclude talks for a new sales pact with global diamonds giant De Beers as soon as possible.



De Beers, a unit of mining company Anglo American&nbsp;AAL.L, last year agreed a new diamond sales pact, which would see the government&#8217;s share of diamonds from the Debswana joint venture gradually increase to 50% over the next decade. Debswana Diamond Company, equally owned by Botswana and De Beers, currently sells 75% of its output to De Beers.



Although the Botswana government and the country&#8217;s outgoing president, Mokgweetsi Masisi, touted the merits of the deal, it has yet to be signed.



Boko, who took office on Friday after an election that dealt a stinging defeat to Masisi&#8217;s party, said De Beers had been &#8220;considering walking away, not signing at all &#8230; (a) very dangerous position to be in as a country.&#8221;



&#8220;The relationship with De Beers could have been damaged by the way the negotiations were handled,&#8221; he said in a televised statement. &#8220;The first thing that needs to be done is to engage the other party.&#8221;



Boko added that his new administration wants to engage with De Beers to understand its concerns.



&#8220;A proper negotiation involves compromise, where you get a bit of what you wanted, the other person gets a bit,&#8221; he said. &#8220;Then &#8230; you have a durable, sustainable agreement.&#8221;



In an emailed comment, a De Beers spokesperson said: &#8220;We will continue to work with Botswana&#8217;s Government in support of shared objectives, as we always have.&#8221;



Anglo American is looking to divest De Beers as part of a broader restructuring of its sprawling business. Masisi had said in July the Botswana government may raise its shareholding in De Beers from its current 15%.



Anglo American&#8217;s process could become easier now that the election in Botswana has been concluded, diamond mining industry analyst Paul Zimnisky said.



&#8220;Diamonds by far represent the most important industry for Botswana, so this has to be one of the front and centre issues for the (new) president,&#8221; Zimnisky said. &#8220;I would expect to see progress on this front now.&#8221;



Like other luxury goods, diamond prices have been hammered by a slump in global demand. Sales of rough diamonds at Debswana fell about 52% in the first nine months of 2024, according to data released by Botswana&#8217;s central bank on Tuesday.



(Reporting by Brian Benza in Gaborone, Felix Njini in Johannesburg, Clara Denina in LondonEditing by Mark Potter, Ros Russell and Frances Kerry)

Botswana opposition leader Duma Boko

Botswana’s new president aims to clinch De Beers diamond sales pact soon

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/M7TCAQPVXRPFFGPEYDQ3ZMQKT4-820x547.jpg" alt="" class="wp-image-548965" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/11/M7TCAQPVXRPFFGPEYDQ3ZMQKT4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/M7TCAQPVXRPFFGPEYDQ3ZMQKT4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/M7TCAQPVXRPFFGPEYDQ3ZMQKT4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/M7TCAQPVXRPFFGPEYDQ3ZMQKT4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/M7TCAQPVXRPFFGPEYDQ3ZMQKT4-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/11/M7TCAQPVXRPFFGPEYDQ3ZMQKT4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People wait to cast their votes in the 2024 general elections in Morwa village near Gaborone, Botswana October 30, 2024. REUTERS/Thalefang Charles</figcaption></figure>



GABORONE, Nov 1 (Reuters) &#8211; Botswana&#8217;s voters delivered a shock defeat to the party that has ruled them for nearly six decades, registering their anger over economic stagnation linked to a decline in the diamond trade by handing victory to opposition presidential candidate Duma Boko.



The 54-year-old, of the Umbrella for Democratic Change (UDC) coalition, will replace President Mokgweetsi Masisi, who on Friday conceded defeat after his Botswana Democratic Party (BDP) lost by a landslide for the first time in 58 years.



&#8220;From tomorrow&#8230; I will start the process of handover,&#8221; Masisi said in an audio clip of his phone call to Boko, which the outgoing leader posted on social media, signalling a smooth power transition.



&#8220;You can count on me to always be there to provide whatever guidance you might want &#8230; We will retreat to being a loyal opposition.&#8221;



Boko has yet to speak publicly on the outcome. Chief Justice Terence Rannowane officially declared him the victor: &#8220;I have the honour and privilege to declare him as elected president of Botswana. I congratulate you profoundly for the confidence that the people have shown in you.&#8221;



Analysts blamed mounting economic grievances, particularly among young people, for the downfall of the BDP, which has governed the southern African state of around 2.5 million people since independence from Britain in 1966.



Like many African countries, Botswana&#8217;s economy has largely depended on the export of a single commodity &#8211; in its case, diamonds.



Unlike many, its leaders have largely resisted the urge to steal or squander their commodity windfall, instead spending it on health, education and social welfare. Botswana&#8217;s GDP per capita was $7,250 in 2023 &#8211; compared with an average for sub-Saharan Africa of $4,800, World Bank data shows.



But a downturn in the global diamond market caused economic growth to plummet this year to a projected 1%, while unemployment rose to 28%.



Botswana is the world&#8217;s top producer by value of diamonds, and the government owns a 15% stake in diamond giant De Beers, a unit of Anglo American Masisi last year negotiated a bigger share of its raw diamonds with the company.



Boko has not indicated that he would want to change the deal.



<h2 class="wp-block-heading" id="h-nothing-to-offer">&#8216;NOTHING TO OFFER&#8217;</h2>



State television showed that based on results from 55 of 61 constituencies, the UDC had won 32 seats in parliament, one more than it needed for a majority. The largest party chooses the president. The BDP was in last place out of four parties, with only four seats.



&#8220;After 58 years in power (the BDP) didn&#8217;t have anything new to offer,&#8221; said analyst Ringisai Chikohomero of the Pretoria-based Institute for Security Studies.



The UDC, by contrast, put forward ambitious policy proposals, he said. It pledged to more than double the minimum wage, improve social services and create a more independent judiciary, among other measures.



The capital Gaborone was calm on Friday morning, with small groups of opposition supporters celebrating in the streets.



&#8220;I did not ever think I would witness this change in my life,&#8221; 23-year-old student Mpho Mogorosi said. &#8220;The BDP had stayed too long &#8230;&nbsp;and I am proud to be part of the people that removed them.&#8221;



The BDP was the second long-ruling party in southern Africa to lose its majority at the polls this year, after South Africa&#8217;s African National Congress failed to&nbsp;win&nbsp;more than half&nbsp;of&nbsp;votes for the first time in 30 years.



Neighbouring Namibia will hold elections later this month in which the ruling SWAPO party, which has governed since 1990, is also expected to face a stiff challenge.



&#8220;The outcome of Botswana&#8217;s elections should serve as a warning to long-time ruling parties across southern Africa and beyond that without economic progress and employment opportunities, political dominance will falter,&#8221; said Zaynab Hoosen, an Africa analyst at consultancy Pangea-Risk.



(Reporting by Brian Benza; Additional reporting and writing by Nellie Peyton; Editing by Alexander Winning, Tim Cocks and Ros Russell)

Botswana elections

Botswana voters kick out ruling party of nearly six decades

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="519" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YX4EF366PZJ6DATJS63AYICHNE-820x519.jpg" alt="" class="wp-image-548287" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YX4EF366PZJ6DATJS63AYICHNE-820x519.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YX4EF366PZJ6DATJS63AYICHNE-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YX4EF366PZJ6DATJS63AYICHNE-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YX4EF366PZJ6DATJS63AYICHNE-768x487.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YX4EF366PZJ6DATJS63AYICHNE-1536x973.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YX4EF366PZJ6DATJS63AYICHNE.jpg 1940w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People walk past a logo of the Bank of Namibia at the company&#8217;s headquarters in Windhoek, Namibia, February 24, 2017. REUTERS/Siphiwe Sibeko</figcaption></figure>



WINDHOEK, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;Namibia&#8217;s economy is expected to grow 3.6% this year and 5.4% in 2025, its Finance Minister Iipumbu Shiimi said on Wednesday.



In February the finance ministry had estimated growth of 4% in 2024 and 3.9% next year.



&#8220;The revisions stem primarily from expected lower output from the mining and agriculture sectors which have been negatively affected by low global demand for diamonds as well as the ongoing drought,&#8221; Shiimi told parliament in a mid-year budget review speech.



(Reporting by Nyasha Nyaungwa; Writing by Bhargav Acharya; Editing by Alexander Winning)

People walk past a logo of the Bank of Namibia at the company’s headquarters in Windhoek

Namibia lowers economic growth forecast for 2024

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="519" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Q4QLBJ76NFICPHLWXFISVW2TCA-820x519.jpg" alt="" class="wp-image-548213" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Q4QLBJ76NFICPHLWXFISVW2TCA-820x519.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Q4QLBJ76NFICPHLWXFISVW2TCA-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Q4QLBJ76NFICPHLWXFISVW2TCA-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Q4QLBJ76NFICPHLWXFISVW2TCA-768x486.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Q4QLBJ76NFICPHLWXFISVW2TCA-1536x973.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Q4QLBJ76NFICPHLWXFISVW2TCA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Diamonds are displayed during a visit to the De Beers Global Sightholder Sales (GSS) in Gaborone, Botswana November 24, 2015. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



GABORONE, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;Sales of rough diamonds at the Debswana Diamond Company fell about 52% in the first nine months of 2024, data released by Botswana&#8217;s central bank on Tuesday showed, as the downturn in the global diamond market persisted.



Debswana, equally owned by Botswana and Anglo American Plc&#8217;s&nbsp;AAL.L&nbsp;De Beers, sells 75% of its output to De Beers, with the balance taken up by the state-owned Okavango Diamond Company (ODC).



Last year, Botswana and De Beers agreed to a new 10-year diamond sales agreement, where ODC will receive 30% of Debswana&#8217;s produce and this will be scaled up to 50% by the end of the new contract.



In the first three quarters of the year up to September, Debswana had sold diamonds worth $1.53 billion compared to $3.19 billion in the same period last year, the Bank of Botswana said on Tuesday.



In local currency terms, sales were down 50.3% to 20.9 billion pula, which translates to about $1.55 billion based on current exchange rates.



Botswana gets 30%-40% of its revenue, 75% of its foreign exchange earnings, and a third of its national output from diamonds. It is the world&#8217;s top producer of the gem by value.



The southern African country will hold a general election on Wednesday, with the poor performance of the economy-largely due to the downturn in the global diamond market-and high levels of unemployment among the issues in focus.



&#8220;Our diamonds have not been selling since April, so yes, our revenues are down but the economic fundamentals still remain intact,&#8221; President Mokgweetsi Masisi, who is seeking a second term, said at a presidential debate last week.



($1 = 13.4590 pulas)



(Reporting by Brian Benza; Editing by Abinaya Vijayaraghavan and Bhargav Acharya)

Diamonds are displayed during a visit to the De Beers Global Sightholder Sales (GSS) in Gaborone, Botswana

Botswana’s Debswana diamond sales fall over 50% in first nine months of 2024

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-820x547.jpg" alt="" class="wp-image-548126" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/SXFLCRRB7RPNVE5MXADNSSEI74-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Umbrella for Democratic Change (UDC) supporters leave the final rally in Tlokweng, east of Gaborone, Botswana October 29, 2024. REUTERS/Thalefang Charles</figcaption></figure>



GABORONE, Oct 30 (Reuters)&nbsp;&#8211;&nbsp;Botswana started voting on Wednesday in an election that will determine whether President Mokgweetsi Masisi secures a second term, with slowing economic growth driven by declining diamond demand the central issue.



Masisi&#8217;s Botswana Democratic Party (BDP) has governed the southern African state since 1966 and remains the favourite to win despite the party&#8217;s falling popularity. Voters elect a National Assembly, with the largest party then choosing the president.



The BDP faces a fragmented opposition with its biggest challenge coming from the Umbrella for Democratic Change (UDC), a coalition led by lawyer Duma Boko. Two other parties have put forward candidates for president.



Voting started smoothly in the capital Gaborone, with long queues outside most polling stations. Over a million people are registered to vote in the country of some 2.3 million, according to the electoral commission.



BDP supporter Penny Mogale, 35, said she was voting for a continuation of entrepreneurship programmes under Masisi which she said had helped her to start a catering business.



&#8220;There are no jobs available but the government is giving us an opportunity to create jobs for ourselves. I want the party to be given a chance to continue with these initiatives,&#8221; she said.



A 26-year-old security guard at a supermarket in downtown Gaborone said he would vote for change at the end of his shift.



&#8220;We work long hours but we earn very little and the government has been refusing to raise the minimum wage,&#8221; said Teto Mosweunyane.



The opposition UDC has pledged to more than double the minimum wage from 1,500 Botswana pula ($112) per month to 4,000 pula if it wins.



Economic issues have dominated the campaign. Although Botswana is one of the wealthiest countries per capita in sub-Saharan Africa, a decline in the global diamond market saw its economic growth forecast for 2024 slashed to 1%.



Botswana is the world&#8217;s top producer by value of diamonds and has struggled to diversify its economy.



Opposition parties have criticized Masisi for the weakening growth rate as well as high levels of inequality and unemployment, while Masisi says his plans to create jobs were disrupted by the COVID-19 pandemic but remain on track.



Masisi came to power in 2018 through a planned transition after his predecessor Ian Khama served the maximum 10 years in office. He kept the job after a 2019 poll which the BDP won.



Election results are usually announced within a few days.



($1 = 13.4409 pulas)



(Reporting by Brian Benza; Writing by Nellie Peyton; Editing by Olivia Kumwenda-Mtambo, Christina Fincher and Ros Russell)

Botswana prepares for elections

Botswana heads to the polls with diamond downturn in focus

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-820x547.jpg" alt="" class="wp-image-547383" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/3ZERF2UFDZL2RNBR2FKVI4RFFM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Mokgweetsi Eric Keabetswe Masisi, President of Botswana addresses the &#8220;Summit of the Future&#8221; in the General Assembly Hall of the United Nations Headquarters in New York City, U.S., September 23, 2024. REUTERS/Caitlin Ochs/File Photo</figcaption></figure>



GABORONE, Oct 28 (Reuters)&nbsp;&#8211;&nbsp;Botswana will hold a general election on Wednesday with President Mokgweetsi Masisi competing against three challengers for a second term in the diamond-rich southern African state.



The poll could be competitive, analysts said, although a divided opposition gives the advantage to Masisi&#8217;s Botswana Democratic Party (BDP), which has ruled the country of 2.3 million people since its independence from Britain in 1966.



Botswana has enjoyed stability and relative prosperity thanks to its diamond wealth and small population, which gets free healthcare and education. It is the world&#8217;s top producer by value of the gem.



But a downturn in the diamond market has put a squeeze on revenues in the last few years, and the country has struggled to diversify its economy. Opponents say the BDP has been in power too long and accuse it of economic mismanagement and corruption, which it denies.



&#8220;Our diamonds have not been selling since April so yes, our revenues are down but the economic fundamentals still remain intact,&#8221; said Masisi at a presidential debate last week.



&#8220;We are going to continue with the projects and policies we have come up with that are aimed at putting more money and wealth into the hands of the citizens of this country,&#8221; he said.



One success of his first term was negotiating a new contract with diamond giant De Beers which will give Botswana a greater share of its rough diamonds. He also lifted a ban on elephant hunting which he says benefits rural communities, and instated an import ban on some produce items to help farmers.



His main challenger is Duma Boko of the opposition coalition Umbrella for Democratic Change (UDC).



The other candidates are Dumelang Saleshando of the Botswana Congress Party and Mephato Reatile of the Botswana Patriotic Front, backed by former President Ian Khama who quit the BDP after a feud with Masisi over scrapping the hunting ban and other issues.



Opponents have attacked Masisi&#8217;s economic record, citing rising unemployment, which stands at around 28%.



&#8220;It is not acceptable that a country such as ours which is the fifth richest per capita in Africa still has so many people living in poverty,&#8221; said Boko at the debate.



Botswana actually has the fourth highest gross domestic product (GDP) per capita of countries in sub-Saharan Africa, according to World Bank figures.



Boko has pledged to more than double the minimum wage and increase social grants, saying he would get the money by reducing wasteful spending.



The BDP has faced declining popularity but maintains a large majority in parliament, having won 38 of the 57 contested seats in 2019. The UDC won 15 seats. Voters in Botswana elect parliamentarians, who then elect the president.



Analysts said the opposition is crippled by a lack of funding.



&#8220;The playing field is not even,&#8221; said Ringisai Chikohomero, from the South Africa-based Institute for Security Studies.



After the last election the opposition claimed fraud and challenged the results at the High Court, which dismissed the case.



(Additional reporting and writing by Nellie Peyton; Editing by David Gregorio)

FILE PHOTO: World leaders attend United Nations “Summit of the Future”, in New York

Diamond-rich Botswana votes with President Masisi seeking second term

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-820x550.jpg" alt="" class="wp-image-546297" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-1536x1030.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YUCOFABSI5MCHIS24B6SOTQZLQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view of the Reserve Bank of Zimbabwe (RBZ)&#8217;s head office in Harare, Zimbabwe, July 17, 2024. REUTERS/Philimon Bulawayo</figcaption></figure>



JOHANNESBURG, Oct 25 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s consumer inflation surged to 37.2% month on month in October in local currency terms,&nbsp;data&nbsp;showed on Friday, after a&nbsp;sharp&nbsp;devaluation in the southern African country&#8217;s currency.



Zimbabwe&#8217;s central bank allowed the local gold-backed currency to fall over 40% in late September, to 24.3902 to the U.S. dollar. The currency has since fallen further, to 27.6880 to the dollar as of Friday, according to the central bank&#8217;s website.



In September, before the devaluation, consumer inflation was at 5.8% month on month in local currency terms.



The ZiG, which stands for Zimbabwe Gold, is Zimbabwe&#8217;s sixth attempt at a stable currency in 15 years after a bout of hyperinflation under leader Robert Mugabe. It was launched in April.



(Reporting by Tannur Anders; Additional reporting by Nyasha Chingono; Editing by Alexander Winning)

A general view of the Reserve Bank of Zimbabwe (RBZ)’s head office in Harare

Zimbabwe inflation surges after currency devaluation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-820x547.jpg" alt="" class="wp-image-545850" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/7KPPN3EOZBPXPP6LCCKJLMUZYA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Botswana President Mokgweetsi Masisi speaks to Reuters at the One &amp; Only Hotel as the African Mining Indaba 2022 takes place, in Cape Town, South Africa, May 10, 2022. REUTERS/Shelley Christians</figcaption></figure>



JOHANNESBURG, Oct 24 (Reuters)&nbsp;&#8211;&nbsp;Botswana holds a national election on Oct. 30, with President Mokgweetsi Masisi favourite to win a second term against three challengers in a nation his Botswana Democratic Party (BDP) has governed since independence from Britain in 1966.



Voters elect National Assembly members, who then pick the president. Here are some facts about the candidates:



<h2 class="wp-block-heading" id="h-mokgweetsi-masisi">MOKGWEETSI MASISI</h2>



Masisi has been president since 2018 when he ascended to the post after serving as vice president under predecessor Ian Khama. He retained the presidency when his BDP party won the 2019 election.



The 63-year-old is a former schoolteacher who worked for U.N. children&#8217;s agency UNICEF before entering politics. During his first term he contended with high unemployment and lower growth due to declining global demand for diamonds, which Botswana&#8217;s economy relies on.



Masisi gained support last year for negotiating a new sales deal with De Beers that will give the country a bigger share of its diamond wealth, although opponents say he has not done enough to diversify the economy and create jobs.



He has fallen out with Khama, who accuses him of authoritarianism and is backing an opposition party.



<h2 class="wp-block-heading" id="h-duma-boko">DUMA BOKO</h2>



Duma Boko, 54, a lawyer, is running for the third time as leader of the Umbrella for Democratic Change (UDC), an opposition coalition that came second in 2019 and remains the BDP&#8217;s biggest challenge.



In his party manifesto, Boko proposes increasing the government&#8217;s role in the economy to achieve social development and sustainable growth.



Boko&#8217;s party challenged the last election as fraudulent at the High Court, which dismissed the case.



<h2 class="wp-block-heading" id="h-dumelang-saleshando">DUMELANG SALESHANDO</h2>



Dumelang Saleshando, 53, is leader of the Botswana Congress Party (BCP). The BCP was founded in 1998 and has won between 10%-20% of votes in past elections.



Saleshando took over from his father in 2010 as BCP party leader. The party describes itself as having social democratic principles and is campaigning with the motto &#8220;Save Botswana&#8221;.



<h2 class="wp-block-heading" id="h-mephato-reatile">MEPHATO REATILE</h2>



Mephato Reatile is leader of the Botswana Patriotic Front (BPF), a party created in 2019 by members of the ruling party who followed Khama when he broke away from the BDP because of his feud with Masisi.



Khama, whose father Seretse Khama was Botswana&#8217;s founding president, has returned from three years in exile to support the BPF in the election.



The party won about 4% of votes in 2019.



(Reporting by Nellie Peyton; Additional reporting by Brian Benza; Editing by Olivia Kumwenda-Mtambo and Andrew Cawthorne)

Botswana President Masisi speaks to Reuters in Cape Town

Who is running for president in Botswana’s election?

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1200" height="789" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1.jpg" alt="" class="wp-image-542871" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1.jpg 1200w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1-820x539.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/YWWKJYXNFNKNXNNTA7PVQVR7QU-1-768x505.jpg 768w" sizes="auto, (max-width: 1200px) 100vw, 1200px" /><figcaption class="wp-element-caption">A logo of the Bank of Namibia is seen at the company&#8217;s headquarters in Windhoek, Namibia, February 24, 2017. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



WINDHOEK, Oct 16 (Reuters)&nbsp;&#8211;&nbsp;Namibia&#8217;s central bank cut its main interest rate&nbsp;for the second meeting in a row on Wednesday, saying inflation had fallen surprisingly quickly and that the economy needed more support.



Its Monetary Policy Committee (MPC) unanimously decided to cut the repo rate by 25 basis points to 7.25%, the same size of cut as at August&#8217;s meeting.



&#8220;The MPC noted the growing momentum in the international monetary policy easing cycle, the retreat in domestic inflation over the medium term, along with the recent downside surprise in the September 2024 inflation print,&#8221; Bank of Namibia Governor Johannes !Gawaxab said in a statement accompanying the decision.



Annual inflation in the southern African country fell to 3.4% in September, a steep drop from the 4.4% posted in August.



The central bank on Wednesday revised down its average inflation forecast for this year to 4.3%, versus a 4.7% forecast given at its last meeting.



It attributed the revision to a more favourable outlook for international oil prices and a stronger domestic exchange rate.



The bank said private sector credit extension remained subdued, suggesting that further support to the domestic economy was warranted.



&#8220;The domestic economy, while growing at a moderate pace, was operating below full capacity,&#8221; !Gawaxab said.



Growth is projected to slow to 3.1% in 2024, compared to 4.2% in 2023.



On a $750 million Eurobond redemption due in late 2025, the central bank governor said Namibia had already set aside 82% of the $500 million it wants to retire at maturity. The government still hopes to refinance the remaining $250 million, !Gawaxab said.



(Writing by Tannur Anders; Editing by Alexander Winning and Gareth Jones)

YWWKJYXNFNKNXNNTA7PVQVR7QU (1)

Namibia central bank cuts key rate again to help growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="602" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-820x602.jpg" alt="" class="wp-image-542577" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-820x602.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-300x220.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-122x90.jpg 122w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-768x564.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-1536x1129.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LYNXMPEG0F1AI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Victims of Cyclone Idai receive food aid at Siverstream Estates in Chipinge, Zimbabwe March 24 ,2019. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



GENEVA, Oct 15 (Reuters)&nbsp;&#8211;&nbsp;Millions of people across southern Africa are facing the worst food crisis in decades, the World Food Programme (WFP) said on Tuesday, warning that its ability to provide relief risks being stymied by funding shortfalls.



Amid unprecedented drought conditions, a record five countries &#8211; Lesotho, Malawi, Namibia, Zambia and Zimbabwe &#8211; have declared a state of disaster and called for international humanitarian support, the U.N. agency said. Angola and Mozambique are also badly affected and around 21 million children are malnourished.



&#8220;Unless we receive additional resources, millions of people risk going through the worst lean season in decades without assistance,&#8221; WFP spokesperson Tomson Phiri told a Geneva press briefing.



The agency is planning to provide food and, in some cases, cash assistance to more than 6.5 million people in the seven hardest-hit countries to cover the period until the next harvest in March.



The WFP said, however, that it had only received about a fifth of the $369 million it needed.



&#8220;Crops failed, livestock has perished and children are lucky to receive even one meal per day. The situation is dire, and the need for action has never been clearer,&#8221; said Phiri.



(Reporting by Emma Farge, editing by Ed Osmond)

LYNXMPEG0F1AI

Millions in southern Africa facing worst food crisis in decades, warns WFP

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="558" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/I7C3XAJPIJIFJO4UI73JPMT24U-820x558.jpg" alt="" class="wp-image-540670" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/I7C3XAJPIJIFJO4UI73JPMT24U-820x558.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/I7C3XAJPIJIFJO4UI73JPMT24U-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/I7C3XAJPIJIFJO4UI73JPMT24U-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/I7C3XAJPIJIFJO4UI73JPMT24U-768x522.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/I7C3XAJPIJIFJO4UI73JPMT24U-1536x1045.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/I7C3XAJPIJIFJO4UI73JPMT24U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Workers load lithium concentrate at Prospect Lithium Zimbabwe mine in Goromonzi, Zimbabwe, January 9, 2024. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Oct 10 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwean miners expect profits to decline on the back of anticipated high costs of production and a weak outlook for platinum and lithium in 2025, according to a report.



A confluence of global and local factors will eat into the southern African country&#8217;s mining revenue and profit next year, said the report by the Chamber of Mines of Zimbabwe (COMZ).



Zimbabwe is known for abundant deposits of platinum group metals (PGMs), gold and lithium.



&#8220;The issue of costs continue to dampen the spirit of profitability,&#8221; said Isaac Kwesu, COMZ&#8217;s chief executive.



Costs of production are expected to increase by an average of 8% in 2025. Miners expect energy needs to grow to 800 megawatts per day in 2025 from 600 megawatts this year.



Zimbabwe&#8217;s mining industry, one of its highest foreign currency earners alongside tobacco and horticulture, continues to be blighted by rolling power cuts and exchange losses.



In 2024, the mining sector lost around $500 million in potential revenue to power outages, the report said.



Miners however expect gold prices to remain bullish, increasing by an average of 12% in 2025 with PGMs and lithium declining 15%, the report said.



Business confidence is also expected to improve with capital expenditure seen exceeding $600 million in 2025.



(Reporting by Nyasha Chingono; Editing by Bhargav Archaya and Ros Russell)

Workers load lithium concentrate at Prospect Lithium Zimbabwe mine in Goromonzi

Zimbabwean miners expect profits to fall in 2025, report says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="562" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-820x562.jpg" alt="" class="wp-image-537954" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-820x562.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-768x527.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE-1536x1053.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/MDGNNNW45RL23ECVBDK6NGTPTE.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">File photo of fuel tanks at the edge of a miltary airstrip on Diego Garcia, largest island in the Chagos archipelago and site of a major United States military base in the middle of the Indian Ocean leased from Britain in 1966. clh/HO/U.S. CLH/File Photo</figcaption></figure>



LONDON, Oct 3 (Reuters)&nbsp;&#8211;&nbsp;Britain said on Thursday it would give up sovereignty of the Chagos Islands to Mauritius in a deal that would allow people displaced decades ago to return home while London retains use of the UK-U.S. military base on Diego Garcia.



Britain said that the operation of Diego Garcia, a strategic military base jointly operated with the United States, was protected by the agreement, which also allows Mauritius to resettle the rest of the islands after its population was displaced.



&#8220;This government inherited a situation where the long-term, secure operation of the Diego Garcia military base was under threat, with contested sovereignty and ongoing legal challenges,&#8221; British Foreign Minister David Lammy said in a statement.



&#8220;Today’s agreement secures this vital military base for the future. It will strengthen our role in safeguarding global security, shut down any possibility of the Indian Ocean being used as a dangerous illegal migration route to the UK, as well as guaranteeing our long-term relationship with Mauritius.&#8221;



Britain, which has controlled the region since 1814, detached the Chagos Islands in 1965 from Mauritius &#8211; a former colony that became independent three years later &#8211; to create the British Indian Ocean Territory.



In the early 1970s, it evicted almost 2,000 residents to Mauritius and the Seychelles to make way for an airbase on the largest island, Diego Garcia, which it had leased to the United States in 1966.



The World Court said in 2019 that Britain should give up control of the islands and said it had wrongfully forced the population to leave in the 1970s to make way for a U.S. air base.



In a joint statement, Britain and Mauritius said that the political agreement had the support and assistance of the United States and India.



(Reporting by Alistair Smout, William James, Muvija M and Michael Holden; Editing by Kate Holton)

FILE PHOTO OF FUEL TANKS ON INDIAN OCEAN ISLAND OF DIEGO GARCIA

Britain agrees Chagos Island sovereignty deal with Mauritius

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-820x573.jpg" alt="" class="wp-image-537951" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-1536x1073.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/RWX7GTOMDNPMJHIAC5WECATPMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Workers load lithium concentrate at Prospect Lithium Zimbabwe mine in Goromonzi, Zimbabwe, January 9, 2024. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Oct 3 (Reuters) &#8211; Zimbabwe has softened its requirements for lithium miners to process the mineral locally, a government official said on Thursday, as the industry battles to survive a price slump over the past year.



Africa&#8217;s top lithium producer, Zimbabwe had last year given producers up to March 2024 to submit plans of how they would produce battery-grade lithium in the impoverished southern African country.



Prices of lithium, which is mainly used in battery technologies, have fallen more than 80% in the past year largely due to overproduction from China and a drop in demand for electric vehicles.



The price collapse has forced companies like Chinese battery giant CATL to suspend production at certain mines. Albemarle, the world&#8217;s top lithium miner, implemented a second round of cost cuts earlier this year and laid off workers.



In Zimbabwe, lithium miners including Sinomine Resource Group&#8217;s Bikita Minerals, have been forced to cut production and lay off workers as the impact of weak prices has been compounded by the country&#8217;s poor infrastructure, currency volatility and policy inconsistencies.



The Zimbabwe government would now take a measured approach in its quest to localise lithium processing, deputy mines minister Polite Kambamura told Reuters.



&#8220;We are now considering them on a case by case basis and also considering the level of investments already put in the country,&#8221; Kambamura said.



Chinese firms including Sinomine, Zhejiang Huayou Cobalt, Chengxin Lithium Group, Yahua Group and Canmax Technologies have spent more than $1 billion over the past three years to acquire and develop lithium projects in Zimbabwe.



&#8220;Some commenced mining operations five months before the deadline, so we are considering where the project is,&#8221; he added.



Sinomine has said it plans to spend up to $500 million building a lithium sulphate plant at Bikita within the next five years.



Huayou has said it is conducting feasibility studies for a lithium sulphate plant at its Arcadia mine.



Kambamura said the government was open to dialogue with lithium miners over their struggles.



&#8220;We understand the prices are low but they are beginning to firm up. The fact that there are upcoming projects means the environment is favourable,&#8221; he added.



(Reporting by Nyasha Chingono; Editing by Nelson Banya and Angus MacSwan)

Zimbabwe softens stance on local lithium processing after price collapse

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="575" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-820x575.jpg" alt="" class="wp-image-454022" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-820x575.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-768x539.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-1536x1078.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/2YFSNLSNFRP7VNWQPEPCOAWUMU-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man shows off Zimbabwean currency notes outside a grocery store in Harare, Zimbabwe, March 17, 2022. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Oct 2 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe&#8217;s President Emmerson Mnangagwa on Wednesday vowed to implement corrective measures to protect people&#8217;s incomes after the country&#8217;s new gold-backed currency slid on the black market five months after it was introduced.



The ZiG, short for Zimbabwe Gold, was devalued 43% last Friday after it lost nearly 47% on the black market.



&#8220;We note with concern the resurgence of the parallel market activities driven by speculative tendencies. Corrective measures are being instituted to protect Zimbabweans from disruptions,&#8221; Mnangagwa said in an address to the parliament.



Since the devaluation, the ZiG has again weakened from Friday&#8217;s rate of 24.3902 to 25.2824 on Wednesday, while on the black market it has slipped to 32 per U.S. dollar.



Mnangagwa said the devaluation of the ZiG will allow &#8220;greater flexibility&#8221; and encourage people holding forex to trade on the official market.



&#8220;Government remains committed to backing the currency through setting aside 50% of royalties to build reserves,&#8221; he said.



The ZiG is the southern African country&#8217;s sixth attempt at a stable currency in 15 years after a bout of hyperinflation under former longtime leader Robert Mugabe.



Following a meeting with central bank officials, the Bankers Association of Zimbabwe on Wednesday said last week&#8217;s move would cause price hikes and weaken confidence.



(Reporting by Nyasha Chingono, Editing by Bhargav Acharya and Andrea Ricci)

FILE PHOTO: Zimbabwe’s poor feel the impact of far away Ukraine war

Zimbabwe’s president vows to implement measures to stop currency slide

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="572" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-820x572.jpg" alt="" class="wp-image-532434" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-820x572.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-768x535.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-1536x1071.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PHZVFDZVK5KOFC5CAW3CU3SPAI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A vendor shows a ten Zimbabwe gold-backed (ZiG) note along a street in Harare, Zimbabwe, July 17, 2024. REUTERS/Philimon Bulawayo</figcaption></figure>



HARARE, Oct 1 (Reuters) &#8211; Zimbabwe&#8217;s bankers on Tuesday warned the central bank about the impact of any future shocks to the local currency to avoid eating into people&#8217;s incomes and eroding public confidence after a 43% devaluation last week.



&#8220;Every time you have such big shocks there are people who will lose out. The proper thing is to avoid significant huge shocks and maybe have small movement in the rate going forward,&#8221; Bankers Association of Zimbabwe (BAZ) president Lawrence Nyazema told Reuters.



The ZiG, which stands for Zimbabwe Gold, is the southern African country&#8217;s sixth attempt at a stable currency in 15 years after a bout of hyperinflation under former longtime leader Robert Mugabe.



But authorities have struggled to persuade a sceptical population to stop carrying out transactions in foreign currencies.



The ZiG&#8217;s devaluation comes follows it losing more than 47% on the black market in the five months after its launch, with some economists saying its death was imminent.



Nyazema said it was too early to call the demise of the new unit, describing last week&#8217;s move by the central bank as a &#8220;reset&#8221; to the economy.



&#8220;I don&#8217;t think we are seeing the death of the currency but we have our work cut out for us. We have to do more work in terms of convincing the citizens that the money is stable. We needed to reset, and now that we have reset we need to stick to our promises,&#8221; Nyazema said.



He added: &#8220;It is up to the monetary authorities to come up with the right set of measures to bring stability and make sure that such significant movements are not frequent.&#8221;



Since the devaluation, the ZiG has further slipped from Friday&#8217;s rate of 24.3902 to 25.1305 on Tuesday.



Bankers also warned against a rushed move to remove the U.S dollar from circulation before a 2030 deadline, saying it sent the wrong signal to investors.



&#8220;If we were to wake up tomorrow morning and say we are back to mono currency there is likely going to be confusion not only internally but the rest of the world, whom we have told we will have a multi currency up to 2030,&#8221; Nyazema said.



Before the ZiG began its big slide, the government had been hoping to make the gold-backed currency the sole currency unit by 2026.



(Reporting by Nyasha Chingono, editing Nelson Banya and Hugh Lawson)

A vendor shows a ten Zimbabwe gold-backed (ZiG) note along a street in Harare

Zimbabwe bankers wary of more shocks after sharp ZiG devaluation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI-820x429.jpg" alt="" class="wp-image-536822" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/PF3JNZQUQ5M65OD7XXTYURHSSI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Construction work is seen opposite a statue of Samora Machel, the first President of Mozambique, and the Cathedral of the Immaculate Conception, a Roman Catholic cathedral in downtown Maputo, Mozambique, September 1, 2019. REUTERS/Siphiwe Sibeko</figcaption></figure>



MAPUTO, Sept 30 (Reuters)&nbsp;&#8211;&nbsp;Mozambique&#8217;s central bank cut its main interest rate for the fifth meeting in a row on Monday, saying the inflation outlook remained favourable.



The central bank reduced its MIMO interest rate&nbsp;MZMIMO=ECI&nbsp;by 75 basis points to 13.50%.



The southern African country&#8217;s inflation slowed to 2.75% year on year in August&nbsp;MZCPIY=ECI&nbsp;from 2.97% in July, statistics agency data showed.



The Bank of Mozambique reiterated in a statement that it expected to continue to lower the MIMO rate over the medium term.



(Reporting by Manuel Mucari; Writing by Bhargav Acharya; Editing by Alexander Winning)

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