<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="960" height="503" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/WY6G22MR2FISHBZ2DHXCZR57HY.avif" alt="" class="wp-image-543693"/><figcaption class="wp-element-caption">World Bank President Ajay Banga looks on during an interview with Reuters in Washington, U.S., October 15, 2024. REUTERS/Nathan Howard/File Photo</figcaption></figure>



WASHINGTON, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;World Bank President Ajay Banga said on Thursday that bilateral&nbsp;and Paris Club commercial&nbsp;creditors need to provide more debt forgiveness to&nbsp;poor&nbsp;debt-distressed countries, and that the development lender was working on ways to ease service costs to improve development outcomes.



Banga, speaking to reporters ahead of World Bank and International Monetary Fund annual meetings&nbsp;next week, said the bank has already answered calls for its share of debt relief in restructurings by providing billions of dollars in additional grants and deeply discounted loans to debtor countries.



Some $16 billion to $17 billion has gone to Zambia, Chad, Ethiopia and Ghana during their slow and painful debt restructuring processes.



&#8220;Effectively, what we&#8217;re doing is giving them the lifeline they need, whether you do it as a debt forgiveness or you give them a grant,&#8221; Banga said. &#8220;Debt forgiveness is required, but not from us. It&#8217;s required from those creditors. That&#8217;s the issue we&#8217;re trying to work our way through.&#8221;



Banga did not specifically mention China, which has been among the largest creditors to debt-distressed countries and has been slow to agree to reductions in debt principal.



Banga said that the World Bank was working with several countries on potential ways to re-profile debt to reduce servicing costs &#8220;and take the distance and put it into development, life, education, what you would call a debt-for- development swap.&#8221;



(Reporting by David Lawder; Editing by Chizu Nomiyama and Mark Porter)

WY6G22MR2FISHBZ2DHXCZR57HY

World Bank’s Banga says more bilateral, commercial debt forgiveness needed

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="535" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KML3HCF5HJLBBDJ6K7HOADXYCI-820x535.jpg" alt="" class="wp-image-543676" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KML3HCF5HJLBBDJ6K7HOADXYCI-820x535.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KML3HCF5HJLBBDJ6K7HOADXYCI-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KML3HCF5HJLBBDJ6K7HOADXYCI-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KML3HCF5HJLBBDJ6K7HOADXYCI-768x501.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KML3HCF5HJLBBDJ6K7HOADXYCI-1536x1002.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/KML3HCF5HJLBBDJ6K7HOADXYCI-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of the city of Pretoria November 24, 2009. Pretoria is one of the nine South African cities hosting the FIFA 2010 Soccer World Cup. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Oct 18 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s government said on Friday that it had asked Taiwan to relocate its de facto embassy out of the capital Pretoria, while Taiwan accused it of bowing to pressure from China.



South Africa rejected this characterization and said the move was standard diplomatic practice, given that it severed political and diplomatic ties with Taiwan in 1997.



The Taipei Liaison Office in Pretoria will be rebranded as a Trade Office and moved to commercial capital Johannesburg, said South Africa&#8217;s Department of International Relations and Cooperation.



&#8220;Relocating what will be rebranded as Trade Offices both in Taipei and in Johannesburg&#8230; will be a true reflection of the non-political and non-diplomatic nature of the relationship between the Republic of South Africa and Taiwan,&#8221; it said in a statement, adding it had given the office six months to move.



China is South Africa&#8217;s largest trading partner globally and one with which it is looking to expand cooperation in areas such as renewable energy.



Taiwan&#8217;s Foreign Ministry said that warming relations between South Africa and China were posing a challenge for its own friendly relationship with South Africa.



&#8220;If the South African government still insists on submitting to China and changing the status quo&#8230; the Ministry of Foreign Affairs will&#8230; study and formulate all possible responses in order to safeguard the sovereignty and dignity of our country,&#8221; it said in a statement.



Taiwan, which China claims as its own territory with no right to state-to-state relations, has formal ties with only a dozen countries, almost all small, less developed nations.



Taiwan&#8217;s government rejects China&#8217;s sovereignty claims and says Beijing has no right to represent or speak for the island on the international stage



China welcomed the move.



&#8220;We appreciate South Africa&#8217;s correct decision to relocate the Taipei Liaison Office in South Africa out of Pretoria, the administrative capital,&#8221; said China&#8217;s Foreign ministry spokeswoman Mao Ning.



(Reporting by Nellie Peyton; Additional reporting by Joe Cash in Beijing and Ben Blanchard in Taipei; Editing by Olivia Kumwenda-Mtambo, William Maclean)

FILE PHOTO: A general view of the city of Pretoria

South Africa asks Taiwan to move its de facto embassy from Pretoria

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="545" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-820x545.jpg" alt="" class="wp-image-543673" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-820x545.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/QDD6H7MOFZI2NGIGHSUVQUYPO4-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view shows banners with the logo of the annual BRICS summit near the Kazan Kremlin and the Kul Sharif Mosque in Kazan, Russia October 17, 2024. REUTERS/Alexey Nasyrov</figcaption></figure>



MOSCOW, Oct 18 (Reuters)&nbsp;&#8211;&nbsp;The BRICS group will generate most of the global economic growth in the coming years thanks to its size and relatively fast growth compared with that of&nbsp;developed Western&nbsp;nations, Russian President Vladimir Putin said on Friday.



Putin hopes to build up BRICS &#8211; which has expanded to include Egypt, Ethiopia, Iran and the United Arab Emirates as well as Brazil, Russia, India, China and South Africa &#8211; as a powerful counterweight to the West in global politics and trade.



The Kremlin leader is due to host a BRICS summit in the Russian city of Kazan on Oct. 22-24.



&#8220;The countries in our association are essentially the drivers of global economic growth. In the foreseeable future, BRICS will generate the main increase in global GDP,&#8221; Putin told officials and businessmen at BRICS business forum in Moscow.



&#8220;The economic growth of BRICS members will increasingly depend less on external influence or interference. This is essentially economic sovereignty,&#8221; Putin added.



Next week&#8217;s summit is being presented by Moscow as evidence that Western efforts to isolate Russia over its actions in Ukraine have failed.



Russia wants other countries to work with it to overhaul the global financial system and end the dominance of the U.S. dollar.



China, India and the UAE confirmed on Friday that their leaders&nbsp;would&nbsp;attend&nbsp;the&nbsp;summit&nbsp;in Kazan.



Putin cited some of the&nbsp;initiatives&nbsp;that Russia has previously outlined ahead of the summit, including a joint cross-border payments system and a reinsurance company.



He called on the New Development Bank, the BRICS&#8217; only functioning multilateral development institution, to invest in technology and infrastructure across the countries of the Global South.



&#8220;As a development institution, the bank already serves as an alternative to many Western financial mechanisms, and we will naturally continue to develop it,&#8221; Putin said. He called for more investment in e-commerce and artificial intelligence.



Putin sought to promote Russia&#8217;s new transport megaprojects such as the Arctic Sea Route and the North-to-South corridor, linking Russia to the Gulf and Indian Ocean through the Caspian Sea and Iran.



&#8220;It is the key to increasing freight transportation between the Eurasian and African continents,&#8221; he said.



(Reporting by Oksana Kobzeva and Gleb Bryanski; Editing by Gareth Jones)

Views of Kazan ahead of BRICS summit

Putin says BRICS will generate most of global economic growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="516" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-820x516.jpg" alt="" class="wp-image-543609" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-820x516.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-300x189.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-143x90.jpg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-768x483.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-1536x967.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/FO56H564QVM6RG7MOECTHHGML4-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s Cabinet Secretary of the Ministry of Interior and National Administration Kithure Kindiki speaks during a joint press conference, with British Minister of State for Security Tom Tugendhat during his visit, in Nairobi, Kenya May 10, 2023. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Oct 18 (Reuters) &#8211; Kenyan President William Ruto chose Interior Minister Kithure Kindiki as his new deputy on Friday, but a court blocked his appointment until it hears a case next week challenging the impeachment of Kindiki&#8217;s predecessor.



The high court&#8217;s intervention came after lawmakers had already approved Kindiki&#8217;s appointment on Friday. It extends a period of political turmoil in the East African country that started with mass protests against unpopular tax hikes in June.



The Senate vote on Thursday to uphold impeachment charges against Ruto&#8217;s previous deputy, Rigathi Gachagua, marked the first time that a Kenyan deputy president had been removed from office by impeachment.



In an order, the high court in the capital Nairobi said Kindiki&#8217;s appointment as deputy president and the Senate&#8217;s resolution upholding impeachment charges against Gachagua were suspended until Oct. 24, when a bench of judges appointed by the chief justice will debate the issue.



A second court order said Kindiki cannot assume office until the case is heard.



Gachagua was impeached on five out of 11 charges including gross violation of the constitution and stirring ethnic hatred &#8211; accusations that he denied and dismissed as politically motivated.



Kindiki was a top contender to be Ruto&#8217;s running mate during the 2022 election and was appointed interior minister shortly after the president took office in September that year.



The interior ministry includes oversight of the police. Rights groups have accused the police of using excessive force during the nationwide protests earlier this year that called for the withdrawal of a now-shelved finance law and reforms to tackle corruption.



During an appearance before parliament in September, Kindiki said police acted within the law and that the government did not engage in extrajudicial killings or abductions.



Gachagua helped Ruto secure a large block of votes from the populous central Kenya region during the 2022 election. But in recent months, he has spoken of being sidelined, amid widespread reports in local media signalling a rift with Ruto as political alliances shifted.



Gachagua, who was hospitalised and absent during the Senate vote to dismiss him, filed a petition on Friday seeking to stop Ruto from naming his replacement pending a judicial hearing, a court filing showed.



The 59-year-old politician has filed or is a party to several cases challenging the impeachment process.



(Reporting by George Obulutsa and Humphrey Malalo; Writing by Bhargav Acharya;Editing by Alexander Winning, Ammu Kannampilly, Andrew Heavens and Angus MacSwan, William Maclean)

Kenya’s Cabinet Secretary of the Ministry of Interior and National Administration Kithure Kindiki addresses a press conference in Nairobi

Kenyan court blocks deputy president appointment hours after Ruto picks ally

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429.jpg" alt="" class="wp-image-519304" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E.jpg 1920w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller counts Kenya shilling notes inside the cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Oct 18 (Reuters) &#8211; The Kenyan shilling was unchanged against the dollar on Friday and will likely remain at the same levels in the next week, one foreign exchange trader said.



The East African currency traded at 128.50/129.50 against the dollar at 0700 GMT, LSEG data showed, the same as Thursday&#8217;s closing rate.



The shilling has remained in the same range for several months.



(Reporting by Sonia Rao; Editing by George Obulutsa)

LYEEWJTJKRPK3GJPCKWFP3EK7E

Kenyan shilling unchanged versus dollar

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="507" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-820x507.jpg" alt="" class="wp-image-533970" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-820x507.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-300x186.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-145x90.jpg 145w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-768x475.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-1536x950.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg August 13 2014. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, Oct 18 (Reuters) &#8211; South Africa&#8217;s rand firmed in early trade on Friday, paring some losses from Thursday, ahead of a domestic inflation reading next week which could provide clues on the central bank&#8217;s rate cutting path.



At 0630 GMT, the rand traded at 17.60 against the dollar, about 0.4% stronger than its previous close.



The dollar last traded about 0.2% softer against a basket of currencies.



&#8220;Yesterday’s blow-out raises the possibility that the phase of ZAR weakness has now completed, and that the local unit could make a stronger recovery as we close out the week,&#8221; ETM Analytics wrote in a research note.



Next week, domestic investors will look to September&#8217;s consumer inflation figures which could provide clues on the South African Reserve Bank&#8217;s interest rate path.



The central bank cut its main lending rate for the first time in more than four years in September, a day after data showed headline inflation fell just below 4.5%, the middle of the central bank&#8217;s target range.



On Thursday, South Africa&#8217;s central bank governor Lesetja Kganyago said the country could move to a lower inflation target at little cost.



&#8220;One of the requirements for a stable currency is low inflation; therefore, any talk of lowering the inflation target should be mildly supportive of the ZAR,&#8221; ETM Analytics wrote.



South Africa&#8217;s benchmark 2030 government bond was little changed in early deals.



(Reporting by Tannur Anders; Editing by Hugh Lawson)

Photo illustration of South African bank notes displayed next to the American dollar notes in Johannesburg

South African rand firms, inflation print next week

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="582" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LQD5WORV4BLVHCY3KRQMJIJ75A-820x582.jpg" alt="" class="wp-image-543602" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LQD5WORV4BLVHCY3KRQMJIJ75A-820x582.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LQD5WORV4BLVHCY3KRQMJIJ75A-300x213.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LQD5WORV4BLVHCY3KRQMJIJ75A-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LQD5WORV4BLVHCY3KRQMJIJ75A-768x545.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LQD5WORV4BLVHCY3KRQMJIJ75A-1536x1091.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/LQD5WORV4BLVHCY3KRQMJIJ75A-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker holds a parcel next to a logo of South Africa&#8217;s last mile delivery and click and collect company Pargo, at a store in Sandton, South Africa, October 17, 2024. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Oct 18 (Reuters)&nbsp;&#8211;&nbsp;South African click-and-collect company Pargo is exploring an expansion into the rest of Africa, its CEO said in an interview, betting on e-commerce growth on the continent.



Africa is forecast to surpass half a billion e-commerce users by 2025, having shown a steady 17% compound annual growth rate of online consumers in the market, according to the International Trade Administration, a U.S. government agency.



This growth is driven by increasing internet penetration, smartphone adoption and the growing use of digital financial services, especially mobile money.



&#8220;We&#8217;re looking at an expansion strategy to move into multiple markets. We&#8217;re already operational in Egypt as a second country, but we are quite seriously looking at, in the future, building a network across Africa,&#8221; Pargo CEO and co-founder Lars Veul told Reuters.



He said the options would span the main economies in Africa.



&#8220;We don&#8217;t know exactly yet. So, it&#8217;s more about the countries where e-commerce is booming or expected to boom.&#8221;



The expansion will also be driven by following its existing clients into countries where they operate outside of South Africa, Veul added.



Veul, a Dutch citizen who moved to Cape Town in 2012 from Amsterdam to help set up online marketplace Groupon in South Africa, said he co-founded the company in 2015 after realising last-mile delivery was a serious challenge for e-commerce businesses on the continent.



The firm has more than 4,000 pick-up points located at retail stores across South Africa, including township &#8220;spaza&#8221; shops, which are informal stores that dot township corners.



Pargo has partnered with major listed telecoms, banks and retailers including U.S. e-commerce giant Amazon, which launched in South Africa in May this year. Amazon&#8217;s customers order online and then collect their parcels at Pargo&#8217;s pick-up points.



Click-and-collect allows shoppers to avoid delivery costs and the agony of waiting for the delivery. It also lowers costs for last-mile delivery companies, who grapple with fuel expenses, product returns and difficulty in delivering to townships and rural areas.



(Reporting by Nqobile Dludla; Editing by Jamie Freed)

Amazon South Africa’s click and collect partner Pargo eyes Africa expansion

South African click-and-collect firm Pargo considers foray into rest of Africa

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg" alt="" class="wp-image-524623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-2-135x90.jpg 135w" sizes="(max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Oct 18 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, equity and currency market moves may affect South African markets on Friday.



<h2 class="wp-block-heading" id="h-economic-events">ECONOMIC EVENTS</h2>



South Africa&#8217;s government will hold its weekly auction of inflation-linked bonds.



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



South Africa&#8217;s rand slipped against a stronger dollar on Thursday, after data showed U.S. retail sales rose more than expected, signalling a resilient economy.



On the stock market, the Top-40 index closed 0.34% higher.



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



China stocks rose on Friday as the central bank officially launched a swap facility aimed at boosting the equity market, although shares elsewhere in Asia were mixed in the wake of data confirming a slowdown in the world&#8217;s second-largest economy.



<h2 class="wp-block-heading" id="h-wall-street">WALL STREET</h2>



The Dow Jones Industrial Average advanced on Thursday to its fourth record close in the last five sessions, as stronger-than-expected monthly retail sales indicated a robust U.S. consumer and TSMC&#8217;s upbeat forecast buoyed chipmakers&#8217; stocks.



<h2 class="wp-block-heading" id="h-gold">GOLD</h2>



Gold breached the $2,700-per-ounce level on Friday for the first time ever, as U.S. election jitters and simmering Middle East tensions boosted safe-haven demand, while a looser monetary policy environment also added fuel to the rally.



&#8211; &#8211; &#8211; &#8211;



Some of the main stories out in the South African press:



<h2 class="wp-block-heading" id="h-business-day">BUSINESS DAY</h2>



&#8211; JSE’s largest investor on hunt for new CEO



&#8211; Kganyago calls for more ambitious inflation target



&#8211; Ramaphosa commits to supporting SA motor industry



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Oct 18

<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="(max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



NAIROBI, Oct 18 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday.



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



China stocks rose on Friday as the central bank officially launched a swap facility aimed at boosting the equity market, although shares elsewhere in Asia were mixed in the wake of data confirming a slowdown in the world&#8217;s second-largest economy.



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



Crude oil futures steadied on Friday after strong U.S. retail sales data, but Chinese economic indicators remained mixed and prices were headed for their biggest weekly loss in more than a month on concerns about demand.



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



South Africa&#8217;s rand slipped against a stronger dollar on Thursday, after data showed U.S. retail sales rose more than expected, signalling a resilient U.S. economy.



<h2 class="wp-block-heading" id="h-africa-currencies">AFRICA CURRENCIES</h2>



The Kenyan and Ugandan currencies are expected to be stable against the dollar in the next week to Thursday, while Nigeria&#8217;s, Ghana&#8217;s and Zambia&#8217;s could be under pressure, traders said.



<h2 class="wp-block-heading" id="h-nigeria-economy">NIGERIA ECONOMY</h2>



Nigeria is beginning to reap the benefits of significant policy reforms following a near fiscal crisis in 2020, but must stay the course, the World Bank said on Thursday.



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



The Kenyan shilling was steady against the dollar on Thursday as diaspora dollar inflows matched importer demand, one trader said.



<h2 class="wp-block-heading" id="h-kenya-politics">KENYA POLITICS</h2>



Kenya&#8217;s senate voted to dismiss Deputy President Rigathi Gachagua from office by impeachment on five out of 11 charges levelled against him on Thursday, in an unprecedented move that risks pushing the country towards a political crisis.



<h2 class="wp-block-heading" id="h-tanzania-economy">TANZANIA ECONOMY</h2>



The International Monetary Fund reached a staff-level agreement with Tanzania on a review that will make about $265.8 million available to the African country, the IMF said in a statement on Thursday.



((Compiled by Nairobi Newsroom))

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Oct 18

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1-820x429.jpg" alt="" class="wp-image-543581" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/Z5ZCDEUALVJB3FKZTMZRN6CCHI-1.jpg 1920w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s Deputy President Rigathi Gachagua speaks during a press conference, ahead of lawmakers&#8217; vote over his impeachment motion at his residence in Karen, Nairobi Kenya, October 7, 2024. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s senate voted to dismiss Deputy President Rigathi Gachagua from office by impeachment on five out of 11 charges levelled against him on Thursday, in an unprecedented move that risks pushing the country towards a political crisis.



The National Assembly voted last week to impeach Gachagua, who helped President William Ruto win an election two years ago but has been assailed by allies of the president over alleged disloyalty and a series of provocative public comments.



Fifty-four out of 67 senators voted to dismiss Gachagua on the first count of &#8220;gross violation of the constitution&#8221;, more than the two-thirds majority required under the law, making him the first Kenyan president or deputy president forced from office by impeachment.



&#8220;Accordingly, His Excellency Rigathi Gachagua&#8230; ceases to hold office,&#8221; said Senate Speaker Amason Kingi.



The process, however, is unlikely to stop there. Gachagua has filed several petitions challenging the push to oust him, and the chief justice has appointed a panel of three judges to examine them.



Gachagua, who has denied the allegations, had been&nbsp;due to defend himself against&nbsp;the charges in&nbsp;the Senate on Thursday afternoon&nbsp;ahead of the vote.



When he failed to show up, his lawyer&nbsp;Paul Muite said the deputy president had been hospitalised with intense chest pains, urging the Senate to pause proceedings for a couple of days.



But the senate declined to do so, prompting Gachagua&#8217;s legal team to leave the chambers in protest.



Dan Gikonyo, a doctor treating Gachagua, told reporters the deputy president was admitted to a Nairobi hospital with heart trouble on Thursday afternoon, but was now stable and would likely have to remain in hospital for 24-72 hours.



Some senators questioned the decision to proceed with the vote, despite Gachagua&#8217;s absence.



&#8220;We are to try a man in hospital because the only crime that Rigathi Gachagua has committed is a political crime, so he has to be removed out of the way, whatever it will take,&#8221; said Senator John Methu.



But Senator Moses Otieno Kajwang defended the move to impeach Gachagua, saying, &#8220;we must drain the swamp&#8221;.



<h2 class="wp-block-heading" id="h-risks-for-ruto">RISKS FOR RUTO</h2>



Ruto, who has fallen out with Gachagua in recent months, has not commented on the proceedings, but could face a public backlash following the impeachment, political analysts said.



Many Kenyans view the impeachment process as politically motivated, and a distraction from the aftermath of the deadly anti-tax protests in June and July that exposed deep discontent with government policies and alleged corruption.



The hearings, which have involved in-depth scrutiny of Gachagua&#8217;s finances, could boomerang back at Ruto, said Karuti Kanyinga, a professor at the University of Nairobi&#8217;s Institute for Development Studies.



&#8220;We are going to hear people demanding that the same thing that has been done on Gachagua be done to the president,&#8221; Kanyinga said.



Gachagua, who has&nbsp;previously called the impeachment process a political lynching based on&nbsp;falsehoods, had&nbsp;been due to respond to a litany of accusations laid out on Wednesday by lawmaker Mwengi Mutuse, who accusedhim of inciting ethnic hatred.



Mutuse also accused Gachagua of acquiring properties worth over $40 million since becoming deputy president, despite reporting a net worth of only around $6 million&nbsp;before entering office.



Elisha Ongoya, a member of Gachagua&#8217;s legal team, said the allegations lacked evidence and were based on speculation.



(Reporting by Hereward Holland, Ammu Kannampilly, George Obulutsa and Sonia Rao; Editing by Christina Fincher, Ammu Kannampilly, Bernadette Baum, Bill Berkrot and Marguerita Choy)

Z5ZCDEUALVJB3FKZTMZRN6CCHI (1)

Kenya senate votes to remove deputy president from office by impeachment

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P-820x461.jpeg" alt="" class="wp-image-543550" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P.jpeg 1858w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">China has announced in the past week a series of measures aimed at boosting its economy ahead of a key Politburo meeting later this week focused on reviewing the first half performance of the world’s second-largest economy. Str | Afp | Getty Images</figcaption></figure>



China’s National Bureau of Statistics on Friday reported third-quarter GDP growth of 4.6% year on year, slightly exceeding the 4.5% expected by economists polled by Reuters.



That’s less than the second-quarter growth of 4.7% year on year. On a quarterly basis, the third quarter saw 0.9% expansion, compared to 0.7% in the second quarter.



“The national economy showed positive signs of growth in September,” Sheng Laiyun, the bureau’s deputy commissioner, said at the press conference, according to CNBC’s translation of the Chinese. “The confidence is building up to hit the full-year growth target of around 5%.”



Other data released on Friday, such as retail sales and industrial production, had also beat expectations, a hopeful sign for the world’s second largest economy.



Beijing has faced growing public scrutiny over its ability to meet its own annual growth target of “around 5%.”



“Since real GDP expanded by 4.8% in the first three quarters of the year, the full year GDP growth target of around 5%&nbsp;is now within reach with extra stimulus in&nbsp;Q4,” said Tianchen Xu, senior economist at The Economist Intelligence Unit.



“Despite the multitude of challenges, China’s economy is not incurable as some would suggest,” Xu added. “There’s reason to be more optimistic about growth in the coming years, given how the government is committed to shoring up the economy.”



After the release of a slew of disappointing economic data, Chinese officials last month announced a slate of support measures to jumpstart its sluggish economy, including cutting the amount of cash the banks needs to have on hand by 50 basis points.



Authorities continued to dip feed more stimulus measures throughout this month amid low consumer sentiment and a flagging property sector. Over the weekend, China’s Minister of Finance Lan Fo’an told reporters that the central government has room to increase debt and the deficit, without giving any details on the size of the package.



Mainland China’s CSI 300 was trading up 0.7% and Hong Kong’s Hang Seng index was up 1.3% following Friday’s data release.



Bruce Pang, chief economist and head of research for Greater China at JLL, said that the performance of the economy “aligns with market expectations, given the weak domestic demand, a still struggling housing market, and slowing export growth.”

107275254-1690166741957-gettyimages-1171298060-AFP_1KN77P

China reports third-quarter GDP growth of 4.6%, slightly beating expectations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-820x536.jpg" alt="" class="wp-image-494166" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-1536x1003.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/PPA7LZHDAZIPJMJ7KHMLZAMWME-2-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view shows the logo of South Africa&#8217;s central reserve bank, at the reserve bank offices in Pretoria, South Africa, January 26, 2023. REUTERS/Siphiwe Sibeko</figcaption></figure>



JOHANNESBURG, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s central bank governor, Lesetja Kganyago, said on Thursday that the country could move to a lower inflation target at little cost.



Kganyago is a strong advocate for a lower target than the bank&#8217;s current 3% to 6% range and told Reuters in April that teams from the central bank and National Treasury were in talks about the issue.



Speaking in a lecture at the University of Stellenbosch, Kganyago said reducing the target could help achieve lower inflation and interest rates, drawing on the experience of the bank stressing that it prefers to see inflation close to 4.5%, the midpoint of its target band, since 2017.



&#8220;Executed effectively, a lower target could be achieved at little cost, just as we moved to 4.5% at little cost,&#8221; Kganyago said.



The governor cited studies that showed there had been little to no negative impact on economic growth from the bank&#8217;s decision to stress its preference for 4.5% inflation, rather than treating 3% to 6% as a &#8220;zone of indifference&#8221;.



He said the emphasis on the 4.5% midpoint had helped lower inflation through &#8220;clear and credible communication&#8221;.



In April, Kganyago told Reuters that he personally hoped a decision could be taken to lower the inflation target before 2025.



Other arguments given by Kganyago for lowering the bank&#8217;s current target include that it is out of kilter with South Africa&#8217;s emerging market peers, too wide and serves to anchor inflation expectations higher than policymakers would like.



South Africa introduced its inflation-targeting framework in 2000, and had planned to lower the target to 3%–5% and then 2%-4%.



(Reporting by Kopano Gumbi; Additional reporting by Tannur Anders; Editing by Alexander Winning and Daren Butler)

South Africa trims rate hikes as power cuts slash growth prospects

South Africa could lower inflation target at little cost, c.bank governor says

<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/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-820x547.jpg" alt="" class="wp-image-543347" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/B22ZLQJJS5KOTFCF5CQ5IIGGIQ-1-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">World Bank President Ajay Banga speaks on the second day of the annual meeting of the International Monetary Fund and the World Bank, following last month&#8217;s deadly earthquake, in Marrakech, Morocco, October 10, 2023. REUTERS/Susana Vera</figcaption></figure>



WASHINGTON, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;World Bank President Ajay Banga said on Thursday that bilateral creditors need to provide more debt forgiveness to&nbsp;poor&nbsp;debt-distressed countries, and that the development lender was working on ways to ease service costs to improve development outcomes.



Banga, speaking to reporters ahead of World Bank and International Monetary Fund annual meetings&nbsp;next week, said the bank has already answered calls for its share of debt relief in restructurings by providing billions of dollars in additional grants and deeply discounted loans to debtor countries.



Some $16 billion to $17 billion has gone to Zambia, Chad, Ethiopia and Ghana during their slow and painful debt restructuring processes.



&#8220;Effectively, what we&#8217;re doing is giving them the lifeline they need, whether you do it as a debt forgiveness or you give them a grant,&#8221; Banga said. &#8220;Debt forgiveness is required, but not from us. It&#8217;s required from those creditors. That&#8217;s the issue we&#8217;re trying to work our way through.&#8221;



Banga did not specifically mention China, which has been among the largest creditors to debt-distressed countries and has been slow to agree to reductions in debt principal.



Banga said that the World Bank was working with several countries on potential ways to re-profile debt to reduce servicing costs &#8220;and take the distance and put it into development, life, education, what you would call a debt-for- development swap.&#8221;



(Reporting by David Lawder; Editing by Chizu Nomiyamaand Mark Porter)

Second day of the International Monetary Fund and the World Bank meeting in Marrakech

World Bank’s Banga says more bilateral debt forgiveness needed

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-820x615.jpg" alt="" class="wp-image-543315" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/ASNTL4445RJTLFIZ464UIMHVRQ-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People shop at a fresh food market in Oyingbo, Lagos, Nigeria December 17, 2021. Picture taken December 17, 2021. REUTERS/Nneka Chile/File Photo</figcaption></figure>



ABUJA, Oct 17 (Reuters)&nbsp;&#8211;&nbsp;Nigeria is beginning to reap the benefits of significant policy reforms following a near fiscal crisis in 2020, but must stay the course, the World Bank said on Thursday.



President Bola Tinubu has instituted reforms including ending a decades-old petrol subsidy and devaluing the currency to try to boost output, which has been sluggish for about a decade.



World Bank lead economist for Nigeria Alex Sienaert said that Nigeria&#8217;s fiscal deficit has reduced from 6.2% of Gross Domestic Product (GDP) in the first half of last year to 4.4% in the first half of this year, with the reforms leading to robust growth in service sectors, stability in the oil sector, and improvements in the foreign exchange market.



&#8220;We are seeing a fiscal consolidation underway with the fiscal deficit shrinking and that&#8217;s driven by a combination of expenditure being roughly constant in real terms, and revenues which are surging,&#8221; Sienaert said during a presentation in the capital Abuja.



&#8220;This surge in revenues is largely due to the removal of the implicit forex subsidy that was happening before, which was even larger than the petrol subsidy, which we talk a lot about,&#8221; he said.



The World Bank expects Nigeria&#8217;s economy to grow at 3.3% this year, rising to 3.6% in 2025.



Nigeria&#8217;s fiscal crisis had been mounting following two economic recessions in the last eight years due to a combination of economic mismanagement and policy challenges.



The recent reforms, including a focus on price stability and a unified market-reflective exchange rate by the central bank, have proven critical in stemming an economic downturn, but they have stoked inflation.



&#8220;The ultimate purpose here, of course, is jobs and opportunities,&#8221; Sienaert said.



(Reporting by Elisha Bala-Gbogbo; Editing by Angus MacSwan)

FILE PHOTO: People shop at a fresh food market in Oyingbo, Lagos

Nigeria seeing positive results from fiscal reforms, World Bank says

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South African Markets – Factors to watch on Oct 18

African Markets – Factors to watch on Oct 18

Kenya senate votes to remove deputy president from office by impeachment

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South Africa could lower inflation target at little cost, c.bank governor says

World Bank’s Banga says more bilateral debt forgiveness needed

Nigeria seeing positive results from fiscal reforms, World Bank says

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World Bank’s Banga says more bilateral, commercial debt forgiveness needed

How Spirit Halloween Became A Billion-Dollar Business

A hot lap with F1’s Max Verstappen

South Africa asks Taiwan to move its de facto embassy from Pretoria

Putin says BRICS will generate most of global economic growth

Kenyan court blocks deputy president appointment hours after Ruto picks ally

Kenyan shilling unchanged versus dollar

South African rand firms, inflation print next week

South African click-and-collect firm Pargo considers foray into rest of Africa

South African Markets – Factors to watch on Oct 18

African Markets – Factors to watch on Oct 18

Kenya senate votes to remove deputy president from office by impeachment

China reports third-quarter GDP growth of 4.6%, slightly beating expectations

South Africa could lower inflation target at little cost, c.bank governor says

World Bank’s Banga says more bilateral debt forgiveness needed

Nigeria seeing positive results from fiscal reforms, World Bank says

The world’s ‘most advanced’ humanoid robot

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