<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="410" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/b7d68332093f816dff7a7250ad43a40d.2-1-super.1-820x410.jpg" alt="" class="wp-image-532065" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/b7d68332093f816dff7a7250ad43a40d.2-1-super.1-820x410.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/b7d68332093f816dff7a7250ad43a40d.2-1-super.1-300x150.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/b7d68332093f816dff7a7250ad43a40d.2-1-super.1-160x80.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/b7d68332093f816dff7a7250ad43a40d.2-1-super.1-768x384.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/b7d68332093f816dff7a7250ad43a40d.2-1-super.1.jpg 1360w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Benson Ibeabuchi/AFP via Getty Images</figcaption></figure>



While inflation and price growth have fallen in advanced economies, they remain stubbornly high in Africa, owing to rising food prices, the lack of formal employment opportunities, and austerity measures. The resulting protests in Nigeria and Kenya should encourage governments to rethink constraints on public spending.



WASHINGTON, DC – The rising cost of living in Africa has triggered a <a href="https://www.wsj.com/world/africa/africas-cost-of-living-protests-reach-nigeria-d0b507f1" target="_blank" rel="noreferrer noopener">wave of protests</a> in recent months, underscoring the disproportionately higher economic and social costs of inflation on a continent with persistent widespread poverty and heightened vulnerability to global volatility. The world, it seems, is now living through a tale of two inflations.



Initially, the current inflation cycle – a product of pandemic supply shocks and escalating geopolitical tensions – affected developed and developing countries alike. But inflationary pressures have become less synchronous over time. While price growth has fallen sharply in advanced economies, it remains stubbornly high – and, in some cases, rising – in Africa. And even though inflation in many developed countries is trending down to central banks’ 2% target, it has hit double digits in nearly&nbsp;<a href="https://tradingeconomics.com/country-list/inflation-rate?continent=africa" target="_blank" rel="noreferrer noopener">one-third of African countries</a>&nbsp;(a ratio that is even higher when excluding&nbsp;<a href="https://www.theafricareport.com/345016/is-the-cfa-franc-benefiting-from-the-african-currency-crisis/" target="_blank" rel="noreferrer noopener">CFA franc countries</a>, where the euro peg has contributed to monetary stability).



For example, the annualized inflation rate in Nigeria, one of Africa’s largest economies, hit 34% – a <a href="https://www.bloomberg.com/news/articles/2024-06-15/nigerian-inflation-rate-surges-to-28-year-high-on-food-costs" target="_blank" rel="noreferrer noopener">28-year high</a> – in May, and is forecast to remain elevated in the second half of the year, largely owing to soaring food inflation, which accelerated to 40%. This stands to reduce household purchasing power and raise the risk of food insecurity even more, especially for Nigeria’s growing rank of poverty-stricken and most vulnerable citizens. The country has the world’s largest population <a href="https://www.bloomberg.com/news/articles/2024-06-15/nigerian-inflation-rate-surges-to-28-year-high-on-food-costs?utm_medium=cpc_search&amp;utm_campaign=NB_ENG_DSAXX_DSAXXXXXXXXXX_EVG_XXXX_XXX_COUSA_EN_EN_X_BLOM_GO_SE_XXX_XXXXXXXXXX&amp;gad_source=1&amp;gclid=Cj0KCQjwwuG1BhCnARIsAFWBUC3-T3qj1rurqEeXOic19ru6SxmsWUrCJnrfMNEkcC6ldXfPKJdGuDwaAsjsEALw_wcB&amp;gclsrc=aw.ds" target="_blank" rel="noreferrer noopener">living in poverty</a> after India. Meanwhile, <a href="https://www.ft.com/content/137058b2-d48a-4adf-91f1-e25494350e6e" target="_blank" rel="noreferrer noopener">government reforms</a>, including the <a href="https://financialpost.com/pmn/business-pmn/nigerian-inflation-rate-climbs-to-28-year-high-on-food-costs" target="_blank" rel="noreferrer noopener">sharp devaluation</a> of the naira – which has <a href="https://financialpost.com/pmn/business-pmn/nigerian-inflation-rate-climbs-to-28-year-high-on-food-costs" target="_blank" rel="noreferrer noopener">lost 70% of its value against the dollar</a> since June 2023 – to attract foreign investors, have only made matters worse for a country that relies heavily on imports of food and other essentials.



In August, protests against the resulting economic hardship spread across&nbsp;<a href="https://www.wsj.com/world/africa/africas-cost-of-living-protests-reach-nigeria-d0b507f1" target="_blank" rel="noreferrer noopener">several large Nigerian cities</a>. They followed&nbsp;<a href="https://www.aljazeera.com/opinions/2024/8/6/is-a-sub-saharan-african-spring-in-the" target="_blank" rel="noreferrer noopener">weeks of riots</a>&nbsp;in Kenya against the government’s finance bill, which proposed tax hikes on basic goods such as oil, bread, and sanitary pads, even as millions were already struggling to make ends meet. Dozens of demonstrators in both countries were killed during official attempts to quell the&nbsp;<a href="https://www.wsj.com/world/africa/africas-cost-of-living-protests-reach-nigeria-d0b507f1" target="_blank" rel="noreferrer noopener">uprisings</a>.



Food-price inflation affects low-income households more than their high-income counterparts because they spend a greater portion of their budget on necessities. Consider that food costs account for&nbsp;<a href="https://www.imf.org/en/Blogs/Articles/2022/06/07/blog-response-to-high-food-prices" target="_blank" rel="noreferrer noopener">16% of consumer spending</a>&nbsp;in advanced economies, but&nbsp;<a href="https://www.imf.org/en/Blogs/Articles/2021/12/06/food-inflation-in-sub-saharan-africa" target="_blank" rel="noreferrer noopener">around 40%</a>&nbsp;in Sub-Saharan Africa (SSA). This difference in the composition of spending explains the more regressive nature of inflation in SSA, which is home to&nbsp;<a href="https://www.ispionline.it/en/publication/is-poverty-growing-again-in-sub-saharan-africa-trends-and-measures-137866" target="_blank" rel="noreferrer noopener">60% of the world’s extreme poor</a>, and why inflation there carries a greater risk of political upheaval.



The lack of formal employment opportunities has also exacerbated Africa’s cost-of-living crisis. To be sure, the wages of low-income workers with formal jobs are not keeping pace with price increases. But informal sector activities – a disguised form of unemployment and constraint on shared prosperity – account for&nbsp;<a href="https://www.ilo.org/resource/news/more-60-cent-worlds-employed-population-are-informal-economy" target="_blank" rel="noreferrer noopener">roughly 85%</a>&nbsp;of total employment on the continent, and these workers must also deal with income volatility and unexpected components of inflation, further tightening the squeeze on households.



Recent research assessing the distributional effects of the inflation cycle on households in the United States found a phenomenon known as “<a href="https://static1.squarespace.com/static/610831a16c95260dbd68934a/t/61154aaa50053703a8898e64/1628785323000/The-Costs-of-Being-Poor-CPSP-Groundwork-Collaborative-2019.pdf" target="_blank" rel="noreferrer noopener">inflation inequality</a>”: prices have risen more quickly for those at the bottom of the income distribution than for those at the top. The spread of protests across Africa suggests that a similar dynamic is at work on the continent, where the disproportionately higher food prices caused by positive&nbsp;<a href="https://thedocs.worldbank.org/en/doc/461221541081214468-0050022018/original/InflationChapter5.pdf" target="_blank" rel="noreferrer noopener">exchange-rate pass-throughs</a>&nbsp;have dramatically increased the welfare costs of this inflation cycle.



Government policies have also heightened the cost-of-living crisis. Instead of supporting vulnerable groups through targeted interventions, African governments have indiscriminately raised taxes and cut spending to meet&nbsp;<a href="https://www.project-syndicate.org/commentary/how-africa-can-escape-debt-doom-loop-by-hippolyte-fofack-2024-04">external liabilities</a>. Interest payments on sovereign debt now consume around one-third of&nbsp;<a href="https://www.ft.com/content/0e1be993-90e1-4477-9c29-41400c0d1c98" target="_blank" rel="noreferrer noopener">Kenya’s revenue</a>&nbsp;and more than two-thirds of&nbsp;<a href="https://www.reuters.com/world/africa/nigerias-president-calls-end-protests-against-economic-hardship-2024-08-04/#:~:text=ABUJA%2C%20Aug%204%20(Reuters),to%20the%20streets%20last%20week." target="_blank" rel="noreferrer noopener">Nigeria’s</a>. In both countries, procyclical fiscal policy and austerity measures have had a knock-on effect on prices, stoking inflation and worsening the cost-of-living crisis.



But in response to the protests, governments are reversing some of their procyclical policies or implementing complementary measures to mitigate their impact. Kenyan President&nbsp;<a href="https://www.project-syndicate.org/columnist/william-ruto">William Ruto</a>&nbsp;dismissed his entire cabinet and withdrew the controversial finance bill, which was expected to raise&nbsp;<a href="https://www.hrw.org/news/2024/07/16/kenya/imf-align-economic-reform-rights" target="_blank" rel="noreferrer noopener">$2.7 billion</a>&nbsp;in additional revenue to meet fiscal targets set by the International Monetary Fund. In Nigeria, the government has announced a 150-day&nbsp;<a href="https://www.reuters.com/world/africa/nigeria-suspend-taxes-certain-food-imports-curb-rising-prices-2024-07-08/" target="_blank" rel="noreferrer noopener">suspension of import duties</a>&nbsp;for certain foods to alleviate the pressure on struggling households.



Nonetheless, more must be done to close the gap between actual and potential growth and expand opportunities for young people. Africa is the world’s most natural-resource-rich continent, yet Africans face bleak futures in countries that lack sufficient engineers and political will to transform these resources, create enough well-paying jobs, and expand prosperity. Africa’s excessive reliance on imports as an alternative to expanding aggregate output has sustained external imbalances and hollowed out the jobs market, causing more people to fall into destitution.



To meet the aspirations of young populations, African governments should rethink constraints on public spending and&nbsp;<a href="https://www.project-syndicate.org/onpoint/imf-world-bank-reforms-must-provide-africa-equal-access-to-capital-by-hippolyte-fofack-2024-03">overcome</a>&nbsp;the recurrent balance-of-payments crises that have long shaped economic policy across the continent. Increased investment in building a workforce that is fluent in emerging technologies is critical to spurring industrialization. This, in turn, would bolster Africa’s&nbsp;<a href="https://link.springer.com/article/10.1007/s12197-019-09504-5" target="_blank" rel="noreferrer noopener">manufacturing sector</a>, which in other parts of the world has long served as a social escalator and growth accelerator, catalyzing convergence with high-income countries. The transformation of African economies will also drive the development of regional value chains, bolster intra-African trade (and thus mitigate the region’s exposure to global volatility), and build large national buffers to wean the region off debilitating aid dependency.



Africa’s policymakers must not only invest in human capital to move their countries up the value ladder in a global economy where technology has become a key driver of growth. They must also strive to equalize access to opportunities and achieve shared prosperity to strengthen the concept of the nation-state and enhance national security. To quote Samora Machel, the first president of Mozambique, “For the nation to live, the tribe must die.” For too long, a tribal approach to governance has undermined national development, perpetuating intergenerational poverty and exacerbating inflation inequality.<a href="https://goo.gl/forms/7Xl5BoAChQ85MMsm2" target="_blank" rel="noreferrer noopener"></a>

b7d68332093f816dff7a7250ad43a40d.2-1-super.1

Confronting Africa’s Cost-of-Living Crisis

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-820x546.jpg" alt="" class="wp-image-532061" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS.jpg 1280w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



McDonald’s South Africa recognises that a change as little as reading a book can change a lot about a child’s future.



Starting in the month of September, which marks Literacy Month, McDonald’s South Africa will be on a quest to donate over a million books to disadvantaged schools and Early Childhood Development Centres across the country.



According to the Progress in International Reading Literacy Study, which evaluated the reading ability of 400,000 students globally in 2021, South Africa ranked last out of 57 countries assessed, with eight out of 10 South African school children struggling to read by the age of ten. The study showed that 81% of South African children could not read for comprehension in any of the country&#8217;s eleven official languages.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-3-820x546.jpg" alt="" class="wp-image-532062" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-3-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-3-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-3-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-3-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/BOOK-DONATIONS-3.jpg 1280w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Sechaba Motsieloa, Marketing Director at McDonald’s South Africa said: &#8220;Our mission is to ensure all children, no matter their background, can access the joy of reading. This September, together with fantastic charity partners such as the SABC, National Library of South Africa and the Rugby Sevens Team amongst others, we will do our best to ensure as many children have access to books in their schools to spark a lifelong love of reading.&#8221;



As a company that prides itself on diversity and its commitment to fostering community, McDonald’s South Africa, has been offering children’s books as an alternate option to toys, with every purchase of a McDonald’s Happy Meal, since 2019.



McDonald’s South Africa’s donation of over a million books to underprivileged schools is a significant contribution to education. Access to books can greatly enhance literacy and learning opportunities for students. This kind of initiative not only supports academic growth but also fosters a love for reading, which can have long-lasting benefits for children.



“The ongoing literacy crisis in South Africa requires that organisations who care about the future of this country contribute towards encouraging a love and culture of reading,” concludes Motsieloa.

BOOK  DONATIONS

McDonald’s South Africa is donating over a million children’s books to deprived schools and ECD’s across the country

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-820x547.jpg" alt="" class="wp-image-532028" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/5TLM4VGHGFLZVJKGLDZIGS2JC4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A street vendor balances a box on her head as she makes a sale at Markets of Warwick in the Durban CBD, Durban, South Africa May 31, 2024. REUTERS/Alaister Russell/File photo</figcaption></figure>



JOHANNESBURG, Sept 18 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s inflation rate fell more than expected last month to its lowest since April 2021, data showed on Wednesday, reinforcing expectations that the central bank will cut interest rates this week.



Headline consumer inflation fell to 4.4% year-on-year from 4.6% in July, just below the 4.5% midpoint of the South African Reserve Bank&#8217;s target range where it likes to see inflation.



The median forecast of analysts polled by Reuters was for a reading of 4.5%.



&#8220;The table is laid for the interest rate cutting cycle to commence,&#8221; said independent economist Elize Kruger.



Easing price pressures from transport, housing, restaurants and hotels contributed to August&#8217;s lower inflation print, data from Statistics South Africa showed.



However food inflation ticked up to 4.7% in annual terms from 4.5% in July, reversing an eight-month downward trend.



The figures hardened expectations that the central bank will cut interest rates on Thursday for the first time in more than four years.



Even before August&#8217;s inflation figures were released, economists polled by Reuters were predicting the central bank would cut its main lending rate by 25 basis points.



(Reporting by Tannur Anders and Kopano Gumbi; Editing by Alexander Winning and Christina Fincher)

A street vendor balances a box on her head as she makes a sale, in Durban

South African inflation falls more than expected, sets stage for rate cut

<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-1076949610-612x612-1-1.jpg" alt="" class="wp-image-524600" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Sept 18 (Reuters)&nbsp;&#8211;&nbsp;The following economic events, equity and currency market moves may affect South African markets on Wednesday.



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



August consumer inflation data at 0800 GMT



July retail sales data at 1100 GMT



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



The South African rand held steady on Tuesday, with investor focus on Wednesday&#8217;s U.S. Federal Reserve policy decision which could see it deliver a big interest rate cut.



In the stock market, the Top-40 index closed 1.2% higher.



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



The dollar ceded some of its overnight gains on Wednesday while Asian stocks put in a mixed display as traders weighed the odds of a super-sized Federal Reserve interest rate cut later in the day.



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



U.S. stocks closed nearly unchanged on Tuesday, giving up earlier gains that had vaulted the S&amp;P 500 and Dow Industrial Average to record highs as investors braced for the first Federal Reserve rate cut in 4-1/2 years. 



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



Gold prices were flat on Wednesday as investors weighed chances of an outsized interest rate cut by the Federal Reserve later in the day. 



&#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; GNU ministers’ actions boost confidence, says JSE boss Leila Fourie



&#8211; Prasa spent R3.8bn on irregular expenditure, says auditor-general



(Compiled by Tannur Anders)

istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on Sept 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="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



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



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



The dollar ceded some of its overnight gains on Wednesday while Asian stocks put in a mixed display as traders weighed the odds of a super-sized Federal Reserve interest rate cut later in the day.



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



Oil prices steadied on Wednesday, after rising in the previous two sessions, as investors await the U.S. Federal Reserve&#8217;s anticipated interest rate cut, with the potential for more violence in the Middle East supporting the market.



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



The South African rand held steady on Tuesday, with investor focus on Wednesday&#8217;s U.S. Federal Reserve policy decision which could see it deliver a big interest rate cut.



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



The Kenyan shilling was unchanged on Tuesday as dollar inflows from the tourism sector balanced demand from the manufacturing sector, traders said.



<h2 class="wp-block-heading" id="h-kenya-imf">KENYA IMF</h2>



The International Monetary Fund said on Tuesday it has held productive discussions with the Kenyan government on its plans to address the country&#8217;s economic and fiscal challenges, after nationwide protests forced it to abandon planned tax hikes.



<h2 class="wp-block-heading" id="h-jp-morgan-africa">JP MORGAN AFRICA</h2>



JPMorgan Chase CEO Jamie Dimon plans to travel to Africa in mid-October in a push by the biggest U.S. lender to expand on the continent, four sources familiar with the matter told Reuters, his first trip there in seven years.



<h2 class="wp-block-heading" id="h-ghana-politics">GHANA POLITICS</h2>



Ghana&#8217;s main opposition National Democratic Congress (NDC) party on Tuesday held nationwide protests against alleged voter roll irregularities, demanding an independent forensic audit to rid the register of errors for free and fair elections.



<h2 class="wp-block-heading" id="h-south-sudan-oil">SOUTH SUDAN OIL</h2>



South Sudan and Sudan have made progress towards restarting the pumping of South Sudan&#8217;s crude oil through a pipeline running to a port in its neighbour, South Sudan&#8217;s finance minister and the president&#8217;s office said.



<h2 class="wp-block-heading" id="h-senegal-economy">SENEGAL ECONOMY</h2>



Senegal&#8217;s slower economic growth, its widening fiscal deficit and a potential delay in International Monetary Fund financing could cloud the outlook ahead of Nov. 17 parliamentary elections, analysts say.



<h2 class="wp-block-heading" id="h-mali-security">MALI SECURITY</h2>



Mali said on Tuesday that its capital Bamako was under control after insurgents attacked a gendarmerie training school and other strategic areas before dawn, firing gunshots that reverberated around the city.



<h2 class="wp-block-heading" id="h-zimbabwe-electricity">ZIMBABWE ELECTRICITY</h2>



Zimbabwe is struggling to get independent energy projects built to help ease a prolonged power shortage due to lack of funding and economic instability, a government official has said.



(Compiled by Nairobi Newsroom)

World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on Sept 18

Exploding pagers target Hezbollah across Lebanon and Syria

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-820x547.jpeg" alt="" class="wp-image-419969" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, July 27, 2022.
Elizabeth Frantz | Reuters</figcaption></figure>



The U.S. Federal Reserve is on Wednesday heading for its first interest rate cut since the onset of the Covid-19 pandemic — and despite the move being widely forecast, global investors are braced for impact.



The Fed is behind a swathe of its central bank peers, including those in the euro zone, the U.K., Canada, Mexico, Switzerland and Sweden, all of which have already cut rates.



Many of these policymakers stressed they were willing to move ahead of the Fed — usually seen as the global leader — in response to slowing growth and easing inflationary pressures at home.



However, some analysts have questioned how much further they could go before the Fed — the world’s biggest central bank by assets — followed suit, given the ripples its actions create.



<h2 class="wp-block-heading" id="h-global-impact"><a></a>Global impact</h2>



A key concern is the pressure interest rate differentials put on currencies.



Broadly speaking, higher rates attract more foreign investors seeking better returns, in turn boosting the value of the domestic currency.



This has been seen in the current cycle with the Japanese yen and Turkish lira taking a battering while their central banks kept rates low, while the U.S. dollar — as measured against a basket of currencies – soared throughout 2022 as the Fed delivered stringent rate hikes.



These differentials are particularly difficult for central banks attempting to keep price rises in check, since a weaker currency can be inflationary as it increases the cost of imported goods.



Beyond foreign exchange, another important effect of Federal Reserve rate-setting is its impact on the U.S. economy, particularly given the recent focus on a weakening labor market and possibility of a recession.



“As such an important driver of global growth, this is bound to have an effect on asset prices around the world,” Richard Carter, head of fixed interest research at Quilter Cheviot, said of a rate cut by the Fed.



That includes gold – which hit a record high this week on expectations of a move by the Fed. Higher rates are generally viewed to be a drag on gold since they make fixed-income investments, such as bonds, more attractive, although historically this has not always been the case. Gold is also used as a hedge against inflation (which can be pushed higher as rates go lower) and investors also buy the commodity in times of market stress.



Oil and other commodities, usually priced in dollars, often receive a boost with a rate cut as a lower cost of borrowing can stimulate an economy and increase demand.



Many emerging markets are more sensitive to these factors, making Fed moves even more important for them than bigger economies. Equity markets are also affected by moves by the Fed — and not just in the U.S.



Much of the global stock market volatility over recent months was linked to speculation over when, and by how much, the U.S. central bank will reduce rates.



“Interest rate cuts reduce the cost of borrowing in U.S. dollars, thereby creating easier liquidity conditions for companies around the world,” Quilter Cheviot’s Richard Carter continued via email.



“Lower U.S. interest rates should also lower the yield available on U.S. assets such as Treasurys, thus making other markets relatively more attractive,” he added.



<h2 class="wp-block-heading"><a></a>First cut the deepest?</h2>



While markets are confident that the Fed will kick off its cutting cycle on Wednesday, there is considerable uncertainty over how far and fast it will move over the remaining three meetings this year and into 2025.



That includes whether the initial cut will reduce the Fed funds rate by 25 basis points or 50 basis points below its current 525 to 550 range. Over the last week, market pricing for the larger “jumbo” cut has leapt from under 50% to nearly 70%, according to CME Group’s FedWatch tool.



 “Whatever the outcome, the markets will move,” Steven Bell, chief economist at Columbia Threadneedle, said in a Monday note.



“It is unusual for the Fed to leave the market guessing to this extent ahead of the meeting, especially so close to the U.S. presidential election. I can only presume that the committee itself is split,” Bell continued.



The November election has raised questions over the direction of U.S. fiscal policy, and how that could in turn impact inflation and monetary policy.



Joe Tuckey, head of foreign exchange analysis at Argentex, said that an initial 50 basis point rate cut by the Fed had historically “preceded some awful returns in equity markets,” notably in 2007 ahead of the Great Financial Crisis and in the early 2000s amid the tech bubble market rout.



“In essence, the need for a larger cut points toward growth concerns and economic trouble ahead,” Tuckey said.



However, Hani Redha, multi asset portfolio manager at PineBridge Investments, said it was “more critical” to look at pricing for more than 270 basis points worth of cuts through to the end of 2025.



“The economic data is still not decisive enough to give direction to the market,” Redha said, which was supporting defensive sectors.



“I think initially the reaction is going to be mixed, but probably equities can still hold up here until there’s a more decisive break in the economic data.”

107094949-16589488462022-07-27t185755z_1401356456_rc2ikv9v3blg_rtrmadp_0_usa-fed

What a Fed rate cut could mean for the world

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-820x547.jpg" alt="" class="wp-image-531973" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/HSBAWKTYB5ICVGL4ARIGTWQH5E-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Supporters of Ghana’s main opposition National Democratic Congress (NDC) party march in the streets to protest what they suspect to be voters register irregularities ahead of the presidential and parliamentary elections in December, in Accra, Ghana. September 17, 2024. REUTERS/Francis Kokoroko</figcaption></figure>



ACCRA, (Reuters) &#8211; Ghana&#8217;s main opposition National Democratic Congress (NDC) party on Tuesday held nationwide protests against alleged voter roll irregularities, demanding an independent forensic audit to rid the register of errors for free and fair elections.



Voters in the West African gold- and cocoa-producing nation will head to the polls on Dec. 7 to elect a successor to President Nana Akufo-Addo, who will step down in January after serving the constitutionally mandated eight years.



The election will pit ex-president John Dramani Mahama of the NDC against current Vice President Mahamudu Bawumia of the ruling New Patriotic Party.



The NDC party leaders said the electoral commission illegally transferred voters to different voting stations without their knowledge, compromising the integrity of the register.



Clad in red and black, thousands of supporters marched through principal streets in the capital Accra, blaring reggae and campaign songs from loudspeakers and calling on international bodies, Ghana&#8217;s peace council and religious and civil society groups to intervene.



Protest leaders presented petitions to parliament and the electoral agency in Accra. Protests also took place across Ghana&#8217;s other 15 regions, according to local media.



Protester Kwame Acheampong, 68, told Reuters in the local Akan language that his registration had been transferred from the capital to the northern city of Tamale.



&#8220;How can I go to Tamale to vote?&#8221; he said.



The electoral commission has said identified errors have been corrected.



In August, it suspended a district director in the northeastern town of Pusiga for &#8220;using his credentials to transfer voters without their knowledge.&#8221;



Ghana is one of Africa&#8217;s most stable democracies, but about eight people died during the last election, which was also marred by opposition accusations that the government unfairly influenced the outcome, which it denied.



Allegations of irregularities dent the electoral authority&#8217;s image. A July survey by pan-African research group Afrobarometer showed trust in Ghana&#8217;s electoral commission at historic low since confidence polls started in 1999.



NDC party chairman Johnson Asiedu Nketia told protesters he wanted &#8220;nothing but transparent elections.”



&#8220;Ghana&#8217;s democracy is on a serious test and we want (it) to prevail. It&#8217;s time for war to remove anything that has the tendency to push us into a bigger war.&#8221;



(Reporting by Maxwell Akalaare Adombila; Editing by Alistair Bell)

Supporters of Ghana’s main NDC party protest what they suspect to be voter roll irregularities, in Accra

Ghana opposition holds protests against alleged voter roll irregularities

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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="526" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-820x526.jpg" alt="" class="wp-image-531702" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-820x526.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-768x492.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-1536x985.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/U5Z5ZR6XYJLGBNYBTQN2PA4UEI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Smoke rises from chimneys at Hwange Power station in Hwange, Zimbabwe, October 19, 2021. REUTERS/Philimon Bulawayo/File Photo</figcaption></figure>



HARARE, Sept 17 (Reuters)&nbsp;&#8211;&nbsp;Zimbabwe is struggling to get independent energy projects built to help ease a prolonged power shortage due to lack of funding and economic instability, a government official has said.



The southern African country, which battles lengthy power blackouts, generates about 1,200 megawatts of electricity, mostly from its coal-fired Hwange plant, against peak demand of nearly 2,000 megawatts.



To plug the deficit, the government has licensed private investors to generate a combined 2,920MW from coal and solar plants.



Of these, about 250MW in private power generation is expected to come on stream this year, energy secretary Gloria Magombo told an economic conference on Monday.



&#8220;We have natural energy resources but what we need is financing. That financing needs macroeconomic stability,&#8221; Magombo said.



Independent power producers also need government assurances that they will be able to remit dividends and loan repayment funds, she added.



Zimbabwe continues to experience episodes of high inflation, mainly due to a volatile local currency it reintroduced in 2019, a decade after abandoning it for the U.S. dollar.



The country&#8217;s foreign currency shortages mean investors struggle to remit dividends or repay international loans.



Independent power producers are also deterred by the prospect of selling power at what they see as an overvalued official exchange rate, which would lead to losses.



Zimbabwe generates at least 80% of its electricity from coal, with output from the 1,050-MW Kariba hydropower plant now capped at 215 MW due to low water levels after last year&#8217;s devastating drought. Small independent power producers routinely contribute between 20 MW and 50 MW to the national grid.



Power demand is expected to surge mostly due to expansion in mining projects as Africa&#8217;s top lithium producer Zimbabwe seeks to capitalise on the expected increase in demand for the battery metal.



(Reporting by Nyasha Chingono; Editing by Nelson Banya and Emelia Sithole-Matarise)

FILE PHOTO: Smoke rises from chimneys at Hwange Power station in Hwange

Zimbabwe’s volatile economy stalls independent power projects, energy official says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg" alt="" class="wp-image-400641" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/1x-1-2-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A collection of mixed denomination South African rand coins sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africas inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015. Photographer: Waldo Swiegers/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, Sept 17 (Reuters)&nbsp;&#8211;&nbsp;The South African rand held steady in early trade on Tuesday, with investor focus on Wednesday&#8217;s U.S. Federal Reserve policy decision which could see it deliver a big interest rate cut.



At 0750 GMT, the rand traded at 17.6250 against the dollar, not far from its Monday closing level of 17.6225.



Markets are certain the Fed will cut rates when it makes its policy announcement on Wednesday and are leaning towards more aggressive easing in the world&#8217;s biggest economy.



&#8220;Markets have started positioning themselves for a 50bps (basis points) rate cut by the Fed,&#8221; said Andre Cilliers, currency strategist at TreasuryONE.



Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S. monetary policy in addition to domestic factors.



On Wednesday, local investors will look to South Africa&#8217;s August consumer inflation figures and on Thursday, the South African Reserve Bank will announce its policy decision.



Economists polled by Reuters predict a 25-basis-point rate cut by the central bank of Africa&#8217;s most industrialised economy.



On the stock market, the Top-40 index was up about 0.6% in early trade.



South Africa&#8217;s benchmark 2030 government bond was also firmer in early deals, as the yield slipped 2 basis points to 8.805%.



(Reporting by Tannur Anders; Editing by Emelia Sithole-Matarise)

South African Economy As Inflation Rate Rises For First Time In 2017

South African rand steadies, markets focus on Fed rate cut

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="425" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg" alt="" class="wp-image-498541" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-152x90.jpg 152w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Kenya shilling coins and notes are pictured inside a 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, Sept 17 (Reuters) &#8211; The Kenyan shilling was unchanged on Tuesday as dollar inflows from the tourism sector balanced demand from the manufacturing sector, traders said.



Commercial banks quoted the shilling at 128.50/129.50 per dollar at 0741 GMT, the same as Tuesday&#8217;s closing rate.



(Reporting by George Obulutsa)

ANCK25OQIFMHTJYACOM5XU5T24

Kenyan shilling holds steady with tourism and manufacturing dollar inflows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="514" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/4E5JLNLLANP4HIWTHREINONFZQ-820x514.jpg" alt="" class="wp-image-531665" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/4E5JLNLLANP4HIWTHREINONFZQ-820x514.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/4E5JLNLLANP4HIWTHREINONFZQ-300x188.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/4E5JLNLLANP4HIWTHREINONFZQ-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/4E5JLNLLANP4HIWTHREINONFZQ-768x482.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/4E5JLNLLANP4HIWTHREINONFZQ-1536x963.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/4E5JLNLLANP4HIWTHREINONFZQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker carries a bale of imported second-hand clothes past displayed apparel, amid the coronavirus disease (COVID-19) outbreak at the Gikomba market in Nairobi, Kenya September 18, 2020. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Sept 17 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s finance ministry forecasts a fall in the budget deficit to 3.5% of gross domestic product (GDP) in the 2025/26 fiscal year that starts next July, from 4.3% of GDP in the current fiscal year, a draft budget document showed.



President William Ruto scrapped tax hikes worth more than 346 billion shillings ($2.7 billion) in June in the face of youth-led demonstrations that created the biggest crisis of his two-year-old presidency.



The tax hikes were meant to increase revenue this fiscal year, but the government opted for spending cuts and more borrowing after they were pulled.



The budget deficit is expected to drop further to 3.3% of GDP in the 2026/27 fiscal year, the finance ministry said in the draft budget outlook paper seen by Reuters on Tuesday.



($1 = 128.5000 Kenyan shillings)



(Reporting by George Obulutsa; Editing by Alexander Winning and Ros Russell)

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<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KCFPRJVFHBJAVIHQY7H4XLQJ2Y-2.jpg" alt="" class="wp-image-531632" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KCFPRJVFHBJAVIHQY7H4XLQJ2Y-2.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KCFPRJVFHBJAVIHQY7H4XLQJ2Y-2-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/KCFPRJVFHBJAVIHQY7H4XLQJ2Y-2-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Shoppers queue to purchase televisions during Black Friday shopping, at a store in Canal Walk Mall in Cape Town, South Africa, November 25, 2022. REUTERS/Esa Alexander/File Photo</figcaption></figure>



Sept 17 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s consumer confidence recovered further in the third quarter to its best since 2019, helped by improved willingness to spend and hopes of an interest rate cut in September, survey data released on Tuesday showed.



The consumer confidence index (CCI), sponsored by First National Bank (FNB) and compiled by the Bureau for Economic Research (BER), improved to minus 5 points in the quarter from minus 10 in the previous three months.



&#8220;A confluence of positive developments has bolstered the confidence levels of South Africa&#8217;s more affluent consumers over the last six months,&#8221; FNB Chief Economist Mamello Matikinca-Ngwenya said.



The central bank is due to announce its rate decision on Thursday, with economists expecting a 25-basis-point cut as inflation slows, according to a Reuters poll.



Besides the deceleration in inflation, the formation of the government of national unity, the absence of load-shedding, a stronger rand exchange rate and substantial fuel price declines have also contributed to improving consumer confidence.



&#8220;Moreover, the implementation of the two-pot retirement system on Sept. 1 now allows consumers access to a portion of their retirement savings, which will no doubt hearten households experiencing financial distress,&#8221; Matikinca-Ngwenya said.



However, while confidence among high-income and middle-income households improved, low-income households showed weakness as the lack of pension funds and debt that is tied to the prime interest rate minimizes the impact of the two-pot policy and possible rate cuts.



(Reporting by Prerna Bedi in Bengaluru; Editing by Savio D&#8217;Souza)

KCFPRJVFHBJAVIHQY7H4XLQJ2Y (2)

S. Africa consumer confidence recovers to pre-pandemic levels, survey shows

<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-1076949610-612x612-1-1.jpg" alt="" class="wp-image-524600" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/istockphoto-1076949610-612x612-1-1-135x90.jpg 135w" sizes="auto, (max-width: 612px) 100vw, 612px" /></figure>



JOHANNESBURG, Sept 17 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic event, company announcement, equity and currency market moves may affect South African markets on Tuesday.



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



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



<h2 class="wp-block-heading" id="h-companies">COMPANIES</h2>



South African insurer OUTsurance will report its full-year results.



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



The South African rand gained on Monday against a weaker dollar, as markets geared up for a week packed with interest rate announcements and a local inflation print.



On the Johannesburg Stock Exchange, the blue-chip Top-40 index&nbsp;closed down about 0.1%.



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



Asian stocks gained on Tuesday while the dollar and U.S. Treasury yields came under pressure, with just a day to go before the expected start of the Federal Reserve&#8217;s easing cycle that could see policymakers deliver an outsized rate cut.



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



The S&amp;P 500 eked out a slight gain in a subdued session while the Nasdaq fell on Monday, weighed down by a drop in technology stocks as investors assessed the likelihood of an upsized rate cut from the U.S. Federal Reserve this week.



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



Gold prices hovered near a record high on Tuesday, ahead of the anticipated start of the U.S. interest rate reduction cycle, which could see policymakers deliver an outsized cut.



&#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; Exporters choose SA’s neighbours amid delayed port privatisation



&#8211; Ramaphosa in talks with Elon Musk about Starlink



(Compiled by Tannur Anders)

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Confronting Africa’s Cost-of-Living Crisis

McDonald’s South Africa is donating over a million children’s books to deprived schools and ECD’s across the country

South African inflation falls more than expected, sets stage for rate cut

South African Markets – Factors to watch on Sept 18

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South African rand steadies, markets focus on Fed rate cut

Kenyan shilling holds steady with tourism and manufacturing dollar inflows

Kenya forecasts budget deficit will fall to 3.5% of GDP next fiscal year

S. Africa consumer confidence recovers to pre-pandemic levels, survey shows

South African Markets – Factors to watch on Sept 17

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