Tanzania becomes the first country in East Africa to have electric standard gauge railway, Tanzania's prime minister, Mr Kassim Majaliwa, flagged away the first trial run of a passenger train on the newly-completed Standard Gauge Railway (SGR) on April 21. With improved railway network, Import and Export trade will grow. The passenger and stock operations will start in July, operating from Dar Es Salaam to Dodoma.

Anglo American has rejected BHP's "highly unattractive" takeover offer. Anglo's board chair Stuart Chambers said:

"Anglo American is well positioned to create significant value from its portfolio of high quality assets that are well aligned with the energy transition and other major demand trends. With copper representing 30% of Anglo American’s total production, and with the benefit of well-sequenced and value-accretive growth options in copper and other structurally attractive products, the Board believes that Anglo American’s shareholders stand to benefit from what we expect to be significant value appreciation as the full impact of those trends materialises."

This picture shows exactly how our monetary system works.

In 1929, the average US house price was around $6k.

10 kg of Gold was worth $7k - hence it was enough to buy you the average house in the US.

In 2024, the average US house price is around $500k.

10kg of Gold are worth more than $700k - still more than enough to buy you the average US house.

So, while house prices measured in USD exploded over the last decades it's safe to say they ended up unchanged when measured in Gold.

Or, in other words: Gold did a good job in preserving your inflation-adjusted purchasing power.

But why?

Because our monetary system allows us to freely print new fiat money through the process of credit creation.

And the housing market relies on one of the biggest credit creation machines in the world: mortgages.

You see, especially over the last 50 years most developed economies have applied the same model: lower and lower (real) interest rates, more and more leverage - either through government or private sector debt.

This has allowed the economy and asset markets to keep flourishing despite ageing demographics and declining productivity.

Being able to take out a mortgage at lower and lower interest rates encourages the process of credit creation: the same amount of salary ''allows'' you to take on a bigger mortgage, and so you can bid house prices higher and higher.

Simply speaking: more credit at lower rates pushes house prices (in USD terms) higher over time.

But as new credit generates new fiat currency, this also means the amount of fiat money in the system explodes higher.

And that's it.

That's why when you measure house prices against a competing form of money (gold) whose supply can't be expanded you get a flatline.

A fully elastic fiat system is great - if used properly, it allows policymakers to support economies during downturns through the process of money creation.

But if handled improperly, it can also lead to explosive moves in asset prices and/or to inflationary pressures!

P.S. I am launching my Macro Fund!

Morocco Tangier Port, is one of the biggest ports across Africa, and recently its top 20 globally. Morocco’s Tanger Med breaks into top 20 ports

The port in the Mediterranean continues to capitalise on its position as the gateway to Africa, and is surging ahead of major global competitors such as Hamburg.

As the gateway to Africa, Tanger Med (TPMA) – the largest port in the Mediterranean by container volume – handles more than 40% of transhipment traffic to the continent. And now it has placed 19th in the latest annual ranking of the world’s 500 largest ports, published last month by maritime consultancy Alphaliner.

The ranking is based on the number of containers passing through the world’s main trading ports, and the number of containers is expressed in millions of 20-foot equivalent units (TEUs).

More Jamii Trade updates as Africa grows globally in Trade on import and export.

An entrepreneur who is into the manufacturing of local teas, herbal medicines and fruit drink processing. Am happy to create employment and reduce post harvest losses.

The new Lamu Port project in Kenya, is set to improve several economies in Africa. Ethiopia and South Sudan has lauded Kenya following the successful delivery of the Ship to Shore Gantry Cranes at the Port of Lamu.

Recently the arrival of ship equipment is crucial for the operalisation of the Port of Lamu’s first three berths with the two neighbouring countries positioned to immensely benefit.

Among the regional leaders that have congratulated Kenya on the achievement include South Sudan’s Transport Minister Madut Biar Yel and his Petroleum counterpart Puot Kang.

Others, according to a communique by the Kenya Ports Authority is Ethiopia’s Transport Minister Dhenge Boru, Ethiopia Maritime Authority Director General Mr. Ato Mekonen and Mr. Kawaja Kau Madol, South Sudan’s Press Secretary office of Vice President Taban Deng Gai.

Others who have applauded Kenya are Dr Stephen Karinge, the United Nations Economic Commission for Africa (UNECA), and Robert Tama Lisinge, the Director of the Regional Integration and Trade Division.

The Port of Lamu is expected to soon commence full operations following investment from the government in a move that is expected to improve on the country’s maritime business.

The Port is a crucial towards facilitating the land-locked countries of South Sudan and Ethiopia with a link to the Indian Ocean. The two countries have an estimated 130 million population.

South Sudan use the Port of Mombasa for its access to the sea but their have been negotiations towards switching to Lamu with further talk of an oil pipeline linking Juba to the Kenyan port, amid security challenges in Sudan. The Kenyan government recently opened talks on extending the trade link from Lamu to South Sudan and Chad.

Ethiopia meanwhile, are keen to switch to Lamu following challenges accessing Djibouti’s port via reported security concerns at the Red Sea.

The Industry Division of the African Union - Economic Development, Tourism, Trade, Industry, Minerals (ETTIM) will hold its 12th Annual 

Industry Stakeholders’ Retreat and the 3rd African SME Development Program Partnership Platform Meeting

📌 Durban, South Africa.

📅 22nd to 26th April 2024.