The selection: Monday, 30 November

Rail infrastructure in Africa: financing policy options (AfDB)

Except for South Africa and North Africa, railways are not making a dent on African economies. Market share is less than 20%. Railway transport expected to play a major role in complementing other transport modes of transport to support and sustain anticipated growth. With the anticipated growth, railways will be well positioned to contribute to low transportation costs, efficient use of energy, slowing down climate change, and job creation. How to accelerate the rail expansion? An in depth assessment of the railways in eight African countries has been undertaken. These eight countries are: Botswana, Cameroon, Kenya, Madagascar, Morocco, Senegal, Tanzania and Zambia. They represent a wide range of backgrounds and experiences. Most have had experience with concessions, with different results. But some (like Botswana and Morocco) have maintained a public sector approach. The most relevant conclusions from these visits are:

Transport Forum 2015 updates: Transport in Africa viewed through the lens of fragility, African cities need to push for green, inclusive transport

Kenya: Why the standard gauge railway is not cost-effective (Business Daily)

Mozambique invites bids for next phase of northern export harbour (Bloomberg)

AU in meetings to progress intra African trade (AU)

In this respect, from 23-27 November, the AU co-hosted three meetings aimed at enhancing trade among African countries: i.e. discussing progress in regional integration, specifically the moves towards establishing a Continental Free Trade Area: modalities for trade in services negotiations and review of the implementation of the plan of action for Boosting Intra African Trade (BIAT). Meeting in Cape Town were different departments of the African Union Commission, including the Directorate of Information and Communication, some member states, Regional Economic Communities and partners, under the joint coordination of the AUC’s Department of Trade and Industry and the Trade Law Centre, based in South Africa.

Transaction dollarisation in Tanzania (Bank of Tanzania)

The findings indicate that about 3.2% of the businesses in Mainland Tanzania and 4.5% in Zanzibar quote prices in US dollar, but most of these businesses were willing to accept payments in Tanzanian shilling. Only 0.1% of the businesses in the Mainland and none in Zanzibar indicated that they would prefer payments exclusively in US dollar. Many countries in the region and across the world are experiencing a similar situation. We urge the authorities to avoid the use of direct measures in their quest for limiting dollarization in the economy because international evidence suggests that enforcing de-dollarization can potentially be counter-productive. Instead, we recommend the use of gradual market-oriented measures aimed at enhancing the attractiveness of the domestic currency.

Zimbabwe: Unpacking depreciation of the Rand (The Zimbabwe Daily)

The same applies to diaspora remittances particularly from South Africa. The same illustration applies. For instance, if a Zimbabwean resident in South Africa was sending home say R13 000 in 2011, he/she would have sent an equivalent of $2 000. Today, the same R13 000 is now worth just below $897. From this analysis, we will certainly see our remittances especially from South Africa going down in real terms. This is a real concern for Zimbabwe in the face of the use of the multiple currencies with the US dollar being the “official currency”. [The author: Gift Mugano]

PSF, EALA exchange friendly fire over EAC laws (New Times)

The Chairman of the East African Business Council, Dennis Karera, challenged the regional legislative body to get tough on the subject of Non Tariff Barriers. “You clear four NTBs today, three are created next week, we need to get to work by walking the talk,” he said. Karera also called for stronger laws to protect the region’s nascent industries from cheaper imports from outside East Africa. “Cheap imports of garments from China have killed the region’s formerly booming textile industry, we need to get more protective and tougher regarding rules of origin,” Karera added. Karera also revealed that some partner states are using standards as a tool to fight competition within the region, this he said should be dealt with by EALA.

Regional assembly decries failure by leaders to assent to Bills (The East African)

Uganda: Government to borrow Shs672b to stabilise the Shilling (Daily Monitor)

Government wants to borrow $200m (Shs672bn) from the Eastern and Southern African Trade and Development Bank to “stabilise the exchange rate”. The money will be used to skirt around the need to go to Bank of Uganda for US dollars for some imports. Shs672bn is 2.8% of the 2015/16 Fiscal Year budget or 6.7% of Uganda’s current foreign exchange reserves.

Mozambique's metical drops 21% in a week on economy fears (Reuters)

ECOWAS businessmen seek court on trade disputes (Vanguard)

At a two day public-private sector dialogue on Nigeria/ECOWAS trade litigation group organized by the Association of Nigerian Traders in collaboration with the EU and German International Cooperation meeting, it was agreed that stakeholders should advocate the amendment of the ECOWAS Treaty to allow for supra-ntionality of the body as obtained in the UEMOA system. According to a communiqué issued after the meeting and signed by Ken UKAOHA, Esq, Secretariat President, National Association of Nigerian Traders, the body agreed that similarly, advocacy should be geared towards persuading member states to domesticate ECOWAS instruments in countries where domestication applies.

Setback at WTO as demand to continue talks on Doha set aside (Livemint)

India, along with an overwhelming majority of developing and poorest countries, received the biggest shock yet after a panel of facilitators at the World Trade Organization set aside their demand for reaffirming the commitment to continue negotiations on all outstanding issues of the Doha Development Agenda in the declaration to be adopted at the coming Nairobi ministerial meeting. On Friday, the panel of facilitators said its report “contains neither draft language on nor place holders for the most contentious issues identified by members, namely the reaffirmation of the DDA and instructions on the way forward, and no new issues”. Following the facilitators’ report, major industrialized countries - the US, EU, Japan, Australia and Canada, among others - insisted at a closed-door meeting on Saturday that if developing countries like China, India, Brazil, South Africa and Indonesia want reaffirmation of DDA negotiations, then they must accept “graduation” and forego special and differential and less-than-full-reciprocity flexibilities, according to people familiar with the development.

Nairobi Ministerial Declaration: consolidated draft by the facilitators (WTO)

Selected FOCAC trade-related updates, commentaries:

Africa and China: More FDI needed to boost exchange (UNECA)

China is Africa’s first trade partner but ranks behind the United States, European countries and India when it comes to Foreign Direct Investment in Africa, said ECA Executive Secretary Carlos Lopes Thursday 26 November in Marrakesh at the 2015 Sino-African Entrepreneurs Summit. According to Mr Lopes, less than 1% of the FDI China has invested across the world was put in Africa, and although the China-Africa partnership has had a good start it is still far from its potential: “To reach the next step, this partnership needs to rely on much more direct investment”, he added.

SA’s exports to China boosted (IOL)

“Both countries agreed that China would increase its sourcing of value added products from South Africa in order to improve the structure of trade between the two countries, which is mainly dominated by exports of raw materials from South Africa to China, and imports of value added products from China by South Africa,” said the dti. Strachan said South Africa was concerned about the skewed imports and exports pattern between the two countries that are in favour of the Chinese as over 85% of South Africa’s exports to China comprise raw materials. “This is a troubling characteristic of our trade given that a Comprehensive Strategic Partnership Agreement has been in implementation for 5 years and has not yet achieved one of its main objectives,” said Strachan. “It is also concerning in that South Africa and China refer to each other as the developing partners of the 21 century, yet continue to reinforce problematic trade behaviours of the past.”

Commentary by Dr Liu Xianfa, China's Ambassador to Kenya (CapitalFM)

In the first half of this year, 20% of Africa’s economic growth came from China. It is estimated that in the next five years, China will import US$ 10 trillion of goods and invest over US$ 500bn overseas, and outbound visits made by Chinese people will exceed 500 million. This will bring enormous business opportunities to the world, African countries included.

Africa to focus on China debt at Joburg summit as commodities slump (Reuters)

China clears way for Silk Road into Africa - and it takes the form of key summit with African leaders (M&G Africa)

China's relationship with Africa is way overblown (Global Post)

Learning from China is critical for Africa’s success (IOL)

The West and Central African trade profile: with a special review of the relationship with China and regional agricultural trade (tralac)

President Xi Jinping: Let the Sino-Zim flower bloom with new splendour (The Herald)

Ross Anthony, Yejoo Kim: Chinese industrialisation in Africa (IOL)

ACP Council of Ministers: outcomes

The ACP Council of Ministers concluded its 102nd session on 25th November 2015 with a renewed commitment to ensuring the success of the upcoming 8th Summit of ACP Heads of State and Government in 2016, which will be a pivotal point for the organisation, as it undergoes a review and reorientation process to position itself as a more effective global player. Along with the endorsing of the preparations for the 8th Summit, the ACP Council of Ministers passed 13 decisions, four resolutions and two declarations on other key matters, including the following: [Download: Ambassadorial Working Group report]

Magdy Martínez-Solimán: statement at UNIDO 2015 LDC Ministerial Conference (UNDP)

COMESA-UNAIDS in pact to promote local production of pharmaceuticals (COMESA)

The United Nations Programme on HIV/AIDS (UNAIDS) and COMESA Secretariat have formed a partnership that will enable the latter to develop a pharmaceutical production strategy. The strategy is intended to harmonize the production of medicines and related products in the region. The partnership entails among others, technical and financial assistance to COMESA in crafting and adopting the strategy. Currently, COMESA is working on a co-operation framework among member States in the manufacturing of essential drugs and an amendment of the Trade Related Intellectual Property Rights (TRIPS) Agreement on compulsory licensing for medicine. [Reminder: Pharmaceutical Manufacturing Plan for Africa, Building partnerships for sustainable capacity development on medicines regulation in Africa]

Financing health care in Africa: CABRI conference background papers

Ireland: Minister Coveney to lead trade mission to Africa (RTE)

Irish Minister for Agriculture Simon Coveney will lead a five-day trade mission to West Africa this week. The trip, which officials have described as the largest trade mission to the area in two decades, aims to improve economic links with Nigeria and Ghana in particular. Ahead of the trip, Minister Coveney said Ireland is "strategically placed" to be a key supplier to West Africa.

Nigeria: Cargo tracking note and the anxiety at the ports (ThisDay)

Kenya: Importers warn over high cost of goods under new inspection rule (Business Daily)

EALA urges fair climate deal at Paris conference (New Times)

SADC ministers agree to clamp down on social media (Zimbabwe Mail)

SADC senior legal meeting fails to form quorum (Mmegi)

EU to support Mozambique with US$779m until 2020 (Club of Mozambique)

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This post has been sourced on behalf of tralac and disseminated to enhance trade policy knowledge and debate. It is distributed to over 300 recipients across Africa and internationally, serving in the AU, RECS, national government trade departments and research and development agencies. Your feedback is most welcome. Any suggestions that our recipients might have of items for inclusion are most welcome. Richard Humphries (Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Twitter: @richardhumphri1)