East Africa commodity exchange links farmers markets

[simplemind]

East Africa’s first commodities
exchange, linking farmers and
producers of other goods to agricultural
and financial markets, was launched in
Kigali last week, creating fresh
opportunities for regional trade.
The East Africa Exchange (EAX), which
is privately funded, will help producers
to secure competitive prices for their
goods, as well as facilitate access to
funding opportunities.
It is wholly owned by Africa Exchange
Holdings Ltd (Afex), whose
shareholders include Tony O. Elumelu
of Heirs Holdings, Nicolas Berggruen of
Berggruen Holdings, Dr Jendayi Frazer
of 50 Ventures and Rwandan
investment company Ngali Holdings.
It launched operations in January last
year and has mainly traded in maize
and beans. The plan is to increase
traded items to include coffee, tea,
cereals, as well as minerals.
In November last year, the exchange
conducted its first regional trade
auction, selling 50 metric tonnes of
maize from Kampala-based Savannah
Commodities Ltd ex-warehouse at $398
each to Ladislas Mwitende from Top
Services Enterprises Ltd of Rwanda,
which operates in the Musanze area in
Northern Province.
READ: Rwanda moves to cut post-
harvest losses
Dr Frazer, who is a former US assistant
secretary of state for African Affairs,
said the EAX platform would facilitate
cross-border trading of commodities
within the region by providing a central
marketplace and connecting buyers
and sellers throughout the region.
“To be a true regional exchange, we
are also opening up for regional
investors so we can become East-
African owned.”
Plans are also underway to set up
centres in Uganda and Kenya to extend
the market’s operations, and to also
test the South Sudan and Tanzanian
markets, she added.
Mr Elumelu emphasised the need for
Africa to move towards greater self-
sufficiency with private investment and
strategic partnerships:
“The EAX showcases our desire to
identify far reaching investment
opportunities, while ensuring that most
of the value-adding aspects of Africa’s
resource wealth stays on our
continent,” he said.
Mr Berggruen said the Exchange was
“complementing the East African
Community’s goal of regional economic
integration, and putting in place a
world-class exchange to create a
globally competitive market for Africa’s
commodities”.
Products for sale on the Exchange are
graded for quality, with Rwanda Bureau
of Standards being the key standards
enforcer.
Analysts say the commodity exchange
will not only help regional farmers to
eliminate post-harvest losses, but also
improve the liquidity levels in the
economy. It will also encourage a
steady supply of quality raw material
needed to trigger industrialisation.
READ: Huge appetite has EAX wooing
region
“The commodity exchange is suitable
for agriculture transformation.

 

[chongchung]

So they are owing to test market of Tanzania and not utilize it. even though Tanzania we are ahead in Agribusiness more than other in the region the only to reinforce is to uplift adding value to the harvests.