Rwandan traders especially those dealing in agriculture, now have a reason to smile, thanks to East African Exchange (EAX) Rwanda, which aims to link their produce to the regional market, through a modern marketing strategy.
This means, EAX will utilize NASDAQ OMXA’s world leading X-stream Trading and X-stream Clearing platforms to power the exchange. NASDAQ OMX is a premier technology for regional integration and the only platform in the world to currently trade commodities, equities and energy together across a region.
Explaining details to journalists Ambassador Jendayi Frazer the managing partner, Africa Exchange Holdings (AFEX), highlighted that EAX is the first part of a regional exchange intended to increase transparency in the region’s commodity market, through private-sector led investment and under the terms of an agreement signed with the government of Rwanda.
EAX is a subsidiary of Africa Exchange Holdings (AFEX) that is creating a network of commodity exchanges across Africa. The exchange is expected to change the dynamics of commodity trading by guaranteeing farmers better market access.
According to John Bosco Sebabi , the Chief Executive Officer EAX Rwanda, the commodities exchange aims to increase regional market efficiency and liquidity, as well as giving the region’s population of 130 million, especially smallholder farmers, better access to market.
In this respect, EAX will initially focus on establishing an auction facility and spot trading for agriculture and non-agriculture commodities, but will also develop futures trading across East Africa.
Additionally, EAX will also complement the East African Community’s (EAC) goal of regional economic integration as stipulated by the Common Market Protocol, increasing liquidity and sustainability of regional financial and common markets, supporting the EAC’s competitiveness globally.
EAX will also uplift national and regional economies by reducing market barriers to trading, providing a transparent regional economy through a secure mechanism that facilitates financing to farmers and traders.
In order for the market to be efficient EAC will work directly with local and regional warehouse infrastructure for instance, to provide value adding storage facilities which will support the exchange and participants in providing licensed weighing , grading and drying services.
The investors of EAX are as follows; Berggruen Holdings, Heirs Holdings, a pan-African investment company, The Tony Elumelu Foundation, 50 Ventures and Rwandan Ngali Holdings.