Rwanda. Wed 12 Sep 2018, 12:00 am
The Business to Business (B2B) working breakfast gathered participating stakeholders from regional commodities, other agriculture value chain and financial market players such as East Africa Exchange, AFEX Nigeria, Zambia Commodities Exchange (ZAMACE), AHCX Malawi, Agriculture Commodities Exchange for Africa (ACE), AGRA, Opportunity International, Southern Africa Trade Investment Hub and FoodTrade East and Southern Africa. The meeting was a side line of the Africa Green Revolution Forum (AGRF2018) held in Kigali from 5 to 8 September 2018.
AGRF2018, the continent’s most influential gathering around Africa’s largest economic sector, plotted way forward for building an enabling environment and creating new pathways to turn smallholder farmers into future champion agribusiness companies and thriving economic enterprises.
B2B working breakfast discussed challenges, opportunities and forward thinking on actions to be taken in driving a common platform for cross-border sourcing, financing and logistics in African agriculture commodity market. The recent establishment of Africa Continental Free Trade Area (CFTA) gave inspiration of discussions around the potential for reforms in commodities trading and embraces the opportunity to triple trading transactions between countries. The most prominent question is how agriculture value chain players and financiers will capitalize the CFTA to streamline processes in a common African commodity trading platform. Among challenges logistics pose cost issues in moving good from one country to another. It was also identified that management of exchange trading transactions where each country has its dynamics in annual shortages and seasonal excesses represents a significant element to pay attention to, as far as common market is concerned. Stakeholders agreed to harmonize business processes in all aspects of commodity exchange such as common warehousing certification, common grading standards, logistic cost grid, regional auction trading, price discovery, electronic warehouse receipt financing and government partnerships. According to Ayodeji Balogun, AFEX Nigeria Country manager, regional trade is welcome in African commodities exchange and is considered landmark achievement by organizing more periodic regional trading events.
Published By: Bonaventure Twagirimana