Background Image

 

List of Benefits – Membership with East Africa (Commodity) Exchange

  • Guarantee of Quality & Quantity of Commodities Traded
  • Provide facilities to enhance the quality of your grain (drying, cleaning and weighing )-coops
  • Grading of grains to inform on quality and make it easy to price by market segments-coops
  • Grains sold on the Exchange are backed by quantity and quality guarantees by world class collateral manager-seller/banks

Warehouse Receipting System

  • Crops are converted into tradables held in electronic form and transferred from owner to several buyers
  • Can use crops as collateral for bank loans

NASDAQ Electronic Trading Platform

  • Enabling buyers and sellers to trade from anywhere in the world
  • Buyers can negotiate directly with seller to determine prices acceptable to both using technology from anywhere in the world
  • Real prices for crops are gathered and sent to all market actors
  • Traders are paid within five days of trade through a bank transfer

Availability of Stock

Direct partnership with producers that aggregate their grains and deposit them into Exchange certified warehouses

Linking Farmers to Markets

  • Exchange continues to expand its network of buyers and sellers in Rwanda, the East African region and across Africa
  • Exchange is working to achieve a ratio of (1) seller to (3) buyers

Access to Financing with Banking Partners : Farmers & Traders

  • Exchange serves as liaison between banks and farmers and traders to improve financial inclusion for agricultural stakeholders
  • Goal is to assist farmers and traders in obtaining working capital

Access to Information on Pricing

  • Price tickers in Exchange certified warehouses will display prices on maize and beans
  • Farmers who are informed can negotiate better prices for themselves and avoid selling in distress to middle men
  • Weekly publication in local newspapers will display results from trading session at the Exchange, positioning the Exchange as a price reference center
  • Try to avoid the informal system of price 

Capacity Building for Farmers

  • Through education and training programs farmers will learn modern and proper grain handling techniques and practices
  •  
  • Quality of crops will improve through collateral management services
  •  
  • Improved quality standards will reduce the risks for banks, easing the lending process to farmers 

Contract Based Trading

  • Trading through spot contracts ensures contracts are sold for immediate delivery
  •  
  • Contract for future delivery to manage price risk
A model for illustrating the benefits of using electronic warehouse receipt as well as trading with the EAX.