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.