East Africa Exchange formally launched
BUSINESS| July 4, 2014, 7:55 a.m.
Africa Exchange Holdings has introduced the East Africa Exchange (EAX) at the 6th Northern Corridor Integration Projects Summit in Kigali, Rwanda. His Excellency Presidency Uhuru Kenyatta of Kenya launched the regional exchange.
Established by Tony O. Elumelu, CON, of Heirs Holdings, Nicolas Berggruen of Berggruen Holdings, Dr. Jendayi Frazer of 50 Ventures and Rwandan investment company Ngali Holdings— the EAX is a commodity exchange that aims to increase regional market efficiency and give the growing population, particularly smallholder farmers, better access to commercial markets.
The EAX will link small-scale farmers in the East African community (EAC) to agricultural and financial markets so they can get competitive pricing for crops and access to finance. EAX will use NASDAQ’s OMX X-Stream trading platform for electronic trading and warehouse receipts so farmers can deposit their produce into EAX certified warehouses and access its services.
The importance of commodity exchanges was first mentioned in the Abuja Treaty of 1991 and endorsed by Heads of State and government in 2005. In 2013, EAX became the first regional exchange to link smallholder farmers to agricultural and financial markets with competitive pricing.
At the formal launch, Mr. Elumelu said, “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 stay on our continent. Africa must move toward greater self-sufficiency with private investment and strategic partnerships, just as we have done at EAX through our partnership with NASDAQ.”
The EAX provides opportunities for faster and more inclusive African economic growth through intra-African trade previously unseen on this scale in the region. More regional trade will increase employment, accommodate a higher number of market participants and drive greater scale in terms of agricultural financing.
Nicolas Berggruen said, “EAX is complementing the EAC’s goal of regional economic integration, and putting in place a world-class exchange to create a globally competitive market for Africa’s commodities.”
Speaking at the launch, Dr. Jendayi Frazer said, “The EAX has the capacity to facilitate cross border trading of commodities within the EAC, providing a central marketplace, 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.”
Irene Ndikumwenayo, Ngai Holdings, Chief Financial Officer, an EAX board member and EAX shareholder, echoed the importance of the regional nature of the exchange. “The East African region is the fastest growing bloc in Africa. It only makes sense for local companies to support the initiative and to promote trade and economic growth in our region,” he said.
Also in attendance at the launch were the host, His Excellency Presidency Paul Kagame of Rwanda, Yoweri Kaguta Museveni of Uganda, President Salva Kiir Mayardit of South Sudan, and Honorable Tedros Adhanon, Minister of Foreign Affairs for Ehiopia, as well as the three principal investors in EAX and Board Chairman, Dr. Jendayi Frazer.
MORE BUSINESS NEWS
Dimension Data announces WirelesscoDimension Data MEA is to launch a new company, WirelessCo, which will build and operate an open access carrier-grade WiFi network. Read More
UBA, ATI collaborate to boost regional and international tradeUnited Bank for Africa (UBA) has entered into a partnership with the African Trade Insurance Agency (ATI) to ease the flow of credit to clients engaging in regional and international trade. Read More
3rd Startup Knight competition to take place in SAByte Orbit has launched the third edition of its annual Startup Knight competition, which the company says aims to empower aspiring tech entrepreneurs in South Africa and offers the winner ZAR250,000 (US$22,000) in prizes. Read More
Global smartphone shipments to reach 1.2bn this yearThe number of smartphone shipments will approach 1.2bn this year, an increase of 19% from 985m in 2013, says a new report. Read More
ITC urges governments to increase public procurement from women vendorsThe International Trade Centre (ITC) has launched an initiative to increase the number public procurement contracts being awarded to women-owned businesses. Currently only an estimated 1% of public-procurement contracts globally are awarded to WOBs or women entrepreneurs. Read More
Orange launches start-up accelerator programme in Ivory CoastWith “Orange Fab Ivory Coast” and “Fab Israel”, Orange’s network of start-up accelerators is now present on four continents. Read More
Safaricom shareholders agree yuMobile buyoutShareholders of Kenya’s leading telecom Safaricom voted in favour of the company’s acquisition of the network, IT and infrastructure of smaller rival yuMobile at the firm’s annual general meeting (AGM), meaning the deal now only requires regulatory approval to proceed. Read More
TLcom achieves second profitable African exit of 2014 with Movirtu saleVenture capital firm TLcom Capital (TLcom) has announced its second profitable exit in Africa this year with the sale for an undisclosed fee of virtual identity solutions provider for mobile operators Movirtu to BlackBerry. Read More
Why CWG is re-strategisingNigeria’s Computer Warehouse Group (CWG Plc) is re-strategising to take the company in a different direction. Read More
FEATURED STORYMFarmer SMS redefines market access for Ugandan farmers
Ugandan smallholder farmers are benefitting from an ambitious innovative ICT mobile phone initiative that offers weather reports and up-to-date market information about changes in prices for agricultural commodities, thus granting them lucrative returns from their farming ventures.
BEST READ NEWS
IN DEPTHiProcure delivers inputs to farmers’ doorsteps using ICTs
An innovation dubbed iProcure is already being used by several agro input firms which are now relying on it to distribute their products to farmers.
COMPANY NEWSSchneider Electric signs exclusive off-grid solar distribution agreement with Zimbabwean firm
Schneider Electric has announced the signing of an exclusive agreement with Samansco, a Zimbabwean renewable energy, back-up power and appropriate technology company.SAP Innovation Helps The Global Fund Fight AIDS, TB and Malaria in Africa
Extending a longstanding partnership, SAP is a founding member of The Global Fund’s new Innovation Coalition to support disease prevention and treatment.