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
Beachhead Solutions introduces channel programme for emerging marketsBeachhead's high-ROI reseller programme is now available in MEA and India. Read More
Barclays Africa launches RiseA new global start-up community has been launched to pioneer financial services and unlock Africa’s potential. Read More
JUA Energy enters Nigeria after success in KenyaAfter successfully entering the Kenyan market in April 2014, solar-powered systems and technological electronic accessories manufacturer brand JUA energy has launched in Nigeria to sell through e-tailer Jumia. Read More
Fundamo founder joins Nomanini’s advisory boardFundamo founder Hannes Van Rensburg, generally considered the father of mobile payments, has joined the advisory board of Nomanini, a South African-based, enterprise technology transactions platform provider. Read More
Airtel sponsors Indo-Africa ICT Expo 2015Airtel is sponsoring the Indo-Africa ICT Expo 2015 being held at the Kenyatta International Conference Centre (KICC) now underway in Nairobi. Read More
MTN acquires Smart Village to enhance its foothold in the fibre network spaceMTN has concluded a deal with MultiChoice to acquire Smart Village, which will accelerate the mobile operator’s fibre to the home (FTTH) strategy to be the provider of choice for high speed fibre network across South Africa. Read More
Agilitude opens East African office on the back of mobility and cloud growthSalesforce reseller and Consulting Partner Agilitude has announced that is has opened an office in Kenya, making East Africa its next target for growth. Read More
MTN gets ethics management committeeMTN Nigeria has set up an ethics management committee with the sole responsibility of managing ethics risks. Read More
200 entrepreneurs to launch innovative businessesOver 200 entrepreneurs from across Africa are set to receive resources, networking opportunities and mentorship from Microsoft 4Afrika and AMPION. Read More
FEATURED STORYConnectivity critical for Nigeria's ICT sector, says SES chief
Connectivity is vital for any country to fully optimise the huge potential of cyberspace, SES Sales Manager for West Africa Joy Nma Emenike tells Kokumo Goodie.
BEST READ NEWS
IN DEPTHHigh tech homes: Just press play
High tech, digital homes where everything is automated and connected aren’t the stuff of science fiction any longer, says BNC Technology.