East Africa Exchange formally launched

BUSINESS

|
Image: H.E President Uhuru Kenyatta of Kenya rings a bell to signify the official regional launch of East Africa Exchange. By EAX
H.E President Uhuru Kenyatta of Kenya rings a bell to signify the official regional launch of East Africa Exchange

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.



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

Africa’s youngest entrepreneurs stand to win $75,000

The Anzisha Prize is expanding, after initial success, to provide increased support to entrepreneurial youth and partner organisations to drive pan-African economic growth to 2020. Read More

New age e-commerce consumers challenge traditional business models

African consumers are increasingly searching online platforms with commercial intent, says DHL. Read More

VMware appoints Bask Iyer as chief information officer

VMware has announced the appointment of Bask Iyer to the role of senior vice president and chief information officer (CIO) of VMware. Read More

SpeedCast acquires Geolink

SpeedCast International Limited, a leading global satellite communications service provider, has announced the acquisition of Geolink Satellite Services, a leading provider of satellite communications solutions in the African region. Read More

Out of the Dark: Survival guide for businesses during load-shedding

As Africa’s premier integrator of business continuity services, ContinuitySA’s team spends a lot of time identifying risks and how to mitigate them. One risk that has become very real for South African businesses is load-shedding.  Read More

Insurance body: ICT essential

The newly established Insurance Institute of Botswana (IIB) says in this day and age it was virtually impossible for organisations, insurance companies included, to operate without incorporating ICT in every facet of their operations. Read More

VMware appoints Scott Dodds as new Vice President, Channel and Alliances in EMEA

VMware, the global leader in virtualisation and cloud infrastructure, has announced the appointment of Scott Dodds as Vice President of Channel and Alliances in Europe, Middle East and Africa (EMEA). Read More

IHS Towers awarded Telecom Finance Deal of the Year

IHS Towers, Africa’s leading independent mobile telecommunications infrastructure provider, has won TelecomFinance’s 2015 award for Deal of the Year.  Read More

Moving from doer to influencer – the shifting role of the CIO

The role of the chief information officer (CIO) has evolved over the past few years, with CIOs no longer just the decision makers for IT systems.  Read More

World market for refurbished smartphones to reach 120m units by 2017

The worldwide market for refurbished phones that are sold to end users will grow to 120 million units by 2017, with an equivalent wholesale revenue of around $14 billion, says Gartner. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

Malawi Govt denies clinging to ‘Cashgate’ softwareMalawi Govt denies clinging to ‘Cashgate’ software

The Malawi Government will not exclude the software brand that has been in use for the country’s Integrated Financial Management System (IFMIS), but it has rejected reports implying that it is ‘clinging’ to the old system.

IN DEPTH

Kenya’s digital TV battle hots up Kenya’s digital TV battle hots up

Kenya’s journey to Digital TV broadcasting took a new turn this week, when the Communication Authority of Kenya (CAK) accused three local media firms of intent to disrupt the process.

COMPANY NEWS

VMware unveils vCloud for NFV with Integrated OpenStack to accelerate service innovation

VMware, the global leader in virtualisation and cloud infrastructure, today debuted VMware vCloud for NFV, an integrated Network Functions Virtualization (NFV) platform that will combine VMware’s production-proven ...