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

Search News

comments powered by Disqus

MORE BUSINESS NEWS

Lack of technology bane of Nigeria’s SMEs, says Matt O’Bell chief

Bola Olayinka, Ademide Malumi and Dare Ojo-Bello Aside financial constraints, the non-application of technology has been identified as one of the constraints of small and medium enterprises (SMEs) in Nigeria. Read More

Telecom M&A and digital convergence to lead deal activity in Africa

TMT Finance is teaming up with IHS Towers, the largest mobile telecommunications infrastructure provider in Africa, Europe and the Middle East, to bring an international audience to Africa’s technology hub, Lagos, for the first event of its kind in Nigeria. Read More

Reach for Change Africa calls for strengthened social entrepreneurship

Reach for Change Africa is calling on social entrepreneurs, NGOs and government to play their role in strengthening the social entrepreneurship sector in Africa on International Day of Youth 2016. Read More

Stanford Seed Entrepreneurs join top Silicon Valley business leaders at Global Summit

Afolabi Abiodun, CEO of Nigeria-based telecommunications company SB Telecoms, couldn’t quite believe his eyes as he stood on Stanford University’s bustling Silicon Valley campus recently.  Read More

Etisalat, YuuZoo launch e-commerce portal for SMEs

Nigeria’s most SME-friendly telecommunications operator, Etisalat, in partnership with Singapore’s YuuZoo Corp, has unveiled a bespoke e-commerce platform, SME Arena, to facilitate the growth of Small and Medium Enterprises (SMEs) in Nigeria. Read More

Mstore plans $50m African expansion

Midcom Group has announced expansion plans aimed at making its Mstore the largest mobile and electronics retailer in Africa. Read More

*astTECS Expands Operations in Africa

*astTECS, a leading provider of Enterprise Telecom Technology Products and Asterisk based Open Source Communication Solution, is expanding its Africa footprint with a presence in Ghana and Botswana. Read More

The Tech Revolution: Sage Sets out the Vision for African Businesses

Sage, a market leader in cloud accounting software used its global Sage Summit 2016, held this week in Chicago, to outline its strong commitment to future technologies, with a focus on new and existing initiatives that power business growth.   Read More

Francistown Barclays gets cardless

Cardless cash deposits have been launched in Francistown. Read More

Business incubator to boost 200 Zimbabwean entrepreneurs

Agnes Chikukwa-Hove, CEO of KBA Africa 200 would-be Zimbabwean entrepreneurs are set to benefit from business training and support, thanks to a business development programme to be launched by business incubation specialist KBA Africa.   Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks UnlimitedArbor NetworksEricssonTigo Ghana

FEATURED STORY

Financial services sees AI as both opportunity and threatFinancial services sees AI as both opportunity and threat

Banking is already a key area where technology is having an impact throughout Africa, and a new survey assesses the impact artificial intelligence will have on this sector.

Advertisement

IN DEPTH

Access and Use of ICT stats releasedAccess and Use of ICT stats released

Statistics Botswana has released the first results of the 2014 Information and Communication Technology Household Survey.