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The East Africa Exchange (EAX) concluded the first regional trade auction from its Rwanda head office, successfully selling 50 metric tons of maize at 398 US $ per metric ton between a Ugandan seller and Rwanda buyer. The auction took EAX one step closer to its ambition to create “one African market” and has given further credence to the importance of regional commodity trading.
In the days prior to this first auction, local traders were required to visit EAX offices and undergo training on the NASDAQ OMX electronic trading platform. Over the past four months, the EAX has trained over 50 local and regional traders on the new technology.
The exchange will be a marketplace offering price transparency and wider market access to farmers from across East Africa and beyond.
EAX, owned by the African Exchange Holdings (AFEX), is the first regional commodities exchange established to link smallholder farmers with agricultural and financial markets, secure competitive prices for their products and facilitate access to financing opportunities.
With the new trading platform, powered by NASDAQ, EAX aims to transform the way small farmers and traders do business within the East African region and beyond. It will provide global market access to local farmers through proven technology.
EAX Rwanda is the first part of a regional exchange intended to increase transparency in the region’s commodity markets. Through private-sector-led investment and under the terms of an agreement signed with the Government of Rwanda, the East Africa Exchange aims to increase regional market efficiency and liquidity as well as giving the region’s population of 130 million, especially smallholder farmers, better access to markets.
It aims to complement the East Africa Community’s (EAC) goal of regional economic integration as set out by the Common Market Protocol, increasing liquidity and sustainability of regional financial and commodity markets, supporting the EAC’s competitiveness globally. EAX will also uplift national and regional economies by reducing market barriers to trading, providing a transparent regional economy through a secure mechanism that facilitates financing to farmers and traders.