Mwenge Food Market in Dar |
The Bank of Tanzania (BoT) has started the process of establishing a
commodity exchange in the country. The bank has called for bidders for
consultants to provide legal and regulatory framework and design a robust
trading system.
BoT said bidders have been given the task of "reviewing existing
legal and regulatory framework for warehouse receipt system, cooperative and
crop bodies and commodity trading."
The framework will pave the way for the opening the commodity exchange.
The consultants should also conduct a comprehensive review of the current
economic, financial and agricultural policies and conditions in the country
while identifying opportunities and constraints.
"...conduct GAP analysis by comparing existing framework against
international standards and EAC member countries," the statement reads.
GAP analysis determines the steps to be taken in moving from a current
state to a desired future-state. BoT, to avoid starting at wrong foot, has also
invited consultants to conduct a feasibility study that will design a robust
trading system that suits the country conditions and link it with exchanges
within the EAC bloc.
The deadline for submission of the request for expression is set for
mid next month. The exchange, where farmers and buyers will meet, include a
trading floor, warehouse delivery locations and price tickers, but before its
establishment a number of issues concerning agro-sector need to be reviewed.
According to experts on agro-business the market is designed to
liberate farmers by exposing them to reliable market environment locally and
abroad.
President Jakaya Kikwete told the World Economic Forum (WEF) last May
that the country intends to establish the Tanzania Commodity Exchange to
provide a marketplace where buyers and sellers meet to trade and be assured of
quality, delivery and payment.
It will initially trade in four commodities, namely cashew nut, coffee,
cotton and rice. Currently, the four crops are being traded under the warehouse
receipt system.
Source: The Daily News,www.dailynews.co.tz, reported by Abduel Elinaza
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