Tanzania set for commodity bourse

Tanzania has in place supportive infrastructure for commodity exchange market that range from physical facilities to the law governing trading.

The infrastructure includes warehouse receipts system and its supporting licensing law, interbank payment and DSE’s stock settling.

India’s Stalwart Management Consultancy Services, Director, Dr Bharat Kulkarni, said the infrastructures are the key components for the establishment of commodity exchanges.

“The infrastructure that is used and built by the stock exchange could be something that would be leverage by the commodity exchange,” Dr Kulkarni said.

The Director, with experience in Africa commodity exchanges in Ethiopia, Malawi and South Africa, said the country was already having intermediary structures, supportive for the market.

“All important criteria already exist what is left is linking these with commodity exchange,” Dr Kulkarni told ‘Daily News’ after delivering a paper regarding evolution and role of commodity markets in economic development.

He said the warehouse licensing authority is another plus as one of the key pillars of the commodity exchange is warehousing farm produces at quality godowns.

The two-day high level policy markers workshop on commodity exchange operations was prepared by Capital Market and Securities Authority and drew attendance from deputy and permanent secretaries, business and agriculture chambers.

The CMSA Chief Executive Officer, Ms Nasama Massinda, said the preparation of the exchange have reached a pleasing stage as a law awaits the president assent.

“We have in hand a draft for the regulations, the office is in place while we have also registered the commodity under Tanzania Merchandise Exchange.

“Of course, all these are in paper but we want the operations to start...we don’t have a business plan but a three years budget is around 30 million US dollars (some 60bn/-),” she said.

The first 60 commodity brokers are expected to complete their three-day training Friday.

India’s National Spot Exchange, Senior Vice- President, Mr Girish Raipuria, advises that the regulator and government should put in place enabling conditions to support the exchange.

‘There are many challenges but to start with spot exchange and latter expand to future commodity market,” Mr Raipuria said during the workshop.

Source: Daily News, reported by Abduel Elinaza, from Dar es Salaam, Tanzania

Share on Google Plus

About Unknown

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.