Local private sector institutions
including cooperatives and farmers’ organizations will hold 51 per cent
stake in the company established as a vehicle for the Commodity Exchange
Market set to commence this year.
The Chief Secretary, Ombeni Sefue (pictured)
revealed the set up of the Tanzania Mercantile Exchange Public Limited
Company that has been incorporated for the commodity exchange market,
when he opened a high level policy makers’ workshop on commodity
exchange operations in Dar es Salaam Wednesday.
He said that the government would hold
the remaining 49 per cent of the capital share of the commodity exchange
market company. He said the government has already done a tremendous
job in the preparation of the trading system where the Tanzania
Mercantile Exchange Public Limited Company has been incorporated.
He said it is expected that the
commodity exchange market will help farmers overcome challenges of lack
of reliable market. He told reports in Dar es Salaam that the system
would enable farmers sell their produce at a reliable market at a good
and rightful price.
“It is by doing that when our farmers
will regard agriculture a business just like other business and make
right investment choices,” he said, adding that the system will help
turn round agriculture sector and hence fight poverty.
A commodity exchange is a central place
where sellers and buyers meet to transact in an orderly and organized
fashion, with clearly specified and transparent rules.
A Chief Executive Officer, Capital
Markets and Securities Authority (CMSA), Mrs. Nasama Massinda said the
country’s “Kilimo Kwanza” initiative will not realize its objectives
without a viable and properly functioning commodity exchange market.
CMSA is a secretariat on the preparation
of the Commodity Exchange Steering Committee. She said that Tanzania
Mercantile Exchange PLC will start with carefully selected commodities
which are now operational under warehouse receipt system. She mentioned
the crops as cashew nuts, sesame, sunflower and rice. “Other products
can be increased as the exchange gains confidence,” she explained.
She said the system will introduce a
more orderly and transparent trading, which is important for price
discovery, reduces corruption loopholes, increase confidence to the key
actors and public in general among other benefits.
One of the participants, Mr. James
Shimbe said the system will help improve farmers’ lives. “This is a
positive move…we support it,” Mr. Shimbe who is the Director of
Regulatory Services, Tanzania Cotton Board, said.
Source: Daily News, reported from Dar es Salaam, Tanzania
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