East Africa Exchange comes to Rwanda

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East Africa Exchange comes to RwandaThere are many investors and organizations that have chosen Rwanda as their destination for opening up business operations in the region, but one thing that entice all these entities, is the way Rwanda has managed to create a conducive atmosphere for doing business

Following the attractive incentive, Rwanda has also this May 2013 welcomed a new entrant, the Rwanda East Africa Exchange (EAX)- a regional commodity exchange initiative, whose head offices are now located in Rwanda’s Capital-Kigali.

The Rwanda East Africa Exchange initiative was launched in January 2013, in Davos, Switzerland at the World Economic Forum; by President Paul Kagame, and Ambassador Jendayi Frazer, among other representative dignitaries,

The EAX is expected to link small scale farmers with better access to agriculture and financial markets, enabling them to sell their products at a fair and competitive price and facilitating access to financing opportunities.

Ambassador Jendayi Frazer, who is also a Managing Partners of EAX representing the Africa Exchange Holdings (AFEX) says that “the investors in this initiative chose Rwanda because of its political environment, which is also backed by a zero tolerance to corruption and better ways of doing business in the region. We are certain of the support from the Rwandan government and this is what we need in order to succeed”

Most of the east African countries are largely dependent on agricultural produces and the problem of markets will no longer be an issue any more since the EAX will now be able to connect farmers to the highest bidders, and also enable them to easily sell their products after a seasonal harvest, without a necessary direct contact with the buyers as it has always been the hustle for most.

“This initiative is believed to be a solution to the problems of African farmers in the region. They will be able to sell their products at good prices and to buyers that they choose to” says Paul Kukubo, the EAX Chief Executive Officer,

Creating awareness of this new initiative will be the next challenge but the proprietors and managers of the commodity exchange forum believe that the media has a major role in creating awareness while the farmers will also be able to receive training and information about the way the EAX operates.

“We need the media to come on board and educate the community about this initiative and in this regard we will come up with a program of training journalists so that they can understand better the system of exchanges” Kukubo noted

While at the EAX offices in Kigali, the initiative will be using state of the art trading technology that will enable all stakeholders and key players to access information on the market trends and how and where to sell their products.

With the installation of e-Warehouse Receipts (EWRS) a physical commodity sitting in a particular certified warehouse will be transformed into a tradable commodity which will facilitate ongoing trade functions, including hedging.

 

About the author

Mr. Sina is the Managing Partner & Chief Editor of RwandaEye. After completing his post-graduation from the Faculty of Economics and Management, National University of Rwanda,he worked in various consulting capacities for equity and business firms in Kigali. A shrewd strategist, he is an Economic Pundit, entrepreneur and Investment Banker.

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