Farmers set to easily access finance

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m_Farmers set to easily access finance

East Africa’s Exchange (EAX) a commodity exchange linking farmers to markets is set to launch a new electronic ware housing system that enables farmers to access finance services.

The new system comes at a time when EAX has acquired and refurbished the government’s 13 ware houses a move that has enabled farmers to store their harvests in a manner that is more professional as they get to be issued electronic receipts after.

The receipts act as a form of security for farmers especially to banks as they seek to access finances for their activities as they enable banks to reposes their harvests in case of a failure to pay.

The move has been welcomed by both the government and farmers with Tony Nsanganira, the new state Minister for Agriculture noting that, “farmers will access finances easily during over supply and sell when prices depreciate, a move that stabilises the market.”

Ware housing is a new venture for EAX as the commodities exchange venture launched its services last year in a bid to help farmers link their produce with competitive money supply.

The exchange conducted its first regional trade auction, selling 50 metric tonnes of maize from Kampala-based Savannah Commodities Ltd ex-warehouse at $398 each to Ladislas Mwitende from Top Services Enterprises Ltd of Rwanda, which operates in the Musanze area in Northern Province.

The market plans to increase traded items to include coffee, tea, cereals, as well as minerals. Plans are also underway to set up centres in Uganda and Kenya to extend the market’s operations before opening shop in South Sudan and Tanzanian.

East Africa Exchange (EAX) is wholly owned by Africa Exchange Holdings Ltd (Afex), whose shareholders include Tony O. Elumelu of Heirs Holdings, Nicolas Berggruen of Berggruen Holdings, Dr Jendayi Frazer of 50 Ventures and Rwandan investment company Ngali Holdings.

 

About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

More posts by | Visit the site of Ndaka

 

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