The States of East Africa and their private partners proceeded on 3rd July in Kigali, to the launching of the East African Exchange (EAX), a new regional commodity market. This new tool should participate in a better sale of farm products in this part of Africa.
Burundi, Kenya, Uganda, Rwanda and South Sudan were equipped with a regional commodity market that will henceforth allow the producers of these various countries to know in real time the evolution of the prices of products on the international market.
“The EAX will allow farmers to take place of intermediaries and to know the reality of the prices with full transparency. So, in case of good generalized harvest, when prices collapse, farmers will have the possibility of postponing the sale of their production to wait that the prices go raise“, explained Jendayi Frazer, former assistant Secretary of State of the United States for the African business and partner of the project.
The East African Exchange also uses the same electronic platform as the American stock exchange of technological stocks Nasdaq. The challenge of the initiators of the project is to encourage African producers to sell a part of their harvest on the platform. They also have to be capable of keeping the products of their harvest on a more or less long duration.
For this purpose, the EAX proposes its services to producers going from the securisation of the storage to the loans against modest taxes.
Original text by: Roger ADZAFO