The recently operational East Africa Exchange (EAX) has concluded the first regional trade auction from its Rwanda head office, successfully selling 50 metric tons of maize at US$398 per metric ton between a Ugandan seller and Rwanda buyer.
The auction took EAX one step closer to its ambition to create “one African market” and has given further credence to the importance of regional commodity trading.
EAX is owned by African Exchange Holdings (AFEX), which was formed by Heirs Holdings, an African investment company owned by Nigerian banker and investor Tony Elumelu, Berggruen Holdings and 50 Ventures to develop a network of commodity exchanges across Africa to transform trade dynamics and ensure higher incomes for the rural poor.
EAX, the first AFEX exchange, is the first regional commodities exchange established to link smallholder farmers with agricultural and financial markets, secure competitive prices for their products and facilitate access to financing opportunities.
Speaking on the first trade auction at EAX, AFEX Chairman Elumelu said “East Africa Exchange’s successful first auction is a powerful demonstration of the tremendous value that can be unlocked through this platform.
”EAX will continue to advance the competitiveness and integration of East Africa’s agricultural markets, as well as bringing tangible improvements to the lives of the region’s farmers. We are looking to replicate this impact in many countries across Africa.”
With a brand new trading platform, powered by NASDAQ, EAX has big plans to transform the way small farmers and traders do business within the East African region and beyond.
It will provide global market access to local farmers through proven technology.
Ahead of the first auction, local traders were trained at EAX offices on the NASDAQ OMX electronic trading platform.