About 16 leading commodities exchanges across Africa have come together to establish the AfCFTA Association of Commodities Exchanges (A-ACX), in a historic move.
This follows the signing of a memorandum of understanding (MoU) at the Intra-Africa Trade Fair in Cairo, Egypt and comes on the back of months of negotiations. The new entity, which will operate closely with AfCFTA, aims to promote intra-African trade in commodities, foster collaboration and collectively address challenges and opportunities in the commodities exchange industry.
Six African commodities exchanges, represented by their Chief Executive Officers, were present in Cairo for the signing ceremony. They include: Ayodeji Balogun, AFEX Commodities Exchange – Nigeria; Kristian Moller, Agricultural Commodities Exchange for Africa – Malawi; Tucci Ivowi, Ghana Commodity Exchange; Akin Akeredolu-Ale, Lagos Commodities and Futures Exchange – Nigeria; Prof. Justin N’Goran Koffi, Regulatory Authority of the Warehouse Receipt System – Cote D’Ivoire; and Mr. Collen Tapfumaneyi, Zimbabwe Mercantile Exchange – Zimbabwe.
Also present were Mohamed Ali, Director of Trade in Goods of the African Continental Free Trade Area, Dr. Hermogene Nsengimana, Secretary General of the African Regional Standards Organisation (ARSO) and Collins Wafula, Regional Coordinator, Africa and Arab States International Standards Organisation (ISO).
The 16 African exchanges involved, recognise the pivotal role of collaboration in promoting the development of Commodities Exchanges.
Among other things, the association seeks to promote intra-African trade in commodities and related services through, among others, market creation and liquidity, price discovery and transparency, efficient physical and financial settlement, and facilitation of inclusive financing and contribute to the UN Sustainable Development Goals.
With one voice, they will also advocate jointly for policy initiatives and investments to strengthen commodity exchanges, regulatory authorities and market actors and facilitate intra African and global trade.
The A-ACX will further foster collaboration, knowledge sharing, capacity building and adoption of best practices among member exchanges, as well as enhance visibility of African commodity exchanges on the global stage
“The association begins with 16 founding members, with additional commodities exchanges and related institutions invited to join by unanimous agreement. Membership includes Ordinary members (registered commodities exchanges and warehouse receipt operators) and affiliates (related institutions interested in well-functioning commodities markets),” a statement announcing the agreement, read in part.
The founding members of the A-ACX AFEX are: Commodities Exchange – Nigeria: Agricultural Commodities Exchange for Africa – Malawi; Bourse Regionale des Valeurs Mobilieres – Cote D’Ivoire; East Africa Exchange – Rwanda; Ethiopia Commodities Exchange – Ethiopia; and Ghana Commodity Exchange.
Others are Johannesburg Stock Exchange – South Africa; Kenya National Multi-Commodities Exchange – Kenya; Lagos Commodities and Futures Exchange – Nigeria; Nigeria Commodities Exchange – Nigeria; Regulatory Authority of the Warehouse Receipt System – Cote D’Ivoire; and Tanzania Mercantile Exchange – Tanzania.
The rest are Uganda National Commodities Exchange – Uganda, Uganda Warehouse Receipt System Authority – Uganda, Zambian Commodities Exchange – Zambia and Zimbabwe Mercantile Exchange – Zimbabwe.
This groundbreaking initiative marks a significant step towards a more integrated and collaborative African commodities exchange landscape, poised to influence regional and global trade positively.