5 August 2016

East Africa: Dar es Salaam to Become Regional Hub for Commodity Market

Photo: J Jeffrey/DW
Black gold (file photo).

Tanzania Commodity Exchange (TCX) is set to make Tanzania a hub for commodity trading in East African region that will involve setting up exchange associations and fostering relationships with International agencies.

Commodity Exchanges integrates functioning of several key components of agriculture trade namely farmers, traders to services like Warehouse and Warehouse receipt system. It brings in standardization of quality and allows people to trade using efficient banking channels making transactions more transparent and fast for the participants.

The TCX Chief Executive Officer and Managing Director, Mr John Chaggama said TCX has been set up as a vehicle to facilitate market exchange and enhance the price discovery process, thus making farmers earn premium prices that reflect true market value for their products.

"Farmers have long been victim to fragmented, disorganized markets where they have had to sell their products for lower than the market price," he said. He said TCX is the facility that will make Tanzania become a centre for commodity trading in the region, transforming the life of the society for which over 70 per cent of its people engage in agriculture.

TCX will thus offer more stable, more ethical trading platforms whereby farmers can benefit from fairer transactions and learn how to make wiser marketing and investment decisions.

There will be setting up of key institutions for technical and financial support to the traders to widely expand the delivery of benefits, with additional assistance given to actors association and other participants of the grain-marketing complex.

"The hope behind all of the efforts is that small scale farmers will no longer be at the mercy of traders in the nearest and only market that they know," he added. He said TCX is expected to make the economy more inclusive, boosting the links between agriculture and finance and making the commodity sector more efficient and competitive.

East Africa

Kipchoge, Keitany Could Be Sh30m Richer At the End of Today's London Marathon

On Sunday morning at 11am, Olympic champion Eliud Kipchoge will return to the streets of London for the third time… Read more »

Copyright © 2016 Tanzania Daily News. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.