The African Development Bank (AfDB) believes efficient and well-regulated derivative and commodity exchanges are components of critical importance for commodity and capital market development in Africa. By taking a leadership role in publishing this report, the AfDB would cement its role as a catalytic agent at the heart of Africa's capital and financial markets, incubating and disseminating best practices and innovative ideas across the continent. This guide book, a first of its kind, provides a background on the state of commodity exchanges in Africa and an assessment of the policy, legal and regulatory environment in which they exist. A commodity exchange can be a tool for regional economic integration as it can ease trade of commodities across borders.

There is growing realization across a broad spectrum of African public and private sector stakeholders that efficient financial and commodity markets are a prerequisite for equitable, inclusive and sustainable development. This has been expressed in the African Union's Arusha Plan of Action and Declaration on African Commodities, 2005, as well as in the Final Communiqué of the COMESA-EAC-SADC Tripartite Summit of Heads of State and Government that took place in 2008. This book will help African governments, development actors and private sector investors deepen their understanding of the benefits that arise from exchanges. It will also develop paradigm-shifting structures and practices that can revolutionize African capital and commodity markets.