Close to 16 leading commodities exchanges across Africa have come together to establish the AfCFTA Association of Commodities Exchanges (A-ACX), in a historic move.
This is in line with 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.
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.
“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.
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.