Kigali commodity exchange registers first $19,900 trade

Maize in bags at a port. Kigali’s commodity exchange last week registered its first trade ever with the volume of trades expected to pick up in the coming months. Photo/FILE 

By David Mugwe, The EastAfrican

In Summary

• Kigali’s commodity exchange last week registered its first trade ever
• The trade was between a Ugandan seller and Rwanda buyer and involved the selling of 50 metric tons of maize at $398 per metric tonne for a total value of $19,900
• EAX is owned by African Exchange Holdings (AFEX) - a company that is associated with Nigerian multi-millionaire Tony Elumelu

 

Kigali’s commodity exchange last week registered its first trade ever with the volume of trades expected to pick up in the coming months.

Paul Kukubo, chief executive officer, East African Exchange (EAX) on Tuesday said that the first trade, which was between a regional buyer and seller was done last week at an auction from its Rwanda head office

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The trade was between a Ugandan seller and Rwanda buyer and involved the selling of 50 metric tons of maize at $398 per metric tonne for a total value of $19,900.

“We are supposed to have a one for beans this week but eventually, trading should be daily,” said Mr Kukubo, in a telephone interview.

EAX, which is owned by African Exchange Holdings (AFEX) - a company that is associated with Nigerian multi-millionaire Tony Elumelu - said that the successful auction has given further credence to the new commodity exchange and to the importance of regional commodity trading.

The commodity exchange is using a trading platform using technology from Amercan stock exchange, NASDAQ.

EAX said that its aim is to transform the way small farmers and traders do business within the East African region and provide global market access to local farmers through proven technology.

“We have deployed NASDAQ technology. The board is powered by NASDAQ,” said Mr Kukubo.

EAX said that in the days prior to this first auction, local traders were required to visit EAX offices and undergo training on the NASDAQ OMX electronic trading platform and that it has trained over 50 local and regional traders on the new technology.