TANZANIA Mercantile Exchange (TCX) is set to start operations in the next fiscal year after tackling some issues related to warehouse receipt. TCX is expected to start with cashew nut whose marketing season is between September and January.
The cash crop was chosen, thanks to its
warehouse receipt system already in place. Capital Markets and
Securities Authority (CMSA) Public Relations Manager Charles Shirima
said in Dar es Salaam over the weekend that currently experts are doing
gap analysis study to ascertain the challenges that affected the
warehouse systems prior to a sensitisation campaign for the launch of
exchange.
The team, comprising CMSA experts, has
visited the cashew growing areas in Lindi, Mtwara and Morogoro to get
firsthand information on the challenges engulfing warehousing system.
“We plan to visit the same areas next
time and work out the solution for the challenges... we see no reason of
introducing a new product while farmers are complaining about the
warehouse system,” Mr Shirima said.
CMSA had earlier announced that the
exchange will kick-off this month but it has pushed back the launching
date, pending the study. The preparations, including the regulations to
guide the market operations, were going on well.
Other crops expected in the exchange
after perfecting the cashew nut trading are coffee, sesame, rice,
sunflower and probably maize currently traded under warehouse receipt
system.
The commodity exchange is a central
place where sellers and buyers meet to transact in an orderly and
organised fashion, with clearly specified and transparent rules. The
government backs commodity exchange as an answer to market challenges.
Already CMSA has trained and licensed
some 60 commodity dealers. Experts on commodities exchange believe that
the country has supportive infrastructure for the TCX’s establishment.
The infrastructure includes the
warehouse receipts system and its supporting licensing law, interbank
payment and Dar es Salaam Stock Exchange’s stock settling that are the
key components for an efficient TCX’s management.
The Parliament passed the bill for the
establishment of the TCX after amending the CMSA law of 1994 to become
Capital Markets and Commodities Exchange Act
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