Tanzania Mercantile Exchange is a commodity exchange in Tanzania. The commodities exchange is put in place to help various farmers access the domestic and global market better and obtain a fair price in selling of their produce. The exchange is currently undergoing training of their staff and is and has begun pilot trading in Sesame Seeds and Green Grams.[1][2] The exchange plans to trade in coffee, cashew nuts, sesame, rice, sunflowers and maize, which are all currently traded under the warehouse receipt system. The Capital Market and Securities Authority (CMSA) currently oversees the operations of the exchange and is in the process of educating farmers to use the system, however, many farmers are skeptical to the system.[3]
 | |
| Type | Commodities exchange |
|---|---|
| Location | Dar es salaam, Tanzania |
| Founded | August 25, 2014 |
| Owner | Government of Tanzania (49%) Private investors (51%) |
| Currency | Tanzanian shilling |
| Website | tmx |
The exchange is supposed to be electronic based and floor based, however, the exchange has opted to begin with a floor based trading system to gain the trust of the small farmers. Many farmers, especially coffee farmers are used to the electronic auction system at the Moshi Coffee Exchange.[4] The TMX and the Coffee board of Tanzania is looking integrate their platforms to create a single window system.[5]
History
editThe exchange was the idea of President Jakaya Kikwete, who wanted to emulate a similar model in Tanzania after visiting the Ethiopia Commodity Exchange.[6] The exchange was licensed by the Capital Market and Securities authority of Tanzania and incorporated on 25 August 2014.[7] The Exchange was inaugurated in November 2015 by Jakaya Kikwete and commenced operations in Sesame seeds in 2019.[3][5]
Corporate affairs
editOwnership
editThe exchange is established under a private-public partnership with the Government of Tanzania regulated by the Capital Markets and Securities Authority. The company has an authorized share capital of TSh.50 billion/= and is divided between four investors. The public sector owns 49% of the share capital and the private sector owns 51%. The first four shareholders are the Treasury Registrar, TIB Development Bank, Public Service Pension Fund (PSPF) and the Tanzanian Federation of Cooperatives (TFC).[8]
Operations
editCommodities Traded
editAs of December 2020, the following commodities are traded on the exchange.[2]
| TMX Code | Commodity | Commenced Trading | Warehouse Regions |
|---|---|---|---|
| SS | Sesame Seeds | 29 May 2019 | Dodoma, Katavi, Pwani, Singida, Manyara, Mtwara |
| GG | Green Grams | 25 March 2020 | Mwanza, Singida, Tabora |
| CP | Chickpea | 11 September 2020 | Shinyanga |
| RCN | Raw Cashew Nut | 9 October 2020 | Lindi, Ruvuma, Pwani, Mtwara |
See also
editReferences
edit- ^ "Tanzania: Commodity exchange market to begin soon". African Markets. Retrieved 2016-08-05.
- ^ a b "Tanzania Mercantile Exchange PLC". tmx.co.tz. Retrieved 2020-06-07.
- ^ a b "Tanzania: Commodity Exchange to Begin in September". Retrieved 2016-08-05.
- ^ Malekano, Godfrey. "Launching a successful commodities exchange in Tanzania" (PDF). National Board of Accounts and Auditors. Retrieved 5 August 2016.[dead link]
- ^ a b "Tanzanian commodity exchange to launch coffee trading in its platform". www.foodbusinessafrica.com. 2019-07-04. Retrieved 2020-06-07.
- ^ "Commodity exchange trading to begin soon in Tanzania – Tanzania Agricultural Development Bank Limited (TADB)". www.tadb-kilimo.co.tz. Retrieved 2016-08-05.
- ^ "Home". www.cmsa-tz.org. Retrieved 2016-08-05.
- ^ "Tanzania Mercantile Exchange at a Glance" (PDF). cmsa-tz.org. Capital Market and Securities Authority of Tanzania. Retrieved 5 August 2015.