06:42
rwandaexpress
Rwanda is set to host the headquarters of the proposed East African Commodity Exchange market, as plans to introduce the market gain traction.
During a cabinet meeting held yesterday at Village Urugwiro, the proposal to sign a draft agreement with eminent businesspeople and entrepreneurs was ratified, paving the way for creation of the East African Commodity Market.
After meetings held last year to discuss the possibility of erecting the market, plans for implementation lulled but are now back on track.
A commodity exchange is a regulated market in which multiple buyers and sellers trade commodity-linked contracts or goods with a pre-approved set of market agents and commonly agreed trade procedures.
Among the key advantages of having such a market include helping solve the problem of thin markets by creating much needed mass and concentrating supply and demand in the East African Community.
Speaking last year the EAC Secretary General, Ambassador Richard Sezibera pointed out that one of the key principles of the East African Community as a private-sector-driven and people-centered community is making sure the people of East Africa access tools of wealth creation.
It is in-line with this that the creation of a commodities market will help mitigate some of the issues faced in the region, such as an intriguing case of supply surplus and hunger all at the same time.
Over 80% of the population of the East African Community is heavily dependent on the agriculturesector, whether through direct employment or benefiting from this sector. However, the sector continues to face stiff challenges such as low productivity, lack of infrastructure
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