Type Commodities exchange | Currency Tanzanian shilling | |
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Location Dar es salaam, Tanzania Founded August 25, 2014 (2014-08-25) Owner Government of Tanzania (49%)
Private investors (51%) | ||
Tanzania Mercantile Exchange is a commodity exchange in Tanzania that will be operational soon. 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 expected to be operation in September 2016. In the initial phases the exchange is planning 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.
Contents
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 auction system at the Moshi Coffee Exchange. If performed successfully the commodities exchange will make Tanzania the regional commodities trading hub with its extensive transport network to neighboring countries and large sea port.
History
The exchange was the idea of President Jakaya Kikwete, who wanted to emulate a similar model in Tanzania after visiting the Ethiopia Commodity Exchange. The exchange was licensed by the Capital Market and Securities authority of Tanzania and incorporated on 25 August 2014. The Exchange was inaugurated in November 2015 by Jakaya Kikwete and is expected to be entirely operational in September 2016 before the cashew nut season in Tanzania begins.
Ownership
The 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 TZS 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).