The East Africa Exchange (EAX) Rwanda offices on Thursday, October 31st, concluded their first regional trade auction in its offices located at Kigali City Tower, successfully selling 50 metric tons of maize at $398 per metric ton from Kampala-based Savannah Commodities Ltd, X Warehouse.
The East Africa Exchange, based in Kigali, is the first leg of a regional commodities exchange platform which was established to provide global market access to local farmers through proven technology.
The exchange envisions itself as a marketplace that offers price transparency and wider market access to farmers across East Africa and beyond.
Ladislas Mwitende of Top Services Enterprises Ltd, which operates largely in the Musanze district, Northern Province was the winner of the auction during the electronic trading platform, conducted by Aurore Mimosa Munyangaju, EAX Trading Manager.
All four traders who bid in Thursday’s maize auction were Rwandan. This auction of Ugandan maize to the Rwandan market has set impetus for regional commodity trading and EAX is leading the charge.
In the days prior to the auction, local traders were required to visit EAX offices and undergo training on the NASDAQ OMX electronic trading platform.
Over the past ten months, the exchange has managed to train over 50 local and regional traders on this new trading technology with relative ease and understanding, using both English and Kinyarwanda.
“The traders haven’t experienced any problems so far and most are surprised by how quickly they are able to navigate the electronic system,” says Munyangaju.
Next week, EAX will auction approximately 1,500 metric tons of beans. Furthermore, two other local clients have expressed interest in auctioning approximately 1,000 metric tons of maize through the exchange in the next two weeks.
EAX, a regional commodities exchange, has ambitions to create “one African market” where buyers and sellers across the continent meet to close business deals and ultimately elevate the lives of African people, especially farmers.
Since starting operations in January, EAX has so far auctioned 2,800 metric tons of beans and 1,400 metric tons of maize. Several auctions are planned for the month of November.