Commodities Exchange launch rescheduled

The much-anticipated launch of the commodities exchange – the Zimbabwe Mercantile Exchange (ZMX) – been extended by a month to April 30 to give allowance for the requisite approvals and promulgation of statutes, the Financial Securities Exchange (Pvt) Limited (Finsec) has said.

ZMX was initially pencilled to go live today (March 31).

The commodities exchange will be anchored on the warehouse receipt system (WRS), which helps in ensuring an efficient market with a fair price discovery system that gives access to both local and international commodity buyers and better margins for the farmers.

The WRS which will be used helps increase access to credit facilities through collateralisation of agricultural produce and enhance the farmers’ contribution to employment creation, environmental conservation and economic development.

“Stakeholders and the public are advised that the launch of the Commodities Exchange, Zimbabwe Mercantile Exchange is now scheduled for 30 April 2021 instead of the previously announced 31 March 2021.

“This change will allow for the completion of final lawful approvals as well as enactment of statutes relevant to the commodities exchange,” said Finsec.

Meanwhile, processes critical to an effective launch of the system are ongoing, said Finsec.

“In the meantime, preparations for the launch and operationalisation of the exchange are continuing. These include the ongoing pilot project as well as participant onboarding.

“The partners to the project, that include Financial Securities Exchange; TSL Limited; CBZ Bank and the Government of Zimbabwe, together with development partners FAO; IAPRI and World Bank are now stepping up training; awareness and publicity campaigns ahead of the launch.”

The ZMX initiative is a partnership between Government and the private sector led by Financial and Securities Exchange Limited (FINSEC), TSL Limited and CBZ Holdings with FINSEC undertaking the technical implementation work in setting up the Commodities Exchange.

Source – chronicle