The east Africa Exchange Rwanda (EAX Rwanda) has auctioned 2,800 tonnes of beans at its first trading session, a move expected to raise farmers’ incomes and improve regional market efficiency.
EAX Rwanda was established last year to among other things offer farmers and agri-processors better prices by eliminating intermediaries believed to be controlling prices for crops.
The exchange auctions crops like beans and maize on behalf of the Ministry of Agriculture and Animal Husbandry.
“These auctions are hosted at the ministry offices. However, this time we agreed that since the EAX will be auctioning the produce for the ministry when it’s operational, it should host the March/April 2013 auctions,” John Bosco Sebabi, the chief operating officer of the East Africa Exchange Rwanda, said last week.
“Therefore, this was done as a sign of support from the ministry to the establishment of the exchange and also for the bidders and traders to get used to it.
The EAX auction system is not yet in place, so the ministry’s auction rules and systems were used.”
The EAX, to which EAX Rwanda is a subsidiary, was launched at the World Economic Forum in Davos in January by President Paul Kagame and its founders, Heirs Holdings, Berggruen Holdings, 50 Ventures and Ngali Holdings.
The commodities market is also expected to supplement the growing capital market. As of last year, the Ministry of Trade and Industry was working to develop appropriate regulations and technologies to guide the operations of EAX Rwanda.