Government plans to establish a commodity exchange market, where commodities especially agricultural products will be traded in order to stabilise prices.
According to the Ministry of Trade and Industry, the market will provide opportunities to invest in regional infrastructure, create jobs, raise Rwanda and the East African Community`s international profile and establish lasting institutions with international impact.
Trade and Industry Minister François Kanimba told Business Times that the exchange will begin by trading agricultural commodities such as cereals, grains, coffee and tea with plans to expand to metals, minerals and energy resources.
“We believe that establishing this commodity exchange will bring to the next step our trading infrastructure and trading system,” he said.
The agricultural sector is one of the main pillars of the Rwandan economy. The country has managed to maintain favourable food stuff harvests in the last four years, limiting the increase of food prices on the domestic market, despite high pressures from regional demand.
Nicholas Berggruen Institute (NBI) will help government to design the project, which it intends to link to a future EAC regional commodity exchange.
Last week, Government signed a MoU with NBI. The exchange will be built as a national platform that links with the exchanges of other EAC member states in order to increase efficiencies.
According to the Minister, the Rwanda Commodity exchange also intends to increase the market size and access, support transparent pricing for farmers and traders as well as support national and regional trade plus food security.
“This market will sustain the results we have been able to achieve within the Government’s efforts to improve agriculture productivity,” Kanimba observed, explaining that the country has been involved in the crop intensification programme, which has yielded robust output for commodities, like maize and beans.