TANZANIA – In a move to reduce transaction costs and access to crops market information, the government has said it will officially open the commodity exchange market in June 2016.

In a phone interview at the weekend, the Permanent Secretary Ministry of Industry and Trade Uledi Musa told The Guardian that the Cabinet had approved it.

According to the permanent secretary, the market will be centered at LAPF building, Makumbusho in Dar es Salaam.
He said the ongoing Parliament session taking place in Dodoma will review the bill and finally enact a law that will establish it.

The Permanent Secretary further said the consultants within the ministry are also on the final stages to list out crops that will be given priority in the market besides food crops,” he said. 

He, however, noted that initially, the market consultants had listed only cash crops bought using warehouse receipts adding that other crops would follow later.

The market will include cash crops like cashew nuts, coffee and cotton, he said. 

Musa pointed that the commodity market will boost government revenues since there will be transparency in buying and selling of crops.

“Likewise, in Dar es Salaam Stock Exchange, the market will play a duty of providing right information on time to the players who are farmer’s middlemen and buyers, “he said.

For her part, the Capital Market and Security Authority (CMSA) Chief Executive Officer, Nassama Masinda said the market will be an automated trading system where players can access information anywhere.

“Buyers, middlemen and sellers can now access information about the market trends without physical visit unlike before,” she said.

She noted that the market had initially planned to involve different crops such as cashew nuts, sunflower, and rice, maize and added that others crops will follow later.

According to the CEO, there is no barrier incase people from different regions plan to establish the same type of market in their respective areas.

She highlighted that players can imitate South Africa that has more than one market in different parts of the country.

The CEO also said the market will help to reduce transaction costs, price discoveries and farmers will shift from old agricultural practice.

November 20, 2014; http://www.ippmedia.com/frontend/index.php?l=74313