News Column

Kenya Seeks Consultancy for Commodities Exchange

July 7, 2014

Mercy Gakii

The Kenyan government is seeking experts to advise in the process of setting up a national commodities exchange, an entity that will be private sector-led.

The selected consultancy will work closely with a National Commodity Exchange Task-force to a policy, regulatory and legal framework for the Kenya Commodities Exchange.

A commodities exchange is expected to immediately impact on the livelihoods of "millions of Kenya's small-holder producers and other actors in agricultural and non-agricultural value chains".

"It is thus envisaged that the KCX will be developed in regular close consultation with the national task-force," the Ministry of East African Affairs, Commerce and Tourism stated in a Press notice on Friday.

The disclosure comes just as the East Africa Exchange was unveiled at the Sixth Northern Corridor Integration Projects Summit in Kigali, Rwanda on Thursday.

EAX is owned by the Africa Exchange Holdings - an entity made up of Nigerian businessman Tony Elumelu's Heirs Holdings, former US Assistant Secretary of State for African Affairs Dr Jendayi Frazer's 50 Ventures and Nicolas Berggruen of Berggruen Holdings.

"... the EAX is a commodity exchange that aims to increase regional market efficiency and give the growing population, particularly small-holder farmers, better access to commercial markets," the EAX said in statement.

The Kenyan exchange when set up is expected to improve the competitiveness of local commodity exports and stimulate value addition and processing to mitigate post-harvest losses of agricultural produce.

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Source: AllAfrica

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