Zimbabwe Mercantile Exchange (ZMX) is set to be launched on 31 March 2021 and it has courted three banks willing to extend credit to farmers as more progress is made towards the launch of the exchange.
ZMX is an agriculture commodities exchange which is partnership with Financial Securities (FINSEC), TSL Limited and it is licensed by the Agricultural Marketing Authority.
FINSEC general manager Garikayi Munema said three banks have indicated willingness to extend credit facilities to farmers on the strength of warehouse receipts.
Indications are that warehouse operators, custodial and settlement bank services providers have been trained on their respective responsibilities in ensuring seamless end-to-end automated processes in the issuance, listing, trading and settlement of warehouse receipts.
“The entire system on which the commodities exchange shall ride has been developed and tested.
“All stakeholders in the value from warehouses to final settlement at the bank have been connected and system tested and approved,” he said.
The exchange will be affixed 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.
ZMX was established in a Public Private Partnership (PPP) with Government in line with National Agriculture Policy Framework (2018-2030) to guide investments.
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