ZAMACE, JSE concludes deal

ZAMACE, JSE concludes deal

The Zambian Agricultural Commodities Exchange (ZAMACE) has finalised the process of listing Zambian grain contracts on the JSE, the South African Stock Exchange to boost liquidity in the commodity market.

Last year, ZAMACE signed a partnership agreement with the JSE to list Zambian Grain Contracts, and is next month expected to start the listing process.

ZAMACE executive director Jacob Mwale said the contracts to be listed include white maize, soya beans and wheat, which will enable farmers and millers with the opportunity to better manage the price risk surrounding the commodities through the use of futures and option contracts.

Mr Mwale said at the JSE and ZAMACE cocktail held recently in Lusaka, that currently a team of seven experts (brokers) from South Africa headed by JSE director of commodities and derivatives Chris Sturgess are in the country to collaborate with Zambian counterparts to ensure that the Zambian Grain Contracts listing on JSE became a reality.

“ZAMACE in conjunction with JSE, are collaborating in listing the Zambian Grain Contracts on the JSE. The process of listing Zambian Grain Contracts has come to a point where we are ready.

“And, now what we have been doing is engaging various players on the market to enable them understand the process of registering to become a broker on the Zambian Grain Contracts, which will be listed on the JSE and this will bring liquidity on the Zambian market,” he said.

Mr Mwale said listing on the JSE will also enable grain traders plan effectively on a futures market that allows both producers such as farmers, consumers and milling companies to hedge their exposure.

Earlier, Mr Sturgess said there is a growing demand for commodities and that Zambians should utilise the opportunity presented by the futures market.

“This is a great opportunity for Zambians, there is great demand for commodities out there, so Zambians should take advantage of the futures market, we have not come to take over but we have come so that we can work together for the benefit of the farmers,” he said.

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