Commodity exchange to raise agriculture share to economy - The Citizen

Commodity exchange to raise agriculture share to economy

Thursday August 20 2015

A woman packs cashew nuts. The crop will be

A woman packs cashew nuts. The crop will be traded on the Commodity Exchange Market. PHOTO|FILE 

By Alawi Masare BusinessWeek Reporter

Dar es Salaam. Contribution of agriculture to Tanzania’s economy is seen rising soon when the Commodity Exchange market starts.

Agriculture, the current biggest contributor, may accelerate its share as the exchange will provide reliable market and mechanism for price discovery for the produce to be trading.

The Capital Markets and Securities Authority (CMSA) is finalizing preparations for the exchange which will facilitate trading of various commodities mainly agriculture in an orderly and organized fashion with clear rules.

That will make the agriculture sector a business like others and attract investment.

“So far, we do not have specific projection figures as to how much agriculture contributions to GDP will increase, but having a reliable market and the fact that warehouse receipts will enable owners to use them as collateral, are factors which will accelerate output,” says Mr Charles Shirima, CMSA principal public relations officer.

“We are now in the process to appoint a consultant who will conduct a study that, among other things, will assess warehouse facilities and identify those to be accredited as the exchange’s site delivery. All in all, transaction cost will reduce and prices will increase in a transparent manner. The share of agriculture to GDP will definitely rise,” he adds.