The History and Formation of ZAMACE

ZAMACE was established as a direct result of considerable demand by the majority of stakeholders in the agricultural sector for some form of formalised market mechanism. The Zambian commodities trading sector has been characterised by unscrupulous activity and imbalance of market information.

ZAMACE is a Zambian registered corporate entity established in May 2007 and officially launched on 25th March, 2009 by the Hon. Minister of Finance and National Planning, Dr Situmbeko Musokotwane at an event where the US Ambassador to Zambia, His Excellency Donald Booth and the Secretary and Chief Executive of the Securities and Exchange Commission (SEC) officiated.

ZAMACE is owned and self-regulated by the agricultural industry. Currently the Exchange is owned by 15 Members. In the near future ZAMACE will operate under a regulatory structure to be governed by the Securities and Exchange Commission (SEC). ZAMACE has come too early for the Zambian regulatory regime which currently has no provision for licensing of a commodity exchange. However, SEC is in the process of studying other jurisdictions with the aim of developing a regulatory framework for commodities.

Agricultural commodity exchanges bring more formality to trading methods, enhancing market transparency and increase the quantity and quality of commodities traded, for the benefit of the agricultural sector and the economy as a whole.   Although some stakeholders see an exchange and the transparency on price discovery as a threat to their business, the ZAMACE initiative brings maturity to the market which will benefit all stakeholders.  Lessons in the region have shown that centralised market places with their associated perception of transparency and integrity can enhance activity. For instance, the Zimbabwe Agricultural Commodity Exchange increased trading volumes from US$1.1 million in 1994 to U$677 million in 2001.