Economic and Market Challenges Countries in Africa face many economic and market challenges. First and foremost of these is the lack of reliable and accurate market information. Whilst steps have been taken to address this, much still needs to be done and ZAMACE will fill a major part of the void in this respect. By declaring sale prices and by registering bid and offer prices for commodities, market sentiment will be established. Add to this the function of the broker, whose duty it is to advise his client, whether buying or selling, as to the best marketing opportunities and when and where these are likely to occur, market participants will be much more empowered than they are at present.
The transparency of the market also provides an opportunity to those unable to conduct their business over the Exchange floor, to negotiate from a position of strength, having been informed of what the market is doing and what future trends are likely to be. | | Many of the benefits are covered under the benefits section, but perhaps one of the most significant is the "order and integrity" the Exchange brings to the market. Through the establishment of quality standards (independently tested by ZAMACE Lab) for each commodity traded, it is much easier to do business as the market is able to identify the grade being offered for sale, attach the known characteristics to that parcel and bid against the offer price on this basis.
Many small-scale farmers have no option but to sell their produce, whether they want to or not, because they have nowhere to store it. The ZAMACE Warehouse / Silo Certificate System provides an opportunity for them to do so and also brings the prospect of generating much needed liquidity into the agricultural sector. These documents will afford an opportunity to producers, as well as traders and end users, to store their goods in a ZAMACE-registered storage facility and to be issued a Warehouse / Silo receipt. This document can then be used to secure a loan using the commodity in store as the collateral. |
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