The government has launched an agricultural commodity stock market due to operate in May to develop the nation’s economic backbone left at the mercy of traditional way of running the industry as a part of its 10-year development vision until 2025.
President Jakaya Kikwete inaugurated the Tanzania Mercantile Exchange (TME) in Dar es Salaam Friday saying the exchange platform would radically raise agricultural industry to new heights as it would manage price risks of commodities including minerals, provide assurance of markets to both producers and consumers and improve the farmers’ welfare state.
He said establishment of the platform that would initially start with sesame, cashew nuts, rice and sunflower stock exchange would significantly raise agricultural contribution to the Gross Domestic Product (GDP) from the current 27.6 per cent.
The outgoing president said that plans were also underway to involve minerals including gold and diamond in the mercantile exchange programme, but warned over turning the scheme into ‘white-elephant’ project.
He called on the respective authorities to monitor the programme and impose scrutiny on corrupt officials who would ruin the system for their own interests.
Commending the project as a success in Ethiopia and India, Kikwete said it could “equally address the question of market uncertainties and improve production,” as it provides both business guarantee and farmers’ protection.
“Farmers will no longer have to borrow and no businessman will buy counterfeit goods anymore,” he said.
He expressed optimism that the new entrant facility would help farmers’ access to loans from financial institutions considering that they are assured of markets for their products.
TME Board Chairman Peter Noni said the company whose 49 per cent stake is shared by the government and 51 per cent by private sector would be an answer to challenges facing farmers as it would give them market access, apparently assure agribusiness development.
He said his company was currently working on developing trading flow and automated trading system.
But Nasama Massinda, CEO for Capital Markets and Securities Authority (SMSA) cried foul of the government saying it was yet to release procurement funds worth about $600,000 needed to launch the system though the company has trained 61 Tanzanian specialists to run the system.
She accused some entrepreneurs of hijacking the market monopoly, threatening both agricultural industry and the national economy.
“There are no real data and market price for goods and commodities … the system is not clear and cannot be trusted,” she noted, saying with availability of interrelated systems such as interbank, TME will operate effectively.
“Now the price and market will be transparent, consequently decrease transaction costs since it will gather players on one stage,” she said.
He said establishment of the platform that would initially start with sesame, cashew nuts, rice and sunflower stock exchange would significantly raise agricultural contribution to the Gross Domestic Product (GDP) from the current 27.6 per cent.
The outgoing president said that plans were also underway to involve minerals including gold and diamond in the mercantile exchange programme, but warned over turning the scheme into ‘white-elephant’ project.
He called on the respective authorities to monitor the programme and impose scrutiny on corrupt officials who would ruin the system for their own interests.
Commending the project as a success in Ethiopia and India, Kikwete said it could “equally address the question of market uncertainties and improve production,” as it provides both business guarantee and farmers’ protection.
“Farmers will no longer have to borrow and no businessman will buy counterfeit goods anymore,” he said.
He expressed optimism that the new entrant facility would help farmers’ access to loans from financial institutions considering that they are assured of markets for their products.
TME Board Chairman Peter Noni said the company whose 49 per cent stake is shared by the government and 51 per cent by private sector would be an answer to challenges facing farmers as it would give them market access, apparently assure agribusiness development.
He said his company was currently working on developing trading flow and automated trading system.
But Nasama Massinda, CEO for Capital Markets and Securities Authority (SMSA) cried foul of the government saying it was yet to release procurement funds worth about $600,000 needed to launch the system though the company has trained 61 Tanzanian specialists to run the system.
She accused some entrepreneurs of hijacking the market monopoly, threatening both agricultural industry and the national economy.
“There are no real data and market price for goods and commodities … the system is not clear and cannot be trusted,” she noted, saying with availability of interrelated systems such as interbank, TME will operate effectively.
“Now the price and market will be transparent, consequently decrease transaction costs since it will gather players on one stage,” she said.
SOURCE: GUARDIAN ON SUNDAY
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