Zimbabwe Mercantile Exchange (ZMX) announced that soya bean trading has commenced on their platform. The move is expected to bring soyabean farmers, buyers and retailers together, thus closing the existing arbitrage gaps that have been caused by middlemen.

The ZMX CEO, Mr Tapfumaneyi, encouraged farmers to join and use the ZMX commodity exchange platform as it will be easier for farmers to meet buyers.

The Ministry of Lands, Agriculture, Fisheries, Water and Rural Development has approved the listing and trading of Soyabeans through the Zimbabwe Mercantile Exchange under a pilot program and in compliance with existing rules and regulations governing the trading of agricultural commodities.

The Soyabeans trading framework is based on the following instruments:

➢ Warehouse Receipt Act [Chapter 18:25]

➢ Warehouse Receipt (General Regulations) 2020

➢ Statutory Instrument 224 of 2020

➢ Statutory Instrument 97 of 2021

➢ Statutory Instrument 184 of 2021

➢ Statutory Instrument 108 of 2022

➢ Statutory Instrument 118A of 2022

In a speech read on his behalf by Dr Bwenje, the permanent secretary in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, John Basera said:

"This is a major stride towards a private sector led and public sector facilitated agriculture market economy in line with the dictates of the National Development Strategy 1. It is important to note that the introduction of soyabeans on the ZMX is being pursued in compliance with existing laws governing the trading of agricultural commodities. Of particular note, is SI 97 of 2021, which has the GMB, the sole buyer of soyabeans."

ZMX is a commodity exchange platform for farmers formed in 2021. ZMX bridges the gap between commodity buyers with sellers and commodity holders with finance by offering a platform that brings fair price discovery and convenience into trading, and pledging of commodities.

#agribusinesstalk