By Azania Post Reporter
Legislator in Masasi district, Mtwara region, Jerome Bwanausi (CCM) has asked the government to issue a statement regarding establishment of the long awaited Tanzania Mercantile Exchange (TMX) since cashew nut farmers want to use opportunity for their development.
Speaking during parliamentary session today in Dodoma, the MP wanted the government to explain where it reached in establishment of the exchange.
A commodity exchange is a central place where sellers and buyers meet to transact in an orderly and organised fashion, with clearly specified and transparent rules. The government backs commodity exchange as an answer to market challenges.
Responding the Deputy Minister for Agriculture, Dr. Mary Mwanjelwa, said preparations for the TMX establishment started in 2011.
She said already the government has launched it, formed a board, appointed agents, conducted training and awareness seminars to leaders in private and public sector.
Such awareness seminars have been carried in Lindi, Mtwara Mwanza, Dodoma and Singida regions, the deputy minister said.
“More seminars would be carried in the country later on this year to enable a wider participation of the stakeholders mainly farmers before trading activities kicks off ” she said.
According to the Capital Market and Securities Authority (CMSA), the TMX is expected to start by trading in cashew nuts, coffee, sesame, rice, sunflower and probably maize which are currently traded under warehouse receipt system.
If everything goes as planned, the exchange will start trading, next year since almost all important preparations have been completed.
Tanzania Mercantile Exchange (TMX) was incorporated on 25th August 2014 to perform the business of a commodity exchange in Tanzania.
The Exchange has been established as a public private partnership company. The first four shareholders of the company are the Treasury Registrar, TIB Development Bank, Public Service Pension Fund (PSPF) and the Tanzania Federation of Cooperatives (TFC).
The Memorandum and Articles of Association (MEMARTs) of TMX among others, make provision for the TMX company to have an authorized share capital of Tanzania Shillings 50 billion to be subscribed for by investors from the public and the private sector at 49 percent and 51 percent respectively.