December 21, 2023

By Penjani Nzima

THE Zambian Commodities Exchange (ZAMACE) recent partnership with the Food Reserve Agency (FRA) is a significant milestone in the development of Zambia's agricultural sector.

This partnership will reinforce ZAMACE’s commitment to enhance the country’s food security and promote a resilient food system.

This is contained in a statement by ZAMACE Vice Chairman Lloyd Chingambo and made available to Agri-Coop Newspaper.

Prof Chingambo highlighted that the collaboration with FRA will play a pivotal role in the ongoing efforts to strengthen the resilience of Zambia's food systems.

He added that this partnership will enhance the efficiency of grain and soybean trading, making it more accessible to farmers, traders, and other stakeholders in the agricultural value chain.

“An efficient and transparent trading platform allows for strategic grain reserves to be managed more effectively, ensuring that food security objectives are met even during challenging times, ”Prof Chingambo noted.

And furthermore, the partnership will enable a transparent price discovery that will ensure a prevalence of fair market prices for commodities which is a vital aspect of creating a more equitable and profitable environment for farmers.

“Through our platform, risk management mechanisms can be applied, which can help protect both farmers and the government against price fluctuations and market uncertainties,” he said.  

Prof Chingambo - ZAMACE Vice Chairman

He indicated that the partnership is promoting market-driven approaches to food security, encouraging private sector participation, and fostering competition in the agricultural marketplace.

“The partnership will attract private sector investments in agriculture, providing a boost to the sector's overall development, ”explained Prof Chingambo.

Prof Chingambo also disclosed that ZAMACE is not only going to incorporate modern technology but also market-driven approaches with the aim of facilitating a more robust and sustainable agricultural sector that benefits all Zambians.

“We extend our heartfelt thanks to the Government of Zambia and, particularly the Food Reserve Agency (FRA), for their trust and support in this venture. We are committed to upholding the highest standards of integrity and transparency in the marketing of commodities on the ZAMACE platform,” Prof Chingambo said.

Meanwhile, ZAMACE has been admitted as a full member of Association of Future Markets (AFM) which is a Global organization. The Association promotes and encourages establishment of derivatives markets.

“I have the pleasure to announce ZAMACE membership to the African Continental Free Trade Area (AfCFTA) Association of Commodities Exchange. A-ACX. This again is another Government of Zambia enabling private sector to thrive through our Ministry of Commerce Trade and Industries (MCTI),”disclosed Prof Chingambo.

The Zambian Commodities Exchange (ZAMACE) is a leading agricultural trading platform in Zambia, dedicated to creating a transparent and efficient market for agricultural commodities.

ZAMACE endeavors to enhance food security, promote fair pricing, and contribute to the overall development of Zambia's agricultural sector through innovative access to finance and risk management in commodities trading.

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