East Africa Exchange Aims to Provide Farmers’ With Better Market Access

East Africa Exchange Aims to Provide Farmers’ With Better Market Access
A Kenyan farmer with a beehive in Tsavo, Kenya, Jan 7, 2010 (AP photo by Lucy King).

Leaders from Kenya, Rwanda and Uganda officially launched the East Africa Exchange early last month. In an email interview, Jendayi Frazer, managing partner of the East Africa Exchange and director of the Center for International Policy and Innovation at Carnegie Mellon University, discussed the East Africa Exchange’s role in improving farmers’ market access.

WPR: How will the exchange serve as an interface between producers on the ground and emerging East African markets?

Jendayi Frazer: The East African agricultural marketplace is characterized by information asymmetry, non-standardized products and high post-harvest losses. The East Africa Exchange (EAX) has developed a full set of services for participants along the value chain that will link producers with buyers to help create a connected, equitable market. EAX has deployed a NASDAQ trading platform to facilitate electronic trading and transparent price discovery throughout East Africa as well as provide a region-wide marketplace for producers. EAX uses a network of warehouses to store products that are listed on the exchange using world-class collateral managers and an electronic warehouse receipt system. Producers can deposit their goods at EAX warehouses with a 100 percent quality and quantity guarantee, meaning post-harvest losses are essentially reduced to zero. They will be able to use the warehouse receipt to gain access to agricultural financing through partnerships with banks while they wait for prices to recover after the harvest to sell. When we introduce a spot market later this year, farmers can, with the assistance of warehouse managers, post their goods for sale on the NASDAQ platform, which is then available to buyers throughout East Africa.

Keep reading for free!

Get instant access to the rest of this article by submitting your email address below. You'll also get access to three articles of your choice each month and our free newsletter:

Or, Subscribe now to get full access.

Already a subscriber? Log in here .

What you’ll get with an All-Access subscription to World Politics Review:

A WPR subscription is like no other resource — it’s like having a personal curator and expert analyst of global affairs news. Subscribe now, and you’ll get:

  • Immediate and instant access to the full searchable library of tens of thousands of articles.
  • Daily articles with original analysis, written by leading topic experts, delivered to you every weekday.
  • Regular in-depth articles with deep dives into important issues and countries.
  • The Daily Review email, with our take on the day’s most important news, the latest WPR analysis, what’s on our radar, and more.
  • The Weekly Review email, with quick summaries of the week’s most important coverage, and what’s to come.
  • Completely ad-free reading.

And all of this is available to you when you subscribe today.