Botswana Agricultural Marketing Board (BAMB) on Thursday recommended that the country establish an agricultural commodities bourse to help grow the local farming industry.
“We need to start trading. We can only do so if we have enough stock produced local,” BAMB Chief Executive Officer Leonard Morakaladi said.
Such initiatives will improve the sector’s value chain, he said, noting that an agricultural commodities exchange will allow farmers to enjoy competitive prices for their produce.
In 2010, Bourse Africa was set to start derivative trading in Botswana, but instead a derivative exchange was set up in Mauritius.
In 1990, the South African Futures Exchange (SAFEX) started trading in derivatives following the uplifting of agricultural price controls and the deregulation of the South African agricultural market.
SAFEX, which had two divisions, SAFEX Financial Derivatives and SAFEX Agricultural Derivatives, was acquired by Johannesburg Stock Exchange (JSE) in 2001.
In Zambia, the Bond and Derivatives Exchange Zambia Plc became a licensed exchange in 2012, while in Kenya, the derivatives market works under the Nairobi Securities Exchange (NSE) Derivatives Market. Enditem