Tanzania Commodity Exchange (TCX) is expected to begin trading operations in September this year when cashewnut seasons begin.
The TCX facility was launched by former president Jakaya Kikwete in November last year, setting the landmark initiative to transform agriculture sector that provides livelihood to nearly 75 per cent of the country's population.
The Capital Market and Securities Authority (CMSA), Public Relations Manager, Mr Charles Shirima said in Dar es Salaam yesterday that the regulator is finalising sorting out some problems which may have contributed to the delays in TCX operations to take off.
"CMSA has already received and working on the findings from a consultant picked to search why some farmers rejected the TCX initiative," he said. Initial survey had suggested that most farmers were ignorant with the TCX facility and how it would become an important instrument in giving true value for their crops.
Mr Shirima said also that the regulator is processing licences application of four brokerage companies to work on the TCX initiative. Similarly, he said training and examination of 60 commodities dealers was done successfully last year.
Apart from cashew nuts, other commodities are coffee, sesames, rice, sunflower and probably maize -- currently traded under warehouse receipt system.
The TCX 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.
