EVERY season it is estimated that Zimbabwean farmers lose as much as 30 percent of their harvest because of poor storage facilities. To curb these losses the government, together with Financial Securities Exchange (Finsec), a licensed securities exchange, TSL, a publicly traded agro-industrial business and CBZ Holdings, launched the Zimbabwe Mercantile Exchange (ZMX) last month. The Financial Gazette’s staff writer, Farai Mabeza (FM) spoke to Finsec chief executive, Collen Tapfumaneyi (CT), pictured, about the new development.
FM: Can you explain the current infrastructure that you have put in place for the ZMX and how it’s going to operate?
CT: ZMX operates an automated and fully integrated Warehouse Receipt System and commodities financing and trading platform that is readily available to all types of farmers via safe, secure and convenient channels. The exchange enables farmers to deliver their commodities into designated warehouses where the commodities shall be weighed and graded and a Warehouse Receipt issued. This Warehouse Receipt is tradable with respect to any commodities that get listed on the ZMX spot market. The Warehouse Receipt is also acceptable as collateral by a number of banks and farmers can actually use their Warehouse Receipt to secure short-term credit from participating financial instit
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