Tanzania borrowing page from Ethiopia on Commodity Exchange Market'

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INNOCENT-THE BLOGGER-BOY

Ministry of Trade and Industry, Uledi Musa

 The government has said the Commodity Exchange Market will officially start operations when the recommendation study from the transaction adviser is complete.

 

In a telephone interview with ‘The Guardian’ yesterday, the Permanent Secretary, Ministry of Trade and Industry, Uledi Musa, said the government has yet to receive a report from the transaction adviser.

 

He said since it’s a new market in the country, the government decided to involve a third party, Ethiopian Transaction adviser and assigned them to conduct a study that would show how the market will be run.

 

Musa made it clear that the market will play a role of providing accurate information on time to the players who are farmer’s middlemen and buyers.

 

“Research has shown that Ethiopia is the only country in Africa that has done well in the commodity exchange market. That’s why the government hired a transaction adviser from the said country to advise Tanzania on how the market can be run successfully,” he said.

 

Further, he said, the market would help to reduce transaction costs and access to crops market information.

 

Permanent secretary further said the process of establishing the market is also done in collaboration with three ministries namely- Ministry of Agriculture, Food security and Co-Cooperatives, Industry and Trade and Ministry of Finance.

 

He said before the market starts its operation, there would be allocation of warehouses for the storage of the commodities.

 

In November last year, the government announced that it would officially open the commodity exchange market this month.

 

The move was aimed to reduce transaction costs and access to crops market information.

 

When contacted, the Permanent Secretary Ministry of Industry and Trade Uledi Musa said the minister cabinet had approved it.

 

According to the permanent secretary, the market would be centered at LAPF building, Makumbusho in Dar es Salaam.

 

He said during a Parliament session in November last year that it would review the bill and finally enact a law that would establish it.

 

The Permanent Secretary further said the consultants within the ministry were also on the final stages to list out crops that will be given priority in the market besides food crops.