Kigali– The East Africa Exchange (EAX) has signed a cooperative agreement and memorandum of understanding with the Rwanda Ministry of Agriculture and Animal Resources (MINAGRI) to work together to provide grain storage and warehouse management services in support of farmer cooperative groups across Rwanda.
Part of the agreement includes the Exchange managing thirteen (13) warehouses which have been set up by the Government of
Rwanda around strategic production areas under land consolidation. Those warehouses are all linked to the National Feeder Road Program which eases access to markets and inputs.
The Exchange will provide top quality grain storage and warehousing management services through Collateral Management International (CMI), a highly specialized agricultural
services company with presence in several African countries including but not limited to South Africa, Zambia, Nigeria, Ghana, and now Rwanda.
The Exchange will also offer professional warehouse storage and inventory management, including moisture testing, drying, cleaning and weighing of stock prior to storage to reduce storage losses. It’s expected that good storage management will translate into better revenues for farmers.
The first phase of the thirteen warehouse facility rollout plan will include four structures that have been identified in the areas of Karongi, Nyanza, and Kayonza. Under the agreement, the Exchange will provide electronic warehouse receipts, so that farmers could trade their grains through the Exchange’s world class NASDAQ trading platform.
Farmers could also use their electronic warehouse receipts for loans from the Exchange’s partner banks. “EAX is committed to strengthening its relationship with the Government by being a true partner in the development of agricultural value chains.
This warehouse program gives us the opportunity to fulfill our objectives of contributing to the reduction of post-harvest losses through proper grain storage and then trading high quality grains through the Exchange. We will continue to support and empower the farming community,” said Paul Kukubo, EAX Chief Executive Officer.
On their part, Ministry of Agriculture of Rwanda(MINAGRI) will facilitate a sensitization and outreach program for the farmers so that the Exchange can educate them on warehouse receipting, grain standards, grain certification, trading on the Exchange and access to finance. “MINAGRI expects that this joint initiative will contribute in mobilizing farmers to improve the quality of their grains, will strengthen their marketing efforts and will further facilitate their access to finance,” said Tony Nsanganira, Permanent Secretary.
The two entities share mutual interests in the development of agricultural value chains, particularly farmers, ensuring that farmers have access to more diversified markets beyond just the ‘’farm gate‘’ to improve their chances of securing a better income and reward for their toils. The partners also seek to
transform small holder farmers from rural agriculture to commercialization. |
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