AMAC signs deal with Uganda's Grain Council to open regional markets

 

Officials from AMAC and TGCU witness the signing of the agreement by AMAC PLC Vice-President  and AMAC COMEX CEO Abraham Ng’etich and TGCU Chairman Robert Mwanje. [Courtersy]

Kenya’s AMAC PLC, through its cutting-edge commodities exchange platform, has signed an agreement with Uganda’s Grain Council Union aimed at opening regional markets for trading.

The transformative partnership will open domestic, regional, and global agricultural markets to more than 400 member organisations and millions of farmers for the first time.

Under the terms of the agreement, TGCU members will gain access to AMAC’s fully integrated commodities exchange platform, enabling them to trade in a range of commodities, including grain, maize, nuts, fruits, vegetables, coffee, tea, herbs, and animal feeds, through a secure, transparent, and globally connected digital marketplace.

The platform empowers both producers seeking to sell and importers seeking to source from the world's best verified suppliers.

AMAC PLC Chairperson and former Trade Cabinet Secretary Moses Kuria said the greatest challenge for farmers in the East African region is that everyone wants to do everything.

Kuria said the best way, however, is to put in place structures that form ecosystems that ensure that each structure delivers its part for collective success.

According to him, the agreement will deliver five transformative benefits to member organisations.

This includes access to domestic, regional, and global commodity markets through AMAC COMEX's exchange platform, lease of certified warehouses under the Warehouse Receipt System, managed by Ace Global and instant post-delivery financing through 13 local and regional banking partners.

Other transformative areas include comprehensive local and international trade insurance, trade finance facilities and access to a verified global supplier network for members who import agricultural inputs and products.

Kuria’s sentiments were echoed by AMAC PLC Vice-President and Abraham Ng’etich, who said that what the company has created is an ecosystem and not just a platform.

Mr Ng’etich noted that the agreement is not a business transaction but a declaration that Uganda's farmers deserve access to the same world-class market infrastructure available to producers anywhere on the globe.

TGCU Chairman Robert Mwanje said that the partnership would come as a relief for Ugandan farmers as they seek markets for their produce.

A landmark feature of the partnership is the provision of Warehouse Receipt System (WRS) facilities, enabling TGCU members to lease certified warehouses under the management of globally accredited collateral manager Ace Global.

The WRS enables farmers to store produce against certified receipts, unlocking immediate financing and breaking the cycle of distress selling that has long suppressed farmers' incomes.

Touted as a game-Changer for farmers for the first time, member organisations will benefit from instant post-delivery financing through AMAC COMEX's network of 13 local and regional banking partners.

This facility enables farmers and cooperatives to access working capital immediately upon delivery of certified produce, without waiting for the settlement of trades.

Combined with access to comprehensive local and international trade insurance and logistics partners, the agreement provides Uganda's agricultural sector with a complete end-to-end trade solution.