Multi Commodity Exchange of India (MCX) has decided to establish MCX Africa, a pan African commodities exchange in Botswana.
MCX Africa, a wholly owned subsidiary was set up recently in Botswana. Lt Gen Mompati Merafhe, vice president of Botswana, has launched the Multi-Commodities Exchange for Africa under the International Financial Services Centre (IFSC).
The Exchange is expected to handle trading of agricultural commodities, oil and metals across the continent and link up with other international exchanges.
?MCX plans to reach out to all the African countries by offering a spot platform enabling the efficient delivery and procurement of a range of commodities,? a MCX official told FE.
The official said that the exchange would bring in price discovery, risk management and investment opportunities to farmers who mostly depend upon agriculture for their sustenance.
The company plans to operate a Pan African commodity and derivatives exchange from Botswana to reach into all of Africa?s 53 countries.
For the past 3 years the Botswana IFSC has been actively engaged in following up various opportunities to establish a pan African commodities exchange in Botswana.
Last week, Jignesh Shah, MCX founder and vice-chairman launched a licence for MCX Africa to be domiciled under the Botswana International Financial Services Centre (IFSC). Africa accounts for 21% of global gold output, 11% of world oil exports, 15% of coffee production and about 80% of global cocoa supplies.