ZAMACE (Zambia Agricultural Commodities Exchange) Limited

“Grain Marketing Expansion Programme (GMEP)”

ZAMACE is Zambia’s sole commodities Exchange which has demonstrated in its two year trading history the benefits a centralized, transparent and efficient market place can bring to the market place. The major drivers of the activity on the Exchange have been mainly commercial farmers and larger traders who have access to information and infrastructure to make trade on such a market place work for them.

However, the majority of the staple grain – maize, is grown by smallholder farmers. This crop has an early season value of around $0.25bil. Most of it is sold early on in the season due to lack of storage infrastructure. The handling of this crop is also not up to standard resulting in higher post harvest loses. The smallholder farmers do not see the motivation to expand production due to the below-cost prices the market offers them. They also lack motivation to reexamine their production methods and attain higher yields as there is no perceived direct economic benefit.

The size of this crop can therefore easily be doubled if smallholder farmers had direct and transparent access to the market which would lead to increased production and higher yields. ZAMACE is seeking EA Trade Hub funding to allow it to introduce the Exchange to smallholder farmers by demonstrating to them how they can enhance the quality of their maize through proper handling/aggregation at community and district level. The maize of known quality and quantity (Q&Q) can then be linked to commercial buyers on the Exchange.

The objective of the grant is to structure an enhanced smallholder grain marketing mechanism through establishment of community and district level storage for maize aggregation and onward linkage to the commercial market through ZAMACE. Targeted smallholders will also be empowered with the knowledge to conduct basic grading of their grain, aggregation and increased throughput at community level.

Country: Zambia

Grant Timeline: March 15 th  , 2010 to December 31 st , 2011

Total Amount: $248,820

EAGC

 

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East Africa Trade Hub: ZAMACE (Zambia Agricultural Commodities Exchange) Limited

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