LUSE and ZAMACE sign MOU towards the establishment of the Warehouse Receipts initiative
The Lusaka Stock Exchange (LUSE) and Zambian Commodity Exchange (ZAMACE) signed a Memorandum of Understanding (MOU) as an expression of the formers’ intent to invest in ZAMACE as a strategic partner in the development of the Warehousing certification and Receipt System (WRS).
The ceremony which was witnessed by the Ministry of Agriculture and Livestock was held today, Wednesday 17th December 2014, at the Radisson Blu Hotel in Lusaka.
The MOU was signed following the successful implementation of the Agricultural Credits Act and signing of the Statutory Instrument 59 in November 2014, by the Zambian government, which delegated the oversight of the WRS to ZAMACE.
ZAMACE Executive Director, Jacob Mwale, explained that the organisation negotiated strategic alliances with LUSE and Johannesburg Stock Exchange (JSE) that culminated into the signing of the MOU, which was a step towards the operationalisation of the WRS in 2015.
“We target to have certified warehouses by April 2015 and are currently working at reviewing the warehouse operating rules, regulations and procedures and grain quality standards in readiness for the maize marketing season next year,” he said.
LUSE Chief Executive Officer, Brian Tembo, explained that the MOU was aimed at cementing the partnership with ZAMACE which will utilize LUSE’s technological advancements, transparency and 20 years’ experience to the benefit of the commodity market.
Musika continues to provide technical and financial support, through ZAMACE, towards the development of the WRS aimed at creating opportunities to leverage private sector resources required to bring the smallholder into a well-functioning, growing and sustainable agricultural economy.