Yesterday, the LuSE participated at a round table meeting facilitated by the Millenium Project Completion Agency Zambia (MPCA- Zambia), on behalf of the Zambian Government, in collaboration with the Millenium Challenge Corporation (MCC). The meeting was aimed at discussing the catalytic role of a commodity exchange in bringing about agricultural sector transformation in Zambia.

The LuSE made a submission on Commodity Exchange and Warehouse Receipts – Perceptions and Opportunities. Making the submission the LuSE CEO, Mr. Nicholas Kabaso, highlighted that creating a functional and trusted commodities exchange was a game changer for Zambia. He indicated that it would assist reduce uncertainty for farmers and increase efficiency in agricultural markets for either spot or derivative markets. He further submitted that an efficient commodity trading platform has huge potential of reducing post-harvest losses, estimated within the region at 15-20% to a storage loss of about 1%, which may anchor prospects of contributing significantly to increased volumes towards food security or export markets.

He also emphasised the need for ZAMACE and LuSE to work closely together as a way of unlocking the potential of the warehouse receipts (WRS). He indicated that the LuSE has adequate system infrastructure as well as trading platforms that would enable Zambia take off commodity trading in a manner that will encourage increased participation as well as unlock further opportunities on the futures market.