East Africa Exchange (EAX) settles a 200 million deal in grain trade financing with East Africa Farmer Federation and ABC Bank
Farmers will now be able to access affordable credit services from ABC bank. The bank, in a collaborative initiative with the East Africa Exchange are soon to launch a grain trade finance credit line that will pump 200 Million shillings for onward trading to small scale grain farmers.
In an event that was graced by EAX Board chair, Former Amb. Dr. Jendayi Frazer on 4th May 2016, the collaboration brings together East Africa's largest farmer organization: represents approximately 20 million farmers EAFF and the ABC bank.
The Uasin Gishu County Governor, Hon. Jackson Mandago said the initiative will have a positive impact, especially the warehouse services which contribute to solving the challenges of grain storage and marketing, further expressing the North Rift region's support through NOREB and the uasin Gishu county Ministries of trade and agriculture.
The three-way deal, which was mooted during a stakeholders' forum hosted in Eldoret heralds the commodity exchange's plans to expand its operations into Kenya as part of its vision to increase regional market efficiency and give East Africa's smallholder farmers; better access to post-harvest management services and link them to reliable agricultural and financial markets and facilitate competitive pricing for their crops and access to finance.
The partnership has also laid down modalities whereby reliable data on grain aggregation will facilitate efficient grain trading as traders, millers, farmers and other stakeholders will be able to know the type and quantity of products available in a particular location. These modalities are majorly supported by EAFF's virtual granary platform (e-granary).
ABC Bank's Head of SME Banking Lee Gachomba asserts that the time is ripe to introduce electronic warehouse receipting in Kenya as it ensures farmers get returns commensurate to their aggregate farm inputs and that they are insulated against losses incurred due to lack of proper storage facilities at the farm level.
The forum attracted various stakeholders including grain millers, traders, farmers and Government officials.