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Guidebook on African Commodity and Derivatives Exchanges
Commodity exchanges are highly efficient platforms for buyers and sellers to meet; primarily to manage their price risks better, but also to improve the marketing of their physical products. They have significant, well-documented development benefits, making economies more inclusive, boosting the links between agriculture and finance, and making the commodity sector more efficient and competitive. Africa was home to one of the world’s first commodity exchanges – in Alexandria, Egypt over 150 years ago. The importance of bringing commodity exchanges to the region was recognized by policy makers in the Abuja Treaty of 1991. Further endorsements came in resolutions adopted by African Ministers and Heads of State. These resolutions were clear in their intent: governments should, in partnership with the African business sector, develop and support commodity exchange initiatives; identify and remove barriers to the establishment and operations of commodity exchanges; and procure government requirements across the trading floors.