Acfex-South consist of Botswana, Mozambique, Zambia, Namibia, South Africa and Angola. It will trade agricultural products, minerals as well as currency. Minerals that the region is rich in include copper, coal, diamonds, uranium, gold, zinc, titanium, chromium and lead. Agricultural products will include maize, wheat, sugar, livestock, tobacco, groundnuts, cotton, coffee, cassava and sorghum. All of these products can be traded using any currency in the world.
As the first true Pan-African exchange, ACFEX will help provide market participants with an opportunity for price transparency, reduced production and access to powerful integrated electronic trading platforms. It will also serve as a tool for hedging volatility and price risks as well as to provide a vehicle for arbitrage opportunity. The exchange will also provide a platform for price discovery. The future contracts will be standardized, centrally cleared, cash settled as well as deliverable.
Analysis of the region
- Zambia is the largest producer of copper in Africa and its production accounts for about 10% of its GDP.
- South Africa is also the 3rd largest coal exporter and a high producer of gold and diamond.
- Zimbabwe, Botswana and South Africa are amongst the top 10 producers of platinum in the world.
Benefits to Market Participants
- Reduced production risk
- Help manage payment security
- Price transparency
- Risk management
Acfex is open for local, regional and international market participants.The exchange membership committee determines membership licensing. ACFEX membership is not based on “seat” or a few select individual. The exchange will not sell any seat, it will issue permits on first come first-have basis. The exchange is open and is only limited by the permits that are issued by the exchange. A membership’s permit will give an organization right to be a trader, broker or a clearing firm.
The membership is divided into:
- Membership request should be sent to [email protected]
Resources Provided to New Members
ACFFEX and its technology partners have developed a turnkey solution for its members. Members do not need to invest in trading platform hence, freeing up cash to expand and build your business. The Brokers are provided with a full suite of Back end solution and front-end trading platform. The clearing members are also provide with the state of the art risk management software. The software can run on ACFEX data center or members own servers.