Current ACE Projects

EU and Common Fund for Commodoties - Pilot Warehouse Receipt System

Amount: USD 635.000

Duration: 30 Months

Start: July 2010

The project is part of a regional warehouse inventory credit system (WIC - project) being implemented in Ethiopia and Tanzania. The timing of the Malawi Component was perfect; the market was ripe and ready for warehouse receipts. Significant progress was made very quickly. In August 2011 the first warehouse receipts were issued and financed. Most notably, within the next 3 to 6 months receipts were later traded on ACE with significant increase in income to the depositors. One receipt generated a 72% added income for the depositor after all costs were covered. The system was in place and it works!

The grant will enable ACE to implement the first structures in Malawi necessary for a functioning warehouse receipt system.Three rural warehouse sites will be upgraded and refurbished in Kafulu, Nathenje and Balaka where NASFAM will supervise and issue rural warehouse receipts. The grant also supports the development of an electronic warehouse receipt registry and link between warehouse operators and financial institutions.

AGRA - Market Linkages and Capacity Building for better Dialogue

Amount: USD 540.000

Duration: 24 Months

Start: Fenruary 2010

The project will be implemented jointly by ACE and the Grain Traders and Processors Association (GTPA).The goal of the project is to create and promote a structured grain marketing system in Malawi with risk management, transparency and price discovery to the benefit of small holder farmers and small/medium traders. The specific objectives of the project are: (i) increase incomes of smallholder grain farmers;(ii) reduce post harvest losses; (iii) improve the quality of the grain produced; (iv) reduce transaction costs through collective action and improved access to market information, (v) to improve trade and information linkages between smallholder farmers and small/medium scale traders.

The main actvities is to sensitise and train small farmers and traders pants to link them to the structured trade systems implemented by ACE.

Reports

AGRA REPORT 2012 Final DCH Part 1

AGRA REPORT 2012 Final DCH Part 2

Past ACE projects

USAID COMPETE - Capacity Support to Agricultural Commodity Exchange for Africa Trust

Amount: USD 95.000

Duration: 12 Months

Start: January 2011

Finished April 2012

After a successful bridging actvitity in 2010 creating systems to implement WFP procurement through the exchange as well as further developments in the ACE trading system it became necessary to seek funding to further develop the capacity of ACE.This was due to increased WFP domestic procurement, later regional procurement and subsequent commercial operators buying through the Bid Volume Only (BVO), generating a lot of actvity and market information on ACE. ACE is also integrating the BVO system with Zambian Commodity Exchange (ZAMACE) allowing the 2 exchanges to host live trade sessions simultaneously to to fully harness WFP regional procurement. The grant is enabling ACE to further develop the ACE trading system so the bid/offer matching, BVO system and warehouse receipt system is fully integrated and compatible.