ECOBANK AGREES A K1 BILLION KWACHA PACKAGE FOR AHCX AGGREGATORS
ECOBANK Malawi Limited has entered into a business partnership with AHL Commodities Exchange (AHCX) which has seen the Bank set aside a K1 billion financing package for AHCX Aggregators.
The arrangement is a massive boost to the Exchange’s commodity mobilisation drive as it gives AHCX Aggregators access to affordable finance which they will use to mobilise large volumes of agricultural commodities to be traded at the Exchange’s platform by providing immediate cash settlement to farmers.
AHCX Marketing Manager, Clement Mijoya said that the Exchange has learned a lot from its first year of operations and the experience is helping the development and implementation of strategies that are relevant and beneficial to all its stakeholders especially local farmers and traders.
Mijoya explained that most local farmers prefer on-spot settlement to the T+1 settlement cycle, there had been reluctance to deposit their commodities on the perception that the T+1 settlement arrangement was not addressing their immediate need for cash.
The Aggregator arrangement is specifically structured to engage business minded individuals and institutions to mobilize and aggregate commodities to be traded on the Exchange backed up by ECOBANK’s provision of finances to strengthen their positions.
At a recently held Aggregator Training session at AHCX headquarters in Lilongwe, participants were oriented on main functions of the Exchange starting from warehousing through trading and settlement with a view to equip them with skills on how they can effectively transact business at the modern fully electronic trading platform.
AHCX is transforming the commodities trading landscape by operating a structured market aimed at stimulating local and international trade thereby providing opportunities to all its stakeholders to contribute to the country’s economic growth.
ECOBANK becomes the fourth bank to partner with AHCX on financing arrangements after Malawi Savings Bank, NBS Bank and First Discount Bank.