GAME CHANGER- AHCX LAUNCHES US$40 MILLION FORWARD CONTRACTS
All roads led to Malawi Sun Hotel in Blantyre on Saturday the 25th of April, 2015 as AHCX in partnership with Legume Development Trust (LDT), a body under African Institute of Corporate Citizenship (AICC) launched yet another exciting product called Forward Contracts for Pigeon peas and Soya beans worth US$40 Million. The launch was graced by over two hundred people from all walks of life among who were farmers, cooperatives, traders, processors, financial institutions, government officials, NGO’s and Members of Parliament.
The function began with a video documentary on the strides AHCX has made in transforming Malawi’s commodity trading landscape since May 2013 when operations started. Following the video, Mphatso Dakamau gave a presentation on what the Legume Development Trust is doing to enhance the market by linking all players of the legume value chain.
Davis Manyenje, AHCX General Manager presented on the rationale for AHCX Forward Contracts and upbeat that the product will stimulate production of legumes whilst supporting local processors with steady flow of raw materials for onward processing. He said that the Contracts will also enhance access to credit facilities for production and aggregation of legumes in light of ready demand. Lending institutions are also assured of a solid disposal and recovery of the credit facilities.
AHCX Trade and Investments Manager, Daniel Chilima made a technical presentation on the processes that will be followed when taking up Forward Contracts. He informed participants that the Contracts are split into international Dollar denominated contracts that will focus on Pigeon peas and domestic Kwacha based contracts that will focus on Soya beans.
For one to be eligible for a contract award, they first have to complete and submit an expression of interest form, Chilima said. The Contracts will be awarded on a first come first served basis with priority going to members of the Exchange who satisfy conditions of the contract allocation.
Financial institutions present at the meeting assured everyone that they will promptly finance people who will take up the AHCX Forward Contracts as long
as all requirements are fulfilled.
AHCX Team tackled all questions to everyone’s satisfaction and the launch ended with sumptuous buffet lunch by the pool side.