Commodities Exchange Coming To Kenya
There’s an interesting article in BD Africa about Kenya finally moving towards opening up a commodities exchange where farmers and others (I presume) will eventually be able to trade agricultural commodities just as they trade Safaricom shares.
I’ve written articles about this before and wondered why an agricultural country like Kenya did not have an exchange similar to the CME (The Chicago Mercantile Exchange) or other commodity exchanges around the world.
This is a very interesting development. Would you be willing to trade agricultural commodities in Kenya just as you trade Kenya Airways shares? It’s really the same concept: If you think the price of maize or rice will go up {or down}, you take a bet on it and if you’re right, you can end up making money off that prediction.
However, if you are wrong, you may end up with bags of maize at your doorstep because you’ll actually be purchasing the “commodity”. However, you can avoid that by making sure that you sell your commodity before the due date for actual delivery arrives.
What do you think about the prospects for this exchange?
I think any investment avenues and opportunities are welcome for the hard pressed Kenyans especially now.
They will need all the tricks to survive. How else can they survive when 80% of the budget goes to ministers, their assistants and other govt departments? That leaves only 20% for the provision of services to Kenyans.
Thank God, Kenyans do not rely on the gava for survival. Poor Kenyans!
Shame Shame Shame.
good and bad.
the exchange will be an added investment/trading avenue for ‘hard pressed’ Kenyans. but just as the nse is dominated by shady cliques and fraudulent brokers, so might the commodity exchange be, leaving the retail players twisting in the wind.
Just what:
Alot of people complain about the brokers on the NSE and there’s certainly been a number of shady one’s, but are there some good, honest one’s or are they all price gougers who charge exorbitant commissions?
I don’t think a lot of kenyans understand that these brokers are making money off the commissions they charge (whether you the individual loses money is irrelevant to them). These guys are not financial advisors. Their main income earner is those commissions. That’s why they;ve made it difficult for people to become brokers because the more competition there is, the less commissions they’ll earn.
The commodity exchange may not be as bad as the NSE if they don’t scuttle the competition by trying to prevent people from becoming brokers. i.e. if they encourage the growth of discount brokers at this new exchange.
ke;
i hear cfc has a reasonably honest brokerage operation.
why wouldn’t they scuttle the competition at the commodity exchange? a change of heart?