Egyptian Prime Minister, Dr. Mostafa Madbouly met with Minister of Supply and Internal Trade Ali El-Moselhy, President of the Federation of Chambers of Commerce Ibrahim Al-Arabi, Chairman of the Egyptian Exchange Mohamed Farid Saleh, and officials of a number of concerned parties to follow up the steps of establishing the commodities exchange in Egypt.
Madbouly emphasized the importance of establishing commodity market in Egypt to protect small farmers by collecting, classifying and pricing their production.
Madbouly added that this market will also create transparency in pricing and thus contribute to reducing inflation resulting from fluctuating commodity prices, in addition to the ability to export products to small farmers after issuing a birth certificate for products traded on the exchange.
He added, “The commodities exchange will contribute to placing Egypt on the global map of commodity trading, through the planned market, to exploit its strategic location and contribute to attracting foreign capital”.
Through the meeting EGX’s Chairman reviewed features of the Commodity market in Egypt, pointing out that the establishment of a Commodity platform will create a regulated market for the circulation of scalable goods, and attract a larger segment of traders and investors. This will also provide a competitive market regionally and globally.
Farid explained that the establishment of the Commodity market will have a positive impact on farmers. A regulated market will stimulate, if combined with futures and options contracts - agriculture to increase the cultivated areas of the traded commodity due to the existence of detailed data on the trading of these commodities, enabling agricultural planning.
At the level of market traders, according to EGX Chairman, establishing the commodity exchange is an important mechanism for pricing goods through market mechanisms of supply and demand, and a mechanism for gradually collecting data on dealers (traders and brokers) and stores that will be used as qualified stores.
For his part, Minister Ali El-Moselhy stated that Egypt is working on establishing commodities exchange in October.
He added that it was agreed that the share of the commodities exchange would be 60 percent for the government and 40 percent for the private sector, clarifying that the general framework was agreed with EGX.
He pointed out that there is continuous cooperation with the Federation of Chambers of Commerce and the Egyptian Exchange in this regard.
According to Moselhy, there are currently 18 areas in Egypt, and logistical areas or distribution chains are being constructed. He noted that the smallest of these areas spans over 25 Acers.
“Six more areas are ready to be launched,” he stated.
