ZAMACE

It was established by stakeholders in the agricultural sector seeking a structured market mechanism that addressed the multiple market imperfections that stifle growth in the agricultural sector such as high transaction costs, low and asymmetric levels of market information, low levels of trust and 'adversarial' trading relations. ZAMACE is the Aut... horized Agency for implementation of the warehouse receipt system under Agricultural Credits Act 35 of 2010 Mission: To provide an efficient and vibrant agricultural commodity exchange, supported by a warehouse certification and receipt system to enhance market access, liquidity and credibility in the commodities market. By 2011, ZAMACE had developed a set of grades and standards that were - and still are - adopted by the agricultural industry, it had implemented a pilot warehouse certification process, developed and utilised an arbitration process in resolving trading disputes and traded over $80m of commodities. However, in view of a new regulatory environment imposed by the passage of the Agricultural Credits Act 2010, that year the company made the decision to cease trading, demutualise the Exchange and commence a process of restructuring in order to create more value in the market and align itself to the new policy environment. However, while the Agricultural Credits Act, which defined the policy environment around warehouse receipts, was enacted in 2010, it was not implemented until late 2014 when Statutory Instrument (SI) No. 59 was signed into law. The SI appointed ZAMACE as the 'authorised agency' of the Agricultural Credits Act, effectively assigning it statutory powers to create, manage and enforce a warehouse receipts system. Participating BanksRead More