It consist of all ECOWAS member countries with agro products being the main contracts traded. Agriculture in this region accounts for 36% of the GDP of ECOWAS member countries with about 54% of the population involved in Agriculture. ACFEX will provide a platform for price discovery and the futures contracts will be standardized, cash settled, centrally cleared and deliverable.
The region will settle energy products, cereals, metals, plantation products, oil and seed, livestock as well as currency. All contracts will be domiciled in their respective countries’ currency.
Analysis of the region
- West Africa is the largest production area for cocoa and accounts for about 60% of the world’s production with Ivory Coast and Ghana being the top producers.
- Nigeria accounts for 25% of Africa’s oil production, as well as 86% of West Africa’s oil production. Other key players in the region include Ghana, Ivory Coast and Cameroon.
- Ghana, Ivory Coast, Cameroon and Nigeria fall in the top 10% of world producers of Palm Oil.
- Nigeria is the largest producer of yams in the world and also accounts for 15% of Africa’s gas production.
- Cassava production in West Africa has tripled since the 1960s.
- Maize and Rice are the most consumed grain in West Africa.
Benefits to Market Participants
Market participants will benefit from payment security; reduced price and production risks, as well as have transparency of prices since all trades will be public.
Acfex is open for local, regional and international market participants. Membership has continued to grow .The exchange membership committee determines membership licensing. ACFEX membership is not based on “seat” or a few select individual. The exchange will not sell any seat, it will issue permits on first come first-have basis. The exchange is open and is only limited by the permits that are issued hence the exchange will not sell any seats. A membership’s permit will give an organization right to be a trader, broker or a clearing firm.
The membership is divided into:
Membership request should be sent to [email protected]
Resources Provided to New Members
ACFFEX and its technology partners have developed a full future turnkey solution for its members. Members do not need to invest in trading platform hence, freeing up cash to expand and build your business. The Brokers are provided with a full suite of Back end solution and front end trading platform. The clearing members are also provide with the state of the art risk management software. The software can run on ACFEX data center or members own servers.