CUTS calls on banks to participate in ZAMACE

THE Consumer Unity Trust Society (CUTS) has called for the participation of the financial sector in the promotion of the Zambian Commodity Exchange (ZAMACE).

According to a report conducted by CUTS, ZAMACE played a crucial role in the agriculture sector hence the need to promote it.

CUTS country coordinator, Chenai Mukumba, observed that lack of participation of the financial sector had affected the performance of ZAMACE.

Ms Mukumba said participation of the financial sector could play an important role as many institutions were waiting to see increased participation before they could follow suit.

“Banks should also be shareholders. This has allowed the financial sector in other countries to have an interest in the success of the commodity exchange. Bank participation at this level could potentially attract other financial institutions,” she said.

Ms Mukumba in a statement observed the need for a strong reporting and information exchange system between the exchange and the partner banks.

She explained that such a reporting system could serve to promote transparency and free flow of information between ZAMACE and the banks, and ideally contribute to confidence building with the financial sector.

Ms Makumba said a legally binding document that established the principles for Government intervention in agriculture should be established. “The Agricultural Marketing Bill would be a first step to achieving this role as it establishes an Agricultural Marketing Council, however, some stakeholders are of the view that such a council would be limited in scope. “Rather, the proposed recommendation is that the sector requires a council that has a purview much wider than marketing and instead supports the Government on all aspects of the agricultural value chain – not just marketing,” she said.