ZMX, LCFE ink intra-African commodity deal

STAFF WRITER

The Zimbabwe Mercantile Exchange (ZMX) and the Lagos Commodities and Futures Exchange (LCFE) have signed a Memorandum of Understanding (MoU)  for structured, transparent, and technology-driven commodity trading between Nigeria and Zimbabwe.

The virtual signing ceremony, hosted by a joint bilateral secretariat and attended by regulators, trade officials, and market operators from both countries, marked the beginning of a strategic collaboration aimed at integrating Africa’s commodity value chains under the African Continental Free Trade Area (AfCFTA). Representatives from regulators from both countries also delivered goodwill messages, emphasising the importance of regulatory alignment and transparency in facilitating the partnership.

In his opening remarks, ZMX CEO Collen Tapfumaneyi, hailed the partnership as a transformative opportunity for the continent’s agricultural markets.

“This collaboration represents more than a trade agreement; it’s a bridge between two economies that share the same vision — to bring farmers, traders, and investors into a single, transparent ecosystem,” he said.

Tapfumaneyi emphasised that the ZMX-LCFE framework would create new opportunities for liquidity, price discovery, and market access, helping farmers and agribusinesses unlock real value from their commodities.

“Through this partnership, we are demonstrating that African solutions can drive African trade,” he remarked. “We are building an ecosystem where a maize farmer in Zimbabwe or a rice farmer in Nigeria can access formal markets, financing, and logistics support within the same structured system.”

Speaking from Nigeria, LCFE Managing Director and CEO Akin Akeredolu-Ale described the agreement as a defining moment for Africa’s commodity markets.

“Today’s MoU signing is not just a symbolic gesture,” he said. “It’s the start of a practical collaboration that connects two forward-looking institutions — LCFE and ZMX — with one shared goal: building transparent, structured, and efficient commodity markets that empower farmers, strengthen value chains, and unlock real trade opportunities across our continent.”

He noted that the partnership aligns directly with the aspirations of the AfCFTA, positioning the two exchanges as leaders in demonstrating how private-sector collaboration can work hand in hand with public policy to achieve regional integration.

“By working together, LCFE and ZMX are setting an example of how African institutions can create cross-border frameworks that work in practice, not just in theory,” Akeredolu-Ale added. “The real work begins now — implementing the pilots, testing our systems, and showing that structured trade between African countries is not only possible but scalable.”

The partnership framework outlines a robust roadmap for collaboration between the two exchanges, focusing on trade corridor development, capacity building, financial product innovation, and shared data systems. Both exchanges will integrate their warehouse receipt platforms and leverage digital tools to improve traceability, compliance, and risk management across borders.

In the coming months, they plan to launch pilot projects that include a structured rice export from Nigeria to Zimbabwe and a maize import from Zimbabwe to Nigeria, testing the interoperability of their warehouse systems and cross-border logistics under AfCFTA protocols.

Supporting institutions such as the Nigerian Export Promotion Council (NEPC) and ZimTrade will guide trade documentation and compliance, while both countries’ regulatory institutions will oversee regulatory harmonisation. The partnership will also make use of the Pan-African Payment and Settlement System (PAPSS) to facilitate secure and efficient financial transactions across borders.

As part of its long-term goals, the collaboration aims to strengthen institutional capacity through technical exchanges, joint research, and staff training. It also envisions developing standardised commodity contracts and warehouse receipt-backed instruments that will allow investors from both countries to participate in trade finance under shared market rules.

The ZMX-LCFE initiative is seen as a model for how African exchanges can work together to unlock the continent’s commodity potential, reduce informal trade, and enhance food security. By combining Nigeria’s production strengths with Zimbabwe’s agricultural and logistical expertise, the partnership seeks to establish a sustainable trade corridor that benefits producers, traders, and consumers alike.