Institute of Cereals of Mozambique partners with FinComEco to improve food security supported by the Republic of Mozambique Government
Delivering an integrated Financial & Commodities Ecosystem efficiently linking supply to demand
Maputo, London, Mauritius 12th July 2017. Institute of Cereals of Mozambique (ICM), responsible for regulating and promoting agricultural production and commercialisation in Mozambique under the remit of the Ministry of Industry and Trade, announced the signing of a collaboration agreement with FinComEco, the fully integrated Financial & Commodities Ecosystem providing services, financing, capacity building and enablement solutions through a venture, linking agriculture to the latest financial technology.
The agreement was signed in the presence of Rt. Hon Mr Ernesto Max Elias Tonela, Mozambique Minister of Industry and Trade by Mr. João Macaringue, Director General of ICM and Mr. Hirander Misra, Deputy Chairman of FinComEco.
The collaboration will develop a range of projects and high impact initiatives in the agricultural commodity markets sector. ICM, with its Mozambique domain knowledge, country wide network of warehouses facilitating smallholder farmers, traders and buyers, will deliver commercialisation and operational capabilities. FinComEco will provide the commodity trading platform and electronic warehouse receipts capabilities, as part of the wider FinComEco model. This includes distribution of third party agri-finance and electronic banking facilitation enabled by scalable technology supported by its partner GMEX Group.
The joint venture, supported by the Republic of Mozambique Government, will implement the programme as part of a coordinated effort to create a food reserve capable of filling the national deficit. Through collaborative efforts, both parties will work to drive improvements in food security, economic diversity and financial inclusion through a socially responsible commercial delivery partnership. To support the programme, FinComEco has established FinComEco Mozambique SA as a majority owned Special Purpose Vehicle with local partners. GMEX Group has also acquired a 10% stake in the venture.
The parties will also work with development organisations, governments, research bodies and the private sector to strengthen the legal and regulatory framework, apply effective standards, and provide technical assistance and capacity building.
João Macaringue, Director General of ICM, commented, “The implementation of the Operational Plan for Agricultural Marketing (POCA) will deliver on the Presidential initiative to increase production and productivity, for the benefit of our population, achieving a sustainable agricultural sector.” He added, “The signing of this agreement provides a solid response to supporting POCA and solving the problem of abstraction, transport, storage and distribution. The involved industries will also record all production, whether domestically consumed, exported or stored in reserve for national food security.”
Hirander Misra, Founder and Deputy Chairman of FinComEco and CEO of GMEX Group commented, “This high impact initiative in Mozambique will facilitate the effective linking of the supply to demand agricultural value chain enabled by best-of-breed technology, standards and inputs (including seeds, fertilisers and pesticides).” He added, “This, coupled with a unique agri-finance business model to solve credit and financing issues underpinned by improvements in logistics and warehousing, will help improve food security and encourage value added agricultural industries and wider trade.”
The Realization Group
Phone: +44 (0)7974 937 970
Institute of Cereals of Mozambique
Institute of Cereals of Mozambique (ICM) has the responsibility for regulating and promoting agricultural production and commercialization in Mozambique through a coordinated effort to create a food reserve capable of filling the national deficit. It acts as an agricultural commecialization agent and must monitor the production chain from the purchase, storage and conservation to the sale of agricultural products inclusive of its country wide network of primarily leased warehouses.
FinComEco, the financial and commodities ecosystem is fostering financial inclusion with social responsibility in collaboration with local stake-holders, development organisations, governments and the private sector with the aim of improving food security and economic diversity.
The new electronic commodities exchange solution is establishing and reinvigorating local spot exchanges and enabling trade across multiple regions with a focus on the agricultural sector to create a holistic secure financial system.
- Price discovery and transparency
- Electronic warehouse receipts
- Trade finance and micro lending facilitation as a distribution hub
- Risk management and hedging
- Integrated Electronic banking and payments platform
- Standards framework
- Traceability and tracking enablement
- Capacity building and education
- Operational and technology consultancy
- Working with trusted local partners
Operational objectives include:
- Maximising the earnings potential for smallholder farmers
- Supporting smallholder farmers to thrive enabled with best of breed-of-technology and inputs (including seeds, fertilisers and pesticides), coupled with a unique Agri-finance business model to solve credit and financing issues.
- Leveraging as well as enhancing current logistics, warehousing and standards to establish a fully vitalised agricultural ecosystem efficiently linking supply to demand.
FinComEco has proven its concept in Malawi at the Agricultural Commodity Exchange for Africa (ACE) through GMEX Group and is establishing fully regulated market places in other African countries and South-East Asia.
Current shareholders include GMEX Group Limited, Saescada Limited and Houghton Street Capital Limited as well as individuals.
For more information visit www.FinComEco.com
About GMEX Group
GMEX Group is a set of companies that offer sustainable and innovative solutions for a new era of global financial markets. Providing business expertise, the latest technology, connectivity & operational excellence delivered through an aligned partnership driven approach. We use our extensive market infrastructure experience and expertise to create an appropriate strategic master plan with exchanges, clearing houses, depositories, registries and warehouse receipt platforms.
Our key business solutions enable the creation and operation of cost effective electronic exchanges and post trade infrastructure in multiple asset classes including equities, debt, FX, derivatives and commodities. We operate in both developing and developed markets through the establishment of cohesive business and technology ecosystems. GMEX offers the added benefit of interconnection to multiple partner exchanges, to create global networks of liquidity.
For more information visit www.gmex-group.com or follow us on Twitter @GMEX_Group