Indebank, AHCX MoU to empower farmers

Indebank Limited on Monday signed a memorandum of understanding (MoU) with the Auction Holdings Commodities Exchange (AHCX) to empower farmers to produce more as they access loans from the bank.

AHCX is a market place where buyers and sellers trade commodities with an assurance of quality delivery and payment key functions of quality, grading and certification, electronic, warehouse receipting, trading floor operations, clearing and settlement as well as clearing house operations, market information and dissemination.

Indebank chief executive officer William Chatsala said the agreement is expected to benefit both the bank and the farmers.

“The coming in of the commodities exchange is positive development both to the bank and the farmers of the country because the bank has the facility through which farmers will unlock the commodities at the warehouse. We are pleased to partner and finance the AHL Commodities Exchange,” he said.

AHCX director Stone Chadzunda said the MoU will ensure the provision of a trading platform using member-client relationships throughout the trading chain.

“Warehouse operations will ensure that depositors can hold onto their crops until the lean season when the price and potential for profits are at their highest.

“AHCX works with clearing and settlement banks to offer warehouse receipt financing (Inventory Credit) to commodity depositors, with the commodity as security,” he said.

Chadzunda said through the agreement, the depositor (farmer or trader) identifies an AHCX warehouse close to their area and takes the goods to the warehouse for deposit.

He said AHCX grades and classifies the goods and gives a receipt for storage of said goods to the depositor.