The Egyptian Exchange (EGX) celebrated the completion of The Egyptian Mercantile Exchange (EMX) feasibility study with a ringing of Bell ceremony opening the trading session on Sunday. Dr. Ali El-Moselhy, Minister of Supply and Internal Trade, Mr. Ibrahim Ashmawy, Head of the Internal Trade Development Authority, Mr. Al-Qusayr, President of the Egyptian Agricultural Bank, and a number of officials representing stakeholders of the commodities market in Egypt attended the event.
Over the past year, EGX exerted all efforts in collaboration with Ministry of Supply and Internal Trade, Federation of Egyptian Chambers of Commerce, and other stakeholders representing this market to develop the full study of the commodities market in Egypt.
EGX studied similar successful regional and international commodities markets and held meetings with grating companies, key players of the Egyptian market, representatives of the General Authority for the control of exports and imports, and largest warehouse management companies. It also carried out a comprehensive inventory of all production and export data since 2015 for the commodities to be traded, as well as their average prices during the past two years, and an inventory of companies involved in the trading cycle. EGX also completed a timeline and an integrated action plan for the business cycle and the regulatory structure of the Egyptian Mercantile Exchange (EMX).
To complement the study, EGX had a number of field visits to logistical areas and warehouses, to identify the important elements for the establishment of The Egyptian Mercantile Exchange (EMX), which is the selection, and rehabilitation of warehouses that will be approved by the stock exchange and will be linked electronically to the trading platform.
The upcoming period will witness the announcement of establishment of EMX management with EGX as the main shareholder.
Worth mentioning that Dr. Mostafa Madbouly, Egyptian Prime Minister, held a meeting in September 2019 with EGX in the presences of the Minister of Supply and Internal Trade, president of Federation of Egyptian Chambers of Commerce, and stakeholders to follow up the establishment of the commodity exchange. During the meeting The Egyptian Exchange chairman, Mr. Mohamed Farid Saleh, presented developments of the project.
Farid affirmed that launching the commodity market in Egypt will attract investors which consequently will create a comparative market globally and regionally.
Dr. Ali El-Moselhy, Minister of Supply and Internal Trade, said that the commodity exchange will protect the small farmers through a transparent mechanism of pricing and rating which will eventually increase exports. Dr. El-Moselhy added that Egypt has 18 logistic areas in addition to new areas in the process in the near future.