All ArticlesAFEX Signs MoU with Dubai Gold and Commodities Exchange to Promote International Market Opportunities
Obianuju OkaforObianuju Okafor
PRESS RELEASE
10.03.2020

4th March 2020, ABUJA, NIGERIA — AFEX Commodities Exchange Limited (AFEX) has announced a partnership with the Dubai Gold & Commodities Exchange (DGCX) at an MoU signing ceremony held at the AFEX office in Abuja on the 4th of March 2020. The two leading exchanges will be collaborating to strengthen the commodities exchange ecosystem in Nigeria and provide new market opportunities for the commodities traded on both exchanges.

Commodities exchanges all over the world have the capacity to revive economies through the mobilization of additional investment and resources for various sectors such as minerals and agriculture. Through their operations over the years, AFEX and DGCX have built a track record of contributing to the unlocking of finance for the commodity sectors’ of their respective economies through price risk management, and the provision of access to capital markets.

The scope of collaboration between the two exchanges covers a number of activities from knowledge sharing to commodity contract design and the listing of a Shari’ah Gold Product. The DGCX Spot Gold contract – Shari’ah compliant, provides an opportunity for Islamic funds and investors in and outside Nigeria to diversify their portfolio efficiently by investing in gold. In addition to this, agricultural commodities from Nigeria can find a route to international markets with the commodities being traded fairly and transparently on the exchanges.

AFEX and DGCX

Ayodeji Balogun, CEO of AFEX, stated at the signing ceremony that “This partnership is an important step to reviving our commodities exchange industry in Nigeria, and as the leading and most innovative commodities exchange in West Africa, AFEX is extremely proud to be engaging DGCX, as this helps our goal of increasing product offerings to investors, and will serve as a gateway to the Middle East for the export market. AFEX is on the path to building Africa’s second commodities derivative market, and this partnership sets the tone for that journey.”

Les Male, CEO of DGCX, who represented the firm at the ceremony stated that “as the largest derivatives exchange in the Middle East, we are pleased to be working with AFEX to provide our rich experience in the derivatives business to foster innovation and global cooperation. In view of the UAE’s demand for agricultural produce, as well as Nigeria’s ability to trade other potential Shari’ah products, DGCX can complement AFEX in many ways. This alliance will go a long way in creating more efficient markets and strengthening trade flows between the UAE and Nigeria, benefiting each other’s stakeholders.”

AFEX and DGCX

Africa is the world’s frontier for commodity exchange development, attracting the interest of domestic investors as well as large international commodity exchange groups, which is vital for the fruition of commodity exchanges in Africa. AFEX is leading this commodity exchange development in Nigeria. Akinyinka Akintunde, the Vice President Financial Markets at AFEX also stated at the event that “The relationship with DGCX is an exciting one, as it will contribute to our overall goal of enhancing the efficiency and profitability of both Nigeria’s agricultural and financial sectors, whilst also exploring other viable sectors such as precious minerals in Nigeria. As the pioneer of commodity exchanges in Nigeria, we are keen to create more investable products, and this partnership with DGCX will unlock the availability of products that are able to be traded within Nigeria’s capital markets.”

See Also: AFEX meets with Investment Community in Abuja to Introduce New Platform

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  • Ginger
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  • Cocoa
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  • Maize
    N124,000-24.15%
  • Soybeans
    N129,3620.00%
  • Paddy rice
    N175,0002.34%
  • Sorghum
    N89,7700.87%
  • Ginger
    N764,1400.00%
  • Cocoa
    N916,0000.00%
  • Maize
    N124,000-24.15%
  • Soybeans
    N129,3620.00%
  • Paddy rice
    N175,0002.34%
  • Sorghum
    N89,7700.87%
  • Ginger
    N764,1400.00%
  • Cocoa
    N916,0000.00%