Mozambique Board of Trade issues 1st depositary certificates in December

20 November 2015

The Mozambique Commodities Exchange (BMM) will issue depositary certificates from 20 December, allowing farmers access to bank credit, the BMM president said Thursday in Maputo.

Antonio Grispos, who was speaking after the signing agreements to implement the depositary certificates system with Banco Internacional de Moçambique (BIM) and the Banco Terra de Moçambique (BTM), said it was still difficult to say how many producers would benefit from the initiative, according to Portuguese news agency Lusa.

The president of the BMM said the depositary certificates would facilitate farmers’ access to bank credit, since the document serves as title proving ownership of goods stored in the BMM’s silos by the holder.

Grispos said access to depositary certificates would be given to producers who have their goods stored in the BMM silos, adding that at present, the organisation has seven silo complexed with a capacity of at least 35,000 tons of agricultural products.

After the introduction of depositary certificates, Gripos said, the next step will be goods auctions to sells off the products.

Liliana Catoja, an executive manager of BIM, said the agricultural sector accounted for 20 percent of Mozambique’s economy and that the depositary certificates gave farmers access to financial services. (macauhub/MZ)