Project Brief
Tanzania Mercantile Exchange - Digital Commodity Trading
Implementation Partners
• Tanzania Mercantile Exchange (TMX)
• Warehouse Receipts and Regulatory Board (WRRB)
• Cashew Nut Board of Tanzania (CBT)
• Agricultural Marketing Cooperative Societies (AMCOS)
• Tanzania Cooperative Development Commission (TCDC)
Implementation Period
2018-2027
Project Participants
Traders, farmers, farmers groups (AMCOS), TCDC, warehousing board (WRRB), miners, government Ministries, Agencies and Departments (MDAs) related to agriculture, livestock, and minerals (including gemstones); and other private sector operators related to auctioning/trading of agriculture, livestock, mineral products
Project Value
USD 2.285 Million
Project Rationale
Commodity trade in Tanzania has historically been characterised by fragmented markets, weak price transparency, long transaction cycles, and limited regulatory oversight, reducing returns for farmers and eroding public revenue. TMA supports TMX, Tanzania’s first licensed multi-commodity exchange regulated by the Capital Markets and Securities Authority (CMSA), to address these constraints. TMX provides a digital platform that connects farmers, cooperatives, traders, buyers, and regulators within a structured, rules-based trading environment, improving price discovery, payment security, and market governance.
Implementation Strategy
TMX operates as a digital marketplace that integrates trading, warehousing, and regulatory systems to improve efficiency and transparency across commodity value chains
- Digital Trading Platform: TMX operates a secure Online Trading System enabling competitive, real-time commodity trading. The platform links farmers, cooperatives, warehouses, buyers, and regulators through a single digital environment – reducing information asymmetry and establishing trusted price discovery across value chains.
- Integrated Value Chain Model: TMX functions as an end-to-end value chain system, not a simple trading portal. Farmers participate through cooperatives; warehousing and quality assurance underpin tradeable lots; buyers compete in online auctions under clear rules. This model reduces reliance on informal intermediaries and strengthens governance across the trading process.
- Technology Infrastructure: Investment in secure hosting and ICT infrastructure ensures platform stability and scalability. The system architecture accommodates multiple commodities and growing transaction volumes as market uptake expands
- Capacity Building and Market Adoption: TMA supports the sensitisation and onboarding of farmers, cooperatives, traders, buyers, and public institutions. Targeted engagement with sector regulators manages resistance from entrenched market practices and embeds new trading behaviours over time.
- Phased Commodity Expansion: Implementation follows a phased, risk-managed approach. Initial focus on priority agricultural commodities- sesame seeds, pulses, cashew nuts, cocoa, coffee, tea, and soybeans- has been followed by expansion into minerals, including gemstones, demonstrating the scalability of the TMX model beyond agriculture.
Elibariki Shammy – Country Director, Tanzania
Email: elibariki.shammy@trademarkafrica.com