Egypt to launch commodities exchange joint venture soon – minister

Egypt’s Supply Ministry will announce very soon its joint venture with the country’s stock exchange to manage a long-awaited commodities exchange for spot trading of commodities with large markets.

The launch could be made “before the Eid al-Adha holiday”, Supply Minister Ali Moselhy said on Monday.

The country will also launch soon giant strategic storage facilities designed for the Egyptian commodity exchange project, Moselhy added.

On January 22, Egyptian Prime Minister Mostafa Madbouly, issued a decree on authorising the Egyptian stock Exchange (EGX), the Supply Ministry’s Internal Development Agency (IDA), and the General Authority for Supply Commodities (GASC) to establish the joint venture.

The JV will be tasked with the management of the commodity exchange, including the facility of trading systems, quotations, pricing and control mechanisms, and risk management, according to Madbouly’s statements.

Shareholders in the new JV include major state banks; Banque Misr, the National Bank of Egypt, and the Agricultural Bank of Egypt, the EGX, and Ministry of Supply.

The JV is expected to have other shareholders, involving EFG Hermes, Misr Insurance Holding Company, Misr Authority for Central Clearing, Depository and Registry, and the Federation of Egyptian Chambers of Commerce (FEDCOC).

The JV’s board will be made up of shareholders with the Egyptian government holding a 51 percent stake and the remaining 49 percent for private entities.