TSL Limited has secured US$23 million to support offtakers, farmers and traders on the Zimbabwe Mercantile Exchange, in a move expected to inject liquidity and drive growth in trading volumes in the coming years.
Zimbabwe Mercantile Exchange (ZMX), which operates as an electronic commodity trading platform, was established in 2021 as a joint venture between the Financial Securities Exchange (FINSEC), TSL Limited, CBZ Holdings and the Government of Zimbabwe.
TSL holds a 22,5 percent stake in the exchange, alongside Financial Securities Exchange (FINSEC) at 22,5 percent, CBZ at 35 percent and the Government at 20 percent, following Cabinet approval of the shareholding structure.
In addition to its shareholding, TSL provides warehousing and logistics solutions to the platform.
TSL chief executive Mr Derek Odoteye, in a presentation at the company’s analyst briefing last Friday, said the trade finance facilities were a critical step in strengthening activity on the commodity exchange, where growth has so far remained modest.
“We have got trade finance pledges amounting to US$23 million. What that does is it creates liquidity, which enhances trading volume,” he said.
He added that it will support the operators, farmers and traders on the platform. “We expect that with this increased liquidity, we should see growth in trading volumes in the years to come,” said Mr Odoteye.
Despite the expanded institutional framework, Mr Odoteye said trading activity on the exchange had remained subdued, although some incremental gains were recorded in the last financial year, which ended on October 31, 2025.
“There has been modest growth on the ZMX, but trading and commodities have remained subdued.
“The value of warehouse receipts that were written in the last year was up by 2 percent and totalled US$77,6 million worth of commodities,” he said.
During the year under review, the volume of commodities traded through warehouse receipts rose to 195 082 tonnes in the year under review, from 192,265 tonnes in the prior year, with maize and wheat accounting for the bulk of the trades, alongside small volumes of soya and other commodities.
ZMX has, in recent months, outlined plans to expand its commodity trading platform and warehouse receipt system to reach more smallholder farmers across the country as part of efforts to deepen participation and improve market access.
The exchange is also broadening its product offering to include livestock and carbon-linked commodities, aimed at enhancing digital market participation and promoting production inclusion in agriculture.
Last year, the exchange entered into a five-year collaboration with the Grain Millers Association of Zimbabwe (GMAZ) to enable grain offtake through forward contracts and spot cash transactions.
Under this arrangement, millers secure access to grain by buying forward contracts, while farmers, traders and aggregators can raise financing ahead of the actual sale of the grain.
A forward contract in maize is an agreement between a buyer and a seller to exchange a specific quantity at a predetermined price on a future date, helping both parties manage price risk and plan production and procurement.
According to the MOU, ZMX will facilitate grain aggregation, certification and warehousing through its network of more than 30 certified warehouses, with trading taking place on both the spot and forward markets.-herald
