 Semer la croissance: Libérer le potentiel des bourses de produits agricoles en Afrique subsaharienneSeeding Growth: Unlocking the Potential of Agricultural Commodity Exchanges in Sub-Saharan AfricaDirk Kohnert MPRA Paper from University Library of Munich, Germany Abstract: The establishment of commodity exchanges offers significant advantages for low-income, agriculturally dependent countries seeking to enhance export performance. A notable example is the Ethiopian Commodity Exchange (ECX), which contributed to a substantial increase in coffee exports, benefiting producers through expanded export volumes and diversified market access. Similarly, in May 2025, Côte d’Ivoire launched West Africa’s first agricultural commodities exchange, supported by the Regional Stock Exchange (BRVM)—the common securities market for the eight member states of the West African Economic and Monetary Union (WAEMU). Initially, this exchange lists cashew nuts, kola nuts, and maize, with plans to expand trading to cocoa and approximately twenty additional commodities in the future. Africa currently hosts 38 stock exchanges across 29 national capital markets, 22 of which are members of the African Securities Exchanges Association (ASEA). Among these, 12 countries facilitate agricultural commodity trading: South Africa, Nigeria, Kenya, Côte d’Ivoire, Ethiopia, Malawi, Zambia, Zimbabwe, Tanzania, Mozambique, Rwanda, and Uganda. Commodity exchanges in sub-Saharan Africa (SSA) play a pivotal role in strengthening market structures by improving market access, mitigating price volatility, and integrating smallholder farmers into formal economic systems. Despite structural challenges—such as infrastructural deficits and capacity-building needs—these platforms demonstrate considerable potential for fostering sustainable agricultural development in the region. Empirical evidence suggests that while market capitalization negatively impacts agricultural growth, the value of traded stocks exerts a positive influence. Consequently, governments in African emerging economies should prioritize capital market expansion to stimulate growth through agricultural value addition. Policy frameworks that bolster investor confidence via institutional strengthening and stock market development are essential. However, it is equally critical to recognize the potential for cross-market risk transmission, given the continent’s heavy reliance on commodities and the interdependence between stock market performance and macroeconomic stability. Risk transmission arises when information dissemination is delayed or incomplete, leading to contagion effects where adverse market sentiment spreads irrespective of local conditions. Notably, commodity prices and exchange rate fluctuations exhibit bidirectional risk transmission with SSA stock markets, particularly over the long term. Thus, shifts in these variables can significantly influence stock market volatility in the region. Keywords: Bourse; matières premières; PMA; fruit tropical; agriculture; croissance économique; Afrique subsaharienne; café; cacao; noix de cajou; noix de kola; maïs; ASEA; Afrique du Sud; Nigeria; Kenya; Côte d'Ivoire; Éthiopie; capitalisation boursière; performance boursière; transmission du risque; taux de change; efficacité du marché; petits exploitants agricoles; économie des institutions; découverte des prix (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:125237 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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