The legal team at AFGRI secured the Innovation Award for its work providing the legal advice needed for the establishment of the East African Commodities Exchange, the first venture of its kind in Africa outside South Africa.

The exchange creates a marketplace to trade spot, forward and futures contracts in agricultural, non-agricultural, energy and other derivative products. It is also able to host auctions and reverse auctions.

The AFGRI team's involvement came courtesy of the fact that Collateral Management International, a member of the AFGRI Group, developed the commodity warehouse infrastructure that underpinned the exchange. As part of this process, AFGRI advised on the setting up of a complex electronic warehouse receipt system, which facilitates the smooth transfer of stock between buyers, sellers and banks. Because the project was unique outside South Africa, the team was required to draft a range of legal documents for which there were no precedents.

The exchange is now operational in the member states of the East African Community. Its benefits include providing real-time, accessible and transparent price information. The exchange also reduces counterparty risk by becoming the central counterparty to each exchange.