Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Uganda Commodity Exchange

WRS PROGRESSBy Alex Rwego

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Background

• WRS Act passed – 2006• WRS Regulations signed by Minister – 2007• Licensing conditions for maize, beans,paddy

rice, cotton and coffee are ready – 2007

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Defination of a ware house receipt

• A ware house receipt is a document of title that shows you the quality and quantity of a commodity that is stored in a licensed ware house. In Uganda the ware house receipt an electronic document.

• In Uganda the licensed ware houses are regulated by the Uganda Commodity Exchange.

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

How does one get to use the WRS?

• Register your organisation with the UCE.• UCE will then give you a user name and

password to use the system.• You must be located within the hinterland

of UCE licensed warehouses. Currently we have a ware house in Jinja, Masindi ,Mbarara, Tororo, Gulu and Kasese.

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Benefits of WRS to Farming Communities

• Proper storage facilities that are professionally run and secure.• WRS exposes you to markets like WFP, larger grain traders and the

regional markets.• WRS exposes you to buyers that you would have never met both

domestically and regionally• Access to finance through the banks. Allows you to get 60% of the

value of your commodity in order to defer its sale.• Allows you to sell when the price is right rather than right after

harvest.• In summary it allows you better control over the sale of your

agricultural commodities.

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

How are ware house receipts sold

• Direct sales to the WFP• On the commodity exchange trading floor using

a set of registered brokers who represent buyers and sellers of agricultural commodities.

• Direct sale to a buyer of your choice.

This now makes you a price maker instead of a price taker.

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

UCE’s Contribution to the ware house keepers.

• UCE: Civil works (compound, cracks,

screening, canopy etc) Warehouse and SWG training eWRS installation and training Grain SWG equipment Fumigation monitoring equipment Communication support

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

UCE Licensed ware house Jinja

Offloading Bay:• Ramp• Canopy

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Certified weighing scales at the ware house.

Serviced , Verified and certifiedscales

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Tariffs at the ware house.

Tariff• Handling• Drying• Cleaning • Storage/Fumigation

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Certified staff at the ware house.

Certified:• Samplers• Weighers• Graders

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Mechanised cleaning and drying plant.

DryingCleaning Plant:

Thanks toASPS

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Cleaning and Drying process

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Quality measuring equipment.

Sampling and Grading Equipment

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Certified Grader.

Riffle dividing samples for grading

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

No Rodents, Birds and pests

Vermin Screened

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Protected Grains.

Fire Safety

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

WRS Stocks

WRS stock on

eWRS

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Issuance of EWRS

Manager of AgrowaysIssuing an Electronicreceipt

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Depositors portal for EWRS and Market information.

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

WRS Achievements

• WRS was launched on 28/04/08• 7 licensed ware houses in Jinja, Masindi,Kasese , Tororo, Gulu and Mbarara• EWRS has over 450 depositors 70% farmer groups and 30% traders• UCE has an MOU with WFP to procure 150’000MT through the system.• WFP has procured over 5000MT through the system.• Over 9’000MT have been deposited through the system• Over 4000 farmers have been trained by UCE around the hinterland of the ware houses.• The commodity trading floor is now operational• UCE SMS platform is currently being designed.• 4$ financial institutions have signed MOU’s with UCE to start financing ware houses receipts.

Housing finance bank have lent over 200 million shillings using the receipts as collateral. • MOU between UCE and UCDA has been signed

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

What next?

Supported by the Government of Uganda and the Delegation of the European Commission in Uganda

Contact us

The Uganda Commodity Exchange

1st Floor Northern wing Social Security House

Tel: 031 2 262922, 041 4 345678

E-mail: info@uce.co.ug

Web: www.uce.co.ug