Have you ever daydreamed wondering what life would be like for farmers if they had customers for their produce before they even sowed a single seed? Or if they could access bank loans with a piece of paper, a contract, stating that someone was going to buy whatever they harvested in the coming months?

This dream is a reality for Clementine Mukankwiro, a 47-year-old widow who is the sole breadwinner for her family of four children.

She is a member of Cooperative Rebakure Munyamurama (KOREMU) based in Murama Sector, Ngoma District since its establishment in 2011.  Life for her and other members of the co-op was bitter and hopeless just seven years ago. She lived in a tiny house raising four young children that she could hardly feed.

Like 70 per cent of Rwanda’s population, Mukankwiro relied on agriculture for her livelihood. Before 2015, she only grew maize, strictly because she had no choice.

The prices were very low and the market was unpredictable. Sometimes, her produce would get market while, on other occasions, she would get surplus and give it all away almost for free because she didn’t have proper storage facilities.

Entering EAX

In 2015, her cooperative came into contact with EAX (East Africa Exchange), and in her words, ‘life has never been the same.’

Before 2015, she used to only grow maize but now she has expanded to grow beans too. She also has a cow, a goat and a pig. However, her greatest achievement according to her is that she was able build a comfortable seven-room house for her family as well as send all her children to school.

"I am among the first people who pay subscription fees for Mutuelle de Santé (community health insurance). I am a member of saving groups, so I am eligible for different financial services, and my children have enough food,” Mukankwiro proudly told The New Times.

She shares this story of success with Jean Pierre Mbazirunguka, a 37-year-old father-of-three who is among other things, proud that he comfortably sends his children to a local private school.

"I now plan to buy more land so that I can increase my harvest to around 20 tonnes of maize, up from four tonnes currently. I also want to engage in trade and cattle keeping,” Mbazirunguka said. 

What is EAX and how does it work with farmers?

EAX is a regional commodity exchange with its head office in Kigali. EAX offers participants of the physical commodities markets, such as agricultural producers and traders an excellent opportunity to trade their products locally, regionally and on the international markets. EAX was created to link smallholder farmers to global markets, secure competitive prices for their products, and facilitate access to financing opportunities.

Clement Kayitakire, the Chief Operations Officer at EAX, explained that depending on what farmers want, EAX either buys the agricultural produce from farmers at harvest prices or stores it for them in warehouses until market prices increase and then they sell the produce.

To date, maize, beans, soya beans, rice, wheat tea and sorghum are the only commodities being exchanged through EAX, but Rwanda tea and coffee will soon be introduced at the EAX market as well. Additionally, in the near future, non-agricultural commodities will start being traded on the EAX platform as well.

The commodity exchange, which started its operations in 2014, aims to empower farmers by addressing existing challenges which are underpinned by poor market structures and lack of organisation.

The effects of these inadequacies, ranging from poor quality produce to low prices and post-harvest losses, were not costly to farmers but buyers too.

EAX’s work with individual farmers and co-ops to ensure fair prices

Today, the EAX works with 196 farmers’ cooperatives in all regions in the country, creating opportunities for thousands of families to better their lives. In addition, EAX also partners with individual farmers as well.

"We work with farmers from when they plant their crops to the time they harvest. We have field officers in different districts all over the country who work with farmers day-to-day. They train them on how to correctly plant, how to handle their harvest so they avoid post-harvest losses and how to properly dry their grains until they are collected by our agents,” Kayitakire said.

"Farmers who have their own means of transport can take their own produce to the EAX warehouses found across the country,” he added.

When EAX receives the farmers’ produce at different warehouses, a sample is taken to verify the moisture content, which should be around 13 percent for maize. This is to prevent aflatoxin, a poisonous carcinogen that can lead to acute poisoning in humans.

The produce is then graded from ‘Grade 1’ being the finest quality to ‘Grade 4’ deemed ‘animal feed’ and then stored in the warehouse.

Farmers then choose whether to be paid immediately (EAX offers farmers better prices, usually paying up to 10% above standard market price) or to be given an ‘Electronic Warehouse Receipt’.

An Electronic Warehouse is an online record representation of a physically stored good at any EAX certified warehouse. Under the EAX collateral management services, this electronic record provides to the holder of the receipts with EAX guarantees on the quality, quantity, grade, and ownership of the  stored commodity for a maximum duration of nine months. The Receipt, which serves as collateral, can be taken to different financial institutions to acquire loans.

Kayitakire revealed to The New Times that among their regular clients include MINIMEX, the largest producer of fine maize products in the country, and Africa Improved Foods, a manufacturer and supplier of high-quality and nutrient-rich complementary foods.

In this way, Mukankwiro and her fellow cooperative members have been selling their produce to people and industries they haven’t even heard of.

EAX looks to do more for farmers

While reasonable strides have been made, according to EAX CEO, Joshua Rugema, there are many gaps to be filled.

"There is a lot of work to be done. Until post-harvest losses are at zero, until all of our farmers have a market, our work continues,” he said. "I call upon all the youth to come and partner with us. We need you and we shall support you in any way we can.”