NAIROBI, KE, November 05, 2015 - PXAfrica Ltd, a subsidiary of PanXchange, Inc., celebrated the end of its second full month with live negotiations of East African grains. The company's initial announcement on September 4, 2015 described the first two weeks of operations in which it had accrued over 20 registered users representing over 35% of the Kenyan grain market. Today, only 10 weeks since launch, the site has close to 10 percent growth per week and in the last two weeks alone, has witnessed a 30% increase in market orders.
The company offers a web-based software that facilitates the marketing and procurement of agricultural products. PXAfrica is not a regulated exchange with clearing services, licensed brokers and designated warehouse receipt program. Rather, its software tool caters directly to farmers, processors and traders and promotes a free flow of goods at any physical location from the farm gate to the processor. Although the initial focus is on maize and wheat in Kenya, the site already has active users in Uganda and Tanzania. Moreover, based on user demand, the site now offers negotiations for soybeans and soybean meal.
"I couldn't be more pleased with our team's results," says PanXchange's CEO, Julie Lerner. "The maize crop is just getting into full swing and already we have completed trades and full screen of bids and offers." She continued, "East Africa is proving that our functionality and methodology resonates with the market's needs. The users are comfortable posting live orders and using our powerful negotiating features." Lerner explains that the users' confidence in the system has paved the way for forward market negotiations. "We already have live orders for April delivery on the system. This is important because you can't have a successful futures market until you have a healthy spot and forward underlying market."
PXAfrica will continue to focus on the region's grain market before expanding into pulses, oils and other commodities. Aggregating bids for world market wheat imports is another area where the company anticipates adding value, by proving buyers with transparency that leads to more competitive offers and providing the importers with a centralized tool to aggregate enough demand to fill a vessel.
About PanXchange, Inc.
PXAfrica, Ltd. Is a wholly-owned subsidiary PanXchange, Inc. The company's provides a patented web-based negotiation and trading platform specializing in regional and international physical commodities. The system addresses the complexities of commodity sales and procurement, while also facilitating price discovery (transparency) and liquidity. Built by a former Cargill physicals trader, it offers real-time negotiations of multiple fields, granular counterparty management, pricing mechanisms to avoid unwanted influencing of market values, and all of it anonymously in real-time. Combined, these features create a trading platform that obviates the need for clearing services, allows for an efficient transfer of both product and risk and offers an unprecedented opportunity for objective real-time and historical cash market values.