Warehouse Receipts
ZMX operates a Warehouse Receipt System which enables commodity holders to deposit their commodity with a designated warehouse in exchange for a Warehouse Receipt. The Warehouse Receipt issued by ZMX is a negotiable instrument which can be used as collateral for credit facilities or can be used as an instrument of exchange in commodities spot market trading.
Booking Delivery
Through the client-facing applications that is USSD, mobile or website applications clients (especially farmers) can book an intention to deposit a commodity to a specified Warehouse. Once the client books delivery the exchange will broadcast the booking to several logistics companies who will give the client offers to move the commodities from the place of origin to the Warehouse. Clients have a choice to use their own transport arrangements for the delivery of commodities to Warehouses.
Grading
Upon delivery at warehouses, quality inspectors assess and certify them. Only commodities that meet the minimum standards can be traded on the platform. These standards encompass factors such as:
- moisture content,
- foreign matter percentage,
- food consumption requirements,
- labeling, and packaging.
Safe Storage
ZMX has established a network of certified warehouses throughout Zimbabwe to meet the demands of the commodities traded and financed on the exchange. These warehouses serve as delivery centres for the exchange. Before certification, these warehouses undergo a rigorous evaluation process to ensure they meet strict criteria for handling and storing commodities. Put a map showing the areas where the warehouses are.
Issuance of Warehouse Receipts
After commodities certification, a physical Warehouse Receipt is issued, lodged with the custodian and the record of the Warehouse Receipt is registered in the Electronic Warehouse Receipt System.
Post-Harvest Finance
Warehouse receipt financing is for Warehouse Receipt holders to use the stored commodity as collateral to secure a loan to finance household consumption, investment needs and/or working capital needs in the interim.
Withdrawal of Warehouse Receipts
Clients holding Warehouse Receipts have the flexibility to withdraw the underlying commodities from the warehouses at any time during regular business working hours.
