The lack of access to Trade Finance & Fragmentation within the regional Commodity markets have ultimately led to monopolistic tendencies /cartels dominating the trade of many commodities within the region.

Against this backdrop Jabo & Associates (A Commodity trading institution) are of the firm belief that an organically developed Commodity Exchange platform linking the respective market participants in a trustless ecosystem will inevitably lead not only to a more efficient market structure but also result in competitive product pricing & increased volumes of the transacted co commodities.

The tried and tested methodology to enable the seamlessly trading of different types of commodities involves converting the value of the underlying products into digital tokens – a process known as Real World Asset Tokenization (RWAT).

The benefits of using RWAT include the ability to invoke a system of Trustless transactions that are legally binding and enforceable upon participants. This approach will not only reduce overhead transactional costs but ultimately ensure that any off-taker (buyer) and Seller that signs up and commences a transaction will be obligated to adhere to contractual obligations, thereby eliminating uncertainties and non-performance issues that plague to African commodity trade arena.   

The below diagram depicts a high-level illustration of The African Commodity Exchange Platform (ACEP).