Chithumba, the access-to-input finance model under which farmers repay in kind by depositing commodity at an ACE-certified warehouse, has been formalised as a separate for-profit entity.
ACE Trust has implemented the Chithumba model as a project since 2015. Establishing it as its own entity allows Chithumba the freedom to operate outside ACE's traditional post-production activities while remaining a key component of ACE and attracting more partners to the model.
Chithumba has achieved repayment rates above 85% for soya. In 2019, Chithumba stock was exported to Zimbabwe at a premium of USD 50 per MT compared to local prices.
Posted by
ACE Trust
More from ACE Trust
ACE Trust publishes its 2021–2026 strategic plan
Structured Trade for Better Livelihoods sets out four Focus Areas and five objectives for the next five years.
ACE marks fifteen years with the release of the ACE Retrospective
A seven-chapter account of the journey from an idea to a licensed agricultural commodity exchange — including what did not work.
ACE Africa granted a commodity exchange licence
After a year of review, the Registrar of Financial Institutions has licensed ACE Africa to operate a trade platform, a warehouse receipt system, and a clearing house.