This archive report was first published on 6 July 2020.
On June 1, 2020, the Capital Markets Authority (CMA) announced the extension of the old coffee regulations, which were set to be replaced this month.
The extension was necessitated by delays in setting up a Direct Settlement System, meant to facilitate payments for coffee sales.
Stakeholders in the coffee sector have been grappling with uncertainty over the protection of coffee sales, following the planned implementation of the new Capital Markets Authority regulations.
The new regulations, which were to be effective from June 1, 2020, give the CMA the mandate to license Coffee Exchange and coffee brokers.
Acting CMA Chief Executive Wyckliffe Shamiah attributed the delays in setting up the direct settlement system to the postponement of the implementation of the new coffee regulations.
As a result, coffee marketers are required to remit funds to cooperative societies as they have been doing under the General Coffee Regulations.
Under the new regulations, brokers are not required to deposit guarantee money with the regulator.
