Commodity auctions in tropical Africa : a survey of the African tea, tobacco and coffee auctions

It has proved possible and worthwhile to organize regular auctions for a few African export crops, namely tea, tobacco and coffee. Such auctions were first introduced in British East Africa in the 1930s and today, East Africa and the former British territories (Kenya, Tanzania, Zimbabwe and Malawi) still predominate, although export crop auctions can also be found in Ethiopia and Burundi. The growers or sellers, as the main beneficiaries, initiated the auctions and have remained staunch supporters. The buyers willingly cooperate, provided the obstacles between them and the world market are small. It is noteworthy that the better qualities, with corresponding higher prices, tend to be the mainstay of the auctions. African governments, for their part, are favourably disposed towards the auctions because of their wish both to increase export earnings and to make the market transparent. The recent drive towards the liberalization of trade has led to renewed interest in the auction system among policymakers