Ghana Commodities Exchange launched

Smallholder farmers and actors along the country’s agricultural value chain look set to rake-in more returns on their investments following launch of the Ghana Commodities Exchange Project.

The Exchange is a common market for trading local commodities in a transparent and uniform manner with a view of improving the livelihoods and profitability of the most dominant sector in the national economy.

President John Dramani Mahama, who launched the project in Accra, said the initiative is a positive step toward achieving government’s vision of a revitalised agric sector that will help support efforts at boosting and diversifying the country’s export trade, as well as maximise the huge potential of the sector as a key economic trigger.

“Agric is a dominant sector of the economy that offers informal employment to the vast majority of the country’s population; and that is why we need a platform that is backed by a warehouse receipt system as a springboard for national economic growth and prosperity.

“This project will repress the pain of the country’s economic transition process as it will move the economy from import-driven to export-driven; formalise the agric trading activities and sanitise commercial activities in the sector to attract investments and boost productivity,” he said.

President Mahama said the project is a response to tackle the myriad challenges facing smallholder farmers and associated value chain actors, as it will curb the perennial issues of post-harvest losses and access to capital.

“Government recognises the agric sector’s viability to push socio-economic growth, and we anticipate that this project will transform the lives of farmers, stakeholders along the value chain and the Ghanaian economy as a whole through sector productivity and profitability,” he said.

The project, which is expected to be fully operational by the first half of next year, has been touted to transform the country’s agricultural landscape and also champion the cause of smallholder farmers who contribute significantly to national development.

Food and Agriculture Minister Fiifi Kwetey said the initiative is just what the sector requires to fully explore and transform

“The main factor limiting the economic potential of the agric sector is lack of a common market that will boost the trust and confidence of farmers, as well as financial institutions to invest extensively in the sector toward economic growth.

“Through this project, agro-processors and sector actors along the value chain will have a reliable supply of quality commodities to push the quest for value addition to local raw materials,” he said.

The GCX Project is a public private partnership deal between government and a private sector financing consortium comprised of credible domestic and global institutional investors: Ecobank Ghana Limited; GCB Bank Limited; London-based private equity fund, 8 Miles Fund; and the International Finance Corporation (IFC).

The project will be implemented by Dr. Eleni Gabre-Madhin, a recognised industry leader in establishing and operating commodity exchanges in frontier markets.