In 2024, the Ghana Commodity Exchange will add new agricultural produce to its food listings. They would include cowpeas, sheanuts, and some other cash crops.
This was contained in the highlights of the 2024 Budget and Economic Policy of the Government of Ghana for the 2024 financial year, presented to Parliament on Wednesday, November 15, 2023, by Ken Ofori-Atta, Minister for Finance.
“Ghana Commodity Exchange (GCX) 81. Since its inception, the GCX has facilitated the trade of close to 50,000mt (1,000,000 bags) of largely maize, rice, soya, and cashew nut (through spot, Over the Counter (OTC) and auction trades) at a trade value of over GHS280 million from eight warehouses located in Ashanti, Bono, Ahafo, and the Northern Regions of Ghana. In 2024, GCX is expected to increase the number of commodity listings on the exchange to include cowpea, sheanuts, and some cash crops through five new warehouses (out of expected 40 for the next 5 years). Some of the success factors of the GCX include collaboration with Venture Capital Trust Fund (VCTF), Ministry of Food and Agriculture “Pursuing Growth & Development Within a Stable Macroeconomic Environment” 22 (through the Enhanced Planting for Food and Jobs Programme), and the Ministry of Education (for the implementation of the Free Senior High School project),” portions of the statement read.
The Ghana Commodity Exchange (GCX) is a platform established in Ghana to facilitate the trading of agricultural commodities, striving to create a transparent and efficient marketplace. Its primary objective is to empower farmers by providing them with a structured platform to secure better prices for their produce. By employing electronic trading systems and enforcing quality standards, GCX aims to modernize the agricultural trading landscape, reducing reliance on traditional, informal methods. The exchange integrates warehousing and logistics services, offering certified storage facilities and facilitating the efficient delivery of commodities. Through real-time market information, GCX ensures that participants can make informed decisions, contributing to the overall development of Ghana’s agricultural sector.
Key features of the Ghana Commodity Exchange include centralized price discovery, quality standard enforcement, electronic trading, warehousing and logistics integration, and the provision of market information. By promoting transparency and organization in commodity trading, GCX plays a crucial role in minimizing post-harvest losses, enhancing market access for farmers, and fostering the sustainable development of Ghana’s agricultural industry.
The establishment and operation of the Ghana Commodity Exchange (GCX) are governed by the Ghana Commodity Exchange Act, 2016 (Act 961). This legislation provides the legal framework for the creation and functioning of the commodity exchange in Ghana. The Ghana Commodity Exchange Act outlines the powers and functions of the exchange, its regulatory framework, and the rights and responsibilities of participants involved in commodity trading on the platform.
Source: A1radioonline.com|101.1MHz|Mark Kwasi Ahumah Smith|Ghana