As part of the medium-term plan for the trade of commodities in Ghana, the Ghana Commodity Exchange (GCX) is considering listing on its trading platform the light cocoa bean, which is mostly consumed by domestic processors.
Currently, the exchange does not trade cash crop contracts but plans to introduce a number of them in the coming years.
“In the medium-term period, we’re looking at bringing commodities such as the cash crops onto the trading floor of the exchange. We’re looking at also the possibility of trading the domestic cocoa here in Ghana—that is, the cocoa traded and used by processors here in Ghana,” Robert Dowuona Owoo, Chief Operating Officer of the GCX, revealed in an interview.
He noted that the plan is currently at the discussion stage, which will involve all stakeholders, such as the Cocoa Marketing Company, in deciding the standards and protocols to be adopted for the trading of the commodity.
“The good thing is that it’s going to help determine the price on the international market,” he added.
According to COCOCBOD, the industry regulator, about a third of Ghana’s annual cocoa beans output is processed domestically, with a target to boost this share to 50 percent. Mr. Robert Owoo pointed out that domestic processors will be able to buy cocoa beans from the exchange when the crop is listed. He also revealed that GCX is also in the preparation and approval process for the trading of cashew contracts.
Speaking on the impact of the introduction of cocoa contracts, the Vice President of the Ghana Commodity Brokers Association, Jeffery Ntorinkansah, intimated that this move would be a boost to the fast-expanding exchange, given the huge impact of cocoa on the Ghanaian economy as the listing of cocoa contracts will expand the market volume of the exchange.
He added that the introduction of cocoa and other cash crops will attract investment to the GCX, especially as the government—which is presently the sole shareholder—intends to divest its interest in the exchange.
“When cocoa is listed, the international interested parties will see premium in investing. Fortunately, government’s willingness to offload its shares in the exchange will make it even more attractive for international investors,” the commodity expert said.
Read also : Good Listing Rice Contracts on GCX – GRIB’s President
