Ghana Commodities Exchange (GCX) has signed a Memorandum of Understanding (MoU) with Africa’s leading commodities market player, AFEX to strengthen the commodity trading ecosystem across Nigeria and Ghana and also support Africa’s target of $450 billion income through export.
Tucci Ivowi, the Chief Executive Officer (CEO) of Ghana Commodities Exchange, speaking at the programme, said the exchange is committed to improving the livelihood of smallholder farmers. She noted that the partnership with AFEX is an extension of the commitment to drive transformative change in the agriculture sector.
“Since 2017, the GCX has been committed to improving the livelihood of smallholder farmers, and this partnership with AFEX is an extension of our commitment to drive transformative change in the agriculture commodity sector.
“This is a significant step towards realising our shared vision of seamless market integration in Africa’s commodity trading space, and together, we will not only enhance commodities trading and market infrastructure, but also empower farmers and traders through capacity building.”Tucci Ivowi
Tucci Ivowi noted that the GCX is interested in linking Ghanaian smallholder farmers to markets and opportunities that help secure their incomes, while delivering economic prosperity, and establishing Ghana as a regional and global trading hub for all commodities.
Also speaking at the ceremony in Abuja, Akinyinka Akintunde, President/Chief Executive Officer of AFEX Nigeria, on his part, also described the partnership as a significant milestone in the journey to foster seamless market integration for commodity trading in Africa.
Akintunde noted that through this collaboration, AFEX will leverage its resources to facilitate cross-border trading of warehouse receipts and enhance market liquidity of commodities, among other capacity-building initiatives.
Partnership to Intensify Export Development and Diversification
Akintunde also expressed optimism that the partnership would intensify export development and diversification, while promoting regional integration and trade competitiveness in Africa.
“We at AFEX are elated to announce this momentous MoU signing, which reflects our resolute commitment to revolutionize the agricultural landscape. Through this strategic partnership, we will set new benchmarks in quality standards, and fortify market infrastructure. Our joint efforts will not only amplify market liquidity but also empower stakeholders and unlock value for Nigeria and Ghana’s value chain.”Akinyinka Akintunde
The MoU signing underscored AFEX and the GCX’s commitment to leverage collaboration to effectively transform the agricultural sector and is aimed at fostering cooperation to enhance market integration and promote best practices.
Under this partnership, AFEX and GCX will collaborate on areas related to commodities trading, warehousing, quality standards, and market infrastructure development.
In addition, both organisations will collaborate on capacity building initiatives, with both exchanges deploying their resources to facilitate cross-border trading of warehouse receipts and increase market liquidity of commodities.
Since expanding into Kenya and Uganda in 2021 and 2022, AFEX has been bullish in the pursuit of its expansion goal to penetrate eight African countries, promoting the efficient trade of commodities in Africa while supporting the AfCFTA’s objectives to boost regional trade integration on the continent.