Just over a week ago on November 6, Ghana recorded the first ever electronic trading of a commodity.
The Ghana Commodity Exchange (GCX), a national multi-commodity exchange commenced trading in spot contracts for maize – a move that would help farmers get the true value of their goods.
The President of the Republic, Nana Addo Dankwa Akufo-Addo was present to deliver the keynote address emphasizing the benefits farmers will gain from selling through the Exchange and the goal of it becoming the West African global trading hub.
The President “rang the bell” to officially commence electronic trade of commodities.
Amongst highlights of the occasion, during the maiden trade, a session which lasted 20 minutes, 1 nucleus farmer, representing 250 smallholder farmers from the Adidwan farming community in the Ashanti region traded 80 mini bags of maize prior to the main harvest end in November/December, and received his settlement less than 24 hours later.
He was able to gain a price premium of GH¢200 per ton due to price discovery as well as the processing of the maize into better quality through the GCX system.
There will be regular trading Mondays to Fridays between 10 am and 3 pm.
“I have worked as a farmer for over 30 years and have 250 smallholder farmers I work with. At first, poultry farmers and market women come to buy on credit and hardly pay for the maize… I participated in the maiden GCX electronic trade. I can boldly testify that my money was transferred into my account within 24hours after the trade.”
“Ghana Commodity Exchange is truly here to help us (farmers) and all in the agricultural value chain. I, therefore, entreat all farmers to come onboard, deposit your grains at GCX warehouses and work with the GCX,” David Yamful of Yamful Farms said.
With the start of the spot trade, it is expected that the Exchange will eliminate speculation, reduce waiting time for delivery and payments, provide accurate and reliable information, new methods of, and access to, secured storage, and increased penetration of credit and agricultural financing.
The Exchange’s automated trading platform ensures the timely delivery of information and connects buyers and sellers.
Farmers know the true prices and volumes demanded through the commodity exchange trading on spot contracts.
The GCX is regulated by Ghana Security and Exchange Commission (SEC) which requires all traders to be certified members of the Exchange.
As members of the Exchange, all traders (which includes farmers) and brokers are subject to GCX trading rules and regulations.
About Ghana Commodity Exchange
The Ghana Commodity Exchange is a private company limited by shares, structured as a Public Private Partnership, with the government of Ghana currently the sole shareholder.
The aim of the exchange is to establish linkages between agricultural and commodity producers and buyers, to secure competitive prices for their products, assuring the market quantity and quality as well as the timely settlement of their trade.