GAPWM3   1100  -  0 
GEJWM1   1240  -  0 
GEJWM2   1200  -  0 
GEJWM3   1110  -  0 
GEJWM4   1000  -  0 
GEJYM2   1240  -  0 
GEJYM3   1000  -  0 
GKIWM3   1200  -  0 
GKUWM1   1480  -  0 
GKUWM2   1400  -  0 
GKUWM3   1100  -  0 
GKUWM4   1100  -  0 
GKUYM1   1480  -  0 
GKUYM3   1160  -  0 
GKUYM4   1080  -  0 
GSAWM1   1300  -  0 
GSAWM2   1340  -  0 
GSAWSS4   5400  -  0 
GSAYM1   1340  -  0 
GTAWM2   1340  -  0 
GTAWM3   1384  -  0 
GTAWM4   1100  -  0 
GTAWSO3   1550  -  0 
GTAYM1   1480  -  0 
GTAYM2   1100  -  0 
GTAYSB1   2000  -  0 
GTAYSB2   2000  -  0 
GWAWM1   1340  -  0 
GWAWM2   1340  -  0 
GWAWM3   1400  -  0 
GWAYM1   1479  -  0 
GWAYM2   1340  -  0 
GWAYSB1   2000  -  0 
GWEWM1   1340  -  0 
GWEWM2   1420  -  0 
GWEWM4   1000  -  0 
GWEYM1   1340  -  0 
GWEYM2   1340  -  0 
    

News | Ghana Commodity Exchange

SUCCESS FOR PEOPLE MICROFINANCE ISSUES FIRST CREDIT FACILITY USING GCX WAREHOUSE RECEIPT AS SOLE COLLATERAL

Date : 9th Jun, 2020


SUCCESS FOR PEOPLE MICROFINANCE ISSUES FIRST CREDIT FACILITY USING GCX WAREHOUSE RECEIPT AS SOLE COLLATERAL image


SUCCESS FOR PEOPLE MICROFINANCE ISSUES FIRST CREDIT FACILITY USING GCX WAREHOUSE RECEIPT AS SOLE COLLATERAL

 

Ghana Commodity Exchange rolled out its flagship financing programme, Warehouse Receipt Financing (WRF) on 30th October 2019 through a partnership with the ARB Apex Bank. At the time of the launch, Nsoatreman Rural Bank was the first institution to issue a credit facility, using the GCX Warehouse Receipt as sole collateral.

The Warehouse Receipt Financing Programme is an innovative way of providing access to finance using the GCX warehouse receipt as sole collateral for accessing the loan. In this financing scheme, farmers who hitherto would be required to provide landed property or any other fixed asset as collateral, are no longer required to provide them. This is because the commodities stored in the GCX certified warehouse for which a warehouse receipt is issued, serves as collateral. The GCX Warehouse Receipt is backed by law (Securities Industry Act, 2016 (ACT 929)) which allows its use as a financial instrument. The receipts are backed by insurance, performance bonds and alee indemnities which make them as good as cash.

Through continuous interaction and training of the rural banks, Builsa Community Bank became the second financial institution to sign on to the GCX Warehouse Receipt Financing Programme, advancing short term loans to farmers in the Builsa district of the Upper East district.

We are glad to announce that, Success for People Microfinance (S4P) has become the third financial institution to join this programme and has already financed some receipts and is processing others to be financed. And more importantly, farmers in any part the country can have access to this credit facility once they become members of GCX and deposit their commodities into a GCX certified warehouse. All a farmer needs to do is to request and fill a short form at the warehouse any time after receiving their GCX warehouse receipt.

Success for people Microfinance is a financial institution which has tremendous interest in the welfare of small holder farmers and has been involved with supporting Ghanaian farmers with loans for production and market for many years.  

Ghana Commodity Exchange estimates that 500 small holder farmers would be supported with working capital through the Warehouse Receipt Financing Model within its first year of operation. So far about 90 farmers have accessed this financing scheme. It is expected that many more farmers would sign up to the programme going forward.