GEJWM1   2,622  -  0 
GEJWM2   2,978  -  0 
GEJWM3   2,978  -  0 
GEJWM4   2,560  -  0 
GEJYM2   1,200  -  0 
GEJYM3   1,000  -  0 
GKIWM1   1,820  -  0 
GKIWM2   3,500  -  0 
GKIWM3   2,963  -  0 
GKIWM4   1,100  -  0 
GKIYM2   3,500  -  0 
GKIYM3   1,120  -  0 
GKUWM1   1,480  -  0 
GKUWM2   5020  -  0 
GKUWM3   1,700  -  0 
GKUWM4   1,700  -  0 
GKUYM1   1,480  -  0 
GKUYM2   5,020  -  0 
GKUYM3   1,120  -  0 
GKUYM4   1,700  -  0 
GSAWM1   1,735  -  0 
GSAWM2   4,528  -  0 
GSAWM3   2,684  -  0 
GSAWSS4   3,200  -  0 
GSAYM1   3,145  -  0 
GSAYM2   4,425  -  0 
GSAYM3   2,516  -  0 
GTAWM2   4,705  -  0 
GTAWM3   1,920  -  0 
GTAWM4   1,100  -  0 
GTAWSO3   1,550  -  0 
GTAYM1   1,480  -  0 
GTAYM2   5,025  -  0 
GTAYM3   1,120  -  0 
GTAYSB1   2,800  -  0 
GTAYSB2   5,220  -  0 
GWAWM1   1,340  -  0 
GWAWM2   2,025  -  0 
GWAWM3   1,200  -  0 
GWAYM1   3,099  -  0 
GWAYM2   4,529  -  0 
GWAYM3   1,100  -  0 
GWAYSB1   2,000  -  0 
GWAYSB2   5,736  -  0 
GWEWM1   1,340  -  0 
GWEWM2   3,560  -  0 
GWEWM3   2,695  -  0 
GWEWM4   2,694  -  0 
GWEYM1   1,760  -  0 
GWEYM2   3,370  -  0 
GBOAMSMR2   3,757  -  0 
    

News | Ghana Commodity Exchange

SEC Sensitization Forum on Commodity Exchange/ Warehouse Receipt System (WRS)

Date : 19th Sep, 2018


SEC Sensitization Forum on Commodity Exchange/ Warehouse Receipt System (WRS) image


Supported by the World Bank Group (WBG), particularly the International Finance Corporation (IFC) and support from the Swiss Secretariat for Economic Affairs (SECO). The Securities and Exchange Commission brought together eighty-one (81) key stakeholders from the Central Bank (BOG); Ghana Commodity Exchange (GCX); Financial Institutions; Ministry of Food and Agriculture (MOFA), Brokerage Firms, Insurance companies, Farmer Groups, Academia, and more, for a review of Commodity Exchange and Warehouse Receipt System at the Alisa Hotel, Accra.

The Director General of SEC, Rev. Ogbamey Tetteh in his welcome address highlighted the relevance of warehousing and the need to grow the commodities market shepherded by a commodities exchange. He introduced the role of the regulator, opining that they would play a key part in building trust in the system.

Dr. Langyintuo (IFC Senior Technical Specialist for the Ghana WRS Project) in his presentation on the Project, reported that trade in Africa is a big challenge because of high risks, border related difficulties, standards, policy uncertainties and export finance. He explained the role warehouse receipts play in filling the gap for trade and collateral financing.

He recommended the following areas to be especially considered:

  • Ecosystem Considerations
  • Policy
  • Infrastructure

Dr. Langyintuo hinted that solutions could arise from friendlier tax regimes, non-discriminatory access to markets, non-interference with the functioning of the markets, honoring of internationally accepted standards, abiding by contractual undertakings, and ensuring the sector is free from corruption.

Dr. Kadri Alfah (Chief Executive Officer, GCX) gave an overview of the Warehouse Receipt System and Commodity Exchange. He indicated that the Ghana Commodity Exchange operates as a market and the WRS is a key component.

Dr. Alfah iterated that the Exchange’s rules are designed in the context of the Securities Industry Act and that it is a membership-based market with brokers who trade for themselves and on behalf of others. Dr. Alfah shared that the GCX has adapted its own standards for maize, rice and soy beans using the GSA standards as a benchmark.

He highlighted GCX’S current situation as follows:

- Identified 6 warehouses in Tamale, Wenchi, Ejura (3 warehouses) and Kumasi

- 65 members, including 2 Banks and off-takers with capacity to buy

- New office and trading platform almost ready

- Auction traded over 6,000 mini bags (this was designed to test the system which has been successful so far)

- Maize contracts designed

- Capacity building of market actors has commenced (40 trained)

The way forward according to Dr. Alfah is to get rules for the Exchange and WRS approved by SEC; passage of the WRS Legal Instrument (LI) and the Borrowers & Lenders Bill and build capacity of bank staff and other key stakeholders.

He stated that the bell for the commencement of official trading activities on the GCX platform is expected in November 2018. Finally, Dr. Alfah mentioned readiness of the warehouses; commodity price vitalities; getting interest rates below 20% for financing WHR; readiness of banks; banks accepting GCX performance bond for warehouse operations and passage of the WR and Commodity Exchanges’ regulations.

On the part of SEC, Evelyn Essien (Head of Exchanges) said SEC’s regulations are aimed at controlling behaviors of Exchange actors in the commodity market. She stated that the regulatory powers would be derived from Securities Industry Law, 2016 (ACT 929) and along the line, guidelines and circulars could be issued by SEC. SEC, according to Mrs. Essien, will keep a close eye on possible market abuse and crimes under the Act such as false trading and would apply penalties and other disciplinary measures such as revocation and suspension when necessary. Mr. Caliis Baidoo (Head of Legal, SEC) shared the regulatory components of the WRS, clarifying the role the WRS played within the context of a Commodity Exchange, so that they are clearly distinguished.

The session ended with a round table discussion chaired by Mr. Paul Ababio (Deputy Director General, SEC), with Mr. Robert Owoo (Project Director, GCX), Dr. A. Langyintuo and Caliis Baidoo, opening the floor for all participants to seek clarifications or share their own comments on the areas of operationalizing the WRS/ GCX; the role of technology, and other general business opportunities that would emerge as part of the Exchange ecosystem.

About Ghana Commodity Exchange (GCX)

GCX is a market / platform which brings buyers and sellers together to trade commodities including agricultural commodities, and as a body, guarantees the quantity and quality as well as prompt settlement (cash and delivery) of all products traded on the platform. This shields both buyers and sellers from physical and financial losses. GCX is regulated by the Securities and Exchange Commission and is managed by an experienced team of professionals with varied work experiences across the commodity value chain both in Ghana and abroad.