What is GCX | Ghana Commodity Exchange

About GCX

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 timely settlement of their trade.

Ghana Commodity Exchange’s Management team is led by Dr. Kadri Alfah, the CEO, Mrs. Tucci Goka Ivowi, Deputy CEO, Mr. Robert Dowuono Owoo, COO

What is GCX

We are a regulated market that links buyers and sellers of commodities to trade by Rules, while we assure the market quantity and quality, timely delivery and settlement.

Ghana Commodity Exchange is a regulated national and regional market linking buyers and sellers of agricultural and non- agricultural products to trade under rules, and discover prices while assuring the market quantity and quality of the products and timely settlement.

GCX key goal is to link Ghanaian smallholder farmers to agricultural and financial markets in Ghana and across the West Africa Region to ensure Ghana farmers secure competitive prices for their commodities, as well as supply good quality commodities which meet the nutritional needs of the Ghanaian people.

The Ghana Commodity Exchange, Ltd (GCX) – a company with 100% shareholding by Government of Ghana (GoG).

GCX was launched as a project on June 23 2015. Upon incorporation in November 2017, GCX has commenced the acquisition of the required infrastructure to support a modern commodity exchange (i.e. warehousing, stock management and quality control systems, electronic trading platform, business processes, central depository, clearing and settlement process, hiring of technical and functional staff, recruitment of members, finalization of exchange trading rules, capacity building and training of market actors and stakeholders, finalization of commodity grades and standards, selection of commodities to be traded on the exchange etc.).

GCX is expected to complete the establishment of these systems by July 2018, and with all the systems established, GCX will commence operations focusing on capturing the Ghana market initially ( 2018- 2019 ) , then West Africa market , were there is already informal trading going on with neighboring countries.

Starting with maize, GCX started trading through a Reserve auction mechanism in April 2018 to educate and train market actors including farmers, farmer cooperatives, traders, brokers, financial institutions, regulators and warehouse operators to get everyone involved from the beginning.

Spot contracts will be introduced by November 2018. The Exchange plans to trade futures contracts by end of 2020 which will lead to significant growth.

The GCX and GoG believe commodity exchanges are critical drivers of economic development and transformation. To this end, GCX is positioned as a national and regional exchange to formalize Ghana’s and West Africa’s agricultural sector, and provide better access to agricultural and financial markets for participants.

This business offers tremendous opportunities for Ghana and West Africa’s exports and creates new opportunities to increase Ghana and West Africa’s competitiveness in global markets.

Through the establishment of the national and regional commodity exchange and its supporting infrastructure, GCX aims to promote the commercialization of the Ghana and West Africa’s agricultural sector, improve market access, increase market efficiency, and lower transaction costs.

GCX business operations consist of: (1) a trading platform powered by a provider Trading system, and (2) warehouse storage operations linked to the exchange through an electronic warehouse receipt system (e-WRS), backed by collateral management services.

One of the primary advantages of the GCX trading system is to enable all users (farmers, cooperatives, buyers, brokers, merchants etc.) to trade anywhere in the country, region and the world. Moreover, through the dissemination of data generated through the trading platform, the exchange provides participants with a price discovery mechanism that adds transparency and confidence, and enables participants to negotiate better prices.

The warehousing operations linked to the exchange provide much needed value-added services including secure storage, product drying and grading, and re-packaging. The warehousing operations are supported by a collateral management system that enables warehouse operators to issue electronic warehouse receipts (e-WRs). Banks provide agricultural financing by using the e-WR as collateral.

GCX is leveraging its strategic partnerships with top talent and companies in the IT, commodity trading, and Collateral Management industry, among others, to develop the technology and supporting infrastructure necessary to establish a world-class national and regional commodity exchange in Ghana.

In this capacity, the exchange offers tremendous opportunities for job creation and offers value chain actors the opportunities to achieve the level of sustainable and equitable growth that will elevate Ghana and West Africa’s economy to the world stage.

In an effort to serve the market better, ensuring that quality products are sold through the Exchange, prices are discovered fairly, products sold meet the nutritional and health needs of the market, GCX will introduce trading by contracts whereby buyers and sellers are well aware of the terms and conditions under which trade is conducted, which also includes defining in simple terms the product quality, quantity, process of handling the product to meet its quality specifications, management of the product in the warehouses to ensure that quality is preserved and secured to ensure a public health safety, delivery time of the product when sold and settlement on cash terms.

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