President Akufo-Addo is expected to outdoor the official operations of Ghana Commodity Exchange (GCX) on Tuesday 6th November 2018.
The GCX is a regulated market that links buyers and sellers of commodities to trade by rules while assuring the market of quality, timely delivery and settlement.
Minister for Information Kojo Oppong Nkrumah who disclosed this at a press briefing in Accra said government currently holds 100% shares of GCX.
Oppong Nkrumah announced that the Commodity Exchange in the first twelve months will trade staple foods including maize, soybean, rice, dry beans, millet, sorghum and groundnut.
“However, there are plans that from twelve months to twenty-four months, the GCX will trade in cashew, cocoa, timber, shear- butter and vegetables. The GCX after three years, will trade in metals, minerals, petroleum and gas” he said.
The Minister said trading through the commodity exchange will offer benefits such as Standardized weights and grades of commodities, guaranteed prompt payments, with twenty-four hours of trade, Access to multiple and premium buyers- a larger market and Secured storage facilities. There is also access to financial services and risk management tools such as insurance.
He said “It is important to buy through GCX because the platform addresses needs of diverse buyers looking for quality products. Lower transaction cost due to better coordination of commodities. As such buyers do not have to move to gather quantity of commodities needed.”
Oppong Nkrumah emphasized the need for commodity exchange because
It provides an end to system that will address the needs of all farmers, reduce problems like post-harvest losses and storage issues. The commodities can also be used as collateral for loans for small holder farmers and traders.