AFEX,Ghana Exchange ink deal to drive cross-border commodities trading

By Onome Amuge.

Africa’s leading commodities market player, AFEX has signed a Memorandum of Understanding with Ghana Commodities Exchange (GCX), expected to strengthen the commodity trading ecosystem across Nigeria and Ghana and also support Africa’s target of $450 billion income through export.

Speaking at the ceremony in Abuja, Akinyinka Akintunde, president/chief executive, AFEX Nigeria, described the partnership as a significant milestone in the journey to foster seamless market integration for commodity trading in Africa.

Akintunde  noted that through this collaboration, AFEX will leverage its resources to facilitate cross-border trading of warehouse receipts and enhance market liquidity of commodities, among other capacity-building initiatives.

He also expressed optimism that the partnership would intensify export development and diversification, while promoting regional integration and trade competitiveness in Africa.

“We at AFEX are elated to announce this momentous MoU signing, which reflects our resolute commitment to revolutionize the agricultural landscape. Through this strategic partnership, we will set new benchmarks in quality standards, and fortify market infrastructure. Our joint efforts will not only amplify market liquidity but also empower stakeholders and unlock value for Nigeria and Ghana’s value chain,” Akintunde said.

Tucci Ivowi,the chief executive, Ghana Commodities Exchange, said the exchange has been committed to improving the livelihood of smallholder farmers, noting that the partnership with AFEX is an extension of the commitment to drive transformative change in the agriculture sector.

“This is a significant step towards realising our shared vision of seamless market integration in Africa’s commodity trading space, and together, we will not only enhance commodities trading and market infrastructure, but also empower farmers and traders through capacity building,” he added.

She said the GCX was interested in  linking  Ghanaian smallholder farmers to markets and opportunities that help secure their incomes, while delivering economic prosperity, and establishing Ghana as a regional and global trading hub for all commodities.

The MoU signing underscored AFEX and the GCX’s commitment to leverage collaboration to effectively transform the agricultural sector and is aimed at fostering cooperation to enhance market integration and promote best practices. Under this partnership, AFEX and GCX will collaborate on areas related to commodities trading, warehousing, quality standards, and market infrastructure development.

In addition, both organisations will collaborate on capacity building initiatives, with both exchanges deploying their resources to facilitate cross-border trading of warehouse receipts and increase market liquidity of commodities.