2 Bodies sign pact to make raw materials available for industries
The Ghana Commodity Exchange (GCX) has signed a memorandum of understanding (MoU) with the Association of Ghana Industries (AGI) to make raw materials available for industries throughout the entire year.
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The agreement is expected to empower industries to fully venture into massive processing of agricultural produce to reduce imports, create jobs and establish a ready market for farmers.
This means that the two parties would collaborate under the agreement to promote the development of both industries and the agricultural value chain in the country.
The Chief Executive Officer (CEO) of the GCX, Tucci Goka Ivowi, signed the MoU on behalf of the commodity exchange, while the President of AGI, Dr Humphrey Ayim-Darke, signed for the association.
It was witnessed by the CEO of AGI; Seth Twum-Akwaboah, AGI Chairman in charge of Agribusiness; William Agyei-Manu, and other officials from both the GCX and the AGI.
Working together
Mrs Ivowi expressed her satisfaction with the partnership, saying it would pave the way for the two parties to work together for the benefit of the country.
She said the parties would hit the ground running with the full implementation of the agreement.
“From the exchange perspective, we have started with maize, soya beans, sorghum, cashew and rice. We add commodities since we have storage facilities available, and that is why collaboration with the private sector is so important,” she said.
She explained that the GCX did not own warehouses, but rather partnered with the private sector and the government in the regions that produced commodities.
Towards that end, she said the collaboration with the AGI would help to accelerate and support the GCX to execute its mandate and the needed support for growth.
She said the exchange was created to establish linkages between agricultural, commodity producers and buyers to secure competitive prices for their products, giving assurance of the market quantity and quality, as well as timely settlement of trade.
She said the GCX’s key goal was to link Ghanaian smallholder farmers to agricultural and financial markets in the country and across the West Africa region.
She added that it was to ensure that farmers secured competitive prices for their commodities, as well as supply good quality commodities which met the nutritional needs of the populace.
Commitment
Mr Agyei-Manu stated that AGI was committed to supporting existing government projects in ways that could efficiently commercialise agriculture and make it more competitive to back the economy.
He explained that the agreement sought to focus on making raw materials available all year round for industries to venture into massive agro-processing.
He said the move would help to reduce imports, create jobs, as well as make raw materials available for industries, as part of measures to boost both industries and agriculture.
“With this agreement, we want to ensure that there is a guaranteed market for what the private sector produces and streamline the marketing of agriculture commodities,” he added.
Price transparency
Dr Ayim-Darke noted that the agreement sought to create a platform that would help to increase farmers' bargaining power and their share of value.
He explained that once such a platform was created and the produce had been made available in the market nationwide, there would be transparency in pricing for farmers to benefit.