Barclays Bank Ghana, a member of Absa Group, is set to provide a financing programme to support Ghanaian farmers and traders on the Ghana Commodity Exchange (GCX).
The bank is expected to collaborate with other key players to develop a framework for the settlement of trades, as well as provide financial services to players on the exchange.
The bank also agreed in principle to work with the GCX to develop new financing products for farmers and traders.
A Memorandum of Understanding (MoU) has subsequently been signed between managers of the exchange and the bank.
A release from the bank on March 19, quoted the Managing Director of Barclays Bank, Ms Abena Osei Poku as, saying “Barclays Bank has agreed to collaborate with the GCX in the Warehouse Receipt Financing Programme and be a settlement bank to exchange members.
“This will give Ghanaian farmers the working capital they need to sustain their business activities in between each harvesting season, as well as give them greater purchasing power for seeds, fertilisers and other inputs.”
She also added that agriculture played a significant role in the economic development of the country and the bank was ,therefore, excited to offer key support which is financing for the farmers and traders on the commodity exchange.
Mrs Osei Poku added, “We believe this support will improve livelihoods and enhance the agricultural value chain which is Ghana's most important economic sector, employing more than half the population on a formal and informal basis and accounting for almost half of GDP and export earnings.”