AFEX, Nigeria’s commodities exchange and Ghana Commodities Exchange (GCX), have signed a Memorandum of Understanding (MoU) to strengthen the commodity trading ecosystem across Nigeria and Ghana.
The MoU signing took place at AFEX’s office in Abuja which underscored the commitment to leverage collaboration to effectively transform the agricultural sector.
Under the partnership, AFEX and GCX will collaborate on areas related to commodities trading, warehousing, quality standards, and market infrastructure development.
In addition, both organisations will also 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.
“This is a significant step towards realizing 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,” Tucci Ivowi, CEO, Ghana Commodities Exchange stated.
According to her, the GCX has been committed to improving the livelihood of smallholder farmers since 2017. “This partnership with AFEX is an extension of our commitment to drive transformative change in the agriculture sector.”
Speaking further, she stated that GCX’s core goal is to link 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.
Akinyinka Akintunde, President/CEO, AFEX Nigeria, stated that the agreement reflects their 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 stated.
Since expanding into Kenya and Uganda in 2021 and 2022, AFEX has been bullish in the pursuit of its strategic Pan-African expansion goal to penetrate eight African countries before 2023, promoting the efficient trade of commodities in Africa while supporting the AFCFTA’s objectives to boost regional trade integration on the continent.
“This signing is a major step towards establishing consistent standards between the two countries and sets the foundation for a replicable model across Africa,” Akintunde added.