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).
In
a Memorandum of Understanding (MoU) recently signed with the managers of the Commodity
Exchange, Barclays Bank will cooperate with other key players in building a
framework for the settlement of trades as well as the provision of financial
services to players on the exchange.
“Barclays Bank
has agreed to collaborate with GCX in the Warehouse Receipt Financing Programme
and be a settlement bank to exchange members. The two institutions also agreed
to collaborate to build the capacity of farmers in the country,” the MoU stated.
“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, fertilizers and other
inputs. Agriculture plays a significant role in the economic development of our
country. We are therefore excited to offer key support which is financing for
our farmers and traders on the Commodity Exchange,” said Abena Osei Poku, Managing
Director of Barclays Bank.
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.”
The bank also
agreed in principle to work with the GCX to develop new financing products for
the farmers and traders.
The GCX is a platform that creates the linkage between agricultural and commodity producers and buyers, to secure competitive prices for their products, assuring the market quantity and quality as well as timely settlement of their trade.