Nigeria Business Now

AFEX, GCX partner to foster cross-border commodities trading

 

Nigeria’s commodities player, AFEX, and Ghana Commodities Exchange (GCX) have partnered to strengthen the commodity-trading ecosystem across both countries.

At the signing of the Memorandum of Understanding (MoU) at AFEX’s office in Abuja, the Chief Executive Officer of the Ghana Commodities Exchange, Tucci Ivowi, said the move underscored AFEX and the GCX’s commitment to leverage collaboration to transform the agricultural sector as well as aimed at fostering cooperation to enhance market integration.

Ivowi maintained that the partnership with AFEX was part of its commitment to drive transformative change in the agriculture sector.

According to her, this is a significant step towards realising a shared vision of seamless market integration in Africa’s commodity trading space.

She expressed optimism that both parties would not only enhance commodities trading and market infrastructure but also empower farmers and traders through capacity building.

She added that for Ghana Commodity Exchange, a core goal was 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.

Also expressing optimism about the partnership, the President/Chief Executive Officer, AFEX Nigeria, Akinyinka Akintunde, said the MoU signing reflects its resolute commitment to revolutionise 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.

“Since expanding into Kenya and Uganda in 2021 and 2022, AFEX has been bullish in the pursuit of their 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,” he said.

The Guardian gathered that under the partnership, AFEX and GCX will work together 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.