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.