By Kofi Ahovi
The Securities and Exchange Commission of Ghana (SEC), the statutory regulator of the capital market, has in collaboration with the Natural Resources Institute UK, has organized a one day workshop for stakeholders to make inputs into the modalities for the establishment of a commodities exchange and a warehouse receipts system in Ghana.
The workshop, the third to after earlier ones in Kumasi and Takoradi, was under the theme “Promoting financial deepening in Ghana: the role of a vibrant commodities exchange and warehouse receipt system.”
The workshop was to set the right objectives and to examine and approve the right model that will suit Ghana's economy.
SEC assured of its intention to provide the necessary legal and regulatory framework to ensure that all those in the supply and value chain in agriculture benefit from their involvement.
The director-general of SEC, Dr. Nii Kwaku Sowa, observed that the country’s performance in the cocoa industry indicates that with proper organization and some institutional interventions such as commodities exchange the performance of the entire value chain in the agricultural sector could be improve efficiently and effectively.
The director general called on everyone to take full advantage of the exchange to ensure growth for not only individuals but for the country at large.
According to Dr. Sowa, though critics would argue for growth and deepening of the Ghana stock exchange before the establishment of a commodities exchange, this was the right time to set up one in Ghana.
Commodities exchanges provide for market transparency, efficient price discovery, standardization and its concomitant improvement in quality standards thereby assisting farmers to gain easy access to ready markets-both local and international.
It also provides a potent tole for a farmer to manage price fluctuations, stabilize income and gain access to relatively cheaper credit.
Stakeholders called for adequate information to support the system which will also build trust in the commodities market. They also called for the need to provide home-grown solutions to withstand price shocks.
The workshops brought together players in the capital market, private sector as well as the public sector.
Countries like Tanzania and South Africa are already implementing the commodities exchange.
The Securities and Exchange Commission of Ghana (SEC), the statutory regulator of the capital market, has in collaboration with the Natural Resources Institute UK, has organized a one day workshop for stakeholders to make inputs into the modalities for the establishment of a commodities exchange and a warehouse receipts system in Ghana.
The workshop, the third to after earlier ones in Kumasi and Takoradi, was under the theme “Promoting financial deepening in Ghana: the role of a vibrant commodities exchange and warehouse receipt system.”
The workshop was to set the right objectives and to examine and approve the right model that will suit Ghana's economy.
SEC assured of its intention to provide the necessary legal and regulatory framework to ensure that all those in the supply and value chain in agriculture benefit from their involvement.
The director-general of SEC, Dr. Nii Kwaku Sowa, observed that the country’s performance in the cocoa industry indicates that with proper organization and some institutional interventions such as commodities exchange the performance of the entire value chain in the agricultural sector could be improve efficiently and effectively.
The director general called on everyone to take full advantage of the exchange to ensure growth for not only individuals but for the country at large.
According to Dr. Sowa, though critics would argue for growth and deepening of the Ghana stock exchange before the establishment of a commodities exchange, this was the right time to set up one in Ghana.
Commodities exchanges provide for market transparency, efficient price discovery, standardization and its concomitant improvement in quality standards thereby assisting farmers to gain easy access to ready markets-both local and international.
It also provides a potent tole for a farmer to manage price fluctuations, stabilize income and gain access to relatively cheaper credit.
Stakeholders called for adequate information to support the system which will also build trust in the commodities market. They also called for the need to provide home-grown solutions to withstand price shocks.
The workshops brought together players in the capital market, private sector as well as the public sector.
Countries like Tanzania and South Africa are already implementing the commodities exchange.
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