Conventional Chartered Lender Ghana Minimal and the Ghana Commodity Exchange (GCX) signed an MOU to assist Ghanaian farmers by accessibility to financing and capacity constructing.
The signing ceremony took area at the premises of the Ghana Commodity Exchange (GCX) in Accra.
In his address, the CEO of GCX Dr. Kadri Alfah expressed his excitement to have Typical Chartered Bank husband or wife the GCX. “Standard Chartered Financial institution is just one of the dependable Banking companies in Ghana with presence across other continents. It is as a result a joy to have you spouse us to support Ghanaian farmers” Dr. Kadri explained.
In her remarks, the CEO of Typical Chartered Bank Ghana Confined, Mrs. Mansa Nettey acknowledged the exclusive purpose of Commodity Trade initiative in furnishing the significantly-necessary lifeline to farmers and the agricultural sector as a entire. She added “Standard Chartered Bank’s solid presence in the West African sub area positions the Lender as a robust husband or wife to the Ghana Commodity Exchange as it strategies to make incursions into other West African markets in the limited to medium term”.
As part of this MOU, Normal Chartered Bank Ghana has agreed to collaborate with GCX in the Warehouse Receipt Funding (WRF) Programme which would produce access to funding for Ghanaian farmers. WRF will give limited-term financial loans to depositors of commodities working with their warehouse receipts as sole collateral. The GCX digital warehouse receipt is identified by regulation as a money instrument and is backed by overall performance ensures. To assure performance, these warehouses from which these receipts are issued are all insured (structure and written content), Licensed by Food items and Medications Authority, Ghana Requirements Authority and Securities and Exchanges Commission. Likewise, the warehouses are completely geared up with quality assessment and improvement gear this kind of as dampness meters, Aflatoxin kits, cleaners and dryers and have workers with in depth training and certification by relevant companies ensuring environment class typical stock administration. So, offering a higher level of ease and comfort for banks as the Trade assumes counter party purpose to mitigate all threats relating to financing commodities.
The collaboration would also see the two institutions develop a framework for settlement of trade in a manner which meets the GCX’s prompt settlement guarantee of inside 24hrs.
To reach the intention of legitimate development of the agricultural benefit chain and improve the lives of rural communities, greater obtain to financing and a assorted established of credit score amenities is significant. This will give Ghanaian farmers the doing work cash they require to maintain their enterprise routines in among every harvesting year as very well as give them better getting ability for seeds, fertilizers and other inputs. The CEO of Standard Chartered Lender expressed the Bank’s readiness to take warehouse receipts.
This collaboration provides the range of Monetary establishments performing with GCX to eleven (11), an indication of the expanding worth attached to the progress of agricultural finance.