Standard Chartered, GCX sign MoU to support farmers

Standard Chartered Bank Ghana Limited and the Ghana Commodity Exchange (GCX) signed an MOU to support Ghanaian farmers through access to financing and capacity building.

The signing ceremony took place 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 Standard Chartered Bank partner the GCX.

“Standard Chartered Bank is one of the reputable Banks in Ghana with presence across other continents. It is therefore a joy to have you partner us to support Ghanaian farmers” Dr. Kadri said.

In her remarks, the CEO of Standard Chartered Bank Ghana Limited, Mrs. Mansa Nettey acknowledged the unique role of Commodity Exchange initiative in providing the much-needed lifeline to farmers and the agricultural sector as a whole.

As part of this MOU, Standard Chartered Bank Ghana has agreed to collaborate with GCX in the Warehouse Receipt Financing (WRF) Programme which would create access to financing for Ghanaian farmers.

WRF will provide short-term loans to depositors of commodities using their warehouse receipts as sole collateral. The GCX electronic warehouse receipt is recognized by law as a financial instrument and is backed by performance guarantees.

The collaboration would also see the two institutions build a framework for settlement of trade in a manner which meets the GCX’s prompt settlement promise of within 24hours.

To achieve the goal of true development of the agricultural value chain and improve the lives of rural communities, greater access to financing and a diverse set of credit facilities is critical.

The CEO of Standard Chartered Bank expressed the Bank’s readiness to accept warehouse receipts.

This collaboration brings the number of Financial institutions working with GCX to eleven (11), an indication of the growing importance attached to the development of agricultural finance.