NIGERIA- AFEX, Nigeria’s leading commodities player, recently signed a Memorandum of Understanding with Ghana Commodities Exchange (GCX), to strengthen the commodity trading ecosystem between the two countries.
The MoU signing, which took place at AFEX’s office in Abuja on the 24th of August, had the Chief Executive Officer, GCX, Mrs. Tucci Ivowi, and the President/CEO, AFEX Nigeria, Akinyinka Akintunde, in attendance alongside other representatives.
The MoU signing underscores AFEX and the GCX’s commitment to leverage collaboration to transform the agricultural sector effectively and is aimed at fostering cooperation to enhance market integration and promote best practices.
Under the partnership, AFEX and GCX will collaborate on areas related to commodities trading, warehousing, quality standards, and market infrastructure development.
Additionally, both organizations 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.
At the MoU signing, Mrs. Tucci Ivowi remarked that since 2017, the GCX has been committed to improving the livelihood of smallholder farmers, and the partnership with AFEX is an extension of our commitment to drive transformative change in the agriculture sector.
“This is a significant step towards realizing our shared vision of seamless market integration in Africa’s commodity trading space, and together, we will not only enhance commodities trading and market infrastructure but also empower farmers and traders through capacity building,” she added.
For Ghana Commodity Exchange, a major goal is 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.
“We at AFEX are elated to announce this momentous MoU signing, which reflects our resolute commitment to revolutionize the agricultural landscape. Through this strategic partnership, we will set new benchmarks in quality standards, and fortify market infrastructure,” Akinyinka Akintunde, emphasized, expressing optimism about the partnership.
“Our joint efforts will not only amplify market liquidity but also empower stakeholders and unlock value for Nigeria and Ghana’s value chain,” he added.
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 8 African countries before 2023, promoting the efficient trade of commodities in Africa while supporting the AFCFTA’s (African Continental Free Trade Area) objectives to boost regional trade integration on the continent.
This recent signing is a major step towards establishing consistent standards between the two countries and sets the foundation for a replicable model across Africa.