FinComEco and Ghana Grains Council collaborate to improve agricultural commodity markets
Creating a Commodities Ecosystem to deliver efficiencies across the grain and legume crops value chain in Ghana supported by strategic partner GMEX Group
Accra, Mauritius, London, 22nd November 2017. Ghana Grains Council (GGC) and FinComEco, the fully integrated Financial & Commodities Ecosystem providing services, financing, capacity building and enablement solutions from supply to demand, have signed a Master Collaboration Agreement to jointly develop a range of platforms, projects and initiatives in the agricultural commodity markets sector, especially for grains and legumes in Ghana.
By linking agriculture to the latest financial technology, the joint venture will facilitate grain and legume crop value chain efficiencies through provision of strategic services including electronic warehouse receipts enablement, financing, standards, training and capacity building and the provision of marketing information.
GGC is a private sector-led initiative formed with initial funding from USAID’s ATP and ADVANCE projects. It is a body formed by leaders in the grains business with the aim of positively intervening in the grains and legume value chain to achieve improvement in productivity, quality and greater commercialisation of the industry. GGC oversees 28 certified warehouses across the country, with 99 members including Ecobank Ghana, Agdevco Ghana, Wienco Ghana Ltd, Premium Foods Ltd, CCH Finance House, Agrimat, Glico General Insurance, Inter-Grow Co Ltd, NTHC, ADB Bank, various farmer-based organizations, etc.
Additionally, its advocacy relationship with government and public institutions will enable the collaboration to help facilitate extended market access and influence policy change. GGC and FinComEco will also aim to work with development organisations such as World Bank Group, research bodies and local private sector partners to ensure the success of the collaboration for the benefit of the Ghanaian agricultural sector and associated trading with related agri-financing facilitation. The aim is to develop an effective strategic alignment with the Ministry of Trade & Industry to operationalise the Ghana Commodity Exchange (GCX).
FinComEco will look to provide global best practices in managing robust warehouse receipt systems and other solutions as part of the wider FinComEco model. This includes distribution of third party agri-finance and electronic banking facilitation enabled by scalable technology supported by its partner GMEX Group, which aims be integrated into the commodity exchange ecosystem in due course.
Gideon Aboagye, Chairman of Ghana Grains Council commented, “As a local giant in the promotion of WRS in Ghana, collaborating with FinComEco, a company with an international reputation in the ecosystem, is the right decision to move WRS to a different level, as we move towards the operationalising the emerging commodities exchange.”
Hirander Misra, Founder and Deputy Chairman of FinComEco and CEO of GMEX Group commented, “We are delighted to be working with GGC to bring the FinComEco initiative to Ghana. Our unique collaborative approach is delivering best-of- breed technology, standards and inputs (including seeds, fertilisers and pesticides) to link the supply to demand agricultural value chain.”
Ghana News Agency
Email: Francis Ameyibor
The Realization Group
Phone: +44 (0)7974 937 970
Phone: +233 244 171217
About Ghana Grains Council (GGC)
GCC’s objectives include the responsibility to facilitating grain and legume value chain efficiency in Ghana through the provision of strategic value-added services including regulated warehouse receipting, financing, training and capacity building, provision of marketing information and other value-added services including market linkages, as well as policy change interventions for the agricultural industry.
GGC is a private sector-led initiative formed with initial funding from USAID’s ATP and ADVANCE projects.
It is a body formed by leaders in the grains business with the aim of intervening in the grains value chain to achieve improvement in productivity, quality and greater commercialisation of the industry.
Its core objectives are as follows:
- Develop advocacy capacity – specifically lobby for favourable government policiestowards the grain industry.
- Initiate and develop a new Warehouse Receipt System (WRS). The WRS is responsible for certifying and enforcing agreed standards for the grains industry.
- Increased quality, productivity and profitability by positive interventions within the grains value chain.
- Facilitate workshops and conferences for stakeholders with the goal of improving the current standards within the value chain.
- Facilitate the wide distribution of current market prices.
- Facilitate institutional sales for quality grain that meets agreed industry standards.
- Facilitate an arbitration panel in case of stakeholder disputes.
For more information visit www.ghanagrainscouncil.org
FinComEco, the financial and commodities ecosystem is fostering financial inclusion with social responsibility in collaboration with local stake-holders, development organisations, governments and the private sector with the aim of improving food security and economic diversity.
The new electronic commodities exchange solution is establishing and reinvigorating local spot exchanges and enabling trade across multiple regions with a focus on the agricultural sector to create a holistic secure financial system.
- Price discovery and transparency
- Electronic warehouse receipts
- Trade finance and micro lending facilitation as a distribution hub
- Risk management and hedging
- Integrated Electronic banking and payments platform
- Standards framework
- Traceability and tracking enablement
- Capacity building and education
- Operational and technology consultancy
- Working with trusted local partners
Operational objectives include:
- Maximising the earnings potential for smallholder farmers
- Supporting smallholder farmers to thrive enabled with best of breed-of-technology and inputs (including seeds, fertilisers and pesticides), coupled with a unique Agri-finance business model to solve credit and financing issues.
- Leveraging as well as enhancing current logistics, warehousing and standards to establish a fully vitalised agricultural ecosystem efficiently linking supply to demand.
FinComEco has proven its concept in Malawi at the Agricultural Commodity Exchange for Africa (ACE) through GMEX Group and is establishing fully regulated market places in other African countries and South-East Asia.
Current shareholders include GMEX Group Limited, Saescada Limited and Houghton Street Capital Limited as well as individuals.
For more information visit www.FinComEco.com
About GMEX Group
GMEX Group is a set of companies that offer sustainable and innovative solutions for a new era of global financial markets. Providing business expertise, the latest technology, connectivity & operational excellence delivered through an aligned partnership driven approach. We use our extensive market infrastructure experience and expertise to create an appropriate strategic master plan with exchanges, clearing houses, depositories, registries and warehouse receipt platforms.
Our key business solutions enable the creation and operation of cost effective electronic exchanges and post trade infrastructure in multiple asset classes including equities, debt, FX, derivatives and commodities. We operate in both developing and developed markets through the establishment of cohesive business and technology ecosystems. GMEX offers the added benefit of interconnection to multiple partner exchanges, to create global networks of liquidity.
For more information visit www.gmex-group.com or follow us on Twitter @GMEX_Group