THE ROLE OF THE GHANA COMMODITY EXCHANGE IN IMPROVING GENERAL AGRICULTURAL SECTOR PERFORMANCE IN GHANA

ABSTRACT Ghana, in a bid to modernize and create an efficient agricultural market, launched the Ghana Commodity Exchange (GCX). The exchange is an organized trading hub intended to link agricultural commodity producers and buyers. However, the benefits of commodity exchanges and their impact in developing countries such as Ghana are not well known. This paper therefore explored the role of the Ghana Commodity Exchange in improving the performance of key agriculture sector players particularly farmers. The relevant question asked was, are farmers currently benefiting in some way from the GCX? Primary data in the form of interviews was collected and analyzed to answer the research question. Players in the market including farmers, buyers, middle men, and personnel of the GCX were interviewed. The findings from this research revealed that, price discovery had been achieved, to an extent, and that, farmers were in a better position to bargain because they now had access to price information which they did not have before. The exchange was also successful in centralizing trade and the transactions costs involved in finding a suitable buyer or seller at a suitable price was reduced my means of the exchange. The paper also revealed challenges which include poorly developed infrastructure such as roads and warehouses. Overall, the GCX is making steps in the right direction to create a more efficient agricultural market. The support of the government of Ghana is however needed to improve the exchanges operations and enable them to obtain their objectives.