Fourteen commodity exchanges across the African continent have joined forces to leverage their collective potential within the framework of the African Continental Free Trade Area (AfCFTA), marking a significant achievement in the AfCFTA’s progress.
The AfCFTA Association of Commodities Exchanges (ACX) is prioritizing food security and enhancing market efficiency through knowledge sharing and the adoption of modern trading practices.
These practices include electronic trading platforms, standardized contracts, and improved market information dissemination, all aimed at boosting market efficiency, reducing transaction costs, and attracting broader participation from domestic and international traders.
The Association is also committed to advocacy efforts by collaborating with key stakeholders, including government agencies and industry experts, to raise awareness about the role of commodity exchanges in price discovery, risk mitigation, and market access. This will drive policy reforms supporting the growth of efficient and transparent commodity trading platforms across the region.
This initiative is especially significant because, in most AfCFTA markets, formalized commodity trading is in its early stages, with the exception of South Africa.
The ACX initiative is led by the Ghana Commodity Exchange (GCX) and is crucial for promoting cross-border trade. Under this initiative, ACX aims to collaborate closely with AfCFTA to harmonize trade regulations, simplify customs procedures, and expedite cross-border transactions.
During an event in Accra, named the ‘Maiden Forum: AfCFTA Association of Commodities Exchanges’ with the theme ‘Connecting Africa: advancing regional trade through commodities exchanges,’ Tucci Ivowi, the CEO of GCX and the convener of the gathering, emphasized that there is no better time for African commodity exchanges to contribute to the realization of a unified African market than now.