SEC Urges Ghanaian Farmers to Use Commodity Exchange as a Tool for Financial Security and Growth

The Securities and Exchange Commission (SEC) is urging Ghanaian farmers to leverage the Ghana Commodity Exchange (GCX) as a strategic tool for hedging against market risks, securing fair prices, and improving access to credit.

According to the Commission, the GCX provides a transparent, regulated marketplace where farmers can trade agricultural commodities such as maize, rice, and soybeans — while using warehouse receipts as collateral for financing.

Speaking on the AM Show on JoyNews, James Klutse Avedzi, Director-General of the SEC, emphasized that the Exchange remains one of the most practical ways for farmers to protect their investments and reduce post-harvest losses.

“If you are a farmer and you have commodities such as maize or rice, you can go to the commodity market and declare the quantity you have,” Mr. Avedzi explained. “You will then be issued a receipt, which can serve as a guarantee for loans or other credit facilities at the bank.”

Empowering Farmers Through Structured Markets

Mr. Avedzi noted that the Ghana Commodity Exchange offers farmers an organized and credible platform to trade their produce, gain liquidity, and connect with verified buyers.

Through its warehouse receipt system, the GCX allows farmers to deposit commodities in certified warehouses, where they are inspected and valued before trading. This system, he said, ensures quality assurance, price transparency, and the ability to use stored produce as financial collateral.

“Once a farmer becomes a member of the GCX, they gain access to a network of buyers and sellers, creating new income opportunities while minimizing market risk,” the SEC boss added.

He also highlighted how the Exchange plays a critical role in curbing post-harvest losses — a persistent challenge that affects smallholder farmers across Ghana. By offering secure storage and a reliable platform for price discovery, the GCX enables farmers to sell their goods when market conditions are most favorable.

Investment Education and Public Protection

Beyond promoting the Commodity Exchange, the SEC has intensified its public education campaigns through its flagship outreach programme, “Time With SEC.”

Mr. Avedzi said the initiative aims to raise awareness about legitimate investment opportunities and protect the public from fraudulent financial schemes.

“You realize that many people do not know about the operations of the Commodities Exchange Commission, so we at SEC have decided to embark on a drive to educate people on some of the services we offer,” he noted.

He warned that the proliferation of unlicensed investment platforms and online scams continues to threaten financial stability, particularly among the youth. He advised investors to always verify the registration status of any investment company before committing their funds.

“We also get to educate people on how the capital market works,” Mr. Avedzi said. “We want to help Ghanaians make informed investment decisions and avoid falling prey to Ponzi schemes.”

The next edition of “Time With SEC” is scheduled for Koforidua on November 7, following a successful event in the Volta Region, as part of SEC’s ongoing nationwide engagement efforts.

Championing Financial Inclusion and Market Confidence

Mr. Avedzi, a former Member of Parliament for Ketu North, said the SEC’s current focus is to deepen financial inclusion by bridging the gap between traditional farmers, rural communities, and the formal capital market.

He underscored that expanding access to the GCX and other regulated financial instruments aligns with Ghana’s broader vision of building a resilient, inclusive, and investor-friendly economy.

The SEC has also urged Ghanaians to report any suspicious investment schemes directly to the Commission, assuring that all complaints will be investigated in line with its mandate to safeguard public interest.

“We want every Ghanaian — from farmers to young professionals — to understand that safe investing begins with verification and education,” Mr. Avedzi concluded.

Source: Accra Business News