Ghana and SECO begin implementation of Warehouse Receipts System project
The government of Ghana, together with the Switzerland State Secretariat for Economic Affairs (SECO) have commenced implementation of the Warehouse Receipts System Bill to address financing gaps within the agriculture sector.
The implementation process, which had begun in some regions, was held in Accra on Tuesday with representatives from the Ministry of Finance, Ministry of Trade, Ghana Commodity Exchange, and other key players.
Mr. Sampson Akligoh, Director of the Financial Sector Division, Ministry of Finance, speaking at the event expressed excitement having seen the Warehouse Receipts System bill make progress to ensure a comprehensive legal and regulatory framework.
“In our quest to promote the development of the agricultural sector and provide a safety net, there is a need to discuss the warehouse receipt system to support the hard work of our farmers.
Indeed, warehouse receipts systems in any economy play critical roles in the agricultural value chain, and it is essential that we explore the numerous advantages it brings to our farmers and all stakeholders involved, including the financial flexibility it brings”, he said.
He said the Warehouse Receipts System bill, when passed, would improve the agricultural practices of farmers, and unlock a realm of opportunities, providing tangible proof of ownership.
Mr. Akligoh noted that a properly regulated warehouse receipt system could benefit smallholder farmers by allowing them to store their surplus safely in modern warehouses and later sell when prices are higher.
“The Warehouse Receipt Bill is expected to introduce a paradigm shift by providing certain proof of ownership and possession for both buyers and sellers in the agricultural sector. It will contribute significantly to standardizing trade practices, cultivating trust among participants, and harmonizing regulatory frameworks,” he said.
Mrs. Cemile Hacibeyoglu Ceren, Senior Country Officer, International Finance Corporation, said the bill, when passed, would enable farmers to leverage their produce for financing, thereby expanding their agricultural activities.
She said the consultation engagement was a statutory requirement for the approval of the draft law.
“This marks the third and final stakeholder consultation on the WRS Bill, following sessions in Tamale and Kumasi. At IFC, our role is to provide technical guidance and expertise to support this process. The goal is to ensure that the law aligns with Ghana’s aspirations in improving agricultural financing and adheres to best practices.”
Mrs. Ceren said the Warehouse System Bill would facilitate the usage of the warehouse receipts system to increase access to financing for farmers and better pricing for their produce.
She applauded SECO, USAID, Ministry of Finance, Ministry of Trade, and Industry for their in making the vision possible.
Madam Magdalene Wust, Deputy Head of Cooperation, Embassy of Switzerland also highlighted some benefits of the Warehouse System Bill to farmers, noting that it would go a long way to help store and preserve their crops.
According to her, the engagement with stakeholders had been successful and she expressed confidence that the implementation process would be smooth to contribute to the growth of agriculture.
The project is being implemented in nine regions of the country with financial support from Switzerland’s State Secretariat for Economic Affairs (SECO).
The Project is working in partnership with the Ghana Commodity Exchange, participating financial institutions and other stakeholders to de-risk agriculture and facilitate innovative financing solutions for farmers, traders, and small and medium enterprises (SMEs).
Some key speakers at the event were Mr. Ubong Valentine Awah, Senior Operations Officer, International Finance Corporation, Ms. Serena Nantogmah, Director, Legal, Ministry of Trade and Industry and many others.
Source: GNA