Driving Transformational Change in Ghana: Supporting the Ghana Commodity Exchange

Agriculture is a key part of Ghana’s economy - contributing 20% to GDP and employing nearly 40% of the workforce. Yet, inefficiencies in agricultural markets and information gaps between farmers and traders have led to suboptimal pricing, mismatched supply and demand, and reduced market participation.  

Over the past decade, IGC has invested nearly £0.5 million in a cluster of seven research projects that address these agricultural market challenges. Through strategic collaborations and sustained research-policy engagements, we supported the establishment and scaling of the Ghana Commodity Exchange (GCX) - a platform designed to facilitate agricultural markets.  

Based on our Transformational Change methodology, we study how our efforts contributed to this significant change in Ghana and what drove that change.  

Figure 1: A timeline of the Transformational Change through the Ghana Commodity Exchange (GCX). 

How did IGC contribute to this change? 

1. We supported the design of a commodity exchange through innovative research 

The Ghana Commodity Exchange’s journey began in 2014, spurred by the government’s commitment to address market inefficiencies that hinder agricultural productivity. The vision was to "establish state-of-the-art, transparent, and professional market institutions to create an orderly, transparent, and ready market for goods that are produced by farmers in the country" (Ministry of Finance, 2017). Since there was little information on how best to operationalise commodity exchanges in the country, we collaborated with Professor Yaw Nyarko to explore their potential through foundational research in Kumawu, Ghana. This study investigated how a commodity exchange model can solve market inefficiencies by –  

1. providing real-time access to market information;
2. improving price transparency;
3. offering solutions to storage; and
4. increasing the quality of produce.  

Not all farmers benefitted equally from commodity exchange markets. These commodity exchange markets, therefore, needed to coexist with decentralised markets to maximise benefits for all market participants.  

The research went on to leverage innovative technologies, including mobile apps, for real-time data collection from farmers and traders that facilitated detailed analysis that would later evolve to become a key aspect of the GCX roll-out. By providing local insight on designing a commodity exchange tailored to Ghana’s unique needs, IGC’s research advanced global knowledge of commodity exchanges and their potential to improve market functioning and farmer welfare in low- and middle-income countries, culminating in esteemed academic publications. 

2. We contributed to the institutionalisation of the GCX through targeted collaborations with policy champions and facilitated capacity-building efforts. 

By 2017, the Ghana Commodity Exchange (GCX) had gained momentum. Nyarko’s involvement expanded when he was appointed Chairman of the GCX Technical Oversight Committee, by the then Minister of Trade and Industry, Alan Kyerematen, who championed the GCX’s development. Nyarko’s leadership ensured that the exchange’s design incorporated evidence-informed insights, from optimising regulatory frameworks to selecting suitable commodities for trade. 

Our continued support facilitated high-level engagements between Ghanaian policymakers and international experts. Workshops in the UAE, for instance, introduced stakeholders to successful commodity exchange models. These efforts culminated in the GCX’s official registration in 2017 and its launch by President Nana Akufo-Addo in November 2018.  

“In the past, for most farmers, the market was at the farm gate. Now, they trade in profitable supply chains and have a central point to negotiate prices. This has improved livelihoods and reduced poverty.” -- Kadri Alfah, former CEO of the GCX. 

3. We facilitated the GCX’s evaluation to help expand its impact.

Since its launch, the GCX has eased frictions in Ghana’s agricultural markets. Initially trading in yellow and white maize, the exchange expanded its portfolio to include soybeans, sorghum, sesame, milled rice, and cashews. Between 2018 and 2022, trade volumes rose from 100 metric tonnes to over 5,500 metric tonnes, with a total trade value exceeding GHS 31.3 million. Furthermore, GCX has directly and indirectly employed over 1,700 people, integrating over 350,000 farmers into its network through training and membership programmes.

The IGC supported the evaluation of GCX’s impact through surveys and RCTs. Despite the success of the GCX in improving market access and price transparency, findings showed that uptake among smallholder farmers remained uneven. To address this, we funded research to develop a “nano commodity exchange” model. This innovation brought trading activities closer to farmers’ villages, reducing logistical barriers and fostering trust.  

4. We championed evidence-informed pathways for scale-up.

The success of the nano commodity exchange pilot sparked interest from international organisations. The World Food Programme (WFP) highlighted its potential to address food insecurity by integrating marginalised farmers into structured markets. Additionally, Ghana’s Ministry of Agriculture supported the initiative by providing infrastructure for pilots. 

Building on these achievements, GCX, as a leading regional commodities exchange played a key role in establishing the African Commodity Exchanges Association (ACX) in 2023, a coalition of 16 exchanges under the African Continental Free Trade Area (AfCFTA). This collaboration aims to harmonise trade regulations and scale the GCX model across Africa. Over the years, the GCX has been welcoming delegations from countries such as Kenya and Nigeria, eager to replicate its success.  

What drove change?

We identified the following key factors that enabled IGC’s engagement to contribute to change: 

1. Ownership and support from policy champions: Securing high-level buy-in from government leaders ensured sustained momentum and alignment with national priorities.

2. Ongoing collaboration and researcher’s commitment to policy impact: Continued partnerships between researchers, policymakers, and international experts, from inception to implementation, fostered trust and shared learning. 

3. Responsiveness to local demand for research and contextual relevance: Responding to emerging local priorities and tailoring the research to the local context enhanced its adoption and effectiveness. Understanding domestic policy priorities and processes was key. 

4. Supporting agile research and policy engagement processes through the strategic use of various funding streams: Flexible grants supported iterative research and policy engagement, allowing the GCX to evolve based on emerging insights. 

5. Fostering long-term research collaborations: IGC’s decade-long engagement in Ghana, has fostered close, collaborative relationships with researchers and policymakers, facilitated the co-generation of research and the uptake of evidence-informed policy decisions.  

To learn more, read our case study Transformational Change: Ghana Commodity Exchange and find out more about our Transformational Change work here.