First Certificate Issued in Pilot Warehouse Receipt Program

A pilot program that will allow expanded regional grain trading and improved access to financing is the product of collaboration between a USAID regional mission and a bilateral one.

Developed cooperatively by USAID/West Africa’s Agribusiness and Trade Promotion (ATP) program and USAID/Ghana’s Agricultural Development and Value Chain Enhancement (ADVANCE), the pilot Warehouse Receipts System (WRS) was undertaken in Ghana, where the basic legal and financial framework is in place.

In an innovative approach to storage and financing, grain conforming to agreed-upon quality standards is stored in certified warehouses, and its depositor is issued a warehouse receipt representing the grain’s market value. Producers can use the warehouse receipt as collateral for bank loans. Traders and processors can use the receipts to secure grain of good quality in the required volume. Investors can use the receipts as negotiable and transferable titles in public securities markets or private transactions. Furthermore, a warehouse receipt system is a key building block of a commodity exchange system.

On September 30, 2010, the Ghana Grain Council (GGC), established with USAID assistance, issued its first certified warehouse receipt in Nkoranza in northern Ghana, the country’s major grain-producing area. USAID ATP is working with GGC to launch the project regionally.