Biruk Girma
29 April 2008
Addis Ababa — The Ethiopia Commodity Exchange, known shortly as ECX, on Thursday launched the country's first ever market system in the presence of State Minster of Finance and Economic Development, Mekonnen Manyazewal who is also Board Chairman of the system.
ECX, a private-public undertaking will provide a marketplace where buyers and sellers can come together to trade and be assured of quality delivery and payment. The launch which begun with Maize and haricot beans follows an intense two-week period of simulated or "mock" trading with nearly 85 members and representatives drawn largely from the private sector.
Speaking with the press in her office after the launch, ECX CEO Dr. Eleni Zewde Gebre-Medhin told reporters that the market started receiving interest from traders five days before the first trading day for the newly established market system.
A total of 41 contracts, each with standard 50 quintals of commodities were traded in the first marketing/trading session of the market which was attended by nearly 100 people including 14 ECX members. This counts the sale of 1850 quintals of first grade white maize and 200 quintals of first grade processed white haricot beans. According to the CEO, the day's trading was highly dominated by buyers than sellers proofing the potential demand for the market's future activities. For that reason, she said, the day's price was tending up putting incentives for sellers to participate in the exchange market in the future. The Ethiopian Grain Trade Enterprise was put in the market's history list as the very first seller whereas Seid Yassin Import PLC was put as the very first buyer on the list.
The market has 55 registered members and 30 representatives of the members. She said each day's price will always be posted on ECX displays at the centre and some other places within four seconds after each trading. Eleni said ECX was dealing with the Information and Communication Technology Development Agency (EICTDA) to widen services to about 200 remote woredas nationwide, in line with the agency's Woreda Net program.
Besides, she told reporters that her office made the necessary agreements with local media to transmit an up-to-date information on hand. "Thus, the public will receive the market's information three times a day via the national Radio," she told reporters. The state television ETV will broadcast in all languages of transmission programs during evenings. ECX will soon start to partner with nine local newspapers to publish commodity exchange including other newspaper material to boost public awareness, Eleni said. "The Ethiopia Commodity exchange represents a new area for Ethiopia's agricultural marketing. It brings fairness and efficiency and levels the playing field for our smallholder farmers," the State Minster said.
The exchange is a private-public undertaking with capital investment from its main promoter, the Government of Ethiopia, and membership seats privately owned by trading and intermediary members. The exchange is jointly governed by private-public Board of Directors and managed professionally by an internationally recruited team.
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