- Over 33.8bln Birr worth Commodities traded at its floor in 2018/19 FY
ADDIS ABEBA – Ethiopian Commodity Exchange (ECA) says it will build new warehouses in four cities after lack of well-equipped stores in major harvest areas starts to affect its performance.
“In the previous fiscal year, warehouse scarcity has been a major challenge for our performance,” Wondimagegnehu Negra, CEO of ECA.
Lack of warehouses has been incurring the exchange additional cost as it has to rent from private organizations and store produces.
The new warehouses, which will be built in Gonder, Kombolcha, Humera, and Shiraro in the current Fiscal year, aims to alleviate such challenges, said Wondimagegnehu.
Each warehouse will have a capacity to store 152,000 quintals, except the Shiraro one which will have 80,000 quintals store capacity.
The construction will cost ECX over 200mln birr.
In a bid to facilitate, the exchange recently built and inaugurates two eTrade centers for 20 million Birr in the city of Hawassa and Humera.
The other challenge ECX officials faced recently came from oilseed and pulses exporters, who have been involved in illegal foreign trade activities.
Ethiopia’s Trade Ministry accused some exporters of allegedly trading sesame seeds and white pea beans outside the Ethiopian Commodity Exchange.
“A few exporters have been illegally trading the products,” ECX’s CEO said. “They have been served with a warning not to do so”.
He said some of them were sending the product to the neighboring nations like Kenya in a contraband-like trade, and resulting in loss of the “much needed foreign currency.
3% Trade increase
The CEO of the exchange said, despite the challenge, ECX traded 33.8 billion birr worth of commodities in the concluded budget year.
The figure shows an 11 percent increase from its 30.3 billion birr target for the fiscal year that ended on July 7.
The Exchange transacted a total of 681, 845 tons of commodities during the previous fiscal year. This has shown a 1 percent increase from its target, which was 673,057 tons, according to the CEO.
Wondimagegnehu said the exchange has the plan to start adding value to some of the products in the current fiscal year and add bring more products to the ECX trading floor such as cotton.
By Mhret G/Kristos