ADDIS ABABA – Ethiopian Commodity Exchange (ECX) has signed a memorandum of understanding with Ministry of Mines to trade minerals in its trading Platform.
The deal was signed between the head of the exchange, Wondemagegnhu Negera, and Minister of Mines, Eng. Takele Umma, on Friday.
Illicit and backward trading system are among the major factors affecting Ethiopia’s mineral export earnings.
Officials believe the latest agreement would be key to tackle the problem by leveraging the exchange for commodities such as precious gemstones.
The deal will “better facilitates international trade by enhancing supply, reducing illegal trade, and creating sustainability,” said Minister Takele after signing the agreement.
The Ethiopian Commodity Exchange was launched in 2008 to improve the efficiency of country’s trade.
It has now become the main route to major agricultural commodities such as coffee, the major generator of foreign currency to the country, and has, so far, facilitated the trading of 7.13 million metric tons commodities with the value of 308 billion birr.
The exchange plans to broaden the range of commodities it trades and wants to introduce metals, stocks and bonds under its short term expansion plan.