Ethiopia Commodity Exchange

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Ethiopia Commodity Exchange (ECX)
Founded 2008
Headquarters Ethiopia
Key People Ermias Eshetu, Chief Executive Officer
Website www.ecx.com.et

The Ethiopia Commodity Exchange (ECX) is the first commodity exchange market system for Ethiopia and the first exchange of its kind in Africa. It is jointly governed by a private-public board of directors and managed professionally by an internationally recruited team. It is a partnership of market actors, the exchange members, and its main promoter, the Government of Ethiopia.

The ECX trading system has a physical trading floor located in Addis Ababa and plans to transition to an electronic trading platform over time. Open outcry trading hours are from 8 to 12 am. Only ECX members or their authorized representatives can use the ECX trading system on behalf of themselves or clients. ECX will have warehouses in Addis Ababa, Bure, Humera, Nazreth, Nekemte and Shashemene, the main centers of the market.[1]

By government decree, almost all buying and selling of coffee, sesame seeds, and navy beans for export must take place on the exchange.[2]

Initially, ECX contracts will be for spot trading (immediate delivery of physical commodities). Over time, ECX plans to introduce futures contracts.


History

The exchange was founded in 2008 by Eleni Zaude Gabre-Madhin, an economist who was also its first CEO.[3] [4] It received funding from the U.S. and the United Nations, and is one of at least eight commodity exchanges started in sub-Saharan Africa since the mid 1990s with the aim of improving food security for local populations.[5]

Products and Services

ECX's initial phase offered 25 spot contracts for the following four commodities:[6]

  • Maize (White Maize, Mixed Maize)
  • Wheat (Hard Wheat- , Soft Wheat)
  • Sesame Seed (Humera, Gondar, Wollega)
  • Beans (White Pea Bean, Red Kidney Bean)

In addition, the exchange trades a number of coffee contracts. Coffee and sesame seeds account for about 90 percent of exchange volume.

Key People

  • Ermias Eshetu, Chief Executive Officer
  • Abenet Bekele, Chief Strategy Officer

References

  1. Ethiopian Commodity Exchange Forming. EthioBlog.
  2. Trading Floors Can't Feed Africa. Bloomberg.
  3. Cornell Food Fight Leads Gabre-Madhin to Battle Africa Scarcity. Bloomberg.
  4. Eleni Gabre-Madhin. Ted.com.
  5. Trading Floors Can't Feed Africa. Bloomberg.
  6. Commodities and Contracts. Ethiopia Commodity Exchange.