Ethiopian Commodity Exchange (ECX) announced plans to expand its offerings beyond agricultural products to include industrial inputs. Dawit Mura, Head of Corporate Communication at ECX, revealed the diversification plans after reporting sales of Birr 19.4 billion worth of products within nine months of the fiscal year.
Previously focused on agriculture, ECX is now actively exploring the addition of industrial inputs such as industrial salt. It aims to introduce seven new products this year, with research and contract drafting already underway for salt and beer barley. Approval is pending from the relevant government body before trading for these products can begin. Feasibility studies are also being conducted for flax, leather, cotton, cabbage seeds, and castor beans.
Established 16 years ago with just corn and wheat trading, ECX’s portfolio has grown to 23 products. This year, they facilitated the trade of 171,639 thousand quintals of agricultural products valued at Birr 19.4 billion. Sesame (73,393 metric tons) and coffee (50,329 metric tons) were the most significant trades.
Compared to the previous year, coffee saw a 17% volume increase and a 5% price increase. Sesame exhibited a 45% surge in quantity and a 51% rise in price. Products such as pigeon peas saw remarkable increases of over 95% in both volume and price.
Despite its success, ECX acknowledges challenges including security concerns, inadequate responses to international price fluctuations, and border smuggling of export-bound products. It is working with stakeholders to address these issues.
Source: Addis Zemen
Image source: ECX
