Ethiopia Commodity Trading Goes Electronic
September 09, 2015
|Dawit Korma, a representative of Ethiopia
GrainTrade, uses the electronic trading
system to trade coffee at the ECX Central
On 3rd September 2015, the Ethiopia Commodity Exchange (ECX) held a certification ceremony for Electronic Trading Trainees. The aim of the ceremony was to certify 371 traders who undertook training on the electronic trading system. The system was introduced under the ECX Modernization project. Co-funded by the Government of Ethiopia and the Investment Climate Facility for Africa, the project aims to improve trading efficiency, services, and stakeholder access to commodity trading in Ethiopia.
The introduction of electronic trading means that ECX will no longer be constrained by floor space. Instead, traders will be able to transact electronically at ECX Central Trading Centre. In the future, ECX will rollout Remote Trading Centres in strategic locations around the country. Eventually online trading will be introduced. This will enable traders to transact from wherever they are as long as they have internet connection. Traders will no longer be required to physically visit ECX to transact.
Speaking at the event,Ermias Eshetu, Chief Executive Officer of ECX explained the potential of online trading. “Online trading is as huge as having 5,000 trading pits. The transformation is from pit to bits.”
To date, 1,000 tons of commodities have been traded through 270 transactions worth US$ 1.8 million. Currently, local coffee is the only commodity that is being traded on the electronic platform.
Dawit Korma is a representative of Ethiopia Grain Trade Enterprise. After becoming a certified electronic trader, he has been able to sell local coffee through the electronic trading system. In his first transaction, he sold 60 bags of coffee (6 tons) worth US$ 10,390.
The certification ceremony was attended by Members of the Electronic Trading Steering Committee, National Exchange Actor Association President, ECX staff and representatives of the Ethiopia Coffee Exporters Association.
ECX Modernization Project Images:
Traders transacting by flashing hand signals, also known as the pit trading at the ECX Headquarters in Addis Ababa, Ethiopia.
Ermias Eshetu, Chief Executive Officer of ECX, talks about the online trading platform at the Electronic Trading Training Cerification event.