Electronic trading expansion promotes credible, transparent transaction

 By Abdurezak Mohammed

Electronic trading system is used for the credibility and transparency of the market. In addition, the system will help get fast service and access all the necessary data easily.

The system can solve mistakes those happen during trading. Understanding this, the Ethiopia Commodity Exchange (ECX) began electronic trading before three years which was only in the capital, Addis Ababa. However, it is expanding its branches to other state towns such as Hawassa, Nekemt and Humara. Recently it inaugurated Hawassa Electronic Trading Center which is the first out of Addis Ababa. Chief Executive Officer of Ethiopia Commodity Exchange (ECX), Wondimagegnehu Negera, explained on the launching ceremony of Hawassa Electronic Trading Center that ECX planned to build seven electronic trading centers across the country. Now, Hawassa Electronic Trading Center is commenced while Nekemte and Humera will be launched in this fiscal year.

He said that ECX began its work before ten years, April 2008. Currently, ECX receives 7 agricultural products in its 22 branches. These branches have the capacity to receive 307,000 tonnes of products at one time.

These branches also process up to 700,000 tonns of products in a year. And also, they have the capacity to give the product standards by checking the quality of product in their laboratories. According to Wondemagehu, ECX has 347 members, 142 direct traders who are non-members but licensed for coffee and more than twenty thousand customers.

As well, more than three million farmers are beneficiaries of the trading system, while over 25 million people are direct and indirect users of the system. “Since 2008, about 5 million Electronic trading expansion promotes credible, transparent transaction tonnes of agricultural products worthing 203 billion ETB were successfully traded”, he indicated. He reiterated that Hawassa Electronic Trading Center enables the farmers, suppliers, unions and exporters those are found nearby to make their transaction easily.

In addition to contributing to their work by saving time, the money mobilized by the transaction contributes to the local economy. And this center will be used to increase the number of traders those are trained in modern trading system.

The construction of the two electronic trading centers, Nekemt and Humera, has been completed and their electronic line is underway. “After all, we work to open electronic centers in Gonder, Jimma, Adama and Kombolcha. In the same way, our warehouses will be enhanced with technological support. Chickpeas and soybeans will be entered to the system,” he added. The Minister of the Ministry of Trade and Industry, Fetlework Gebregziabher, on her part, said that the sustainability of modern trading system is important to improve the local trade and create a legal trading system in the country.

The government is applying new and modern trading system to bring fundamental change in the sector and serve farmers, processors of agricultural products, suppliers and exporters those are found in the business system. To her, all the decisions were decided by traders in the past years. The farmers could not decide by their own product. This means the farmers were only the recipients of money but not a delineator and mediator. But now, the farmers can decide the price of their products by using the opportunity that is facilitated by the government. The effectiveness of the Hawassa Electronic Trading Center would be measured by the service that the center gives for farmers, unions, suppliers and exporters those are found nearby.

As well as by its contribution for the development of export trade, she noted. She commend that not only Ethiopia Commodity Exchange, but all the concerned bodies should continue their partaking, support and effort. By the same token, the manager of Hawassa Electronic Trading Center, Nebiyat Jemere, told The Ethiopian Herald that the center is built on 1380m2 of land and 12 million Ethiopian Birr (ETB) was spent including the construction of G+4 for training. From the total construction budget, 4.87 million ETB was obtained from the European Union and 7.76 million Birr was covered by the Ethiopia Commodity Exchange. Nebiyat said that before the start of this trading center, vendors and buyers were required to go Addis Ababa wasting their time, money and energy.

The functioning of the system saves money, time and energy. It also controls illegal trading; enables the government to get proper tax from the sector; and decreases unemployment.

The center has started trial operation October, 2018. Coffee is the major agricultural product traded in the center. Pulses and Cereal crops will be included to the system in the future. Since the start of the operation, a total of 315.36 tonns of coffee worth 22.2 million ETB were successfully traded. Fetlework Temesgen, Vender in Hawassa Electronic Trading Center, explained that the system is very fast and it saves time, money and energy of the dealers. She reiterated that the opening of this trading center will solve many problems.

The trading system in previous years was very difficult. It was not a pure trading platform. Conflict and cheating were frequent problems. In general, electronic trading enhances credible and transparent economic development if all the partakers implement all their efforts collaboratively. As the government is highly committed to expand the system, its implementations also require dedication.