Ethiopia’s agricultural commodity exchange (ECX) platform is transforming the sector for farmers, traders and the entire economy of the country known in short as ECX. It is rounded brokers to offer farmers up-to-date market information. Thus taming the middleman and increasing trade in the country’s agricultural products.
Twelve years ago with the aim of integrating scattered agricultural products into one the Ethiopian commodity exchange born. It is end-to-end platform, that brought together not only services such as certification, but also storage and market information to especially farmers in the agricultural value chain. In the past before the birth of ECX farmers as well as aggregators used to bring their produced commodities to the central market in the capital Addis Ababa. That was the only option of selling their produce at the spot with little or no bargaining power, which is now history.
According to the CEO of ECX Ato Wondimagegnehu Negera , the establishment of ECX, we have decentralized and created proximity and access to the farmers, aggregators, and cooperative societies. Now they can find physical warehouse and branches in their own districts, which has created accessibility that realy helped the farmers. He said “In the traditional system farmers has to their product to the market, if the didn’t sell their product they needed to take it back, now they can deposit it ine ECX warehouse”
Ethiopian commodity exchange begun the buy and sell process through what is known as an outcry system, where the seller picks the highest bidder from outcry buyers. But it’s been now four yers since ECX moved from that sort of traditional method to a digital commodities platform.
Ato Wondimagegnehu said “The very important thing the digital system was done by in-house human resource capacity, which really is a breakthrough. That help us inters ms of efficiency, surveillance, and providing assrance to the market integrity.”
The new online market created by ECX made farmers and traders lives much easier and made the more profitable too. This system allows traders to use computerized system to handle the trading with a little or no flowers.
Desta Gelaye, one the trader in the ECX said “The world is heading to full digital market. Therefor, to the previous one this is more reliable and modern. But the way it supposed to be this computerized system from the beginning was supposed to undertake proposal trading. This digital market is an all-inclusive, fast, and its also an update for us”
The organized and modern trading system sheltered under the Ethiopian commodity Exchange has been a learning platform for fellow African states.
After visisting its headquarters in Addis Ababa, nations such as Rwanda, Tanzania, and Nigeria have opened their respective commodity exchanges.
With such initiatives that cushion and support farmers the continent can ensure food security for its expanding population