Al-Sam Tower 2, 3rd Floor Lideta Addis Ababa Ethiopia
+251 11 554 7001
+251 11 554 7010
http://www.ecx.com.et/
Vision/Mission
The vision of the Ethiopia Commodity Exchange (ECX) is to become a leading and dynamic exchange in Africa by providing a modern, efficient, transparent and reliable market platform to serve the national development goals through the adaptation of technology, excellence in innovation and with integrity.
Organization Description
The ECX is a new initiative for Ethiopia and the first of its kind in Africa. The ECX assures all commodity market players the security they need in the market through providing a secure and reliable end-to-end system for handling, grading, and storing commodities, matching offers and bids for commodity transactions, and a risk-free payment and goods delivery system to settle transactions, while serving all fairly and efficiently.
Background
The Ethiopia Commodity Exchange commenced trading operations in April 2008 by inviting members of the agricultural and trade industry. The ECX was started to benefit and modernize the way Ethiopia was trading its most valuable assets, its commodities. Ethiopia needed a change from the traditional means of trading to better support the needs of all those involved in trading and production.
The ECX provided a marketing system that coordinates better, that links faster, and that protects the interests of both sides of the trade. The exchange is a marketing system that is transparent, efficient and innovative, where buyers and sellers come together to trade, assured of quality, delivery and payment.
The ECX’s design is unique in that it integrates the entire eco-system related to the market, spanning the central trading system, warehouse delivery centers, product grade certification, clearing banks, an arbitration tribunal, a market information system linking rural sites, remote electronic trading centers, and a secure data center to manage membership and market information. An over-arching legal framework and a government regulatory agency ensure the viability of this entire integrated environment.
Since 2008, the ECX has increased the number of agricultural commodities traded at the exchange from only one to seven. Currently the ECX trades coffee, sesame, pea beans, maize, wheat, and green mung beans, and red kidney beans is in the pipeline.
Until June 2015 ECX has been trading through an open outcry trading platform. In order to increase trade efficiency, transparency and accessibility, the ECX introduced its modern eTRADE Platform. To successfully launch this initiative the exchange has trained and certified over 514 online traders.
Services
• Quality Laboratories
• Warehousing
• Open Outcry Platform
• eTRADE platform
Areas
The Ethiopia Commodity Exchange operates the only commodity exchange in Ethiopia. To replicate this successful model and to recalibrate its staff, the ECX launched the ECX Institute (ECXi) in April 2008. Ever since its launch, the ECXi has been providing re-calibration training for samplers, roasters, sorters and cuppers. Furthermore the institute has been providing short-term training on the foundation of the commodity exchange to regional up-and-coming exchanges.
Location
ECX’s headquarter is located in Addis Ababa, Ethiopia; with 19 delivery centers and 60 warehouses around different regions of Ethiopia; and with 6 e-trading centers being built around the country.
Organization Goals & Objectives
In order to increase efficiency, growth and influence the exchange has:
Launched the eTRADE Platform
The eTRADE Platform was officially launched on October 8, 2015. It has the capacity to trade nearly 5,000 times more transactions than its counterpart “Open Outcry” or “Pit Trading” platform. The eTRADE platform was entirely developed by the exchange over the past two years and it has dramatically increase trade efficiency, transparency and accessibility. The eTRADE Platform saw its soft launch on July 20, 2015, by introducing local washed/unwashed byproduct coffee trades.
Thus far, a total trade volume of 2,390 MT has been traded on the platform with a trade value of ETB 120 million (US$5.7 million). The platform facilitates the increase in the number and types of commodities being traded at the exchange, which in turn enables a wide range of farmers to benefit from trading through the exchange.
Launched the ECX Institute
The Ethiopia Commodity Exchange launched the ECX Institute (ECXi) in April 2008. Ever since its launch, the ECXi has been providing re-calibration training for samplers, roasters, sorters and cuppers. Furthermore the institute has been providing short-term training on the foundation of the commodity exchange to regional up-and-coming exchanges.
Building of remote eTRADE centers in Hawassa, Nekemte and Humera
Construction of three regional e-trading centers in Hawassa, Humera, Nekemte is in progress. In addition, four other regional trading centers across the country will be constructed in the near future. The platforms will increase efficiency, provide capability to trade other commodities, and enhance the ECX’s overall service offerings while building stakeholders’ capacity.
Launched Traceability System
Buyers of commodities have become more discerning and willing to pay for quality, environmentally friendly and origin-specific commodities. Additionally, international buyers are increasingly demanding transparency and accountability within supply chains, so as to ensure the quality, consistency and safety of their products.
To meet these demands, the ECX in collaboration with USAID and IBM, has launched the ECX traceability system. The system will encompass over 5 million smallholder farmers engaged in producing multiple commodities traded at the ECX. The system, which will begin by piloting with coffee, is expected to increase exports of high-quality Ethiopian coffee worldwide and enhance market access for specialty coffee from Ethiopia. The implementation of the system will encompass a wide array of new initiatives, including electronic tracking of bags, innovations in washing and processing, and streamlined storage and transportation processes.
Leaders
Ermias Eshetu, Chief Executive Officer
Ermias Eshetu has been the CEO of the Ethiopia Commodity Exchange (ECX) since January 2015. Mr Eshetu has over 20 years of technical and leadership experience working for Fortune 500 and multinational companies, including IBM, Alcatel, Orange and MicroStrategy. In addition to his leadership experience, Mr Eshetu brings a wide range of technical expertise in the areas of software engineering and business intelligence, solving complex business problems and implementing business solutions in line with clients’ corporate strategies. Prior to joining ECX, he held various posts including Board Director, member of the Executive Management team, and most recently, served as Vice President for Marketing and Corporate Services at Zemen Bank, a successful Ethiopian bank founded in 2007. He received his Master’s degree in International Business from the Manchester School of Management and a Bachelor’s degree with honors in Computation at UMIST, in the United Kingdom. His educational background, global leadership and professional experience make Mr Eshetu the right leader to formulate and execute an innovative and differentiating strategy, pushing ECX into new levels of performance and growth opportunities.
Shimelis Habtewold, Chief Compliance Officer
Shimelis Habtewold is responsible for the overall compliance management of the exchange. His responsibilities include: formulating and amending the rules of the exchange, ensuring member and exchange compliance with applicable rules and regulations, and liaising with regulatory bodies. He has over 17 years experience in law enforcement, drafting legal documents and compliance matters in Ethiopia. Prior positions include Public Prosecutor, Deputy Assistant Attorney General and Head of Civil Affairs Department at the Federal Ministry of Justice, Manager of Rules & Regulations unit at the ECX. He gained an LLB from the Law Faculty of Addis Ababa University (July 1995) and LLM in Administrative & Constitutional Law from the Amsterdam Law School of Amsterdam University (January 2005).
Tedla Kebede, Chief Information Officer
Tedla Kebede is the Chief Information Officer of the Ethiopia Commodity Exchange and is responsible for setting the overall IT strategy of the ECX and implementation of IT solutions deployed for the attainment of the ECX’s strategic objectives. He has over 13 years of experience related with information technology. Prior positions include Application Development Manager at ECX and Senior Computer Programmer at USAID/Basic Education Project. He holds a Bachelor’s degree in Computer Science from Addis Ababa University.
Abenet Bekele, Chief Strategy Officer
Responsible for strategy planning, member development, product development and member client relations, Abenet Bekele has more than 14 years of prior experience in hospitality financial management, commodity trading management and strategic planning. He has an MCOM in International Business Operations from Indra Gandhi National Open University, and BA in Marketing Management from Addis Ababa University.
Belay Gorfu, Chief Finance Officer
Belay Gorfu joined the ECX in April 2013 and is currently responsible for the treasury management and budget control, financial accounting, procurement and stores management and general services of the exchange. Major prior experiences include being the Vice President of Finance, Director of Office of Strategy Management, Manager of Corporate Communications and Advisor to the President with the Commercial Bank of Ethiopia, and Purchasing Supervisor with the Ethiopian Electric Power Corporation. Mr Gorfu has obtained an MBA degree in International Banking and Finance from the University of Birmingham, UK, a Postgraduate Diploma in Marketing of Services from the Maastricht School of Management, in the Netherlands, and a BA degree in Business Management from Addis Ababa University, Ethiopia.
Mehateme Kebede, Chief Human Resources Officer
Mehateme Kebede has been the Chief Human Resources Officer of the ECX since February 3, 2014. He is responsible for HR modernization, recruitment services, HR operational services, strategic HR business advice, the integration and coordination of corporate HR activity, and organizational development and performance management. He has over 23 years experience, including in corporate HR and facility management at the Ethiopian Road Construction Corporation, and being the Ethiopian Roads Authority’s Organizational Reform Program Director. Mr Kebede holds an MBA from the Durham University, UK, and BA in Management from Asmara University.
Behailu Nigussie, Chief Operation Officer
Behailu Nigussie is the Chief Operation Officer of the Ethiopia Commodity Exchange, and is responsible for providing strategic leadership to the Operation Division that includes Trading Operation and Clearing and Settlement. He has over 13 years of experience in business operations. Prior experience in the financial service industry is focused on domestic banking operations and in the ECX’s operation. Prior positions at the ECX include Deputy Manager Clearing House, Manger Clearing House and Acting Chief Operation Officer. Mr Nigussie has obtained an MA degree in Marketing Management and BA degree in Business Management from Addis Ababa University, and a diploma in Banking and Finance from Addis Ababa Commercial College. He is a Certified Project Management Professional by the International Project Management Institute.
Staff/Members
The ECX has 800 staff and 346 members
Highlights
Date Activity
April 2008 Start of Trade
2008 Maize
2008 Whitish Pea Bean
2008 Wheat
2008 Coffee
2009 Sesame Seed
2014 Green Mung Bean
Oct 8, 2015 Launch of eTRADE Platform
2015 Coffee Consolidation
June, 2014 ECX Institute
2016 Red Kidney Beans
