Addis Ababa August 14/2019 All pluses and other commodities which are trading through the Ethiopian Commodity Exchange (ECX) are set to be mandatory starting from this Ethiopian budget year, according to the authority.
In an exclusive interview with ENA, ECX Corporate Communications Manager Netsanet Tesfaye said the trading of all pluses through the authority starting this Ethiopian budget year will help combat contraband.
Exchanges at the ECX will remain critical for controlling contraband trade among others, he said, adding that at present “ Ethiopian red pluses are for instance exported by Kenya after passing various processes as we allowed some exporters and suppliers who requested to sell the commodities left at their hands.”
“Hence all pluses and other commodities will be traded at ECX beginning this Ethiopian budget year,” the manager underscored.
All stakeholders, including ministries of Revenues and Trade& Industry will follow up the implementation process in accordance with the agreements reached.
Niger (Nug) and cotton are, for instance, set to be traded at the Ethiopian Commodity Exchange (ECX) from now onwards.
The increasing demand from the global market for the stated commodities is the first criteria to go through ECX, as both commodities are among the top assets of the country for export.
Ethiopia loses not only its commodities but also the foreign exchange earnings that the country could secured due to contraband trade; while facing competition with its own products is also ironic, Netsanet pointed out.
Accordingly, contraband trade only targeted the pockets of individuals, while the country fails to benefit from legal tax related incomes.
Ministry of Trade and Industry Communication Director, Wondimu Filate said on his part one of the major targets to be executed this Ethiopian budget year will be managing export trade through contract administration.
The contract agreement requires from every exporter to include the quality, price, and exporting time of commodities, among others.
Commodities, which are tied up with ECX, under the law should act in accordance with the agreement before any exporting activities, Wondimu stated.
License checking activities will also be prioritized so as to effectively identify the right exporter from fake ones.
Mainstreaming the exchange system of the country will also “be critical at least to avoid competing with our own commodities exported from neighboring countries at the international market at lower prices”, the director noted.
The ministry plans to secure 4.69 billion USD from export at the end of this Ethiopian budget year.