Ethiopian govt brings new laws for exporters to combat contraband business

The Ethiopian government has contemplated to ensuring all trading of all pulses and other commodities take place only via the Ethiopian Commodity Exchange.

The government of Ethiopia has taken this decision to curb the increasing contraband business. The government has made the declaration citing that all stakeholders including the nation's ministries of Revenues and Trade and Industry will have to abide by the implementation of the trading of commodities including Niger and cotton in accordance with the new decision recently made.

The Communication Manager of Ethiopian Commodity Exchange (ECX), Netsanet Tesfaye has sent the Ethiopian government's message through the media persons on August 15 saying "the increasing demand from the global market for the stated commodities was another important criterion for the commodities to be traded through ECX."

Due to the rising contraband business and illegal imports, the East African country has made severe loses in the foreign exchange trades including its commodities, resulting in huge competition from the Kenyan exporters who were able to get Ethiopia's products via contraband trades.

Some days back the Ethiopian Customs Authority revealed that it had seized more than USD 71 million worth of contraband materials during the country's last financial year that completed on July 7, 2019. According to the statement released by Ethiopia's Ministry of Trade and Industry, a contract will be signed with exporters that will compel them to reveal the price, quality and exporting time of the commodities to the government. The exporters will have to cooperate with the government in its combat against the contraband business in the country.

On the other hand, ECX has recently shared its experience in modern trading systems to Mozambique Commodity Exchange and Reserve Bank of Malawi's senior officials between August 13 and August 15. The topics included compliance, warehouse, quality and trade operations, trade and warehouse surveillance, clearing and settlement and business information dissemination.

ECX further revealed its plan and effort to establish its own ECX Academy in the current financial year. The intention is to strengthen well-designed and tailored trainings to the local traders, cuppers, baristas including staff of the African Exchanges.

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