The government of Ethiopia has decided that trading of all pluses and other commodities should be only through the Ethiopian Commodity Exchange (ECX) as part of curbing the growing contraband business.
“Exchanges at the ECX will remain critical for controlling contraband trade among others,” ECX Corporate Communications Manager Netsanet Tesfaye told journalists on Thursday, 15 August 2019.
All stakeholders, including the country’s ministries of Revenues and Trade & Industry, will follow up the implementation of the trading of commodities, including Niger and cotton, in accordance with the new decision made by the government.
The increasing demand from the global market for the stated commodities was another important criterion for the commodities to be traded through ECX, the manager said.
Ethiopia loses not only foreign exchange earnings but also its commodities due to contraband trade, facing fierce competition from Kenyan exporters who managed to get Ethiopia’s products via contraband trade.
Revenues Minister Adanech Abeebee recently said contraband trade and illicit financial flow continue to be serious national security threat to Ethiopia, causing shortage of foreign currency for many years.
The Ethiopian Customs Authority days ago claimed it seized over 71 million dollars’ worth of contraband goods during Ethiopia’s last fiscal year which ended on 7 July 2019.
In a statement, the country’s Ministry of Trade and Industry said it will sign contract administration with exporters requiring them to disclose the quality, price, and exporting time of their commodities as part of the government’s effort to fight the contraband trade.