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Ethiopia exchange, government to sell food aid to fund electricity projects

Note from Wondwossen:

Ethiopia's government's lack of decency has reached a new low, thanks to the rulers' addiction to food aid. The government and ECX have now shamelessly resorted to monetizing the food aid that was meant for the destitute and hunger-stricken millions of Ethiopians.

The government and ECX are in discussion "to sell surplus food aid to improve the country's electricity supply." In other words, they want to snatch the food aid from the dying souls to fund electricity projects, such as the one that they call the "Grand Ethiopian Renaissance Dam" project. This is shameful, outrageous, and immoral.

First, it is a hoax to state that there is surplus food aid in Ethiopia while more than 15 million people are starving and millions more are barely making ends meet. If there is demand for the food aid that the government is going to sell, then what we have there is scarcity, not surplus. On the flip side, if there is surplus, then the government should either not accept any more of aid or deplete its stock by distributing it to the needy. It is shameful to beg the  world in the name of Ethiopians and make money off of it.

Secondly, putting the lives of starving children, men, and women on the line for the sake of funding a controversial dam project while the well-connected few thrive is outrageous and immoral.

Whatever happened to humanity, morality? That escapes me.

Read the shocking news buried in the following report by Aaron Maasho of Reuters.

 - Wondwossen
-----

Ethiopia exchange eyes food aid in expanded trade

By Aaron Maasho

June 21, 2012

ADDIS ABABA (Reuters) - Ethiopia's commodity exchange wants to increase trade in maize and wheat by including some of its imported food aid and to offer additional items such as sugar, its chief executive said on Thursday.

"We are currently in discussions with the government about how to take on a much bigger way maize and wheat trading in the country, including monetisation of imported food aid into the country through the exchange," Eleni Gabre-Madhin told reporters.

Eleni did not elaborate on how this might work when asked for details, but a system to allow the government to sell surplus food aid would permit it to raise funds for initiatives such as drilling boreholes for water or improving the country's electricity supply.

"We have been also in discussions about, to some extent, sugar trading and further fruit crops as well," she said.

Africa's biggest coffee producer has big plans to boost agricultural output by 2015, including coffee volumes to 700,000 tonnes.

Its ECX commodity exchange, launched in mid-2008, also wants to expand. It currently trades coffee, maize, sesame and white pea beans through an open cry system.

It announced plans last year to trade sorghum, chick peas, lentils and niger seeds by expanding warehouse facilities, and to introduce forward and future contracts within three years in a bid to tackle hoarding which has affected the coffee market.

Eleni, who leaves her post to take on an advisory role in September, said planning for forward and future trading had stalled.

"The policy dialogue (on future trading) was a bit stalled partly because of the various crises that keep occurring in the broader market globally and over fears that the design would have to really be cautious here in Ethiopia," she said.

"For the moment that project is on hold."

The exchange had a trading value of $1.5 billion and links over 2.4 million farmers through its information system.

Traded volumes reached 608,000 tonnes in the last fiscal year, up from 502,000 tonnes the previous year, according to company figures.

The government is forecasting a rise in coffee export revenues to $1.3 billion from last year's $841 million, when output rose to 7.50 million 60-kg bags. The International Coffee Organisation (ICO) has forecast Ethiopia's crop at 8.3 million bags.

Exports reached almost 200,000 tonnes last year, but have faltered with just 75,000 tonnes shipped in the first eight months of this fiscal year which ends in July.

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