ECX splits into two
By Dawit
Taye
September
05, 2015
The
Ethiopia Commodity Exchange (ECX), the first organized exchange in Ethiopia, is
set to split into two giving rise to another state-owned enterprise called the
Ethiopian Agricultural Commodities Warehousing Service Enterprises (EACWSE) which will be in business of
providing an innovative warehousing services to ECX and other customers in the
market.
The company will be
the latest to be incorporated as SoE under the supervision of the Privatization
Public Enterprises Supervisory Agency (PPESA) which is established with an
authorized capital of one billion birr and paid up capital of 250 million
birr.
Ermias Eshetu, CEO of
ECX, told journalists at a press conference on Thursday that the international
experience dictates that the two services be separated from one another to
facilitate the activities of the trading institutions. And from the context of
the local market, the warehousing service was also one of the components of the
commodity trading which drew frequent criticism from customers.
Apart from offering
storage services, the warehouse segment was also responsible for assigning
quality grading for the commodities which are traded at the ECX floor. This
grading service of ECX has long been criticized for severe malpractice and
possible rent-seeking practices. Buyers collecting lower grade commodities is
one area which is commonly criticized by customers.
According to the
statement that was issued by ECX, the new enterprise will take away some 600
out of the total 750 employees who worked under the Exchange. This is justified
since the warehousing service is a segment that operates 65 facilities across
the country and ECX will be left with only 150 employees to operate the
commodity's trading activities. Going forward, Ermias said, EACWSE will not
restricted to serving ECX but offer competent warehouse services for customers.
However, some customers express their worry that the new arrangement might
cause a hiccup on the activities of ECX, which Ermias defends saying adequate
preparation has been made.
As the person who researched and investigated, developed and refined the roadmap for ECX that caused them to identify areas within the organisation that required independence from each other in order to function efficiently and transparently, I support and applaud the steps that have been taken.
ReplyDeleteChanges have been made to my plan of course, a new CEO possesses different views on development, but the core of the model remains to be subjected to the tests of change, trade and time.
Having moved on since producing the roadmap to assist other businesses in developing countries I often and fondly look back on working with ECX as one of the highlights of my career and hold the organisations dedicated staff in the highest esteem.
Great work, Sir! Thanks for the note.
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