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.
All stakeholders, including the country’s ministries of Revenues and Trade & Industry will follow up the implementation the trading of the 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 criteria 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 worth of contraband goods during Ethiopia’s last fiscal year which ended on July 7, 2019.
The country’s Ministry of Trade and Industry in statement 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.
MG/as/APA