FAO gave ECX 50,000 USD (2.5 million birr) in support of the initiative to incorporate wheat at contemporary trading system and provide warehouse receipt financing (WHRF) services, using money acquired from Italian cooperation Agency- AICS.
Wheat was one of the two crops traded when the Commodity Exchange was in operation 15 years ago, and it is now back on the platform due to efforts being made at the federal level to increase output and productivity. The Ethiopia Commodity Exchange (ECX), with the financial assistance of the Food & Agriculture Organization of the United Nations (FAO), is working to include Wheat in this contemporary trading system.
The FAO issued funds were used by ECX to carry out significant initiatives related to contract formulation, stakeholder deliberation, awareness-raising campaigns, the provision of educational and communication materials, and similar activities. This crucial assistance from the FAO enabled the Exchange to carry out its plan and acquire the necessary setups for the introduction of wheat trading into the ECX system.
Farmers and suppliers can deposit the grain at one of the 25 branches of the Exchange, which can be expanded to more sub-branch locations using union facilities, when the ECX begins trading wheat. They will also be able to take advantage of the fast and dependable clearing and settlement system, get real-time market information on wheat trade, and use the warehouse receipt financing system to obtain short-term loans.
The FAO is thanked by Ethiopia Commodity Exchange for helping to make wheat tradeable on its trading platform.