ECX: Creating A New Ethiopia November 2015 Our dream To build a - - PowerPoint PPT Presentation

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Oct 27, 2023 343 likes •532 views

ECX: Creating A New Ethiopia November 2015 Our dream To build a world class institution signaling Ethiopias entry into the modern global market To achieve the New Ethiopia, embodying passion, innovation, professionalism, and

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ECX: Creating A New Ethiopia

November 2015

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 To build a world class institution signaling Ethiopia’s entry into the modern global market  To achieve the “New Ethiopia”, embodying passion, innovation, professionalism, and excellence Our dream

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Why ECX?

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POOR QUALITY VOLATILE PRICES HIGH CONTRACT DEFAULT UNRELIABLE TRADING PARTNERS POOR INFORMATION UNREGULATED ACTORS UNCOORDINATED MARKETS UNRELIABLE SUPPLY HIGH COSTS, HIGH RISKS

Because there was a problem….

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What was needed.. A Market Solution

 A more reliable way to connect buyers and sellers  An efficient way to discover market prices  Transparency: a way to level the playing field by providing market information to all  A way to incentivize better quality  A way to eliminate contract risk

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The Core Value Proposition

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Integrity of Product Integrity of Transaction Integrity of Actor

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 Membership based  Electronic Warehouse Receipts in warehouses located in rural areas  Trading on the basis of standard trading contracts  Market data (real time to rural electronic boards, mobile telephones, web)  T+1 Clearing and Settlement with partner banks  Market surveillance

The Design

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WAREHOUSE GOODS RECEIVING (QUALITY AND QUANTITY CERTIFICATION) MARKET DATA PROCESSING DATA CENTER MARKET SURVEILLANCE RISK MANAGEMENT CENTRAL DEPOSITORY OF WAREHOUSE RECEIPTS CLEARING AND SETTLEMENT TRADE ORDER MATCHING AND RECONCILIATION MEMBERS AND CLIENTS WAREHOUSES REGULATORY BODY PRICE TICKERS WEBSITE DATA FEEDS BANKS MEMBERSHIP MANAGEMENT

Integrated ECX Technology Solution

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ECX…Reaching for the Stars

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 Members: 450 Members, 11,200 clients, 12% farmer cooperative unions- 2.4 million small farmers reached  Trading: 2014-15: ~600,000 tons of commodities (coffee, sesame seed, pea beans, maize); US$ 1.5 billion trade value; ~120,000 transactions  Warehousing: 17 delivery sites; 55 warehouses; 300,000 MT leased capacity; ~5 million bags/year graded, handled, stored, and delivered

Since 2008: Growth with Excellence

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ECX Reach

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Where We are Today

 Clearing: 10 partner banks; 2014: ~16,000 Pay-in transactions from buyers and ~30,000 Pay-out transactions to sellers/year, settled by 11 am next day  Market data: Real and discrete time, push and pull technology:

 Prices transmitted in 2 seconds to 86 rural ticker boards  Website - 2nd most visited after SAFEX; 107 countiries IVR (call-in price update): 1.1 million calls/ month; 61,000 call-ins/day SMS (mobile push out): 256,000 subscribers

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Powerful Results

 Zero Payment or Delivery Default  Zero Trading Order Error  Zero System Down

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 Improved quality  better quality coming to the market; tripling of volume of top 3 grades of coffee in 18 months  Market transparency empowerment of small actors, convergence of local and national price, farmer share of final price up from 38% to 65%  Market inclusion  small actors access to national market  Informal to formal consolidation of small trading businesses

Signs of Transformation

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Recognition

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building markets, transforming lives

18 African high level delegations 3 Asian delegations 3 heads of state heads of WTO, World Bank, US State Dept, EU Commission, and many others

Visibility on global platform

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