Fortune News | Mar 25,2023
A seat at the Ethiopian Commodity Exchange (ECX) has attracted a record high offer after a businessman bid eight times higher than the threshold value set by the Exchange.
Kebede Belema has placed 8.15 million Br for an intermediary membership seat with the ECX during an auction held on November 2, 2021. Held at the headquarters of the ECX, on Chad Street near Mexico Square, 93 bidders showed up to secure 30 intermediary seats. These seats allow members to trade on their own account and at the behest of clients, unlike trading seats that let members trade only on their accounts.
Both kinds of membership seats can be transferred three years after acquiring. The Exchange has 366 member seats and trades 15 agricultural products.
The last time the ECX offered seats was in 2018, when the highest bid was recorded at 3.5 million Br.
The ECX offering seats for buyers indicates it has plans to increase the trading volume and include additional commodities on its trading floor, observes Anwar Mohammed, an expert who specialises in the commodity market. It has plans to incorporate four spices into its trading platform, according to people familiar with the Exchange market.
The ECX facilitated the trading of 614,586tn of commodities worth 39.6 billion Br last year.
Traders at ECX transacting through intermediary members pay a maximum brokerage fee of two percent of the trade value.
The value of the seats had increased considerably from the initial bidding price of 50,000 Br when the ECX first floated seats 14 years ago. Bidders for intermediary seats have to provide proof of assets valued at one million Birr and deposit 100,000 Br required in a bid bond.
Owning a seat helps exporters reduce the costs associated with trading at the Exchange, according to Bahiru Awol, a major shareholder of Bezhan Trading Plc. A company engaged in importing building materials and the export of coffee, Bezhan Trading had been supplying coffee to the ECX through intermediary members.
Bezhan Trading has made the second-highest offer for an intermediary seat at 8.12 million Br.
The third-highest offer, 7.1 million Br, was put forward by Mihret Aseres, a businessperson. The lowest bid was 3.8 million Br.
For Anwar, who has consulted five companies on the auction, the latest offers are not as high as he had expected.
PUBLISHED ON Nov 06,2021 [ VOL 22 , NO 1123]
Fortune News | Mar 25,2023
Fortune News | Jul 17,2022
Fortune News | Jan 29,2022
Radar | Sep 14,2019
Radar | Mar 27,2021
Fortune News | Oct 16,2021
Fortune News | Apr 16,2022
Radar | Apr 06,2019
Fortune News | Jan 15,2022
Feb 24 , 2024 . By MUNIR SHEMSU
Abel Yeshitila, a real estate developer with a 12-year track record, finds himself unable to sell homes in his latest venture. Despite slash...
Feb 10 , 2024 . By MUNIR SHEMSU
In his last week's address to Parliament, Prime Minister Abiy Ahmed (PhD) painted a picture of an economy...
Jan 7 , 2024
In the realm of international finance and diplomacy, few cities hold the distinction that Addis Abeba doe...
Sep 30 , 2023 . By AKSAH ITALO
On a chilly morning outside Ke'Geberew Market, Yeshi Chane, a 35-year-old mother cradling her seven-month-old baby, stands amidst the throng...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...
Mar 1 , 2024
In the corridors of the Ministry of Finance, on King George IV St., a recent visit by...
Feb 24 , 2024
The recent policy pronouncement by the Transport Minister, Alemu Sime (PhD), of a pla...
Feb 17 , 2024
In the vast auditoriums of Addis Abeba, far from the era when flamboyant figures like...
Feb 10 , 2024
In a last week session before Parliament, Prime Minister Abiy Ahmed (PhD) was seen ad...
I have noticed that many of my acquaintances, including myself, lean towards an American accent that might be linked to the schools we atten...