The Impacts of Commodity Exchange System in Emerging Economies: The Case of Ethiopian Commodity Exchange

The Ethiopian Commodity Exchange (ECX) was established with a vision to revolutionize the agricultural commodities supply chain through an efficient, dynamic, forward-looking and orderly marketing system. The objective of the study is to assess the opportunities and challenges faced by members of the agricultural product exporters and to study the market efficiency of the ECX in trading major agricultural commodities. Descriptive analysis is deployed using primary data collected through the survey. The majority of the respondents are satisfied with the setup of the trading platform at the ECX floor and the opportunity it brings to them such as access to the market, reduction in their transaction costs, access to an increased flow of market information, enables quick capital turnover, stable commodity value chain and increased volume of commodities traded. However, the majority of the respondents have raised concern on grading, weighing, sampling and conformity test services provided by ECX.