The Ethiopian Ministry of Trade and Regional Integration (MoTRI) has introduced a new mandate requiring that all payments for export crops grown under contract and investment farming be routed exclusively through the Ethiopian Commodity Exchange (ECX). The circular, issued on December 3, 2025, focuses primarily on oilseeds and pulses and will take effect from December 10, 2025, aiming to foster transparency and improved market regulation.
Under the new system, exporters must deposit the full purchase price for their oilseed or grain products into a designated ‘Pay-In’ bank account established by ECX. Upon a joint written request from both the buyer (exporter) and seller (producer), ECX is obligated to transfer the agreed payment from the ‘Pay-Out’ account to the supplier’s bank account the next business day.
This reform represents a fundamental shift from the earlier model, stipulated in Directive No. 929/2015, which required crops to be weighed and verified at ECX delivery centers but permitted direct bank payments between exporters and suppliers. By centralizing payments through ECX, the government intends to eliminate loopholes in the previous system.
Industry experts welcome this development, noting that previous contract and investment farming programs operated under a less regulated framework compared to Ethiopia’s standard direct trade system managed by the Ministry of Commerce. Typically, exporters would weigh products at ECX but then handle storage and payments independently, which the new directive seeks to change.
“The financial transaction now routed through ECX provides a powerful monitoring tool,” said an industry analyst. The system links payment directly to accurately weighed and registered product volumes, effectively preventing practices like overreporting production or undervaluing exports for tax evasion.
Centralizing payment through ECX also addresses frequent payment delays historically faced by producers, ensuring suppliers receive timely and guaranteed payments. This reinforcement of the direct and pre-agreed relationship between producers or cooperatives and exporters aligns with the central goal of contract farming programs.
The structured procurement model assured by this policy also helps validate legitimate producers, ensuring farmers themselves, rather than unauthorized middlemen, benefit directly.
MoTRI emphasized that the measure aims to curb illegal trade activities, ensure accuracy in export data, foster a fair and competitive trade environment, and ultimately bolster foreign exchange earnings from vital export crops like oilseeds and pulses.
