Ethiopia Commodity Exchange (ECX) is in the process of giving out warehouse receipts to traders to use as collateral when they need short term loans from the banks. The new service expected to begin this fiscal year, has not yet gone over their plans with stakeholders. The following will be written on the ECX warehouse receipt: the serial number, name and location of warehouse, license number, date of receipt and duration of storage, name of commodity, quantity, quality, grading and standardization.
The loan amount depends on the nature of the commodity, its market price and minimum support price. The bank gives the loan if the collateral manager approves the stock in storage.
The depositor endorses the warehouse receipt in favor of bank and takes a loan against the commodity. Once the bank receives the loan from the buyer, the commodity can be released.
Wendemagen Negera CEO of ECX said the system will allow ECX’s traders to find another financial option for their business.
“Usually land tittle deeds and vehicles are used for collateral when business people need loans from banks but with different agricultural products including sesame and coffee that are stored and traded in our stores have values and can be used for collateral for bank loans.”
“Now we are working to use the stored products as a collateral which I expect to happen soon.’’
Currently ECX uses the stored products to transact with buyers and sellers.
In related news ECX signed an agreement with Abay Bank to allow commodity buyers and sellers to transact through the bank.
Abay is the 15th bank to work with ECX on these issues.
At the signing ceremony Yewhala Gesesse, Abay Bank President said the deal will enable traders use financial services easily.
“We are happy to serve ECX traders to use our banks for their transaction and we will serve them to facilitate there work in efficient ways. “
Currently Abay Bank has 167 branches across the county while ECX has 52 stores in the country and it has planned to build five stores in this fiscal year.
ECX warehouse receipt can be used as collateral
Ethiopia sees highest number of internally displaced persons in first half of 2018, report says
Ethiopia has seen the highest number of people forced to flee their homes within their country in the first half of 2018, according a report by the International Displacement Monitoring Center (IDMC).
According to the 2018 Global Report on Internal Displacement, conflict has uprooted some 1.4 million Ethiopians from their homes since the start of the year, according to the report. This has been largely due to ethnic clashes in Gedeo and West Guji region in southern Ethiopia, and continued violence in the Oromia-Somali border region.
“It is sad that 1.4 million people fleeing violence isn’t making global headlines. The world has turned a blind eye to Ethiopia,” warned Nigel Tricks, Regional Director of the Norwegian Refugee Council (NRC). “Families we’ve met who have fled fighting are living in dire conditions, and dismal international funding is being channeled to help them.”
The report points out that the government and aid agencies are working hard to respond, but with around one million newly displaced people in Gedeo and West Guji sheltering with host communities and in overcrowded communal shelters, food provision, water and health services are stretched beyond capacity. The affected area was already one of the most densely populated parts of Ethiopia, with the influx of people now doubling the population in some areas. The current rainy season is also worsening peoples’ living conditions and hindering the humanitarian response.
“People tell us they are keen to return home, but they fled with nothing and need to know they can access support to rebuild their lives. It’s important that any returns are voluntary and sustainable. Families must also be confident of the safety of areas before moving back,” said Tricks.
Violence also continued to flare in the Oromia-Somali border region, with 200,000 people fleeing their homes in the first half of the year. Another 500,000 people fled clashes in the last quarter of 2017. Nearly all areas along the regional border have been affected. The region has been hard hit by food shortages, which has compounded the crisis.
According to the IDMC, with 30.6 million internal displacements in 2017, which is the equivalent of 80,000 people displaced each day, it’s time for an honest conversation, led by affected countries and with support from the international community, on the most effective ways to turn the tide on internal displacement.
Noah introduces new scheme for home buyers
One of the most reliable real estate developers, Noah Real Estate plc, announced the introduction of a new residential and office housing scheme for locals and the Diaspora.
The company has an innovative platform which has helped change a sector that is vulnerable and frequently suffers from unreliability because they have been able to deliver homes on time and in line with their contract.
At a press conference on Thursday September 13 a manager for the company said that despite challenges like price hikes on materials used for building homes, like steel, the hard currency shortage, difficulty securing land from the city administration, and troubles accessing water meters and power from the government it has achieved remarkable success over the past year.
In relation to their recent transfer of 120 residential homes at Noah East Gate Apartments the real estate developer stated that it will come up with new business platforms to expand access to homes for citizens and the Diaspora.
Abiy Hailemariam, a manager at Noah, said that his company will come up with a mortgage scheme with partner banks. “The new scheme will allow home buyers to pay off their homes over 20 years,” he added.
Because there has been significant political change and stability lately, more Diaspora want to own property in the country, the company’s management said. To encourage this Noah is offering a ten percent discount for diaspora.
They also plan to offer a lease to own housing scheme. “With the goal of stabilizing the housing sector we plan to offer 100 homes via a rent to purchase option initially,” Rateneh Fassil, a company leader, stated. They already have 60 homes that are ready to be purchased with this option.
This is the second time in five months the company has transferred homes. This ceremony was held in Summit.
Recently the company has transferred 226 residential houses located at Atlas Hotel area, in the central part of the city. The 120 homes transferred today were located in eastern part of the city.
The company mainly focus on constructing houses before they are sold. So far they have built 3,600 homes in 14 projects. This fiscal year they plan to finish five projects.
The company leaders say more incentives are needed to reach lower income buyers like tax exemptions and duty free schemes and if they did this the price of homes would decrease.
They argued that the government has not provided land to real estate developers over the last 12 years. “We are securing plots from individuals through partnerships for the development of office and residential apartments,” Ratenew said. He claimed that if the government provides plots in the capital the rate may go down. According to the real estate developers, the minimum price for a house is one million birr.
Ethiopia in a do-or-die showdown against Sierra Leone today
After prepping for 26 days and then playing an international friendly match with Burundi, which they tied 1-1, the national team coach Abraham Mebratu pruned down his list of players to 23. Today is the second round of the group stage showdown in the 2019 African Cup.
The three foreign based players: Shimeles Bekele (Petro Jet), Oumed Oukri (Samouha), Gatoch Panom (El-Gouna) and Binyam Belay (Albanian Secenderbu Korsi) are expected in the starting lineup.
Taking in to consideration the starters in the match against Burundi, Abraham in his debut international home fixture appeared to line up a 4-4-2 formation comprised of the three internationals. Samson Assefa (Diredawa) between the woodworks, the back four were all stars from Saint George: Salhadin Bargecho and Aschalew Tamene in central defense while the full backs Henok Adugna and Abdulkerim Mohammed the right and left full backs respectively.
The formation is likely to be four midfielders and a diamond. Gatoch Panom is in the defensive midfield, Shimeles Bekele in a free role, Mulualem Mesfin and Binyam Belay in the wings.
It appears they will share the huge burden of the do or die showdown.
The most important department the strike force is to bring together Ethiopian most expensive players (Saint George) Getaneh Kebede to pair with Oumed Oukri or his team mate at Dedebit Abel Yalew.
Whatever the formation or the poor preparation Abraham needs to mount a win by all means for a home defeat to Sierra Leone could mean the last hope to Waliya’s recovery from the shocking 5-0 away defeat to group favorites Ghana.
Though second in the group table with three points Sierra Leone lacks a league soccer that hampers their quest for a place in the cup final, all the squad members are foreign based players amongst them, Amaoudu Bakayako (Coventry City), Alhadgi essay (Bristol City), Osman Kakay (QPR) to mention a few. The group leader Ghana visits Nairobi to face third in the table for goal differences Kenya.
