Ethiopia Commodity Exchange said it has facilitated more than Br1bn in credit to farmers, cooperatives and traders under its warehouse receipt financing scheme, as authorities step up efforts to widen access to formal finance in the agricultural sector.
In the 2024/25 FY, 375,892.77 quintals of commodities were pledged as collateral, enabling loans exceeding billion birr through banks working in partnership with the exchange.
In the current fiscal year, 240,809 quintals of various agricultural products have so far been used to secure more than 914.2 million birr in credit.
The warehouse receipt system allows producers and traders to deposit commodities in certified warehouses and use the receipt issued as collateral to obtain bank financing. The mechanism is designed to ease liquidity constraints by enabling borrowing against stored produce rather than requiring fixed assets.
The exchange has also begun accepting malt barley into its modern trading system. In 2025/26, it received 1,879 quintals of malt barley produced in Lemu and Bilbilo districts of Arsi Zone, Oromia region, at its Adama branch for the first time.
Malt barley is cultivated mainly in Ethiopia’s highland areas and is used as an input for the brewing industry. Expanding its inclusion in the exchange’s trading and financing framework is intended to support domestic supply chains and reduce reliance on imported brewing inputs.
The warehouse receipt framework operates under Proclamation No. 372/1996. This week, the Council of Ministers approved a regulation to facilitate its implementation, providing additional legal backing for the expansion of the system.
The commodity exchange said it plans to continue strengthening the warehouse receipt financing service to improve financial access for farmers, cooperatives and aggregators participating in the formal trading system.
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