Robert B. Zoellick, President of the World Bank, praised the Ethiopian Government's efforts to boost the private sector when visiting a commodity trading center that will help poor farmers and consumers. The president, who arrived last Sunday, January 31, to attend the 14th African Union (AU) Summit stayed for three days and held discussions with some of the African heads of states. He also visited some of Ethiopia's development projects, such as the recently established commodity trading centre, the Ethiopian Commodity Exchange (ECX) and a leather processing company on Tuesday, February 2.
Eleni G/Medhin,(PhD) CEO of ECX, briefed him about the workings of the commodity exchange centre and its public service. Poor quality products and the old, poor marketing system coupled with volatile prices had been affecting the general public and the country's foreign earnings, which prompted the government to establish the ECX, a modern trading centre, Eleni explained.
The I.T-based marketing system is now providing real and up-to-date prices of commodities, which have been alerting the poor farmers about price values of their products, Eleni said. The old system didn't allow farmers to know real time prices of their crops, instead brokers and traders had been benefiting much more than farmers, Eleni told the president, emphasizing the centre's significance.After visiting the companies, Zoellick had a video conference with African journalists who forwarded many questions related to the continent's poor economic progress, agricultural development and about the increasing rate of unemployment. The president recognized the challenges specified by the journalists. Weak economic policies and conflicts are some of the factors responsible for the economic problems of the continent, according to the president. But, he repeatedly mentioned the good performance of the companies he visited during his stay in Ethiopia.
"A young entrepreneur who just graduated from a university has set up a company that gives opportunities for 50 permanent employees and for 100 extra daily laborers," he informed the video conference. This is what other African countries should follow to create an environment in the private sector that will minimize their unemployment challenges, Zoellick said. He also took the example of the leather processing company he visited in Ethiopia to show how other agriculture-based countries can expand their economic bases. He recognized the jobs created by the AU and regional groupings' support for economic development of the continent, but he expected more from the regional groups to support the AU's effort towards peace and security activities, which has a large significance for economic growth.The bank will strengthen its relation with all African countries through policy assistance and financial support, Zoellick said, confirming what he had said at the AU summit. He told African leaders gathered in Addis Ababa about WB commitments to assist Africa. Since the economic crisis hit in the middle of 2008, all units of the bank have committed 88 billion dollars to all clients of the bank, out of which Africa has received 36 percent more than the previous year, he told leaders. The International Financial Corporation (IFC), a member of the bank's group that was recently created, is an asset management company that will raise and manage private equity funds to co-invest with IFC, he said.
"In 2007, I worked with you to generate 42 billion for IDA, and thank God we did it. More than half of that money goes to you. Help me help you," he urged the heads of states.
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