Factors Affecting Sustainability of Ethiopian Commodity Exchange (ECX)

The Objective of the study was to identify factors affecting sustainability of Ethiopian Commodity Exchange (ECX). The company highly constrained its` sustainability due to the problem of unable to meet its core function, political interference and limited studies on aggregate agriculture commodity tackled part of the institutional problem. This study provided clear information for policy makers, ECX management team, stakeholders, customers and related sectors with ECX. The study was applied on Ethiopian Commodity Exchange at Addis Ababa head office to address ECX officials and ECX members to get reliable data. The study used both qualitative and quantitative approach during data collection survey. The sampling design used was a descriptive, unstructured and semi structured questionnaire to access through email and hard copy by using simple random technique 208 representative sample respondents from the target population 437 was selected. The data was analyzed using descriptive analysis ,and logistic regression model. Results indicated that political instability, staff turnover, vertical integration trading and fixed price discovery has the most significant and negative relationship on the sustainability of ECX variables. Also automated technology adaptations, enable market competition and quality certification and grading, found to have significant positive effect on sustainability of ECX. The logistics regression results also indicated that market information was insignificant with respect to the model. But the effect of this variable was assured by descriptive statistics above the midpoint. The finding of the study indicates that ECX failed to be competent on price determination and vertical integration trading. Finally, based on the findings of the study, recommendations were made for ECX officials, ECX members and government body on factors affecting sustainability of ECX