(Ecofin Agency) - The Ministry of Mines and Petroleum, in collaboration with the Ethiopian Commodity Exchange, signed a Memorandum of Understanding (MoU) for the introduction of strategic minerals on its trading platform.

The MOU was signed between the head of the Ethiopian Commodity Exchange, Wondemagegnhu Negera, and Eng. Takele Umma, the Minister of Mines. According to the latter, ‘the partnership will better facilitate international trade by enhancing supply, reducing illegal trade, and creating sustainability.’

Stipulated on the MOU, both parties agreed to work hand in hand on international standards of the products and contracts, and as well build trading, standards, models, market linkage and tracing, processing rules, and directives for the national mineral trading scheme. Minerals such as opal, emerald, sapphire, tantalum, lithium, potash will be developed by experts and laboratories from both organizations.

It should be noted, however, that illicit trade remains a major challenge faced by the country’s mining sector. The Ministry of Mines, in collaboration with relevant stakeholders, launched a campaign to create awareness on the adverse effects of illegal mineral trade typically among communities.

Launched in 2008 to improve the efficiency of the country’s trade, the Ethiopian Commodity Exchange plans to expand the range of commodities it trades as well as introduce metals, stocks, and bonds as part of its short-term growth.