It has now been a little less than a year since the eloquent and deep-seated Eleni Gabre-Madhin (PhD), gave birth to, and started to nurture and breastfeed the Ethiopian Commodity Exchange (ECX). For the record, it has been a wobbly year for the newborn.

Just before its first birthday is celebrated, the ECX seems to be transitioning from crawling to walking on both feet.

On February 17, 2010 the ECX launched the Direct Trading System (DTS) for specialty coffee.

Specialty coffee producing farmers are going to take the driver’s seat and become direct beneficiaries of their produce.

In a nutshell, farmers are going to be overjoyed with the new deal, since they will be the ones who will get the premiums. The credit goes to the ECX.

Some 12pc of small farmers in Ethiopia, about 850,000 farmers, have become involved in the ECX, which has had a “very dramatic impact” in the first year of its operations, which makes the first year a very successful one - a job well done. Now Eleni will see her baby grow to become a strong and fit kid in the macroeconomic village.

This is the positive impact of having a liberal market strategy that is benefiting the nation at large

But wait a minute, what about the abandoned and unwanted kid on the block, the stock exchange?

In fact, now is the time to start seriously considering the establishment of the Ethiopian Stock Exchange and commence its operations in an upbeat manner.

Preaching doom and gloom has always been the case with the Revolutionary Democrats and policymakers when asked about the fraternal twin of the ECX.

And the most confusing and almost amusing part of it is that when mentioning an Ethiopian Stock Exchange, the Prime Minister himself seems to be getting the heebie jeebies. 

Cream of the western educated crop, Ermias Amelga, chief of Zemen Bank, dreams of setting up a form of money market in Ethiopia but has been frustrated by the Revolutionary Democrats who have refused to grant him this one wish.

This initiative was based on the intent to help in the process of what once had appeared to be a promising venture, the Ethiopian Stock Exchange.

But like many optimistic prospects that suffered an unexpected miscarriage following the rise of the combatant to power, the Ethiopian Share Dealing Group was dealt a calamitous blow. What more can be said? It was just inopportune.

Well, it looks like Ethiopians will have to learn the hard way that longstanding trends that seem to change through time often turn out to be the ones that persist.

Economic growth 101 is an ardent supporter of a liberal market, and it seems like policymakers are facing some difficulty passing this course and proceed to the next level.

But after almost a year later, while the Revolutionary Democrats are implying that liberal market strategy is not on the top of their agendas, the ECX is enjoying the good side of the economy and wondering what kind of a wonderful season it has ahead.

There is a reason to appreciate the ECX. The fact that it has not slid down the economic slope during a tough year for the economy shows the strength of the kid.

Sure, it might not be cause for dancing in the streets. There is still one more job that has yet to be done, although most people’s dream of having a stock market has actually faded away.

Not fancying a stock market is like moving up the creek without the proverbial paddle.

If there is something good that has come out of the last 10 months, it is that the ECX has been working hard to make the commodities market liberal in a modern way.

This thing will not show up in the economic recovery statistics but is valuable nonetheless.

Beginning in the early 1990s, several initiatives were taken that resulted in a series of commercial bank formations and insurance firms, which now constitute the embryonic corporate sector in Ethiopia.

The share buying public has a reason to believe that the quality of corporate governance and the ethical behaviour of managers will be regularly and reasonably checked by the regulators with the National Bank of Ethiopia (NBE). Following the legislation that places heavy responsibilities and imposes painful penalties of imprisonment and fines on alleged violators, the public should have a considerable degree of confidence that the shares they purchase will not be frivolously embezzled.

However, the Revolutionary Democrats’ reason for the unfounded stringency is attributed to a lack of regulatory framework.

What about the central bank? Can it not be its task to design, structure, and put into operation the regulatory framework?

Indeed, transactions of shares between shareholders of certain companies need to be regulated. There are too many parties involved in the process.

The benefits and responsibilities of each party, from those who sell and buy shares, to the brokers and analysts need to be clearly defined.

And that is what markets need states for. The administration that is in charge of the Ethiopian State is far from ready to do its expected role.

Shareholders owning shares with various private banks and insurance firms find buyers, notwithstanding doing so privately, to sell off their shares.

But the dealings of these shares are done in a disorganised and intermittent manner.

The determination of the market value of these shares is easier said than done, and no analyst can establish a well-defined correlation between the macroeconomic milieu and the performance of the companies whose shares are being traded.

Furnishing a legislative outline and providing it with an organised as well as methodical operating situation could decidedly facilitate the state in enhancing its ability to engender revenue, create additional employment, and help establish numerous businesses that can support the market.

While the ECX baby is about to celebrate its one year anniversary of the remarkable first year of its life, it is now time to let the ECX have a sibling that will grow together with it. After all, if there are bullies in the global macroeconomic village, the two brothers will always be there to take care of each other.