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Sat., May. 17, 2008

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Feature from Ethiopia: Trading with Trust

(page 4 of 5)

Trading with Trust

In Ethiopia, like in many countries in transition, there is a deep mistrust of traders who are often perceived as cheating middlemen. “I would rather sell my grains to the consumer than to the trader,” Ingida exclaims. “At least I know that the consumer is like me and that we are both benefiting,” he adds. “No matter what; the trader will never stop being a thief. Never! I am a simple man; I can’t measure kilograms, and the trader cheats me on the kilos all the time.”

Wholesale grain trader Hajj Hussein.
Wholesale grain trader Hajj Hussein. © International Food Policy Research Institute
For their part, traders too have a story to tell and may not always deserve their ill reputation. After all, how will the country achieve its goal of commercializing farms without trustworthy traders?

Hajj Hussein, an engaging wholesale grain trader in his sixties, retains a sparkle in his eye and a sharp wit as he pauses to reflect on his 40 years of grain trading in Assela, a regional market town in the Oromia region. Keeping his eye on the scales during a bustling market day and pausing to greet his customers by name, he tells us, “as the son of a poor farmer who had only a small plot of land, I knew I would not have a chance if I did not create my own job. So, I started in this business as a young man of 20. I have survived from the days of the Emperor through the socialist days, when we were forced to trade in hiding.”

He further explains, “my regulars don’t look at the scale when I weigh their grain. They don’t have to because they know me and they know that I won’t cheat them. They trust me and I trust them.…But, not everyone is like me! Traders have a bad reputation and the only way we can change that is by being trustworthy and that can’t happen overnight.”

A real challenge then is to create trust in the market, without which the market cannot provide the vehicle to a better life for Ethiopian farmers.


Page 1 - Research That Listens
Page 2 - Listening to Local Voices
Page 3 - Open Market Challenges
Page 4 - Trading with Trust
Page 5 - Commodity Exchanges

PERSPECTIVES HOME: Farm to Table


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