ARSI UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTEMENT OF INFORMATION TECHNOLOGY
WEB-BASED COMMODITY EXCHANGE SYSTEM
Prepared by:

Name Id_no Email Phone_no

1, Abdulalim Bedru 14578/15 abdulalimbedru92@gmail.com 0921255627

2, Semeredin Shemse 11537/14 semeredinshemse010@gmail.com 0956562064

3,Negeso Adem 11247/14 nagesoadem98@gmail.com 0964237656

4,Felmetu Zekerya 11642/14 zfalmatu@gmail.com 0946297653

5, Melaku Mengistu 11365/14 manzamelakumengistu@gmail.com 0924220763

6, Awal Namo 13075/14 awelnemo199@gmail.com 0912363809

Submitted to: Mr. Sadik A.

Submission Date:/02/2025

Asella, Ethiopia

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Acronyms
CX…………………………….…………Commodity Exchange

ECX……………………………………..Ethiopian Commodity Exchange

HTML …………………………………. Hyper Text Markup Language

CSS ………………………..……………Cascading Style Sheets

AJAX …………………………………. Asynchronous JavaScript

PHP……………………………..……... Hypertext Pre-processor

XAMPP……………………………..…. Cross Platform Apache MariaDB PHP Perl

List of Tables
Table 1.1 Project Schedule………………………………….………………………………………………………………15

Table 1.2 Budget Schedule …………………………………………………………………………………………………16

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 Table of Content
Table of Contents page

Acronym and Abbreviation………………………………………………...……………………2

List of Tables……………………………………………………………………….……………2
1.1. Introduction…………………………………………………………………………………4
1.2. Background of the Organization……………………………………………………………4
1.3. Existing System Description……………………………………………………………….5
1.4. Problem of Existing System………………………………………………………………..6
1.5. Proposed System Description………………………………………………………………6
1.6. Objectives of Proposed System…………………………………………………....………8
1.6.1. General Objectives……………………………………………………………………..8
1.6.2. Specific Objectives………………………………………………………………….....8
1.7. Scope……………………………………………………………………………………....9
1.8. Methodologies and Tools………………………………………………………………….9
1.8.1. Methodologies…………………………………………………………………………9
1.8.2. Tools………………………………………………………………………………….11
1.9. Significant of Project………………………………………………………………….....14
1.10. Work Plan (Time Table)………………………………………………………………...14
1.11. Cost……………………………………………………………………………………...15
References………...……………………………………………………………………………………17

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1.1 Introduction

The Ethiopia Commodity Exchange, (ECX), is a marketplace, where buyers and sellers come
together to trade, assured of quality, delivery and payment. The vision of ECX is to transform
the Ethiopian economy by becoming a global commodity market of choice. ECX’s mission is to
connect all buyers and sellers in an efficient, reliable, and transparent market by harnessing
innovation and technology, and based on continuous learning, fairness, and commitment to
excellence. But, ECX only provides these services for exporters and the commodities provided
by ECX are limited in type. There is no web-based Commodity Exchange System for the local
Market that provides a modern, efficient, transparent, and reliable market platform and
warehousing service, our web-based Commodity Exchange System will be a marketplace, where
buyers and farmers (sellers) come together to trade, assured of quality, delivery, and payment,
the local government policy provides support to do such activity. We need to provide a modern,
efficient, transparent, and reliable market platform and warehousing service through the
adaptation of technology, excellence in innovation, and with integrity.

1.2 Background of the organization

Ethiopia is a landlocked country located in the Horn of Africa, bordered by Eritrea to the north,
Djibouti and Somalia to the east, Kenya to the south, South Sudan to the west, and Sudan to
the northwest. It is the second-most populous country in Africa, with a population of over 110
million people.

Ethiopia has a rich history dating back thousands of years, with evidence of early human
settlement dating back to prehistoric times. The region was home to one of the oldest
civilizations in the world, the Aksumite Empire, which was a major player in the ancient trade
routes connecting Africa, the Middle East, and Asia.

In the 19th and 20th centuries, Ethiopia faced colonization attempts by European powers, but it
managed to maintain its independence and sovereignty. The country was briefly occupied by
Italy during World War II, but it regained its independence in 1941.

Ethiopia is known for its diverse culture and traditions, with over 80 different ethnic groups
speaking more than 80 languages. The country's rich cultural heritage is reflected in its music,
dance, art, and cuisine.

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In recent years, Ethiopia has experienced significant economic growth and development,
becoming one of the fastest-growing economies in Africa. However, the country still faces
challenges such as poverty, political instability, and ethnic tensions.

Ethiopia is also known for its natural beauty, with stunning landscapes that include the Simien
Mountains, the Danakil Depression, and the Great Rift Valley. The country is also home to a rich
array of wildlife, including rare and endangered species such as the Ethiopian wolf and the
Gelada baboon.

Overall, Ethiopia has a complex and fascinating history, diverse culture, and natural beauty that
make it a unique and important country in Africa.

1.3 Existing system Description

The Ethiopian Commodity Exchange (ECX) relied on a manual system for trading agricultural
commodities. This system involved physical trading floors where brokers representing buyers
and sellers would meet to negotiate prices and execute trades.

Key characteristics of the existing system included:

• Physical Trading Floor: All transactions took place on a designated trading floor.

• Open Outcry Auction: Price discovery primarily occurred through an open outcry auction
process, where brokers vocally bid and offered prices.

• Physical Inspection and Grading: Commodities were physically inspected and graded based on
predefined quality standards before trading.

• Paper-Based Documentation: Records of trades, grades, and warehouse receipts were

maintained manually on paper.

• Centralized Clearing and Settlement: The ECX provided a centralized clearing and settlement
system, but processes were largely manual and time-consuming.

• Limited Access: Access to the trading floor and participation in trading were typically
restricted to licensed brokers, potentially limiting direct access for farmers and smaller traders.

1.4 Problem of Existing System

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Below we have classified the problems which the current market is facing into different
sections.

 Performance
 The current market situation takes time and energy to get information about
the marketplace, specific product, amount and quality.
 There is product wastage because of the loss of a comfortable warehouse
and appropriate marketplace to sell products.
 Cultural Operation
 Information
 Farmers do not have any information about where to sell their products
 Buyers also have no information about where to buy the commodity they
need
 Both the farmer and the buyer have no information about the current price
of the goods.
 Economy
Cost of the products are much more expensive because of
 Free market economy
 Brokers
 Control/Security
 Loss of product from the marketplace
 Products are kept hoarding
 Can't keep track of the products
 Efficiency
 In times of need, finding a product can be challenging
 Service
 It is difficult to get a product of preferred quality.
 Getting the whole transaction done takes a lot of time.
 Backward market operation
1.5 Proposed System Description

Web-Based Commodity exchange system will revolutionize the way agricultural products are
traded, offering significant advantages over existing physical and potentially outdated systems.
It will provide a centralized, accessible, and transparent platform that will benefit farmers,
traders, and the overall agricultural economy.

Online Web-Based Commodity Exchange System is designed to replace the current manual
system for trading agricultural commodities. This system will automate the process of selling

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the products, communication between farmer and buyer, and providing new products, making
the process more efficient, accurate, and user friendly.

Features of the Proposed System

The system will be a web-based application, allowing Farmers (sellers) and buyers to access it
online. Key features include:

 Secure User Authentication (Farmer & Buyer):

• Secure Login/Registration: Farmers and buyers will create individual accounts with secure
passwords and authentication protocols, ensuring only authorized users access the system.

• Role-Based Access Control: Different access levels will be implemented based on user roles
(farmer/seller vs. buyer), controlling which features and data are visible and accessible.

 Dynamic Product Listing & Discovery:

• New Product Showcase: A dedicated section will prominently display newly listed products,
allowing buyers to quickly find fresh offerings.

• Comprehensive Product Catalog: A searchable and filterable catalog will allow buyers to
browse all available commodities, sorted by category, grade, location, or other relevant criteria.

• Detailed Product Information: Each product listing will include comprehensive details, such
as commodity type, origin, grade, quantity, price, images (where applicable), and any relevant
certifications or specifications.

 Interactive Shopping Cart System:

• Add to Cart Functionality: Buyers will be able to easily add desired products and quantities to
their virtual shopping cart.

• Cart Management: Buyers will be able to view, modify, and update their cart contents at any
time, adjusting quantities or removing items.

 Flexible Order Management:

• Customizable Product Selection: Buyers will have complete freedom to select the exact
products and quantities they require, tailoring their orders to their specific needs.

• Order Review and Confirmation: A clear and concise order summary will be provided before
final confirmation, allowing buyers to verify all details.

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 • Order History Tracking: Both farmers and buyers will have access to a detailed history of
their past orders, enabling easy tracking and record-keeping.

 Secure Payment Gateway Integration:

• Multiple Payment Options: The system will integrate with secure payment gateways,
offering buyers a variety of payment options (e.g., credit/debit cards, mobile money, bank
transfers, and cash money).

• Secure Payment Processing: All payment transactions will be encrypted and processed
securely, protecting sensitive financial information.

 Notification and Communication System:

• Order Confirmation Notifications: Automated email or SMS notifications will be sent to both
buyers and farmers upon order placement, confirmation, and shipment.

 Administrative Dashboard & Management Tools:

• User Management: Administrators will be able to manage user accounts, roles, and
permissions.

• Product Catalog Management: Administrators will be able to add, update, and manage the
product catalog.

• Reporting and Analytics: Administrators will have access to comprehensive reports and
analytics on market trends, user activity, and system performance.

1.6 Objectives of Proposed System

1.6.1 General Objective

The main objective of this project is to develop a new Web-Based commodity Exchange System
Which solves the above-mentioned problems with the existing system. This is achieved by
designing a web-based application program that will change the actual manual processing into
a computerized environment.

1.6.2 Specific Objectives

 Developing user friendly interface.
 To keep products availability.
 To specify the products actual price.
 To keep the farmers (sellers) provide new products.
 Enabling buyers to choose and order products online.
 To keep buyers’ money secure using many options of payment method.

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  Enhancing security and access control.
1.7 Scope

Scope refers to all the work involved in creating the products of the project and the processes
used to create them. Defining scope of a project is extremely important to not only make sure
no obstacles crop up unexpectedly but also to resolve any potential risks that may arise during
its execution. It is very important to articulate what will be included and what will be excluded
in this project. In fact, we will add additional functionality if we found it very necessary to the
success of the project. We may also discard functionality if we found it is not really important
and affordable.

 Scope in

The proposed system includes:

 Products are only agricultural (cereal).

 Farmer can add new products.
 Control prices by setting initial prices.
 Involves buyer and seller (farmer) registration.
 Buyers can order products.
 Scope out
 The system will only be functional in Ethiopia.
 The system doesn’t provide delivery.
1.8 Methodologies and Tools
1.8.1 Methodology

Methodology is defined as a particular procedure or set of procedures used in academic

research and scientific experimentation. It refers to the systematic and logical approach used to
solve specific problems, typically involving the collection and analysis of data. Methodology can
include both qualitative and quantitative methods, such as interviews and surveys, observation,
experiments, and fieldwork.

Data Collection
Systems analysis is the part of the systems development life cycle in which you determine how
a current information system in an organization function. Then you assess what users would
like to see in a new system. The two parts to analysis are determining requirements and
structuring. System analysts use different requirement elicitation techniques such as
interviews, questionnaires, user observation, workshops, brainstorming, introspection etc.
After tuning it to our particular requirements, we decided to use at least two or all in
combination for identifying the requirements of the new system from the above requirements
elicitation mechanisms. These are interviewing, introspection, and document analysis.

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Introspection
Introspection is the first and the most obvious method for trying to understand what properties
a system should have in order to succeed. In introspection technique, requirement analyst
“imagines” what kind of system is required for doing the required job or by using available
equipment etc.

Reasons to Use Introspection

 Introspection is an easier technique to apply.
 There are no costs for implementing this technique
 It can act as a good initial step to start requirements elicitation

Document Analysis
We will analyze different documents if we think it is necessary and can teach us how we should
develop our system. We have analyzed the document of ECX.

Reasons to Use Document Analysis

 Document analysis is an efficient and effective way of gathering data because
documents are manageable and practical resources.
 Obtaining and analyzing documents is often far more cost efficient and time efficient.
 Documents can be read and reviewed multiple times and remain unchanged.

Interview
Interviewing is one of ways analysts gather information about an information system project.

Reasons to Use Interview

 It provides information to supplement other methods of collecting data.
 It is used to gather data extensively and intensively.

It is used to exchange ideas and experience.

System Development Methodology

System development methodologies are a standard set of steps used to develop and support
information systems in organizations. We need a methodology for analyzing a problem to be
solved, planning for the design of the solution and a construction method that minimizes the
risk of error.

Development Approach

Object Oriented Approach

The method of system development paradigm that we selected is the object-oriented approach
because this approach is helpful for us to represent the different phases of the project through

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many diagrammatic representations such as activity diagrams, use cases, sequence diagrams
and class diagrams. Generally, we choose object-oriented development approach because:

 It has a reusability feature

 These techniques provide greater opportunities for users to participate in the t process
 Increases flexibility
 Improves quality
 It is the latest, powerful, easy and highly usable
 Increase domain and design reuse

Process Model

Iterative Process Model

The process model we used is iterative process model. we select iterative model because, to
develop our project we are required to review and design in each phase iteratively to meet user
requirements. Flexibility: - this model allows as to make changes at any stage without affecting
the scope of the project. Improved Quality; - this model allows as to identify and fix problems
early in the development process. this leads to improved quality. collaborations: - encourages
collaboration between our team members, leading to a better overall understanding of the
project goals and requirements.

1.8.2 Tools

Front End Technologies

These are technologies to be used to build web pages and user interfaces for web applications.

HTML
Html (Hypertext Markup Language) is the most basic building block of the Web. It defines the
meaning and structure of web content.

Advantages of Using HTML

It is easy to use and to learn, simple to edit, light weight, user friendly, and free. In addition to
these, all browsers support it.

CSS
CSS (Cascading Style Sheets) is a declarative language that controls how webpages look in the
browser.

Advantages of Using CSS

It saves time, helps to make spontaneous change and consistent change, improve page loading
speed, device compatible, and makes search engine better crawl web pages.

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JavaScript
Java script is a programming language used most often for dynamic client-side scripts on
webpages and allows you to implement complex things on web pages. It is easy to learn, debug
and test, fast no need of compilation, platform independent, and has programming language
capabilities.

Bootstrap
Bootstrap is a free, open-source HTML, CSS, and JavaScript framework for quickly building
responsive websites. It saves time, encourages consistency, provides an excellent grid system,
creates responsive website.

jQuery
jQuery is a JavaScript Library that focuses on simplifying DOM (Document Object Model)
manipulation. It is open source, makes table sort-able and dynamic, display easily charts, popup
overs, modals, tabs, integrated or compatible with bootstrap, highly extensible, cross-browser
compatible.

AJAX
AJAX (Asynchronous JavaScript and XML) allows updating parts of the DOM of a HTML webpage
instead of having to reload the entire page. It is the integration of jQuery and PHP. It is easy to
learn and use, allows changing content without refresh or reload web-page, makes website
faster. Response time is faster so increases performance and speed.

Back End Technologies

These technologies used to deal with server, application and database.

PHP
PHP is a server-side scripting language. That is used to develop Static websites or Dynamic
websites or Web applications. PHP stands for Hypertext Preprocessor, that earlier stood for
Personal Home Pages. It is open source. PHP is manly supported by all the operating systems
like windows, Unix, and Linux. It can be integrated with other programming language and
database easily and there is no requirement of redevelopment. Which means it saves a lot of
effort and cost. It is simple and easy to learn and to code. It is one of the fastest languages.

Laravel
Laravel is an open-source PHP web framework for creating web applications. It is used to
develop websites, APIs, and web services quickly and easily. Laravel provides an expressive and
elegant syntax for writing efficient, concise code.

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MySQL
MySQL is a free to use, open-source database that facilitates effective management of database
by connecting them to the software. Advantages of using MySQL It is more secure and reliable,
provides on demand scalability, and open source so reduces cost.

Apache
Apache is an open-source and free web server software that powers around 46% of websites
around the world. The official name is Apache HTTP Server, and it's maintained and developed
by the Apache Software Foundation.

Advantages of using Apache

 It is open source, reliable and stable software.
 It is also easy to configure and has easily available support in case of any problem.

XAMPP
XAMPP stands for Cross Platform Apache MariaDB (MYSQL), PHP, Perl XAMPP is a free open-
source cross-platform web server solution stack package developed by Apache Friends,
consisting mainly of the Apache HTTP server, MariaDB database, and interpreters for scripts
written in the PHP and Perl programming languages.

Advantages of using XAMPP

It is easy to learn and install when compared with other web servers like WAMP. It consists of
Apache, and MYSQL, so there is no need of installing them separately. It is also possible to start
and stop the web server and database stack with one command.

Documentation and Modeling Tools

At the end of the project, we will deliver system documentation and user documentation. Our
system documentation would be the description of detail information about user requirements;
systems design specifications, its internal workings and its functionalities. And our user
documentation will be in the form of online help with a web connection. It will contain
information about the system; how it works and how to use it.

We will use the following tools for our project’s documentation:

 Lucid chart to draw UML diagrams

 Microsoft Excel 2010 to make project schedule using Gantt chart
 Figma as prototyping tool
 Microsoft Word 2010 as word editor
1.9 Significant of the Project

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Web-Based Commodity Exchange tries to benefit and modernize the way Ethiopia trades its
most valuable assets, its commodities. Ethiopia needed a change from the traditional means of
trading to better support the needs of all those involved in trading and production.

CX creates trust and transparency through aggressive market data dissemination to all market
actors, through clearly defined rules of trading, warehousing, payments and delivery, business
conduct, and an internal dispute settlement mechanism.

CX provides market integrity at three important levels:

 The integrity of the product itself,

 The integrity of the transaction, and
 The integrity of the market actors

Make a bank transaction and people who aren't using banks become bank customers.

Reduce current market inflation by trying to reduce prices. This is because we believe our
system will reduce the number of brokers, who make the market inflation high.

Accessible: Purchases can be made anywhere.

Convenient: There is no need to carry cash.

Reliable: Due to the fact that the payment is madey a bank or tele birr, you can rest assured.

1.10 Work Plan (Time Table)

No Activity Start Finish Jan Feb Mar Apr May Jun

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1 Proposal 26/01 03/02
/2025 /2025
2 System 04/02 20/02
Analysis /2025 /2025
3 System 21/02 22/03
Design /2025 /2025
4 Impleme 23/03 01/05
ntation /2025 /2025
5 Testing 02/05 03/06
/2025 /2025

Table 1.1 Project Schedule

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1.11 Cost

While developing this project we are going to use free software and use our own computers, in
addition to this we are going to build our web-based application by ourselves along with the
help of our advisor, so our project is economically feasible.

Cost: refers to tangible and intangible cost that is incurred to develop the system.

Tangible cost: Is the cost that is directly measured in birr.

Intangible Costs: is the cost that is not directly measured in birr.

Loss of time and energy

Estimated cost for the project is listed in the table below.

Number Items Description Expected Cost Cost Type

1 Advertisement The cost we are going to invest for 50000 Recurring
advertisement purpose.
2 Development The cost for development of the 20000 One Time
proposed system.
3 Expert We will get help from experts on 10000 Recurring
different problems like deployment
and test.
4 Transport We are planning to go to few product 200 Recurring
buyers and farmers (who sell
products) to do interview to gather
the requirement of the system.
5 Deployment We are going to deploy the proposed 3000 Recurring
system on yegarahost.com (hosting
service provider).
6 Computer We need computers for admins to 80000 One Time
manage different things.
7 Training Proper training should be given 15000 One Time
specially for farmers since they are
not familiar with use of computers
and systems.
8 Total 178000

Table 1.2 Budget Schedule

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Benefits

Benefits are paybacks from a business venture. This system will have tangible and intangible
benefits.

Tangible benefits

Tangible benefit is an asset that produces income consistent with its fair market value, which is
listed by the wed developer or organization in a quantifiable form. A benefit that we get from
using this web-based application can easily measure in the following manner.

 Cost reduction and avoidance.

Intangible benefits

Intangible benefit also called soft benefits, are the gains attributable of the improvement
project that are not reportable formal accounting purposes. In this case, we can see the
benefits of using this web-based application that is not easy to measure in terms of money.

 Reduce the response time of activities.

 Reduce number of brokers

References

1. International trade administration.(2024).Ethiopia commercial guide market

overview.[online] https://www.trade.gov/country-commercial-guides/ethiopiamarket-
overview
2. The Ethiopia commodity exchange. (No date). How Ecx works.[online]
https://www.ecx.com.et/Pages/AboutUs.aspx\
3. https://www.investopedia.com

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