The UK’s development finance institution (DFI), British International Investment (BII), and impact investors have contributed US $26.5 million to the Nigerian commodities platform AFEX.
AFEX, an Abuja-based platform company, facilitates effective commodity trading throughout Africa. AFEX, which operates through three business units, offers improved access to markets, microinsurance, storage services, training, and inputs in order to alleviate the difficulties faced by smallholder farmers.
Currently, the company serves over 450,000 farmers and runs over 200 warehouses in Nigeria, Kenya, and Uganda. It has now deposited US $26.5 million in BII funding, which will help structural enhancements in the agricultural sector of Africa, bringing about major advantages for smallholder farmers and enhancing food security.
Twenty contemporary warehouses will be constructed in key locations across Nigeria, Kenya, and Uganda with the help of BII’s investment. Moreover, warehouse technology and cutting-edge software that records post-harvest pricing will be scaled by its capital. The lifespan of harvested crops may be extended with the help of clever storage techniques, increasing the amount of food that is available.
Up to 200,000 more farmers will be able to access affordable storage and maximize crop harvest sales thanks to the additional warehouses, which will provide 230,000 MT of storage capacity. This could potentially help increase farmer incomes by more than 200 percent. In order to keep smallholder farmers in business and enable them to continue producing more and better-quality crops for local consumption, it is imperative that they receive fair compensation.
Additionally, a drying facility in Uganda and a soybean processing plant in Ibadan, Nigeria’s third-largest city by population, will be developed with funds from BII. More than 800 temporary jobs and more than 80 permanent positions will be created by the construction of the storage facilities and soy processing facilities.
“This investment from British International Investment is a landmark moment in our mission to revolutionise agriculture and elevate food security across Africa. By directing fresh capital towards the development of technologically advanced warehouses and critical facilities, we are significantly enhancing market access and income potential for smallholder farmers. In alignment with UN SDGs, our mission is to enable Africa to feed itself efficiently and sustainably. Today’s investment doesn’t just propel AFEX’s growth, it forges a more secure and prosperous future for an entire continent,” AFEX Group CEO Ayodeji Balogun said.
