Nigeria-based commodities platform AFEX has secured a substantial $26.5 million investment from British International Investment (BII), a UK development finance institution and impact investor.
AFEX, headquartered in Abuja, operates as a platform business facilitating efficient commodities trading in Africa. Through its three business units, AFEX tackles challenges encountered by smallholder farmers, providing them with improved access to inputs, credit options, micro-insurance, storage services, training, and market opportunities.
Currently, the company operates a network of over 200 warehouses across Nigeria, Kenya, and Uganda, serving more than 450,000 farmers. The investment from BII is earmarked for enhancing the agricultural industry in Africa, particularly benefiting smallholder farmers and enhancing food security.
BII’s funds will be used to construct 20 modern warehouses strategically located in Nigeria, Kenya, and Uganda. This investment will also support the scaling of warehouse technology and advanced software for post-harvest pricing analysis. These smart storage solutions have the potential to extend the shelf life of harvested crops, thereby increasing the overall food supply.
The additional warehouses will offer a storage capacity of 230,000 metric tons, enabling approximately 200,000 more farmers to access cost-effective storage and maximize their crop sales. This could potentially lead to a more than 200% increase in farmers’ income. Ensuring fair compensation for smallholder farmers is crucial to their sustainability and the production of higher-quality crops for local consumption.
BII’s capital will also be used to establish a soybean processing plant in Ibadan, Nigeria’s third-largest city by population, and a drying facility in Uganda. The construction of these storage and processing facilities will create over 700 temporary jobs and more than 80 permanent positions.
AFEX Group CEO Ayodeji Balogun expressed that this investment from British International Investment is a pivotal moment in their mission to revolutionize agriculture and enhance food security across Africa. By directing capital toward the development of technologically advanced warehouses and crucial facilities, they are significantly improving market access and income potential for smallholder farmers. This investment aligns with the United Nations Sustainable Development Goals (SDGs) and aims to enable Africa to efficiently and sustainably feed itself. Balogun believes that this investment not only drives AFEX’s growth but also paves the way for a more secure and prosperous future for an entire continent.
Source: disrupt Africa