AFEX, a Nigeria-based commodities platform, has received $26.5 million in capital from British International Investment (BII), the UK’s development finance institution (DFI) and impact investor.
AFEX is a commercial platform that facilitates effective commodity trade in Africa.
Through its three divisions of operation, AFEX helps smallholder farmers overcome challenges by expanding their access to inputs, financing, microinsurance, storage, training, and markets.
Over 450,000 farmers are currently being served by the company’s over 200 warehouses in Nigeria, Kenya, and Uganda.
Smallholder farmers in Africa will profit greatly from the structural reforms in the agriculture business made possible by the $26.5 million in investment it has received from BII.
“This investment from British International Investment is a landmark moment in our mission to revolutionize 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.
With the help of BII’s funding, twenty state-of-the-art storage facilities will be constructed in highly visible areas of Nigeria, Kenya, and Uganda.
With this funding, it will upgrade its warehouse management system and develop cutting-edge software to track post-harvest prices.
By keeping harvested products fresh for a longer period of time, smart storage solutions have the potential to increase food production.
More than two hundred percent growth in farm income is possible as a result of the new warehouses’ 230,000 metric tons of storage space, which will be made available to as many as 200,000 extra farmers. In order to keep them in business and produce more and better crops for local consumption.
The funding will also go toward building a drying facility in Uganda and a soybean processing factory in Ibadan, Nigeria’s third-largest city by population.
Over 700 short-term and over 80 long-term jobs will be created during the development of the warehouses and soy processing plants.