Today, British International Investment (BII), the UK’s leading development finance institution and impact investor, announced a commitment of US$26.5 million to AFEX, the continent’s premier commodities platform. With operations spanning over 200 warehouses across Nigeria, Kenya, and Uganda, and serving a whopping 450,000 farmers, AFEX has carved a niche for itself in African agriculture.
This collaboration was formalised in the presence of esteemed personalities including the British Deputy High Commissioner in Lagos, Jonny Baxter; BII’s CEO, Nick O’Donohoe; and AFEX Group’s CEO, Ayodeji Balogun.
The investment is set to revolutionise the African agricultural industry. With funds directed towards the construction of 20 modern warehouses across strategic locations in Nigeria, Kenya, and Uganda, the move promises to bolster food security. More than just storage, these facilities will be equipped with cutting-edge technology and innovative software solutions that offer real-time post-harvest pricing information. Such smart storage solutions could greatly extend the lifespan of harvested crops, potentially increasing available food volumes.
A glimpse into the numbers reveals the sheer magnitude of this project. The new warehouses will offer a combined storage capacity of 230,000 MT, extending low-cost storage opportunities to an additional 200,000 farmers. The ripple effect of this initiative could potentially amplify farmer incomes by over 200%, ensuring not just survival, but the flourishing of these crucial agricultural stakeholders.
Agriculture is the lifeline for nations like Nigeria, Kenya, and Uganda, contributing to 25% of their GDP and employing a staggering 70% of their populations. Yet, the smallholder farmers, who form the backbone of this industry, grapple with financial challenges due to unpredictable markets, dwindling yields, and the escalating costs of agricultural inputs, among other factors.
BII’s investment also encompasses the development of a soybean processing plant in Ibadan, Nigeria’s third-largest city, and a drying facility in Uganda. These facilities are projected to create over 700 temporary jobs and secure over 80 permanent roles.
Nick O’Donohoe, BII’s CEO, emphasised the importance of this investment, citing the World Bank’s estimation of Africa’s escalating food import bill, which stands at approximately US$30 billion. “Backing technological powerhouses like AFEX is crucial. They not only enhance local food production but also significantly boost farmer incomes,” said O’Donohoe.
Echoing these sentiments, AFEX’s CEO, Ayodeji Balogun remarked, “This investment heralds a new era in our quest to transform African agriculture. By channelling capital into state-of-the-art facilities, we’re elevating both market access and income prospects for smallholder farmers. Our broader vision aligns with the UN SDGs – to enable Africa to efficiently and sustainably feed itself.”
British Deputy High Commissioner, Jonny Baxter, expressed his pride in the support BII is offering. “Agriculture is central to Nigeria’s economy. With the UK having provided seed funding to AFEX, witnessing its meteoric rise is indeed rewarding. We are eager to further nurture Nigeria’s agricultural potential,” he said.
In essence, this investment is not just about capital; it’s a testament to the global commitment towards the United Nations’ sustainable development goals, particularly Zero Hunger (SDG2), Decent Work and Economic Growth (SDG8), and Responsible Consumption and Production (SDG12). The seeds of change have been sown; now, it’s time to watch them grow.
