BII Commits $26.5M to AFEX for Food Security
On 1 November 2023, the British International Investment (BII) announced that it will provide USD 26.5 million to AFEX in order to enhance #FoodSecurity in Africa. AFEX is a leading commodities exchange platform with over 200 crop storage facilities in Nigeria, Kenya and Uganda.
The funding will go towards building another 20 warehouses in strategic locations and will add 230,000 metric tonnes of storage capacity. The modern warehouses will allow up to 200,000 farmers to access low-cost storage and maximize profits from their harvest. Currently, AFEX serves some 450,000 smallholders in Africa.
“I am proud of British International Investment’s support which will enhance agricultural productivity and bolster food security in Nigeria. The agricultural sector stands as a vital pillar to Nigeria’s economy, playing a significant role in job creation and investment potential. The UK provided early-stage funding to AFEX, and I am delighted to see the company grow with such success.”
UK HC in Lagos Jonny Baxter
According to the World Bank, Africa’s food bill has reached USD 30 billion. However, Africa has sufficient arable land to feed the world and initiatives from AFEX to bolster #FoodSecurity are most welcome.
In addition, the financing will be utilized to develop a soybean processing plant in Nigeria and a drying facility in Uganda. It is estimated that 700 locals will be employed during construction and 80 employees will be needed after operationalization.
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 CEO Ayodeji Balogun
The agricultural sector accounts for 25% of the national GDP in the countries where AFEX operate and employs 70% of the workforce. 80% are smallholder farmers who face great challenges to develop due to limited support and lack of proper facilities. The project will also contribute to UN #SDG, in particular, SDG 2 (Zero Hunger), SDG 8 (Decent Work) and SDG 12 (Responsible Consumption and Production).