British International Investment Pledges $26.5 Million to Bolster Food Security in Nigeria, Kenya, and Uganda with AFEX

By Arnold Ageta

• Partnership will enhance agricultural productivity and improve food security
• Multiplies storage capacity, develops processing capacity and creates jobs
• 20 new AFEX warehouses will improve access to markets, facilitate trade and contribute to a potential increase of over 200 per cent in farmer income.

British International Investment (BII), the United Kingdom’s development finance institution (DFI) and impact investor, has unveiled a $26.5 million commitment to AFEX, Africa’s premier commodities platform. AFEX currently manages more than 200 warehouses in Nigeria, Kenya, and Uganda, benefiting over 450,000 farmers.

The investment will support structural improvements in Africa’s agricultural industry, which will significantly benefit smallholder farmers and lead to improvements in food security.

The signing of BII and AFEX’s new partnership that took place today in Lagos, Nigeria was attended by British Deputy High Commissioner in Lagos Jonny Baxter, BII Chief Executive Officer Nick O’Donohoe, and AFEX Group CEO Ayodeji Balogun.

BII’s investment will be used to build 20 modern warehouses in strategic locations in Nigeria, Kenya, and Uganda.

Its capital will also scale warehouse technology and next-generation software that captures post-harvest pricing. Smart storage solutions have the potential to preserve the lifespan of harvested crops, and so increasing the volume of food available.

The new warehouses will provide space to store 230,000 metric tons of crops. This means around 200,000 extra farmers can keep their crops safe without spending too much money and sell them at the right time. This might help these farmers make more than twice as much money as they used to.

Supporting smallholder farmers to achieve a fair wage is vital to ensure they remain in operation, producing more and higher quality crops for local consumption.

Speaking about the raise, AFEX Group CEO, Ayodeji Balogun applauded British International Investment for the investment in these countries terming it a landmark moment in their 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,’’ he said.

In Nigeria, Kenya, and Uganda, agriculture makes up 25 per cent of the economy and provides jobs for 70 per cent of the people living there. Among those, 80 per cent are small-scale farmers who grow food mainly for their families.

Currently, farmers face a difficult financial outlook due to macroeconomic uncertainty, limited market access, and poor reliability of sales from crop harvests.

Yields have fallen, and farmers’ incomes are increasingly affected by price hikes of agricultural inputs and extreme weather events.

BII’s capital will also be used to develop a soybean processing plant in Ibadan, the third-largest city by population in Nigeria, and a drying facility in Uganda. The construction of the storage facilities and soy processing facilities will generate over 700 temporary jobs and more than 80 permanent roles.

Commenting on the transaction, BII Chief Executive Officer, Nick O’Donohoe said that the World Bank estimates that Africa’s food import bill has reached US$30 billion in recent decades.

‘‘This is why we need to back technology-driven companies like AFEX because they help reduce that import cost by supporting smallholder farmers to increase local food production, while also boosting their incomes,’’ said O’Donohoe.

British Deputy High Commissioner in Lagos, Jonny Baxter also said that the agricultural sector stands as a vital pillar to Nigeria’s economy, playing a significant role in job creation and investment potential.

He said added: “I am proud of British International Investment’s support which will enhance agricultural productivity and bolster food security in Nigeria. The UK provided early-stage funding to AFEX, and I am delighted to see the company grow with such success. We look forward to continuing to support Nigeria’s agriculture sector and the opportunities this provides for its economic growth.”

This investment will contribute to the United Nations sustainable development goal on Zero Hunger (SDG2), Decent Work and Economic Growth (SDG8) and Responsible Consumption and Production (SDG12).