Posted on April, 25, 2024 at 08:34 am
A leading Pan-African commodities player, AFEX has stated that since inception, over 500,000 Nigerian farmers have benefitted from its operations in the last decade.
Releasing its second impact report covering activities over the past five years, AFEX said that it has also executed over 1,000,000 metric tonnes in trade since 2014.
The report said following the publication of its first impact report in 2021, AFEX has doubled down on driving impact through its work in Africa’s commodities markets, positively contributing to Sustainable Development Goals (SDGs) 1,2,5,8, and 12.
Guided by the theory of change that places sustainable impact at the heart of operations, AFEX’s work with farmers and other value chain stakeholders contributes to securing profitable livelihoods, efficient processing of food and well-functioning markets that guarantee food safety.
This second edition of the impact report saw the inclusion of SDG 13 (Climate Action) as a result of the increasing effects of climate change on Africa and African agriculture.
AFEX is contributing to building sustainable climate resilient agriculture for farmers in Africa, which helps increase Africa’s food security while achieving self- sufficiency for the continent.
In 2022, AFEX launched a one million Cocoa Trees Initiative geared towards improving farmer yield by replacing aging cocoa trees with early-maturing improved yield varieties. The target was to distribute 1 million cocoa seedlings to farming communities in Nigeria, and in two years close to 500,000 quality certified cocoa seedlings have been disbursed.
A core focus for AFEX is driving food security for Africa to make food more accessible and affordable for the growing population.
AFEX’s efforts to secure livelihoods include providing farmers with certified seeds, quality fertilizer, sound extension service through crop production life cycle and trade through strategically distributed warehouses which
has led to the enhancement of productivity of eligible farmers thereby increasing their levels of production, earnings, and contribution to the country’s food.
Unfortunately, 2020 to 2023 witnessed widespread poverty among African farmers as a result of the cost-of-living crisis.
The report revealed that over 80 per cent of Nigerian farmers still existed around and below the poverty line, while 43 per cent of Kenyan farmers existed around and below the poverty line.
For many Nigerian farmers, the 2022 currency redesign and macroeconomic headwinds that resulted in record high inflation further jeopardized their earning potential, and for the first time, input repayment hit a record low of less than 50 per cent from 90 per cent between 2015 and 2021.
On a positive note, the report notes that farmers who had been with AFEX for a minimum of 5 years were more likely to be above the national poverty line relative to those who have been with AFEX for 3-4 years and non AFEX farmers.
The report notes that farmers without support existed at immediate risk of multidimensional poverty.
According to the Group CEO, AFEX, Ayodeji Balogun, “Our impact goals are fundamental as we expand into other African markets for the singular reason that they ensure we are not just doing business, but creating a positive difference in the communities we operate, empowering farming communities, fostering economic opportunity and helping Africa sustainably provide fot itself.”
Also speaking, the president, Rest of Africa, AFEX, Sanne Steemers, expressed, “This report marks a significant milestone for us, as it serves as a roadmap that guides us towards a more sustainable and responsible future building an efficient marketplace for commodities in Africa. We will continue to build a food system for the future and create shared prosperity, ensuring that no one is left behind in the journey to transform the agricultural ecosystem.”
With the global population expected to reach nearly 10 billion by 2050, the development of a robust food system will not only be crucial to ensuring this larger population is nourished but force the lands and systems which produce these necessities to remain economically viable, and AFEX is working to achieve this for Africa.
AFEX is a platform business that enables efficient trade for commodities in Africa. Solutions start at the producer level, ensuring improvement in productivity and livelihoods while building up commodity volumes in the right quality and quantity for local and regional trade.
Operating through three business units, AFEX addresses the challenges faced by smallholder farmers, providing better access to inputs, credit facilities, micro-insurance, storage services, training, and markets. Partnership with different key players across the agricultural value chain, including processors, logistics service providers, financial institutions, and regulatory authorities, makes the goal of supporting Africa’s food security possible.
A range of clients and members also trade physical commodities and commodity contracts through AFEX’s technology platforms as AFEX continuously bridges the gap between the capital market and the commodities market; unlocking finance for production, trade, processing and export of commodities.
Source: This Day