As a part of the growth, AFEX Truthful Commerce Restricted (AFTL) has launched a $1 million mortgage program that may allow farmers to achieve entry to seed and fertilizer for his or her crops to mitigate the regular rise in commodity costs. primary merchandise. Below this system, 5,000 Kenyan farmers will be capable to receive enter loans to entry well timed inputs and regularly scale up their companies.
As a part of the corporate’s broader pan-African progress targets, the growth will enable AFEX to copy its success in Nigeria to make sure higher livelihoods for small farmers and allow seamless entry to commerce in pan-African commodities throughout the continent. , whereas reinforcing the continent’s meals safety.
Just lately named first within the Monetary Instances (FT) rating of Africa’s Quickest Rising Corporations – Agriculture & Commodities Class 2022, AFEX is bringing its deep experience and distinctive warehousing and distribution options to Kenya, with the goal of commercialize greater than 500,000 metric tons. of agricultural commodities by 2025.
As of November 2021, analysts estimate that 7.9 million individuals in Kenya lacked sufficient meals for consumption, representing 15.4 % of the Kenyan inhabitants.
AFEX permits farmers to take part in market alternatives by means of its distinctive WorkBench platform. The platform permits farmers’ transactions to be executed and recorded with the AFEX warehouse community, supporting ongoing commerce throughout the eight warehouses at present operational in Kenya.
AFEX Kenya’s new 14-member group is led by Managing Director, Tabitha Njuguna, who oversaw its profitable pilot section, throughout which maize was the principle product traded. There are plans so as to add rice, sorghum, and low to the alternate within the coming months.
In Uasin Gishu County, in Kenya’s North Rift area, AFEX recognized a lot of challenges for native growers, together with entry to inexpensive storage amenities, which meant many farmers saved their crops at house.
Moreover, regardless of a excessive degree of mechanization, in addition to comparatively massive landholdings, producers are disadvantaged of alternatives to promote their merchandise, typically counting on intermediaries.
AFEX launched its pilot operations in Kenya within the final quarter of 2021 and has already posted vital outcomes, with greater than 4,000 metric tons of product traded and an estimated 7,100 served by AFEX.
The Kenyan growth indicators AFEX’s infrastructure dedication throughout the continent because it exports its enterprise mannequin to key strategic places. Along with Kenya, AFEX plans to broaden to Benin, Togo, Ghana, Côte d’Ivoire, Tanzania, Ethiopia, Uganda and Zambia within the subsequent 10 years.
Having constructed from the bottom up in an agricultural sector broadly perceived as troublesome for companies to function in, AFEX anticipates sturdy progress and vital measurable affect in Kenya’s comparatively extra developed agricultural sector.
Kenyan farmers have, on common, bigger holdings than their Nigerian counterparts, together with better-developed storage and distribution amenities.
Ayodeji Balogun, CEO of AFEX, mentioned: “This is without doubt one of the most dynamic commodity markets on this planet and we’re excited to work with Kenyan farmers to assist them scale their operations.
We’re effectively conscious that growing meals manufacturing is ineffective with out an environment friendly and sturdy storage system to help commodity commerce, and that expertise is vital to growing your complete agricultural house in Africa within the coming years.
“I began my profession constructing capital markets in East Africa and perceive the challenges of a fragmented provide chain, inefficient pricing constructions and market volatility.
We now have been drastically inspired by what we’ve got seen since our pilot section was carried out with hundreds extra farmers experiencing productiveness, worth seize and entry to structured mechanisms for commodity buying and selling in Kenya.
With our expertise of serving to farmers instantly entry markets, we’re uniquely positioned to assist Kenyan farmers contribute to their nationwide meals safety whereas guaranteeing sustainable growth for future generations.”
Tabitha Njuguna, MD, AFEX Truthful Commerce Restricted (AFTL) Kenya, added, “The expertise that powers our operations is a few of the finest on the continent and is crucial to our capability to supply entry to logistics supply, advisory companies, provides and most significantly, market entry, that are key to the long run. of agriculture in Africa.
We wish to dismantle one of many largest obstacles for farmers rising their enterprise: entry to finance. To this point, we’re delighted to have helped 70% of the 5,000 Kenyan farmers who approached AFEX for enter loans, and we’re dedicated to empowering many extra farmers within the coming months.”
AFEX works carefully with small farmers and makes use of its distinctive expertise options to extend yields and productiveness.
The corporate has supported greater than 350,000 farmers in Nigeria’s main grain-producing states. AFEX has greater than 126 warehouses in Nigeria with a storage capability of 314,000 MT.
Since its launch in 2014, AFEX has been dedicated to leveling up Africa’s agritech sector. By bridging the hole between agriprocessors and traders, AFEX drives meals security and makes meals manufacturing extra environment friendly.
Featured Picture: Tabitha Njuguna, Basic Supervisor, AFEX Truthful Commerce Restricted (AFTL), Kenya.
Do not miss essential articles throughout the week. Subscribe to the weekly techbuild.africa digest for updates