News in brief: British International Investment (BII) is investing $26.5 million in Africa Exchange (AFEX) to construct modern warehouses in Nigeria, Kenya, and Uganda, enhancing post-harvest pricing and crop storage capabilities.
British International Investment (BII), the United Kingdom’s development finance institution, has announced a $26.5 million investment in Africa Exchange (AFEX), Africa’s leading commodities platform.
The investment is to be used to construct 20 modern warehouses in Nigeria, Kenya, and Uganda, as well as expand warehouse technology and software to capture post-harvest pricing. With these smart storage solutions, the shelf life of harvested crops could be extended, leading to an increase in available food volume.
The new warehouses are expected to provide an additional storage capacity of 230,000 metric tons, allowing up to 200,000 more farmers to access affordable storage facilities and maximise sales. Thus, they could potentially raise their incomes by more than 200%.
The partnership between BII and AFEX was formally established in an event attended by the British Deputy High Commissioner in Lagos Jonny Baxter, BIIâs CEO Nick OâDonohoe, and AFEX Group CEO Ayodeji Balogun.
Speaking at the event Nick OâDonohoe said that the World Bank estimates that Africaâs food import bill has reached US$30 billion in recent decades. Thus, it is important to have technology-driven companies like AFEX working on reducing import cost by supporting smallholder farmers to increase local food production, while boosting their incomes.
BII’s investment will also facilitate the development of a soybean processing plant in Ibadan, Nigeria. The construction of these storage and processing facilities is expected to create over 700 temporary jobs and more than 80 permanent positions.
AFEX currently operates more than 200 warehouses in Nigeria, Kenya, and Uganda, serving over 450,000 farmers, a news coverage said.
The investment represents BII’s commitment to supporting sustainable economic development in Africa. Agriculture plays a significant role in the economies of Nigeria, Kenya, and Uganda, accounting for a quarter of their GDP and employing 70% of their populations.
