British International Investment (BII) has disclosed that it is committing $26.5 million to AFEX as a means of tackling food shortages in Nigeria, Kenya, and Uganda.
AFEX, Africa’s leading commodities platform currently operates over 200 warehouses in Nigeria, Kenya, and Uganda and serves 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 in Lagos was attended by British Deputy High Commissioner in Lagos Jonny Baxter, BII Chief Executive Officer Nick O’Donohoe, and AFEX Group CEO Ayodeji Balogun.
Commenting on the transaction, BII Chief Executive Officer, Nick O’Donohoe said, “The World Bank estimates that Africa’s food import bill has reached c.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.”
Speaking about the raise, AFEX Group CEO, Ayodeji Balogun said, “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.”
British Deputy High Commissioner in Lagos, Jonny Baxter said: “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. We look forward to continuing to support Nigeria’s agriculture sector and the opportunities this provides for its economic growth.”
