<p>Over the last 5 years, AFEX set out to build a platform that addresses major development challenges in Africa’s food systems by investing in innovations with the potential for sustainable social impact in rural households and the larger society. At AFEX’s core was the mission to create an efficient, inclusive, and vibrant market that promotes a fair exchange for everyone involved in the value chain. On the 4th of May 2021, the leading commodities market operator released its first edition of the AFEX Impact Report, celebrating the positive socio-economic outcomes that have improved the livelihoods of over 160,000 farmers while cumulatively facilitating over 200,000MT of trades. This impact continues to unlock wealth and prosperity in the commodities market.</p>
<p>By focusing on turning farming operations into profitable livelihoods, AFEX has built Nigeria’s largest supply chain infrastructure, giving producers access to credit, inputs, and markets, which are required to generate sustainable income across the value chain. Achieving a stronger economy should include a push for food security, food self-sufficiency, and reduced poverty while promoting decent work and inclusion, all of which remain a key focus for AFEX’s wide-reaching impact in rural communities.</p>
<p>As a commodities exchange AFEX also enables the capital market to be included in this impact framework, unlocking finance and credit from the financial markets to drive activities and outcomes in the physical market.</p>
<p><a href="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/05/Ayodeji-Cocoa.jpeg?ssl=1"><img data-attachment-id="18384" data-permalink="https://blog.afexnigeria.com/afex-launches-5-year-impact-report/ayodeji-cocoa/" data-orig-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/05/Ayodeji-Cocoa.jpeg?fit=1080%2C809&amp;ssl=1" data-orig-size="1080,809" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Ayodeji Cocoa" data-image-description="" data-medium-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/05/Ayodeji-Cocoa.jpeg?fit=300%2C225&amp;ssl=1" data-large-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/05/Ayodeji-Cocoa.jpeg?fit=1024%2C767&amp;ssl=1" loading="lazy" class="aligncenter size-full wp-image-18384" src="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/05/Ayodeji-Cocoa.jpeg?resize=1080%2C809&#038;ssl=1" alt="AFEX Impact Report" width="1080" height="809" srcset="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/05/Ayodeji-Cocoa.jpeg?w=1080&amp;ssl=1 1080w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/05/Ayodeji-Cocoa.jpeg?resize=300%2C225&amp;ssl=1 300w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/05/Ayodeji-Cocoa.jpeg?resize=1024%2C767&amp;ssl=1 1024w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/05/Ayodeji-Cocoa.jpeg?resize=768%2C575&amp;ssl=1 768w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/05/Ayodeji-Cocoa.jpeg?resize=600%2C450&amp;ssl=1 600w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/05/Ayodeji-Cocoa.jpeg?resize=900%2C675&amp;ssl=1 900w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a></p>
<p><em>“When we started AFEX, we recognized the need to create a systemic and sustainable change in the commodities market by creating a fair and efficient market for trading commodities. We looked at the significant issues that had an impact on our food systems, particularly related to the challenges of the smallholder farmers. We reviewed the processes across the industry and prioritized inclusion to drive more productivity and prosperity for everyone, and now to gauge our experiences and contributions, we devised an impact assessment methodology that analyses the complexity of the contexts in which we work” said Ayodeji Balogun, CEO, AFEX.</em></p>
<p>He also highlighted the inspiration behind the work being done at AFEX and the connection of AFEX’s impact to five Sustainable Development Goals (SDGs),</p>
<p><em>“We are enabled by the resilience of market players to create well-functioning markets, and that has powered our use of innovative technologies and products such as the warehouse receipt system, asset-backed commercial papers, and our input financing programs</em><em>. By aligning our mission and activities with SDGs 1,2,5,8, and 12, we will continue to find innovative ways to deliver value across the ecosystem and look forward to establishing new relationships.</em><em>”</em></p>
<p><a href="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5766.jpg?ssl=1"><img data-attachment-id="17864" data-permalink="https://blog.afexnigeria.com/2019-impact-stories-afexs-year-in-review/img_5766/" data-orig-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5766.jpg?fit=1802%2C1070&amp;ssl=1" data-orig-size="1802,1070" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;7.1&quot;,&quot;credit&quot;:&quot;IsOb&quot;,&quot;camera&quot;:&quot;Canon EOS 6D&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1572542087&quot;,&quot;copyright&quot;:&quot;IsOb_AbstrAct&quot;,&quot;focal_length&quot;:&quot;35&quot;,&quot;iso&quot;:&quot;200&quot;,&quot;shutter_speed&quot;:&quot;0.0125&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="2019 year in review" data-image-description="" data-medium-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5766.jpg?fit=300%2C178&amp;ssl=1" data-large-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5766.jpg?fit=1024%2C608&amp;ssl=1" loading="lazy" class="aligncenter size-full wp-image-17864" src="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5766.jpg?resize=1802%2C1070&#038;ssl=1" alt="2019 year in review" width="1802" height="1070" srcset="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5766.jpg?w=1802&amp;ssl=1 1802w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5766.jpg?resize=300%2C178&amp;ssl=1 300w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5766.jpg?resize=768%2C456&amp;ssl=1 768w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5766.jpg?resize=1024%2C608&amp;ssl=1 1024w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5766.jpg?resize=1800%2C1070&amp;ssl=1 1800w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a></p>
<p>The Chairman of AFEX, Mobolaji Adeoye also spoke on the bigger picture of the Impact Report, stating that, <em>“One insight that the team and I have derived in perusing the report and going through the process required to create the impact framework is that AFEX’s model can deliver on the promise and potential to lift millions out of poverty. AFEX is a marketplace that incentivizes players and allows value to be shared across commodity value chains. As the team launches the Impact Report today, we commit to continue tracking the impact of this marketplace as it not only lifts people out of poverty but works across the other SDGs – zero hunger, gender equality, decent work, and economic growth, and responsible production and consumption – all captured within the report.”</em></p>
<p>AFEX’s first five years have delivered incredible impact outcomes in Nigeria’s commodities market and the company revealed some details about its next five years journey. The goal continues to center around themes of efficient and inclusive markets, economic growth and inclusion in a way that reaches more producers, unlocks more finance for commodity value chains and facilitates greater volume of trades to outfit processor requirements. With today’s launch, AFEX is celebrating the progress across these pillars and reiterating its commitment to help Africa feed itself.</p>
<p>The AFEX Impact report can be <strong><a href="https://drive.google.com/file/d/1SA7BY8dkYBImKqLqhnwr8ZoqbWNWzhO0/view" target="_blank" rel="noopener">downloaded here</a></strong>.</p>
<p><strong>About AFEX</strong></p>
<p>At AFEX we harness Africa&#8217;s commodities and talent to build shared wealth and prosperity. Our infrastructure and platform investments work to unlock capital to power a trust economy in Africa&#8217;s commodities markets. Since inception in 2014, we have developed and deployed a viable commodities exchange model for the West African market, and are on track to impact one million producers; providing services in productivity and value capture and access to finance and markets. By deploying an efficient market system, we will facilitate trade with Africa worth over USD500 million in the next five years.</p>
<p>AFEX’s vision is to be the reference point for commodities in Africa. To achieve this goal, AFEX looks to introduce products that de-risk the sector, drive financial inclusion for rural communities, develop technology for data collection and market access, and enable capital deployment.</p>
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AFEX Launches 5 Year Impact Report

<p>We began releasing an annual commodity review in 2020 to provide a trusted source of information for participants in the commodities market in Nigeria. Our annual commodity review report for 2019 allowed us look at the data points that we collected in the course of our work through the year, and arrange them in a way that helped the market understand the price dynamics in the commodities market and make informed decisions. Our new report &#8211; the 2021 Commodities Outlook &#8211; features the AFEX 2020 Commodities Review and 2021 Outlook all in one.</p>
<h2>AFEX 2020 Commodities Review</h2>
<p>The outbreak of the novel coronavirus, COVID-19, in 2020 brought about some unprecedented shocks to the global economy. The effect of the pandemic was unique given its adverse impact on supply chains and global demand of commodities. The global commodities market saw prices of some global commodities like oil and metals plunge in the first half of the year before experiencing a rebound in the second half of the year.</p>
<p>For Brent crude oil, low demand amid supply glut saw prices slump 71 percent in the first four months of the year to $19.33 per barrel. However, price almost doubled since April’s 5-year low, supported by sharp oil supply cuts by OPEC+ and the gradual easing of lockdown measures across economies, reviving demand. The rebound in crude oil prices drove recoveries seen in Energy prices. However, the recovery in prices stalled in September amid renewed outbreaks of COVID-19 in some key economies.</p>
<p>For metals, especially copper, aluminum and iron ore, net gains in 2020 surpassed levels in 2019 driven by supply disruptions major producing countries and China’s increased trade activities and metal demands for bridges, roads etc., spurred by huge stimulus packages aimed at spurring a V-shaped recovery for China’s manufacturing sector.</p>
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<p>For non-Energy commodities especially agricultural commodities, prices modestly trended downwards on lower demand for agricultural commodities. In the first seven months in 2020, global prices of agricultural commodities, especially Cocoa, Maize and Soybean saw prices plummet. Cocoa recorded the biggest decline by 19 percent. Maize by 11 percent and Soybean fell marginally by 2 percent according  to World Bank Commodity Price Data (The Pink Sheet).</p>
<p>The Nigerian commodities space was likewise not immune to the ravaging impact of the COVID-19 pandemic amid some fiscal policies geared at boosting growth in the sector ahead of the commencement of the African Continental Free Trade Area agreement. Although resilient when compared with some other sectors of the economy, the agriculture sector suffered decelerated growths in the second and third quarters of the year 2020.  Business activity growth slowed by 1.58 percent in Q2 as against 2.20 percent in Q1 and slowed further by 1.39 percent in Q3, respectively.</p>
<p>The outbreak of the novel virus played an especially important role in determining prices of commodities in the domestic market in 2020. The disruption in supply chain activities coupled with the effect of the border closure policy of the Federal Government on prices saw prices of major food items surge during the period.</p>
<p><a href="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/01/WhatsApp-Image-2021-01-21-at-11.56.10-AM.jpeg?ssl=1"><img data-attachment-id="18276" data-permalink="https://blog.afexnigeria.com/afex-2020-commodities-review-2021-outlook/whatsapp-image-2021-01-21-at-11-56-10-am/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/01/WhatsApp-Image-2021-01-21-at-11.56.10-AM.jpeg?fit=1080%2C809&amp;ssl=1" data-orig-size="1080,809" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="WhatsApp Image 2021-01-21 at 11.56.10 AM" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/01/WhatsApp-Image-2021-01-21-at-11.56.10-AM.jpeg?fit=300%2C225&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/01/WhatsApp-Image-2021-01-21-at-11.56.10-AM.jpeg?fit=1024%2C767&amp;ssl=1" loading="lazy" class="aligncenter size-full wp-image-18276" src="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/01/WhatsApp-Image-2021-01-21-at-11.56.10-AM.jpeg?resize=1080%2C809&#038;ssl=1" alt="AFEX 2020 Commodities Review" width="1080" height="809" srcset="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/01/WhatsApp-Image-2021-01-21-at-11.56.10-AM.jpeg?w=1080&amp;ssl=1 1080w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/01/WhatsApp-Image-2021-01-21-at-11.56.10-AM.jpeg?resize=300%2C225&amp;ssl=1 300w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/01/WhatsApp-Image-2021-01-21-at-11.56.10-AM.jpeg?resize=1024%2C767&amp;ssl=1 1024w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/01/WhatsApp-Image-2021-01-21-at-11.56.10-AM.jpeg?resize=768%2C575&amp;ssl=1 768w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/01/WhatsApp-Image-2021-01-21-at-11.56.10-AM.jpeg?resize=600%2C450&amp;ssl=1 600w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2021/01/WhatsApp-Image-2021-01-21-at-11.56.10-AM.jpeg?resize=900%2C675&amp;ssl=1 900w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a></p>
<h2>2021 Outlook</h2>
<p>Although we expected more output across crops in 2019/20 wet season, our crop production survey revealed access to finance as a key factor affecting productivity for farmers despite increase in private organizations and other financial institutions’ providing access to finance for farmers. Also, access to inputs (fertilizers, seeds and CPPs), although critical, was greatly limited. We believe this provides a guide to policy direction and intervention in the Nigeria agriculture space. Meanwhile, land use, fertilizer usage and weather conditions were significant in determining output in 2020 across commodities surveyed as detailed in this report.</p>
<p>Analysis of farmers responses captured in the survey informed our estimation for at least 4 percent increase in output in 2019/20 wet season period across surveyed commodities. In 2021, we expect the global economy on the path of recovery given the announcement, approval, and distribution of COVID-19 vaccines and positive impact on the global commodities market in terms o higher prices. Also, the Joe Biden led administration looks positive for global trade.</p>
<p>Outlook for domestic commodities varies across crops but will be largely dependent on key systemic factors like outcomes of the COVID-19 outbreak, distribution of vaccines, fiscal and monetary policies and AfCFTA.</p>
<p>Access the <a href="https://drive.google.com/file/d/1Yr1H-OayErPfTLFVAsOzHTLWGSj_foBo/view?usp=sharing" target="_blank" rel="noopener noreferrer"><strong>full report Here</strong></a>.</p>
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Introducing the AFEX 2020 Commodities Review and 2021 Outlook

<p><em>In Q4 2020, it’s hard to keep up with the demand for maize in Nigeria. The price of the grain has seen a steady uptick resulting from a low base of production. Thankfully, commodities market disruptors are seeking better endings for farmers and buyers at large. Before you make your conclusions on the maize market, there is a lot to know about what drives the market for maize in Nigeria and its outlook beyond the bowl of cereal on your breakfast table.</em></p>
<p>Maize (<em>Zea mays L.</em>) is a significant staple crop, widely cultivated in Nigeria and throughout the world. Grown to serve as a major source of food, feed, and an industrial ingredient for human and animal consumption; maize is a versatile grain that adds economic and nutritional value globally. Of the 1.4 billion MT of maize farmed worldwide, 65% of maize demand is for livestock feed production while it stands around 56% in sub-Saharan Africa according to reports by the Food and Agriculture Organization (FAO).</p>
<p>Currently, Nigeria is the largest producer of maize in sub-Saharan Africa with 5.2MT hectares of estimated land dedicated to the cultivation of over 10 million MT of maize as of 2018. However, it is a different situation now. The COVID-19 pandemic bludgeoned smallholder’s productivity resulting in low yields that were unable to match demands. The market is also volatile due to the interstate restrictions across Nigeria which affected trading dynamics; including farmers’ access to input companies ahead of the planting season.</p>
<h2><strong>Demand and Supply of Maize in Nigeria</strong></h2>
<p>Today, the Northwestern part of Nigeria accounts for a significant number of maize cultivations, although agro-ecological regions in other producing states show high potential for growing varieties of maize. Despite the large volumes of maize produced in these regions, the supply of the commodity nationwide is inadequate.</p>
<p>The prices of maize in Nigeria generally respond to the quantity supplied from farmers, aggregators and traders and the quantity demanded by processors like industrial firms and livestock companies. The supply deficit experienced in 2019 (134,000 MT) was quite minimal when compared to the deficit experienced in 2018(1,145,000MT). However, the decline in yields due to the pandemic&#8217;s adverse effects have affected the quantity and price resulting in high demand and importation.</p>
<p>Sometimes, farmers do not have total control of how much maize is produced in the absence of a stable value chain system that ensures the aggregation, processing, moisture quality, storage, and market supply of the crop. This is where AFEX plays a fundamental role.</p>
<h2><strong>A Leveling Field for Production</strong></h2>
<p>To strike the balance between local production capabilities and market supply, AFEX Commodities Exchange is providing a roadmap to high yield growth opportunities in the aggregation, storage, and marketing of maize in Nigeria. AFEX provides storage warehouses with a warehouse receipt system to enable the market viability of the crops and a fair price share for farmers.  AFEX warehouse in Saminaka, located in the capital city of maize production has contributed significantly to the steady supply of maize in Nigeria – it has traded and stored the highest volume (8,660 MT) amongst all warehouses operating under AFEX.</p>
<p>This approach sets a roadmap for the efficient trading of this commodity. Maize accounts for 74% of all commodities traded at AFEX Commodities Exchange from 2016 till date. This speaks to the high demand and liquidity of the commodity amongst other agricultural commodities of comparative value in the value chain. Maize by turnover value has contributed to over 11 billion Naira in trades on the Exchange.</p>
<p><a href="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_5941-1-scaled.jpg?ssl=1"><img data-attachment-id="18181" data-permalink="https://blog.afexnigeria.com/introducing-kaduna-state-in-focus-report/img_5941-2/" data-orig-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_5941-1-scaled.jpg?fit=2560%2C1440&amp;ssl=1" data-orig-size="2560,1440" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;3.2&quot;,&quot;credit&quot;:&quot;IsOb&quot;,&quot;camera&quot;:&quot;Canon EOS 6D&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1572623001&quot;,&quot;copyright&quot;:&quot;IsOb_AbstrAct&quot;,&quot;focal_length&quot;:&quot;50&quot;,&quot;iso&quot;:&quot;100&quot;,&quot;shutter_speed&quot;:&quot;0.000625&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="IMG_5941" data-image-description="" data-medium-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_5941-1-scaled.jpg?fit=300%2C169&amp;ssl=1" data-large-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_5941-1-scaled.jpg?fit=1024%2C576&amp;ssl=1" loading="lazy" class="aligncenter size-full wp-image-18181" src="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_5941-1-scaled.jpg?resize=2560%2C1440&#038;ssl=1" alt="Maize in Nigeria" width="2560" height="1440" srcset="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_5941-1-scaled.jpg?w=2560&amp;ssl=1 2560w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_5941-1-scaled.jpg?resize=300%2C169&amp;ssl=1 300w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_5941-1-scaled.jpg?w=2000&amp;ssl=1 2000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a></p>
<h2><strong>The Outlook for Maize </strong></h2>
<p>In the face of COVID-19 and other uncertainties, the market has exhibited a high demand for maize, especially for animal feed, leading to high importation of the crop. However, the Nigerian government had directed all authorized dealers to immediately discontinue the processing of Forms Mc(mandatory statutory document to be completed by all importers for the importation of goods into Nigeria) for maize importation into the country in July.</p>
<p>Maize remains an indispensable staple role in the food processing and feeds industry in Nigeria. To read the full report on maize production, value, and consumption in Nigeria, <strong><a href="https://drive.google.com/file/d/17BnJtEuhlwRxjK6hJo5kOs9Embl-8933/view?usp=sharing" target="_blank" rel="noopener noreferrer">click here</a></strong>.</p>
<p><strong>Read Also: <a href="https://afexnigeria.com/blog/introducing-kaduna-state-in-focus-report" target="_blank" rel="noopener noreferrer">Introducing the Kaduna State in Focus Report by AFEX</a></strong></p>
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AFEX Commodity Focus on Maize: the Goldmine of Feedgrains

<p>AFEX Commodities Exchange Limited (AFEX), Nigeria’s first private sector commodities exchange firm, joined the Securities and Exchange Commission (SEC) to Ring the Bell for Financial Literacy at an event held at the Exchange office on the 3rd of November 2020. The event which saw the attendance of the Executive Commissioner (Operations), SEC, Mr. Dayo Obisan, represented by Mr Emomotimi Agama alongside members of SEC’s Market Infrastructure and Innovation Department allowed AFEX to reiterate its commitment to driving initiatives that promote investor education and protection, which is a key focus of the Commission.</p>
<p>Financially literate market participants are better enabled to take advantage of new opportunities in the capital market and drive up the level of activities and diversity in the market. As a commodities exchange, AFEX has worked on furnishing the need for information about the commodities market and the commodities trading landscape in Nigeria, allowing for greater participation by an increasing number of retail and institutional investors in the market. The Exchange has designed and executed a robust education campaign that includes both online trainings and digitally distributed learning materials, enabling AFEX to reach various audience groups and satisfy their unique education needs.</p>
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<p>Ayodeji Balogun, the CEO of AFEX, speaking at the event said “Our vision is to grow our education campaigns into an open-source library of content for commodity exchanges in Africa. The content will span across membership procedure, market access, trading strategies, and community engagement, and will be accessible to investors at the click of a button. We are glad about and align so strongly with the Securities and Exchange Commission’s focus on investor protection and education, and ring the bell for financial literacy.”</p>
<p>The Head, Registration, Exchanges, Market Infrastructure and Innovation, at SEC, Emomotimi Agama said, “We aim to facilitate the dissemination of information about Nigeria’s capital market that provides investors with the critical knowledge required to make better decisions about investing in the market. We are happy that together with key stakeholders like AFEX we can facilitate this movement of financial literacy”.</p>
<p>Initiatives like knowledge-sharing sessions, video tutorials, one-on-one with financial experts and detailed reports on commodity value chains are being incorporated into AFEX’s technological platforms to access important trading data, trends, and financial information, thereby bringing support and growth to the commodities market.</p>
<p>Financial literacy on the intricacies of how commodities market work is one of the key ingredients to de-risking the sector, building trust, and growing markets for a sustainable food system. The holistic approach AFEX and SEC are taking to ensure a viable commodities ecosystem will not only help to understand the advantages of commodities as an alternative investment option but also grow people’s trust in the system and between key players in the value chain. Additionally, this synergy will create unprecedented opportunities for investors and farmers to access financial growth. AFEX alignment with SEC will bring millennials and Generation Z to the commodities exchange ecosystem as future operators, protecting them against price volatility/inflation and help diversify their portfolio as investors.</p>
<p><strong>Read Also: <a href="https://afexnigeria.com/blog/afex-other-agriculture-sector-stakeholders-to-operationalize-governments-afjp-program" target="_blank" rel="noopener noreferrer">AFEX, Other Agriculture Sector Stakeholders to Operationalize Government’s AFJP Program</a></strong></p>
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AFEX Rings the Bell for Financial Literacy

<p>Last year we had the first ever AFEX harvest party intended to mark AFEX&#8217;s 5th year anniversary while emphasizing the amazing contributions of our partner farmers, who have been an integral part of our work since we first began. The harvest party covered three communities, with two of those communities &#8211; Pampaida and Saminaka &#8211; being in Kaduna State due to the high percentage of the AFEX farmer network present in Kaduna State.  AFEX  presently operates 12 Accredited Warehouses in Kaduna state, but beyond our operations in Kaduna, it has become increasingly evident that the state has become a vital player in the Nigerian agricultural sector. Our Kaduna state in focus report delves into the state&#8217;s agriculture economy looking at some of the factors that are already in place to support agriculture in the state as well as the structures and policies that are still required to further the development of the sector.</p>
<p>Two statistics summarize Nigeria’s agricultural economy in Kaduna. First, Kaduna state’s agricultural sector remains the largest source of revenue as it contributed 38% to the total GDP of the state in 2017. Second, 77.5% of the 9.02 million people living in the state are active farmers, occupying the sixth largest state by landmass in Nigeria at 42, 481 square kilometres. These numbers are essential to highlight along with the fact that crop production in maize, paddy rice, sorghum, soybeans, and beans drive the enormous contribution by the state to the sector.</p>
<p>With hundreds of hectares of agricultural land and a rich agroecological zone coupled with a tropical climate, Kaduna is at a resource advantage. The presence of two agroecological zones: Northern Guniea Savanah and derived savannah influences the cultivation of maize, soybeans, cowpea, and groundnut skewed towards the dry season and cassava, rice, ginger, yam and major crops towards the rainy season.</p>
<p><a href="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_3666-e1601026385174.jpg?ssl=1"><img data-attachment-id="18187" data-permalink="https://blog.afexnigeria.com/introducing-kaduna-state-in-focus-report/img_3666-2/" data-orig-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_3666-e1601026385174.jpg?fit=800%2C534&amp;ssl=1" data-orig-size="800,534" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;2.5&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;Canon EOS 7D&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;946685711&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;50&quot;,&quot;iso&quot;:&quot;200&quot;,&quot;shutter_speed&quot;:&quot;0.00025&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="IMG_3666" data-image-description="" data-medium-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_3666-e1601026385174.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_3666-e1601026385174.jpg?fit=1024%2C683&amp;ssl=1" loading="lazy" class="size-full wp-image-18187 aligncenter" src="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/09/IMG_3666-e1601026385174.jpg?resize=800%2C534&#038;ssl=1" alt="Kaduna state in focus" width="800" height="534" data-recalc-dims="1" /></a></p>
<p>The Ministry of Agriculture founded in 1980 is saddled with the responsibility of providing policy direction for the State Government on her agricultural sector. It also provides oversight function of its implementing agencies &#8211; Kaduna Agricultural Development Agency (KADA) and Kaduna State Livestock Regulatory Authority (KADLRA). Its vision is to make Kaduna State the agricultural hub of the Nation and to achieve this, they have adopted a mission to adequately equip Kaduna state citizens with best in class agricultural knowledge in a bid to empower them to power the economy of the State.</p>
<p>Although agribusiness is rapidly booming in the state, the productivity is lagging. Kaduna would require a purposeful and sustainable investment and focus on instituting and courting public-private partnership to transform the sector. These partners will be required to digitize and employ cutting-edge technologies to boost efficiency in the sector as well as provide the structures for enabling access to finance and markets. Kaduna’s small farm holdings and agribusinesses require the implementation and continuous improvement of the state&#8217;s operating environment, which will give room for agriculture stakeholders working within the state to continually strive for sustainable growth.</p>
<p>To read more on the Kaduna state in focus report, <a href="https://drive.google.com/file/d/1YEs60lrUKrTcjGC5C6RLBFo5yM5k9w_-/view?usp=sharing" target="_blank" rel="noopener noreferrer">click here</a>.</p>
<p><strong>Read More: <a href="https://afexnigeria.com/blog/covid-19-and-commodities-impact-outlook-and-recommendations" target="_blank" rel="noopener noreferrer">COVID-19 and Commodities: Impact, Outlook and Recommendations</a></strong></p>
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Introducing the Kaduna State in Focus Report by AFEX

<p>The Federal Government has launched the Agriculture for Food and Jobs Plan (AFJP) at an event attended by various stakeholders on the 23rd of July 2020 in Funtua, Katsina State. The program which is intended to roll-out a structured plan to combat food insecurity in Nigeria, which has been partly exacerbated by the incidence of the COVID-19 pandemic and the measures introduced to stem its spread, targets 2 million smallholder farmers spread across 36 States of Nigeria and the FCT.</p>
<p>Food security is a vital agenda on a national and global scale, and COVID-19 has presented unusual shocks to our food systems that require adequate planning and response to ensure resilience and recovery. The AFJP aims to produce 10 million metric tons of food including carbohydrates, animal protein and edible oils within 12 months. The program will be operationalized through a collaboration of the Federal Government with various State Governments, the Central Bank of Nigeria (CBN), the Federal Ministry of Agriculture and Rural Development (FMARD) and various private sector agri service providers.</p>
<p><a href="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-6.18.20-PM-e1596012501589.jpeg?ssl=1"><img data-attachment-id="18120" data-permalink="https://blog.afexnigeria.com/afex-other-agriculture-sector-stakeholders-to-operationalize-governments-afjp-program/whatsapp-image-2020-07-23-at-6-18-20-pm/" data-orig-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-6.18.20-PM-e1596012501589.jpeg?fit=1080%2C645&amp;ssl=1" data-orig-size="1080,645" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="WhatsApp Image 2020-07-23 at 6.18.20 PM" data-image-description="" data-medium-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-6.18.20-PM-e1596012501589.jpeg?fit=300%2C179&amp;ssl=1" data-large-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-6.18.20-PM-e1596012501589.jpeg?fit=1024%2C612&amp;ssl=1" loading="lazy" class="aligncenter wp-image-18120 size-full" src="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-6.18.20-PM-e1596012501589.jpeg?resize=1080%2C645&#038;ssl=1" alt="AFJP Program" width="1080" height="645" srcset="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-6.18.20-PM-e1596012501589.jpeg?w=1080&amp;ssl=1 1080w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-6.18.20-PM-e1596012501589.jpeg?resize=300%2C179&amp;ssl=1 300w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-6.18.20-PM-e1596012501589.jpeg?resize=1024%2C612&amp;ssl=1 1024w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-6.18.20-PM-e1596012501589.jpeg?resize=768%2C459&amp;ssl=1 768w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a></p>
<p>Ayodeji Balogun, the Chief Executive Officer of AFEX Commodities Exchange Limited (AFEX), who was present at the launch said that “With the realities of the pandemic testing our food systems, it is up to all players in the agricultural value chain to intervene in ways that are both sustainable and impactful. The Agriculture for Food and Jobs Plan provides structured production support by giving zero-interest input financing options to farmers, enabling them to access fertilizers and seeds for their production activities, which will result in increased yields at harvest time. The program will reach 2.4 million farmers, producing over 10 million Metric Tons, and providing food for 100 million households.”</p>
<p>For the last five years, AFEX has worked in a consortium with the Alliance for a Green Revolution in Africa (AGRA) and other public and private sector partners including National Agricultural Extension and Research Liaison Services (NAERLS) and Sasakawa to build operational capacity to deliver improved financial inclusion, farmer training and access to finance and markets. The programs run under this framework have improved the capacity of farmers across the country enabling year on year growth in yields and productivity that can be doubled down on in executing the AFJP program. AFEX will be contributing 750,000 farmers to the AFJP program through this consortium of partners that include AGRA, NAERLS and Sasakawa.</p>
<p><a href="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-7.45.27-PM-e1596012602261.jpeg?ssl=1"><img data-attachment-id="18121" data-permalink="https://blog.afexnigeria.com/afex-other-agriculture-sector-stakeholders-to-operationalize-governments-afjp-program/whatsapp-image-2020-07-23-at-7-45-27-pm/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-7.45.27-PM-e1596012602261.jpeg?fit=1080%2C666&amp;ssl=1" data-orig-size="1080,666" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="WhatsApp Image 2020-07-23 at 7.45.27 PM" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-7.45.27-PM-e1596012602261.jpeg?fit=300%2C185&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-7.45.27-PM-e1596012602261.jpeg?fit=1024%2C631&amp;ssl=1" loading="lazy" class="aligncenter wp-image-18121 size-full" src="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-7.45.27-PM-e1596012602261.jpeg?resize=1080%2C666&#038;ssl=1" alt="AFJP Program" width="1080" height="666" srcset="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-7.45.27-PM-e1596012602261.jpeg?w=1080&amp;ssl=1 1080w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-7.45.27-PM-e1596012602261.jpeg?resize=300%2C185&amp;ssl=1 300w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-7.45.27-PM-e1596012602261.jpeg?resize=1024%2C631&amp;ssl=1 1024w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/07/WhatsApp-Image-2020-07-23-at-7.45.27-PM-e1596012602261.jpeg?resize=768%2C474&amp;ssl=1 768w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a></p>
<p>The AFJP program will allow private players, like AFEX, with access to a large number of farmers, to collaborate and work together, sharing knowledge and technology, to drive the end goal of food security in the face of the COVID-19 pandemic. The private sector is also being incorporated into the program as off-takers for the produce, which will ensure that farmers can access a market at harvest time.</p>
<p>The coordinated efforts of the AFJP program will ensure linkages for farmers with quality inputs and support through the production cycle and access to market at harvest. This will benefit the country’s drive to be food secure, and create and protect jobs in the sector.</p>
<p><strong>See Also: <a href="https://afexnigeria.com/covid-19-and-commodities-impact-outlook-and-recommendations" target="_blank" rel="noopener noreferrer">COVID-19 and Commodities: Impact, Outlook and Recommendations</a></strong></p>
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AFEX, Other Agriculture Sector Stakeholders to Operationalize Government’s AFJP Program

<p>In rural communities where some commodity supply chains begin with the necessary function of production, like those which are hubs for major agricultural commodities in Nigeria, the reality of the novel coronavirus sweeping across the world seems to be distant and far off. Smallholder farmers at one AFEX warehouse location, who were engaged on COVID-19 on the sidelines of a meeting focused on fertilizer usage for the coming planting season, reflected this view as they insisted that “Corona yana Abuja”, essentially alluding to their belief that corona is in Abuja and not with them. The ability of these production centers to continue to decouple themselves from the challenges being thrown up by the spread of the coronavirus is, however, fast becoming impossible as the effect of the pandemic is increasingly being felt in the commodities market as in other sectors of the Nigerian and global economy.</p>
<p>COVID-19 has presented an unusual shock that is affecting both the demand and supply side of the commodities market. Preventive and containment measures such as border closures and lockdowns, which have been adopted are increasing restrictions, and as companies across the globe slow down on the purchase of inventory and intra and cross border trade activities slow down to historic lows, the commodities market is being greatly impacted. Globally, the commodities market has witnessed broad-based declines in value as 47 commodities out of the 66 commodities tracked by the world bank recorded declines with the energy index losing 44% of its value from the beginning of the year.</p>
<p><a href="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/04/Commodity-movements.png?ssl=1"><img data-attachment-id="18031" data-permalink="https://blog.afexnigeria.com/covid-19-and-commodities-impact-outlook-and-recommendations/commodity-movements/" data-orig-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/04/Commodity-movements.png?fit=965%2C677&amp;ssl=1" data-orig-size="965,677" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Commodity movements" data-image-description="" data-medium-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/04/Commodity-movements.png?fit=300%2C210&amp;ssl=1" data-large-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/04/Commodity-movements.png?fit=965%2C677&amp;ssl=1" loading="lazy" class="aligncenter size-full wp-image-18031" src="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/04/Commodity-movements.png?resize=965%2C677&#038;ssl=1" alt="Covid-19 and Commodities" width="965" height="677" srcset="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/04/Commodity-movements.png?w=965&amp;ssl=1 965w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/04/Commodity-movements.png?resize=300%2C210&amp;ssl=1 300w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/04/Commodity-movements.png?resize=768%2C539&amp;ssl=1 768w" sizes="(max-width: 965px) 100vw, 965px" data-recalc-dims="1" /></a></p>
<p>Prices in the Nigerian agro-commodities market began taking a hit at the start of 2020 as the early rush for commodities in the first two months of the marketing year gave way to the relative absence of large buyers in the market. To date, soybean has witnessed the steepest decline, falling by 13.55% while maize fell by 5.94% over the same period. On the other hand, export crops such as ginger and cocoa have gained 5.00% and 11.69% respectively.</p>
<p>Prices in the domestic market have been further impacted by the COVID-19 outbreak with the suspension of further procurement by industries normally requiring the commodities as they evaluate the demand levels and seek alternative supply and distribution networks for their products. Ginger is, however, withstanding the negative impact of the virus due to the production freeze witnessed in China (largest producer in the world) prompting a rise in prices of the root crop and also because of its therapeutic benefits. International prices of the commodity have spiked across the world.</p>
<p>The impact of COVID-19 on Nigeria’s commodities market will inevitably be felt by a range of actors and industries. Our ability to proffer and execute options that will enable producers, and other players, guarantee our supply chain, while simultaneously unlocking palliative measures to bolster demand will help us contain the effects of the pandemic on our commodities market. Two key recommendations from our perspective lie in supporting local producers with input loans by leveraging on agro-allied companies with last mile contact with the farmers, and the provision of trade financing and inventory support through credit lines to companies and FMCG processors operating in the country alongside the execution of export credit guarantee structures.</p>
<p>Access our full report on COVID-19 and Commodities <strong><a href="https://drive.google.com/file/d/1Ig8OSrAHQofRijm2-d-YWpidP0r3WSyH/view?usp=sharing" target="_blank" rel="noopener noreferrer">right here</a>.</strong></p>
<p><strong>Read More: <a href="https://afexnigeria.com/afex-annual-commodity-review-2019" target="_blank" rel="noopener noreferrer">AFEX Releases First Annual Commodity Review Report for 2019</a></strong></p>
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COVID-19 and Commodities: Impact, Outlook and Recommendations

<p><strong>4th March 2020, ABUJA, NIGERIA</strong> — In a signing ceremony held at the AFEX Commodities Exchange Limited (AFEX) offices in Abuja on March 4, 2020, AFEX and FMDQ Holdings PLC (“FMDQ Group” or “FMDQ”) formalised their partnership by executing a Memorandum of Understanding (MoU), solidifying their mutual interest in developing products to deepen the Nigerian capital market.</p>
<p>The collaboration between AFEX and FMDQ recognises the importance of product innovation to market development and encouraging participation of a wider swathe of investors in the capital market. Holding the promise for developing new markets, the partnership will help deliver new initiatives focused on deepening the Nigerian capital market.</p>
<p>Key on the roster of positive impact that will stem from the partnership between the two Securities and Exchange Commission (“SEC”)’s-registered Exchanges is the unlocking of additional sources of finance for the agriculture sector in Nigeria. Products developed under this new partnership will support innovative financing structures for the sector that will leverage AFEX’s established infrastructure and supply chain network and FMDQ’s extensive experience as innovators in the Nigerian financial markets.</p>
<p><a href="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2139-1.jpg?ssl=1"><img data-attachment-id="17996" data-permalink="https://blog.afexnigeria.com/afex-and-fmdq-sign-mou/fum_2139-1/" data-orig-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2139-1.jpg?fit=1000%2C667&amp;ssl=1" data-orig-size="1000,667" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;4&quot;,&quot;credit&quot;:&quot;CHUKWUFUMNANYA&quot;,&quot;camera&quot;:&quot;NIKON D5500&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1583321607&quot;,&quot;copyright&quot;:&quot;2019&quot;,&quot;focal_length&quot;:&quot;34&quot;,&quot;iso&quot;:&quot;500&quot;,&quot;shutter_speed&quot;:&quot;0.005&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="FUM_2139 (1)" data-image-description="" data-medium-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2139-1.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2139-1.jpg?fit=1000%2C667&amp;ssl=1" loading="lazy" class="aligncenter wp-image-17996" src="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2139-1.jpg?resize=800%2C534&#038;ssl=1" alt="AFEX and FMDQ" width="800" height="534" srcset="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2139-1.jpg?w=1000&amp;ssl=1 1000w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2139-1.jpg?resize=300%2C200&amp;ssl=1 300w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2139-1.jpg?resize=768%2C512&amp;ssl=1 768w" sizes="(max-width: 800px) 100vw, 800px" data-recalc-dims="1" /></a></p>
<p>Speaking to stakeholders present at the signing ceremony, Mr Ayodeji Balogun, Chief Executive Officer of AFEX, said ”AFEX is on a path to building Africa&#8217;s second commodities derivative market, and this partnership sets the tone for that journey. We are extremely proud to be collaborating with FMDQ, as this helps our goal of increasing our product offerings to investors. We see a clear path to product innovation that will unlock a wider range of products that are able to be traded within Nigeria&#8217;s capital markets, promoting broad-based wealth creation that’s accessible to every Nigerian.”</p>
<p>According to the Chief Executive Officer, FMDQ Group, Mr Bola Onadele. Koko,  “We are delighted to announce this collaboration agreement between FMDQ and AFEX. As members of the SEC’s Implementation Committee on Commodities Trading Ecosystem, an area of focus for this partnership will be the Nigerian Agricultural Commodities Ecosystem. Our goal at FMDQ is to support the growth of the sector through commercial and market-driven propositions. Through the partnership, we will be introducing new products aimed at de-risking the value chain, attracting capital market funding to the sector and diversifying the existing products available to investors in this space.”</p>
<p>In the course of the event, both parties reiterated the need for continuous cooperation, alluding to the frontloading of relevant initiatives and campaigns to educate the market on the results of product and market development activities.</p>
<p><strong>See Also: <a href="https://afexnigeria.com/afex-and-dgcx-promote-international-market-opportunities" target="_blank" rel="noopener noreferrer">AFEX Signs MoU with Dubai Gold and Commodities Exchange to Promote International Market Opportunities</a></strong></p>
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AFEX and FMDQ Sign MoU to Promote Product Innovation for Nigeria’s Capital Market

<p><strong>4th March 2020, ABUJA, NIGERIA</strong> — AFEX Commodities Exchange Limited (AFEX) has announced a partnership with the Dubai Gold &amp; Commodities Exchange (DGCX) at an MoU signing ceremony held at the AFEX office in Abuja on the 4th of March 2020. The two leading exchanges will be collaborating to strengthen the commodities exchange ecosystem in Nigeria and provide new market opportunities for the commodities traded on both exchanges.</p>
<p>Commodities exchanges all over the world have the capacity to revive economies through the mobilization of additional investment and resources for various sectors such as minerals and agriculture. Through their operations over the years, AFEX and DGCX have built a track record of contributing to the unlocking of finance for the commodity sectors’ of their respective economies through price risk management, and the provision of access to capital markets.</p>
<p>The scope of collaboration between the two exchanges covers a number of activities from knowledge sharing to commodity contract design and the listing of a Shari’ah Gold Product. The DGCX Spot Gold contract – Shari’ah compliant, provides an opportunity for Islamic funds and investors in and outside Nigeria to diversify their portfolio efficiently by investing in gold. In addition to this, agricultural commodities from Nigeria can find a route to international markets with the commodities being traded fairly and transparently on the exchanges.</p>
<p><a href="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2040-1.jpg?ssl=1"><img data-attachment-id="17989" data-permalink="https://blog.afexnigeria.com/afex-and-dgcx-promote-international-market-opportunities/fum_2040-1/" data-orig-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2040-1.jpg?fit=1000%2C667&amp;ssl=1" data-orig-size="1000,667" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;4.5&quot;,&quot;credit&quot;:&quot;CHUKWUFUMNANYA&quot;,&quot;camera&quot;:&quot;NIKON D5500&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1583320032&quot;,&quot;copyright&quot;:&quot;2019&quot;,&quot;focal_length&quot;:&quot;46&quot;,&quot;iso&quot;:&quot;800&quot;,&quot;shutter_speed&quot;:&quot;0.005&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="FUM_2040 (1)" data-image-description="" data-medium-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2040-1.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2040-1.jpg?fit=1000%2C667&amp;ssl=1" loading="lazy" class="aligncenter wp-image-17989" src="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2040-1.jpg?resize=800%2C534&#038;ssl=1" alt="AFEX and DGCX" width="800" height="534" srcset="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2040-1.jpg?w=1000&amp;ssl=1 1000w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2040-1.jpg?resize=300%2C200&amp;ssl=1 300w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2040-1.jpg?resize=768%2C512&amp;ssl=1 768w" sizes="(max-width: 800px) 100vw, 800px" data-recalc-dims="1" /></a></p>
<p>Ayodeji Balogun, CEO of AFEX, stated at the signing ceremony that “This partnership is an important step to reviving our commodities exchange industry in Nigeria, and as the leading and most innovative commodities exchange in West Africa, AFEX is extremely proud to be engaging DGCX, as this helps our goal of increasing product offerings to investors, and will serve as a gateway to the Middle East for the export market. AFEX is on the path to building Africa&#8217;s second commodities derivative market, and this partnership sets the tone for that journey.”</p>
<p>Les Male, CEO of DGCX, who represented the firm at the ceremony stated that “as the largest derivatives exchange in the Middle East, we are pleased to be working with AFEX to provide our rich experience in the derivatives business to foster innovation and global cooperation. In view of the UAE’s demand for agricultural produce, as well as Nigeria’s ability to trade other potential Shari’ah products, DGCX can complement AFEX in many ways. This alliance will go a long way in creating more efficient markets and strengthening trade flows between the UAE and Nigeria, benefiting each other&#8217;s stakeholders.”</p>
<p><a href="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2153.jpg?ssl=1"><img data-attachment-id="17990" data-permalink="https://blog.afexnigeria.com/afex-and-dgcx-promote-international-market-opportunities/fum_2153/" data-orig-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2153.jpg?fit=1000%2C651&amp;ssl=1" data-orig-size="1000,651" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;4&quot;,&quot;credit&quot;:&quot;CHUKWUFUMNANYA&quot;,&quot;camera&quot;:&quot;NIKON D5500&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1583321739&quot;,&quot;copyright&quot;:&quot;2019&quot;,&quot;focal_length&quot;:&quot;40&quot;,&quot;iso&quot;:&quot;500&quot;,&quot;shutter_speed&quot;:&quot;0.005&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="FUM_2153" data-image-description="" data-medium-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2153.jpg?fit=300%2C195&amp;ssl=1" data-large-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2153.jpg?fit=1000%2C651&amp;ssl=1" loading="lazy" class="aligncenter wp-image-17990" src="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2153.jpg?resize=800%2C521&#038;ssl=1" alt="AFEX and DGCX" width="800" height="521" srcset="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2153.jpg?w=1000&amp;ssl=1 1000w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2153.jpg?resize=300%2C195&amp;ssl=1 300w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/03/FUM_2153.jpg?resize=768%2C500&amp;ssl=1 768w" sizes="(max-width: 800px) 100vw, 800px" data-recalc-dims="1" /></a></p>
<p>Africa is the world’s frontier for commodity exchange development, attracting the interest of domestic investors as well as large international commodity exchange groups, which is vital for the fruition of commodity exchanges in Africa. AFEX is leading this commodity exchange development in Nigeria. Akinyinka Akintunde, the Vice President Financial Markets at AFEX also stated at the event that “The relationship with DGCX is an exciting one, as it will contribute to our overall goal of enhancing the efficiency and profitability of both Nigeria’s agricultural and financial sectors, whilst also exploring other viable sectors such as precious minerals in Nigeria. As the pioneer of commodity exchanges in Nigeria, we are keen to create more investable products, and this partnership with DGCX will unlock the availability of products that are able to be traded within Nigeria&#8217;s capital markets.”</p>
<p><strong>See Also: <a href="https://afexnigeria.com/afex-meets-with-investment-community-in-abuja-to-introduce-new-platform" target="_blank" rel="noopener noreferrer">AFEX meets with Investment Community in Abuja to Introduce New Platform</a></strong></p>
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AFEX Signs MoU with Dubai Gold and Commodities Exchange to Promote International Market Opportunities

<p>AFEX Commodities Exchange Limited has released the first edition of an annual commodity review for the Nigerian commodities market. The report, which is a first of its kind in Nigeria reviews the international and domestic landscape for key commodities in the Nigerian market. Key commodities reviewed include soybeans, maize, paddy rice, cocoa, ginger and sorghum. These commodities are considered in the report in line with the factors shaping global commodities markets, domestic commodity performance and strategies to beat the pack.</p>
<p>This review comes as the commodities market in Nigeria is deservedly gaining strength as more players get involved in a variety of activities along commodity value chains. This increased involvement has led to a growth in the value chains as players support more seamless transactions in the industry. Specifically, the agriculture sector in Nigeria has received significant attention in the last four years with all sub-sectors benefiting from the public, private and developmental investments in the sector.</p>
<p><a href="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/01/Commodity-market-review-Copy.jpg?ssl=1"><img data-attachment-id="17884" data-permalink="https://blog.afexnigeria.com/afex-annual-commodity-review-2019/commodity-market-review-copy/" data-orig-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/01/Commodity-market-review-Copy.jpg?fit=1162%2C654&amp;ssl=1" data-orig-size="1162,654" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="Commodity market review &#8211; Copy" data-image-description="" data-medium-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/01/Commodity-market-review-Copy.jpg?fit=300%2C169&amp;ssl=1" data-large-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/01/Commodity-market-review-Copy.jpg?fit=1024%2C576&amp;ssl=1" loading="lazy" class="aligncenter wp-image-17884 size-full" src="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/01/Commodity-market-review-Copy.jpg?resize=1162%2C654&#038;ssl=1" alt="Annual commodity review - AFEX" width="1162" height="654" srcset="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/01/Commodity-market-review-Copy.jpg?w=1162&amp;ssl=1 1162w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/01/Commodity-market-review-Copy.jpg?resize=300%2C169&amp;ssl=1 300w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/01/Commodity-market-review-Copy.jpg?resize=768%2C432&amp;ssl=1 768w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2020/01/Commodity-market-review-Copy.jpg?resize=1024%2C576&amp;ssl=1 1024w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a></p>
<p>Despite the massive growth in the sector, access to data and information about the sector remain out of reach for most Nigerians. AFEX has spearheaded the development and deployment of several knowledge solutions on the commodities market in Nigeria, especially through its <a href="https://afexnigeria.com/press-release-afex-edex" target="_blank" rel="noopener noreferrer">market education platform, EdEX</a>. Connecting players in the commodities market through readily accessible knowledge and data puts the sector on surer footing, enabling the development of scalable and sustainable structures.</p>
<p>AFEX’s Vice President, Financial Markets, Akinyinka Akintunde, said that the report was a  reflection of AFEX’s continued commitment to educate the market and foster a culture of transparency for the commodities market in Nigeria.</p>
<p>“An annual commodity review allows us to look at the data points that we collect in the course of our work through the year, and arrange them in a way that helps the market understand the price dynamics in the commodities market and make informed decisions going forward. This enhances the efficiency and profitability of both Nigeria’s agricultural and financial sectors.”</p>
<p>In this edition of the AFEX annual commodity review, commodity prices in the domestic market followed earlier established trends with prices exhibiting the seasonal fluctuation that is characteristic of the commodities market. Still, the 2019/2020 marketing year has proven to be highly competitive showing off an increase in both the number and sophistication of the players participating in the markets. These key dynamics are explored in AFEX&#8217;s review of the Nigerian commodities market for 2019, providing a treasure trove of information for anyone looking for data and insights of the market from the past year.</p>
<p>The full AFEX Annual Commodity Review for 2019 can be <a href="https://drive.google.com/file/d/1NeKuAyOguBohd6VQYxdP_TsOXkM8hZij/view?usp=sharing" target="_blank" rel="noopener noreferrer">accessed here</a>.</p>
<p><strong>See Also: <a href="https://afexnigeria.com/afex-meets-with-investment-community-in-abuja-to-introduce-new-platform" target="_blank" rel="noopener noreferrer">AFEX meets with Investment Community in Abuja to Introduce New Platform</a></strong></p>
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AFEX Releases First Annual Commodity Review Report for 2019

<p>2019: it&#8217;s the end of a decade, it&#8217;s the year that AFEX turned five; a year full of numerous changes and wins, and a truly definitive year for us as a brand.</p>
<p>Why?</p>
<p>Well over the last five years, AFEX has built a business that is inclusive in its approach to creating solutions for Nigerian agriculture. Our model has ensured a fairer distribution of wealth among players, which has gained us the trust of market participants. We have also consistently delivered on the required quantity and quality of commodities for both local and international buyers, which has gotten us the confidence of investors from both commercial banks and the capital markets. The progress we have recorded up to this point, freed us up this year to start thinking a lot about the future and the next phase of our business.</p>
<p>We dwelt a lot this year on initiatives and partnerships that will get us to the future we have imagined; one where we can take advantage of the infrastructure we have built, to deliver even greater value to producers, processors and investors. In this round up article, we&#8217;ll recall some of the moments from this year that were incredibly special to us because of how they helped us stay the course and even brought us closer to the future that we&#8217;re so excited about.</p>
<h2><strong>AFEX 2019 Impact Stories</strong></h2>
<p><strong>Code Cash Crop 2.0</strong></p>
<p>We started Code Cash Crop in 2018 to spearhead conversations at the intersection of technology, finance an agriculture. In our first outing for Code Cash Crop, we focused on co-creating solutions that would boost the competitiveness of the agribusiness sector in the country. The second iteration of Code Cash Crop, which held in February this year, saw us turn our sights to steering conversations towards developing payment solutions for  rural agrarian communities. The important conversation which stemmed from one of the pillars of our service offerings &#8211; financial inclusion &#8211; brought an even larger crowd together in one room to develop solutions that will enable more people in our rural communities to get financially included.</p>
<p>In consistently putting agriculture in front of crowds through our annual Code Cash crop event, we are simply going with our belief that the sector is one of the largest and most resilient sectors in Nigeria with the potential to drive amazing returns when the right set of people get involved and invested.</p>
<p><strong>AFEX Reports</strong></p>
<p>One of the key things that an exchange provides to players is price discovery and transparency in transactions, which is vital for decision-making. Since 2017, we have distributed <a href="https://afexnigeria.com/market" target="_blank" rel="noopener noreferrer">weekly commodities price data for commodities traded on the Exchange</a>. We doubled down on that practice this year, both making the data available through a lot more channels and even introducing some new reports like the AFEX logistics price report published weekly on our LinkedIn page.</p>
<p><strong>Xpert Sessions</strong></p>
<p>This year saw the emergence of the Xpert brand &#8211; the name that we have adopted for staff members of AFEX, which embodies our passion as contributors to the vision, and the core values that we share of empathy, excellence and execution. Experts generally have a lot of knowledge to impart, so internally we launched the Xpert sessions, a bi-monthly period set aside to learn from each other. The amount of knowledge and shared meaning generated from these sessions have been priceless and definitely make up some real special moments.</p>
<p><strong>EdEX Launch</strong></p>
<div id="attachment_17431" style="width: 1210px" class="wp-caption aligncenter"><a href="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/06/IMG_2333-1-1-e1561883435659.jpg?ssl=1"><img aria-describedby="caption-attachment-17431" data-attachment-id="17431" data-permalink="https://blog.afexnigeria.com/press-release-afex-edex/img_2333-1-2/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/06/IMG_2333-1-1-e1561883435659.jpg?fit=1200%2C800&amp;ssl=1" data-orig-size="1200,800" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;4&quot;,&quot;credit&quot;:&quot;Schucks&quot;,&quot;camera&quot;:&quot;Canon EOS 600D&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1560876914&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;50&quot;,&quot;iso&quot;:&quot;400&quot;,&quot;shutter_speed&quot;:&quot;0.02&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="Speakers" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/06/IMG_2333-1-1-e1561883435659.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/06/IMG_2333-1-1-e1561883435659.jpg?fit=1024%2C683&amp;ssl=1" loading="lazy" class="wp-image-17431 size-full" src="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/06/IMG_2333-1-1-e1561883435659.jpg?resize=1200%2C800&#038;ssl=1" alt="AFEX 2019 Impact Stories" width="1200" height="800" data-recalc-dims="1" /></a><p id="caption-attachment-17431" class="wp-caption-text">AFEX 2019 Impact Stories: Educating the Market on Investing in Commodities</p></div>
<p>In July 2019, we introduced a novel platform in Nigeria focused on educating the market on investing in commodities. The motivation for the platform, named EdEX, is the need to channel and unlock funds from retail and institutional sources for the agriculture sector in Nigeria. In addressing the education gap in the market, EdEX was designed to accommodate both online training and digitally distributed learning materials as well as physical workshops, which will enable us to reach various audience groups and satisfy their unique education needs. EdEX was conceptualized to be especially valuable for three key groups of participants – institutional and retail investors, brokers and smallholder farmers.</p>
<p><strong>AFEX Website Redesign</strong></p>
<p>In 2019, we successfully completed a website redesign that&#8217;s been a long time coming. AFEX’s new website provides visitors with a more in-depth view of our brand and makes it easier to understand the full view of our work along three key areas: <a href="https://afexnigeria.com/access-and-retention" target="_blank" rel="noopener noreferrer">Access and Retention</a>, <a href="https://afexnigeria.com/big-data-analytics" target="_blank" rel="noopener noreferrer">Big Data and Analytics</a>, and <a href="https://afexnigeria.com/efficient-markets" target="_blank" rel="noopener noreferrer">Efficient Markets</a>. We believe that creating and enabling stakeholders to access solutions around these three core concepts will ensure that AFEX fulfills its vision of co-creating solutions to help Africa feed itself.</p>
<p>The new website which still promises to unveil a few new features in the coming months, will in due course become a treasure trove of information of not only our activities as a company, but a lot of knowledge and data on Nigerian agriculture as a whole.</p>
<p><strong>The 60 Decibels Report</strong></p>
<p>About halfway through the year, we got the results of an independent evaluation of our services to farmers. The results gave us an unbiased look into some areas we are winning in, and some places we need to tighten our belts. Some key highlights of the results were:</p>
<ul>
<li>64% of our farmers say the quality of their lives have improved since working with us</li>
<li>50% of farmers would recommend us to a friend or family member</li>
<li>87% of AFEX farmers lived below $3.20 / day, showing a commitment by AFEX to reach and transact with farmers living in poverty</li>
<li>Qualitative data revealed that producers valued products offered by AFEX and the monetary benefits that stemmed from them</li>
</ul>
<div id="attachment_17863" style="width: 1220px" class="wp-caption aligncenter"><a href="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_3666.jpg?ssl=1"><img aria-describedby="caption-attachment-17863" data-attachment-id="17863" data-permalink="https://blog.afexnigeria.com/2019-impact-stories-afexs-year-in-review/img_3666/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_3666.jpg?fit=1210%2C807&amp;ssl=1" data-orig-size="1210,807" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;2.5&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;Canon EOS 7D&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;946685711&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;50&quot;,&quot;iso&quot;:&quot;200&quot;,&quot;shutter_speed&quot;:&quot;0.00025&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="IMG_3666" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_3666.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_3666.jpg?fit=1024%2C683&amp;ssl=1" loading="lazy" class="wp-image-17863 size-full" src="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_3666.jpg?resize=1210%2C807&#038;ssl=1" alt="2019 Impact Stories" width="1210" height="807" srcset="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_3666.jpg?w=1210&amp;ssl=1 1210w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_3666.jpg?resize=300%2C200&amp;ssl=1 300w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_3666.jpg?resize=768%2C512&amp;ssl=1 768w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_3666.jpg?resize=1024%2C683&amp;ssl=1 1024w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a><p id="caption-attachment-17863" class="wp-caption-text">AFEX 2019 Impact Stories: Farmer Insights on AFEX Services</p></div>
<p>We’ve appreciated the results in-house and are working on some of the areas of improvement that were spotlighted in the report, which will be key to providing better services to producers in the coming years.</p>
<p><strong>Taruwa Manoma</strong></p>
<p>In line with our commitment to providing better services for farmers, this year, we also created a radio programme called Taruwa-Manoma which means Farmers meeting/ gathering of farmers. The programme was focused on farmer lifestyle and best agricultural practices, fitting in with our goal to unlock better value for producers (farmers) through education and sensitization on our offerings.</p>
<p><strong>2019 Input Financing Programme</strong></p>
<p>With new partners onboard, we ran the AFEX 2019 Wet Season Input Financing Programme in Kaduna State, which was aimed at supporting smallholder farmers in their production activities for the 2019 wet season. The programme provided smallholder farmers with inputs that will enable them to increase their productivity through the season, improve their yields at harvest time, and secure better livelihoods from their production activities.</p>
<p>We have run this programme since 2015, delivering continuous impact in unlocking input loans for farmers through financing from retail and institutional sources.</p>
<p><strong>AFEX Harvest Party</strong></p>
<div id="attachment_17862" style="width: 1378px" class="wp-caption aligncenter"><a href="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5652-2.jpg?ssl=1"><img aria-describedby="caption-attachment-17862" data-attachment-id="17862" data-permalink="https://blog.afexnigeria.com/2019-impact-stories-afexs-year-in-review/img_5652-3/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5652-2.jpg?fit=1368%2C912&amp;ssl=1" data-orig-size="1368,912" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;11&quot;,&quot;credit&quot;:&quot;IsOb&quot;,&quot;camera&quot;:&quot;Canon EOS 6D&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1572538161&quot;,&quot;copyright&quot;:&quot;IsOb_AbstrAct&quot;,&quot;focal_length&quot;:&quot;50&quot;,&quot;iso&quot;:&quot;400&quot;,&quot;shutter_speed&quot;:&quot;0.00625&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="AFEX Harvest Party" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5652-2.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5652-2.jpg?fit=1024%2C683&amp;ssl=1" loading="lazy" class="wp-image-17862 size-full" src="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5652-2.jpg?resize=1368%2C912&#038;ssl=1" alt="Harvest Party" width="1368" height="912" srcset="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5652-2.jpg?w=1368&amp;ssl=1 1368w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5652-2.jpg?resize=300%2C200&amp;ssl=1 300w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5652-2.jpg?resize=768%2C512&amp;ssl=1 768w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/IMG_5652-2.jpg?resize=1024%2C683&amp;ssl=1 1024w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a><p id="caption-attachment-17862" class="wp-caption-text">AFEX 2019 Impact Stories: Celebrating Harvest with Producers</p></div>
<p>To usher in the 2019/2020 harvest season, we partied with about 3000 of the farmers that have transacted with us across three communities in Nigeria. Pampaida, Saminaka and Faskari welcomed us like the old friends and partners that we are, and the three days of singing, dancing and talking to each other gave us a renewed energy to enter into the season.</p>
<p><strong>Our Fundraising Round</strong></p>
<p>To close out the year we were indeed <a href="https://punchng.com/afex-commodities-seals-investment-deals-with-consonance/" target="_blank" rel="noopener noreferrer">proud to announce the close of our fundraising round</a> which was fully subscribed to by Consonance Investment Managers, a Sub-Saharan Africa focused early-stage and growth investment firm. A necessary investment into our future, the funds will be deployed to deepen retail commodity transactions and strengthen our operations and technology systems.</p>
<p>We&#8217;ve selected ten exciting moments and initiatives from our year, which have been powered by the commitment, dedication and support of our Xperts, our partners and our friends. We&#8217;re excited about the stories to come in the new year as we continue to roll out initiative after initiative to bring us closer to our vision of co-creating solutions to help Africa feed itself. Thanks for coming along for the ride, we wish you the happiest of holidays and a superb 2020.</p>
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2019 Impact Stories – AFEX’s Year in Review

<p>A few key members of the investment community in Abuja were hosted to a meetup by AFEX Commodities Exchange Limited (AFEX) on December 12, 2019. The meetup was a one of a kind opportunity for the investment community to dialogue with the private sector commodities exchange, which has built a vital supply chain infrastructure to enable the securitization of agricultural products.</p>
<p>Unveiled at the meetup was AFEX’s new order management system – ComX – a platform that eases the entry and exposure of investors into the commodities market in Nigeria. Commodities are a vital alternative investment class through which the investing public can diversify their portfolios and hedge against risk. ComX outfits investors with a simple interface that makes investment in this alternative asset class accessible and transparent.</p>
<div id="attachment_17849" style="width: 1926px" class="wp-caption aligncenter"><a href="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176c-Copy.jpg?ssl=1"><img aria-describedby="caption-attachment-17849" data-attachment-id="17849" data-permalink="https://blog.afexnigeria.com/afex-meets-with-investment-community-in-abuja-to-introduce-new-platform/samsung-csc-5/" data-orig-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176c-Copy.jpg?fit=1916%2C1277&amp;ssl=1" data-orig-size="1916,1277" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;3.5&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;NX30&quot;,&quot;caption&quot;:&quot;SAMSUNG CSC&quot;,&quot;created_timestamp&quot;:&quot;1576160665&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;20&quot;,&quot;iso&quot;:&quot;400&quot;,&quot;shutter_speed&quot;:&quot;0.025&quot;,&quot;title&quot;:&quot;SAMSUNG CSC&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="" data-image-description="" data-medium-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176c-Copy.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176c-Copy.jpg?fit=1024%2C682&amp;ssl=1" loading="lazy" class="wp-image-17849 size-full" src="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176c-Copy.jpg?resize=1916%2C1277&#038;ssl=1" alt="" width="1916" height="1277" srcset="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176c-Copy.jpg?w=1916&amp;ssl=1 1916w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176c-Copy.jpg?resize=300%2C200&amp;ssl=1 300w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176c-Copy.jpg?resize=768%2C512&amp;ssl=1 768w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176c-Copy.jpg?resize=1024%2C682&amp;ssl=1 1024w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176c-Copy.jpg?resize=1800%2C1200&amp;ssl=1 1800w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a><p id="caption-attachment-17849" class="wp-caption-text">AFEX meets with Abuja Investment Community to Introduce New Platform</p></div>
<p>Ahead of the official launch of the platform in January 2020, the Abuja investment community was given an opportunity to interact with the company as it explained its business model and introduced the new platform and the transaction dynamics around it.</p>
<p>AFEX’s Business Development Manager, Akinyinka Akintunde, who led the conversations at the meetup, delved into the activities of AFEX over its five years of existence. He hedged on the company’s success in surmounting key infrastructural challenges, maximizing value for commodity producers and buyers, and then highlighted the team’s readiness to introduce this key technology solution that integrates agriculture-based securities with the capital market and opens up the market to retail and institutional investors.</p>
<div id="attachment_17848" style="width: 1543px" class="wp-caption aligncenter"><a href="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176p-Copy-1.jpg?ssl=1"><img aria-describedby="caption-attachment-17848" data-attachment-id="17848" data-permalink="https://blog.afexnigeria.com/afex-meets-with-investment-community-in-abuja-to-introduce-new-platform/samsung-csc-4/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176p-Copy-1.jpg?fit=1533%2C1022&amp;ssl=1" data-orig-size="1533,1022" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;3.5&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;NX30&quot;,&quot;caption&quot;:&quot;SAMSUNG CSC&quot;,&quot;created_timestamp&quot;:&quot;1576160665&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;20&quot;,&quot;iso&quot;:&quot;400&quot;,&quot;shutter_speed&quot;:&quot;0.025&quot;,&quot;title&quot;:&quot;SAMSUNG CSC&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176p-Copy-1.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176p-Copy-1.jpg?fit=1024%2C683&amp;ssl=1" loading="lazy" class="wp-image-17848 size-full" src="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176p-Copy-1.jpg?resize=1533%2C1022&#038;ssl=1" alt="" width="1533" height="1022" srcset="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176p-Copy-1.jpg?w=1533&amp;ssl=1 1533w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176p-Copy-1.jpg?resize=300%2C200&amp;ssl=1 300w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176p-Copy-1.jpg?resize=768%2C512&amp;ssl=1 768w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/12/SAM_1176p-Copy-1.jpg?resize=1024%2C683&amp;ssl=1 1024w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a><p id="caption-attachment-17848" class="wp-caption-text">AFEX meets with Abuja Investment Community to Introduce New Platform</p></div>
<p>Is&#8217;haq Mallam Yahaya, the North Central Chairman of the Commodity Brokers Association of Nigeria (CBAN), who was in attendance at the event, described it as an introduction to a new market that brings commodities into a capital or money market environment, enabling ease of transactions and eliminating concerns around storage and other commodity associated costs. According to him, with ComX, “Directly or indirectly, the broker is going to have some money, the Exchange is going to have some money, and the government is going to have some money. It will make jobs available and a lot of people happy.”</p>
<p>Dahiru Usman, the Chief Operating Officer of DSU Brokerage said that the meetup was necessary for the market. According to him, “With more understanding of the products and instruments in the commodities space, the bigger the market will be, and the more innovative the kind of products that will be created in the future.”</p>
<p>The meetup concluded with AFEX sharing plans for future engagements with the capital market, which will give investors ample opportunity to take advantage of the innovative platform and truly make investing in commodities a painless and simple endeavor.</p>
<p><strong>See Also: <a href="https://afexnigeria.com/press-release-afex-edex" target="_blank" rel="noopener noreferrer">AFEX Introduces Market Education Platform – EdEX</a></strong></p>
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AFEX meets with Investment Community in Abuja to Introduce New Platform

<p>Insights on the commodity markets in Nigeria are critical as we enter into the 2019/2020 season. All key crops traded on AFEX Commodities Exchange are being considered in view of the demand and supply dynamics as well as a look into possible proactive measures that investors can take. Read below for the AFEX soybean outlook for the 2019/2020 season in Nigeria.</p>
<h2><strong>Soybean Outlook Supply-Side Dynamics</strong></h2>
<p>Soybean production for the season has been characterized by heavy rains. Harvest has commenced as the rains are beginning to recede in most parts of the North, and the grain moisture levels are high at 15-16% MC from end of October to mid &#8211; November.</p>
<p>In Benue and Taraba, the rains have persisted slightly longer and only a handful of farmers have been able to harvest by early November, most of which have high levels of immature grains with very high moisture content. We expect a stable 12% and below from end of November cross all locations.</p>
<p>Prices started at N115, 000 per MT in Benue, N100, 000 in Taraba and N110, 000 in the North West (Kaduna, Katsina, and Kano). We also envisage that logistics will be a challenge for most suppliers especially those in the North east with prices as high as N600, 000 – N700, 000 for deliveries to the South Western States.</p>
<h2><strong>Soybean Outlook Demand Side Dynamics</strong></h2>
<p>The local demand for soybean has over the years outweighed the local supply of the product and by a significant margin. Demand players have positioned themselves strategically to mop up volumes at farm gate. We anticipate a conservative 25% &#8211; 30% differential between market prices for grains at point of harvest in mid – late November and Peak period in July/ August. The market is basically liquidity driven with products going to the biggest pockets.</p>
<h2><strong>Strategy to Adopt</strong></h2>
<p>We recommend a dual strategy with an objective to achieve volume targets, but at a comparative price advantage to the competition.</p>
<ol>
<li>Aggressive trade volumes but with a closed pricing approach, so the market isn&#8217;t further upset.</li>
<li>Aggressive stock build-up at farm gate/AFEX Warehouse for shipment in June/July.</li>
</ol>
<p>To get in touch with an AFEX representative, email<strong> sop@afexnigeria.com</strong></p>
<p><strong>Read Also: <a href="https://afexnigeria.com/maize-outlook-2019-2020-season" target="_blank" rel="noopener noreferrer">Maize Outlook for the 2019/2020 Season</a></strong></p>
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Soybean Outlook for 2019/ 2020 Season

<p>Insights on the commodity markets in Nigeria are critical as we enter into the 2019/2020 season. All key crops traded on AFEX Commodities Exchange are being considered in view of the demand and supply dynamics as well as a look into possible proactive measures that investors can take. Read below for the AFEX maize outlook for the 2019/2020 season in Nigeria.</p>
<h2><strong>Maize Outlook Supply-Side Dynamics</strong></h2>
<p>The rains are beginning to recede in most parts of the North, and the grain moisture levels are high so we expect 16-18% Moisture Content (MC) from mid to end October but a stable 14% and below from November.</p>
<p>Maize harvest and stocking was expected to commence at the end of September. Despite the difficult season, we see a good harvest across board for Maize but a short period of availability at the farm gate; therefore, a concrete aggregation plan would be useful.</p>
<p>In multiple large markets in the North West, the price started at N6, 000 per 93Kg Bag or N65,000 per MT and quickly appreciated to N72,000 ending October. Now in mid-November, the price is N78,000. In the North East, prices are at N65,000 per MT with huge and increasing stock availability, however, we envisage that logistics will not readily available for volumes.</p>
<p>Other important markets for maize will be Tuesday (Anchau) and Wednesday (Saminaka). Markets like Makarfi, Giwa in Kaduna; Dandume and Bakori will dealing at a stable N78,000 per MT mid-November.</p>
<h2><strong>Maize Outlook Demand Side Dynamics</strong></h2>
<p>We gather that a number of players are/will be in an intense rush to build up volumes. For Maize, there will be up to 5,000 differentials between market prices for grains and best offer prices to large volume traders supplying a number of Mills. The market is basically incentivizing traders to direct traffic to them.</p>
<h2><strong>Strategy to Adopt</strong></h2>
<p>We recommend a dual strategy with an objective to achieve volume targets, but at a comparative price advantage to the competition.</p>
<ol>
<li>Aggressive trade volumes but with a closed pricing approach, so the market isn&#8217;t further upset.</li>
<li>Aggressive stock build-up at farm gate/AFEX Warehouse for shipment in May/June.</li>
</ol>
<p>To get in touch with an AFEX representative, email<strong> sop@afexnigeria.com</strong></p>
<p><strong>Read Also: <a href="https://afexnigeria.com/ginger-outlook-2019-2020-season" target="_blank" rel="noopener noreferrer">Ginger Outlook for 2019/ 2020 Season</a></strong></p>
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Maize Outlook for the 2019/2020 Season

<p>Insights on the commodity markets in Nigeria are critical as we enter into the 2019/2020 season. All key crops traded on AFEX Commodities Exchange are being considered in view of the demand and supply dynamics as well as a look into possible proactive measures that investors can take. Read below for the AFEX Ginger outlook for the 2019/2020 season in Nigeria.</p>
<h2><strong>Ginger Outlook Supply-Side Dynamics</strong></h2>
<p>Ginger cultivation was good with sufficient rainfall and many of the farmers increasing their farm holdings due to favorable prices in the preceding season.</p>
<p>Harvest is yet to commence due to persisting rains, however, it is hoped that the rains will halt within the coming weeks and the farmers can commence harvesting. The volume of rains had a good impact on cultivation, but could potentially have a negative effect on the yield if it continues to fall, meaning that the farmers will be unable to harvest, split and dry.</p>
<p>The likely consequence would be high crop rot in the ground since all of the post-harvest activities are carried out manually, especially drying which requires direct sunlight.</p>
<p>There is no old season harvest in the market for trade, however, a few fresh roots have been traded by farmers pressed to fulfil some financial commitment. The fresh roots are trading at approximately NGN 4,000 per 40kg bag with a conversion rate of 3:1 into dry- split product.</p>
<p>Prices rose to around NGN 600,000 per MT in the peak of the last season and we expect a significant drop with the new season crop. The new season output (dry- split) is open to a lot of speculation and this is heavily consequent on the volumes and quality of the product when it comes out.</p>
<p>Supply is expected to commence mid &#8211; end November/ early December and quick price appreciation is likely to characterize this season.</p>
<h2><strong>Ginger Outlook Demand Side Dynamics</strong></h2>
<p>There has been a huge influx of buyers into the Nigerian ginger market.  A number of the large aggregators have set up warehouses and collection centers in close proximity to the farmer communities.</p>
<p>Demand is expected to be higher than supply with attendant flight of prices within a short period.</p>
<h2><b>Strategy to Adopt</b></h2>
<p>We recommend an aggressive aggregation strategy commencing in mid-November when moisture levels are within the acceptable range. An aggregation strategy backed by liquidity for immediate cash settlement to famers will yield positive results.</p>
<p>Utilization of AFEX supply chain network will reduce cost of aggregation as well as provide comfort to the buyers by assuring quality and quantity of products.</p>
<p>To get in touch with an AFEX representative, email<strong> sop@afexnigeria.com</strong></p>
<p><strong>Read Also: <a href="https://afexnigeria.com/cocoa-outlook-2019-2020-season" target="_blank" rel="noopener noreferrer">AFEX Cocoa Outlook for 2019/ 2020 Season</a></strong></p>
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Ginger Outlook for 2019/ 2020 Season

<p>Insights on the commodity markets in Nigeria are critical as we enter into the 2019/2020 season. All key crops traded on AFEX Commodities Exchange are being considered in view of the demand and supply dynamics as well as a look into possible proactive measures that investors can take. Read below for the AFEX Cocoa outlook for the 2019/2020 season in Nigeria.</p>
<h2><strong>Cocoa Outlook Supply-Side Dynamics</strong></h2>
<p>The rains for the season have been described as excessive, and could impact quantity and quality of yield for the season. Also, the main crop flowering window is extended, delaying the harvest in most parts – extending into February 2020.</p>
<p>Some volumes are, however, already being transacted in the market with a number of aggregators utilizing mechanical dryers to achieve acceptable moisture levels. We expect the rains to fully come to a halt in the coming weeks and full steam aggregation to commence from November, 2019, with stable moisture content levels of 8% and below.</p>
<p>With the reports of high incidence of black pod disease in Ghana and the introduction of the cocoa price floor by Cote D’Ivoire and Ghana earlier in the year, there is a resultant effect of increased demand for Nigerian Cocoa which will affect price coupled with the closure of land borders in Nigeria through which neighboring countries would easily transport their volumes of cocoa into the Nigerian market to augment supply.</p>
<p>Prices opened in the south west at N650, 000/MT at farm gate at the beginning of October, and are currently at N720, 000/MT. The market for cocoa in Nigeria is highly speculative with traders and merchants speculating as high as N900, 000/MT at the peak of the season in January 2020.</p>
<p>Overall, this season will be characterized by quick price appreciation, scarcity and high incidence of poor quality beans.</p>
<h2><strong>Cocoa Outlook Demand Side Dynamics</strong></h2>
<p>International buyers are entering into strategic partnerships with Nigerian businesses to aggregate volumes of cocoa from Nigeria. There is an increasing demand for Nigerian Cocoa in the international market stemming from the envisaged shortfall of cocoa from Ghana as a result of the black pod disease reported to plague the crop.</p>
<p>There is also the renewed interest in Nigeria around the agricultural sector as an alternative to crude oil, leading to significant investments and deliberate efforts being made towards attaining quality specifications of the international market, which typically attracts a premium.</p>
<p>A number of the large multinationals have already commenced purchasing and we envisage there will be a differential of up to 40% between opening season price and peak season price per MT at farm gate.</p>
<h2><strong>Strategy to Adopt</strong></h2>
<p>We recommend an aggressive aggregation strategy backed by provision of liquidity with an objective to achieve volume targets, but at a comparative price advantage to the competition.</p>
<p>The utilization of AFEX’s supply chain network will reduce cost of aggregation as well as provide comfort to the buyers by assuring quality and quantity of products.</p>
<p>To get in touch with an AFEX representative, email<strong> sop@afexnigeria.com</strong></p>
<p><strong>See Also: <a href="https://afexnigeria.com/paddy-rice-markets-2019-afex-outlook" target="_blank" rel="noopener noreferrer">Paddy Rice Markets in 2019: A Primer on AFEX’s Outlook</a></strong></p>
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AFEX Cocoa Outlook for 2019/ 2020 Season

<p>The pairing of technology with financial services gives rise to the sweeping phenomenon of fintech which has become a huge deal globally deepening access to financial services for a wide swathe of individuals and groups. Fintech helps in improving and automating the financial services sector and has made a welcome shift to many customer-oriented services from retail banking to agriculture. Key to applications of fintech in Nigeria is the promise that it continues to hold for extending services to underserved groups of the population and enabling ease of transactions across board.</p>
<p>Key drivers of the adoption of fintech in Nigeria are an increasing population of under 35 Nigerians, a significant talent pool for fintech companies to draw on and the exponential adoption of mobile phones. These adoption drivers contributed to driving up the monthly transaction value from 5 million dollars in 2011 to 142.8 million dollars in 2016. In fact, in 2018, investment numbers in the country showed the following promising stats for the growing sector:</p>
<ul>
<li>56% year-on-year growth recorded over 2017</li>
<li>58% proportion of the total $178.44 million invested in startups in 2018 going to fintechs</li>
<li>$103.41 million total investments recorded for fintech firms</li>
</ul>
<div id="attachment_17789" style="width: 810px" class="wp-caption aligncenter"><a href="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-2.png?ssl=1"><img aria-describedby="caption-attachment-17789" data-attachment-id="17789" data-permalink="https://blog.afexnigeria.com/fintech-in-nigeria-reaching-rural-communities/artboard-1-2/" data-orig-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-2.png?fit=1200%2C1200&amp;ssl=1" data-orig-size="1200,1200" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Artboard 1 (2)" data-image-description="" data-medium-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-2.png?fit=300%2C300&amp;ssl=1" data-large-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-2.png?fit=1024%2C1024&amp;ssl=1" loading="lazy" class="wp-image-17789" src="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-2.png?resize=800%2C800&#038;ssl=1" alt="fintech in Nigeria" width="800" height="800" srcset="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-2.png?w=1200&amp;ssl=1 1200w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-2.png?resize=150%2C150&amp;ssl=1 150w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-2.png?resize=300%2C300&amp;ssl=1 300w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-2.png?resize=768%2C768&amp;ssl=1 768w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-2.png?resize=1024%2C1024&amp;ssl=1 1024w" sizes="(max-width: 800px) 100vw, 800px" data-recalc-dims="1" /></a><p id="caption-attachment-17789" class="wp-caption-text">Background on Fintech in Nigeria</p></div>
<p>Still, the global fintech industry is valued at approximately $40 billion leaving a lot of room for growth in Nigeria&#8217;s own local industry.</p>
<h2><strong>Impact of Fintech in Nigeria</strong></h2>
<p>Some other key considerations for the impact of fintechs include:</p>
<ul>
<li><b>Promoting cashless systems: </b>The digital nature of fintechs will enhance the delivery of value via non cash channels.</li>
<li><b>Deepening financial inclusion: </b>Due to the lower transaction costs incurred by fintechs and the wider reach possible, they have significant ability to help expand financial inclusion.</li>
<li><b>Diversification of credit channels: </b>The emergence of fintechs have expanded the credit channels available with P2P lending gaining more credence.</li>
<li><b>Increasing Access to capital markets: </b>Fintechs operating in the investments landscape have expanded access to the capital markets via retail products.</li>
</ul>
<h2>Fintech Challenges in Nigeria</h2>
<div id="attachment_17784" style="width: 810px" class="wp-caption aligncenter"><a href="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-copy-2-1.png?ssl=1"><img aria-describedby="caption-attachment-17784" data-attachment-id="17784" data-permalink="https://blog.afexnigeria.com/fintech-in-nigeria-reaching-rural-communities/artboard-1-copy-2-2/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-copy-2-1.png?fit=1200%2C1200&amp;ssl=1" data-orig-size="1200,1200" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Artboard 1 copy 2" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-copy-2-1.png?fit=300%2C300&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-copy-2-1.png?fit=1024%2C1024&amp;ssl=1" loading="lazy" class="wp-image-17784" src="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-copy-2-1.png?resize=800%2C800&#038;ssl=1" alt="Challenges of fintech in Nigeria" width="800" height="800" srcset="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-copy-2-1.png?w=1200&amp;ssl=1 1200w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-copy-2-1.png?resize=150%2C150&amp;ssl=1 150w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-copy-2-1.png?resize=300%2C300&amp;ssl=1 300w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-copy-2-1.png?resize=768%2C768&amp;ssl=1 768w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1-copy-2-1.png?resize=1024%2C1024&amp;ssl=1 1024w" sizes="(max-width: 800px) 100vw, 800px" data-recalc-dims="1" /></a><p id="caption-attachment-17784" class="wp-caption-text">Challenges of Fintech in Nigeria</p></div>
<p>Some challenges hinder the impact that fintech solution providers can have in Nigeria. As contained in the <a href="https://sec.gov.ng/report-of-the-fintech-roadmap-committee-of-the-nigerian-capital-market/" target="_blank" rel="noopener noreferrer">report of the FinTech Roadmap Committee of the Nigerian Capital Market</a> released by the Securities and Exchange Commission (SEC), these include regulation, access to data, lack of market confidence, cybersecurity, institutional knowledge gaps, lack of innovation, weak digital infrastructure, underdeveloped VC structure and lack of entrepreneurial support system.</p>
<h2><strong>Taking Fintech Impact to Rural Communities</strong></h2>
<p>The impact of fintech solution providers often also do not get to rural communities in Nigeria due to some infrastructural dearths that make these communities difficult to include. According to a study published by the Enhancing Financial and Innovation Access (EFInA) group, 63.3% of Nigeria’s 99.6 million adult population live in rural areas. This significant portion of the population find it harder to utilize the most basic financial services, and often stay below the poverty line due to this exclusion.</p>
<h2><strong>Partnering with AFEX for Impact</strong></h2>
<p>To strengthen the position of financial services in these rural communities, fintech companies can work with partners like AFEX who are already transacting and <a href="https://afexnigeria.com/payment-systems-financial-inclusion" target="_blank" rel="noopener noreferrer">providing solutions</a> in these communities. The potential for a network approach to the rural problem is a massive one that surpasses individual player solutions. Multiple players are needed to look at the problems of rural financial exclusion and create solutions that create shared prosperity.</p>
<p>AFEX which operates 42 warehouses and storage centers across Nigeria brings a captive market that reduces the transaction cost for payment providers looking to reach early adopters. As more individuals and households in these communities take up payment solutions through bank accounts or mobile money accounts or e-wallets and use those same wallets to access credit, building up a credit history that improves their credit rating and enables them access better loans or sell and transact both within and outside their communities, it starts to increase the usage and adoption of fintech solutions and induces virality which in turn grows adoption.</p>
<p>Financial inclusion is a key business and impact offering of AFEX and we aim to improve access to financial services for one million farmers by 2024. We are already cultivating partnerships that will get us there and the fintech companies driving massive innovation and inclusion are a huge part of that formula. Being included in functional payment systems means that these farmers can more easily access systems of credit, can keep their money safely and can be assured of reduced transaction time and costs, which leads to growth/ progress year-on-year, which is often lacking in the current conversations on smallholder agriculture</p>
<p><strong>See Also: <a href="https://afexnigeria.com/financial-inclusion-rural-communities" target="_blank" rel="noopener noreferrer">Financial Inclusion In Rural Agrarian Communities</a></strong></p>
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Fintech in Nigeria: Reaching Rural Communities through Partnerships

<p>Agricultural commodity prices are by their very nature seasonal, that is, they fall to their lowest around harvest and rise consistently as the lean season progresses. Although this cycle is fundamental, certain shocks to either supply or demand crash or spike prices as the case may be. Recent events regarding the decision of the Federal Government of Nigeria to close all land borders have dislocated the price of rice which remains a key staple consumed in the country. A key reason given for the border closure is the need to halt foodstuff smuggling into the country, and since the closure has gone into effect a number of consumers have registered their feelings about the effects of the move on consumer prices of rice. We instead focus on the outlook for the paddy rice markets in Nigeria for 2019, refraining from discussing the validity or otherwise of the closure pronouncement but seeking to provide insights based on historical evidence and our understanding of the commodities market.</p>
<p>The domestic market for paddy rice consists of farmers, traders and merchants as elements on the supply side while paddy rice millers (traditional and modern) and households represent the demand side. Historically, the price and quantity of imported parboiled rice available in markets across the country have been key factors determining the price levels of paddy rice produced domestically.</p>
<p>The closure of the borders has, however, set the pace for a rather volatile price environment in the paddy rice markets with intra-month gains in October climbing up by 9.80% following the increased scarcity in rice supplies across markets in the country. This price behavior has shifted the support for paddy rice prices from NGN125, 000/MT as witnessed at the end of the past marketing year (2017/2018) to NGN140, 000/MT which we currently experience (2018/2019). By implication, supply side agents (farmers, traders and merchants) are faced with a more profitable year ahead.</p>
<p>Barring any increase in the dry season activities, the likelihood of increased raw material acquisition costs by paddy rice processors has been heightened as price appreciation and unavailability of alternatives will increase the willingness of farmers to trade at the open markets rather than sell to processing companies. In addition, the risks of counterparty risks (side selling) in forward contracts are heightened as cash payments by middlemen and village buyers induce farmers to divert commodities.</p>
<div id="attachment_17795" style="width: 934px" class="wp-caption aligncenter"><a href="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Paddy-Rice-Markets.png?ssl=1"><img aria-describedby="caption-attachment-17795" data-attachment-id="17795" data-permalink="https://blog.afexnigeria.com/paddy-rice-markets-2019-afex-outlook/paddy-rice-markets/" data-orig-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Paddy-Rice-Markets.png?fit=924%2C483&amp;ssl=1" data-orig-size="924,483" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Paddy Rice Markets" data-image-description="" data-medium-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Paddy-Rice-Markets.png?fit=300%2C157&amp;ssl=1" data-large-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Paddy-Rice-Markets.png?fit=924%2C483&amp;ssl=1" loading="lazy" class="wp-image-17795 size-full" src="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Paddy-Rice-Markets.png?resize=924%2C483&#038;ssl=1" alt="Paddy Rice Price Outlook" width="924" height="483" srcset="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Paddy-Rice-Markets.png?w=924&amp;ssl=1 924w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Paddy-Rice-Markets.png?resize=300%2C157&amp;ssl=1 300w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Paddy-Rice-Markets.png?resize=768%2C401&amp;ssl=1 768w" sizes="(max-width: 924px) 100vw, 924px" data-recalc-dims="1" /></a><p id="caption-attachment-17795" class="wp-caption-text"><strong>Chart 1: Paddy Rice Price Movement in 2018/2019 Marketing Year</strong></p></div>
<p><strong>Source: </strong>AFEX Research</p>
<p>Our outlook for paddy rice prices in 2019/2020 marketing year is that of a 15% rise in prices as the impact of demand spike is expected to be mitigated, albeit marginally, owing to improved weather conditions in core producing areas across the country. However, if the trade stalemate remains till November, rice prices could go higher than 20% as processors ramp up procurement to fulfill the seasonal increase in rice demand witnessed in December.</p>
<p>In conclusion, the paddy rice market is expected to be characterized by significant price hikes and increased returns for supply side agents in the paddy rice markets. The utilization of the AFEX supply chain network will reduce cost of aggregation as well as provide comfort to buyers by assuring quality and quantity of products.</p>
<p>To get in touch with an AFEX representative, email<strong> sop@afexnigeria.com</strong></p>
<p><strong>See Also: <a href="https://afexnigeria.com/market-reports-afex-weekly-com-x" target="_blank" rel="noopener noreferrer">Market Reports: What Our Weekly Com X Report Can Help You Do</a></strong></p>
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Paddy Rice Markets in 2019: A Primer on AFEX’s Outlook

<p>Digitizing agriculture in Nigeria is a game-changing trend. The demand for digital solutions in agriculture is easy to appreciate, especially, in a country like Nigeria where farming stays mainly at the subsistence or smallholder level with huge inefficiencies defining the practice, giving rise to a fragmented and often poor agriculture economy.  The need to introduce a greater level of efficiency and transparency into the sector is leading some experienced and newer-entry stakeholders to seek out solutions for the sector that can best be defined as digital.</p>
<p>With Nigeria earning a score of 4.5 out of 9 in the World Bank&#8217;s Enabling the Business for Agriculture (EBA), ICT Index Score, there is a bit of an improvement in the efforts to create a more conducive digital environment through laws, regulations and policies. The GSMA Mobile Connectivity Index (MCI) also has the country doing well on such indices as affordable prices for handsets, reduction in mobile specific taxation and the creation of gender equality in terms of labor and market.</p>
<p>These are promising indices, which must continue and get even better, when we consider that one of the most promising means of boosting economic activity is increasing the use of digital technologies. Digital technologies are proving to be a powerful means of delivering services, creating disruptive innovations in multiple industries, and contributing to wealth and job creation.</p>
<p>In 2011, digitization added $193 billion to world economic output and created 6 million jobs. In the same year in the Middle East and North Africa alone, digitization resulted in an extra $16.5 billion in output and nearly 380,000 new jobs. Digitization’s impact is however not uniform across economies in different stages of development. It has a greater impact on economic growth in developed economies than in developing ones.</p>
<h2>5 Key Drivers for Digital Transformation</h2>
<ul>
<li>Evolving customer behaviors and preferences</li>
<li>Growth opportunities in new markets</li>
<li>Increased competitive pressure (sector-oriented competition)</li>
<li>New standards in regulatory and compliance requirements</li>
<li>New emerging technologies</li>
</ul>
<p>Technology is reducing barriers to trade and also offering a window of opportunity to African youth entrepreneurs, who are digital-savvy and at the vanguard of innovation applied to different economic sectors. All of the key drivers for digital transformation mentioned above can be applied to the agriculture sector in Africa, which is starting to show improved economics with a handful of players beginning to develop viable businesses with attractive financial models. With over 250 million smallholder farmers and pastoralists in Africa with the need for improved and meaningful livelihoods, digital solutions for agriculture come as a game-changer in supporting and accelerating agricultural transformation across the continent.</p>
<p>Digitizing agriculture is essentially the use of digital technologies, innovations, and data to transform business models and practices across the agricultural value chain and address impediments in productivity, post harvest handling, market access, finance, and supply chain management to achieve greater income for smallholder farmers, improve food and nutrition security, build climate resilience and expand inclusion of youth and women.</p>
<div id="attachment_17732" style="width: 2287px" class="wp-caption aligncenter"><a href="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-3-1.jpg?ssl=1"><img aria-describedby="caption-attachment-17732" data-attachment-id="17732" data-permalink="https://blog.afexnigeria.com/digitizing-agriculture-in-nigeria-for-better-outcomes/artboard-3-1/" data-orig-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-3-1.jpg?fit=2277%2C1484&amp;ssl=1" data-orig-size="2277,1484" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1566226835&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="AFEX ComX" data-image-description="&lt;p&gt;Digitizing Agriculture in Nigeria&lt;/p&gt;
" data-medium-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-3-1.jpg?fit=300%2C196&amp;ssl=1" data-large-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-3-1.jpg?fit=1024%2C667&amp;ssl=1" loading="lazy" class="size-full wp-image-17732" src="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-3-1.jpg?resize=2277%2C1484&#038;ssl=1" alt="AFEX ComX" width="2277" height="1484" srcset="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-3-1.jpg?w=2277&amp;ssl=1 2277w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-3-1.jpg?resize=300%2C196&amp;ssl=1 300w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-3-1.jpg?resize=768%2C501&amp;ssl=1 768w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-3-1.jpg?resize=1024%2C667&amp;ssl=1 1024w, https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-3-1.jpg?w=2000&amp;ssl=1 2000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a><p id="caption-attachment-17732" class="wp-caption-text">AFEX&#8217;s Digital Solution &#8211; ComX</p></div>
<p>Applying digital solutions to agriculture has the potential not only to support agricultural transformation but to do so sustainably and inclusively. This involves driving greater engagement in agriculture from women and young people and creating employment opportunities along the agricultural value chain as well as helping to build resilience to climate change. The potentials also include supporting and sustaining agricultural transformation through digital tools that improve market efficiency, transparency, aggregation and integration.</p>
<p>The Technical Center for Agriculture and Rural Cooperation (CTA) released a Digitization of African Agriculture (D4AG) Report that “advocates for digital agricultural transformation that can help Africa feed itself”. The report shows the high demand for D4AG and the need for policy mechanisms to be invested in as a guide to the implementation of digital solutions while encouraging the value of collaborative approach focused on the increased use of technologies.</p>
<p>The CTA report findings hinged on 3 key areas: sector reach and growth, D4Ag use and impact, and forward-looking trends. It showed that the agricultural sector has been growing at about 44% per annum over the last three years in terms of the number of farmers reached (i.e., registered for solutions). As an indication of how quickly the sector has grown as of 2019, there are at least 390 diverse, active D4Ag solutions across the continent with nearly 60% of these launched in the last three years, and approximately 20% launched since 2018.</p>
<p>These solutions for digitizing agriculture span five major use cases:</p>
<ul>
<li>Advisory services</li>
<li>Market linkages</li>
<li>Financial access</li>
<li>Supply chain management</li>
<li>Macro agricultural intelligence</li>
</ul>
<p>AFEX solutions rely heavily on digital to achieve our overarching goal of helping Africa to feed itself. We present two key solutions that cut across these use cases, helping us to actively monitor farm operations and facilitate improved market access and financing for Nigerian agriculture.</p>
<h2>AFEX Digital Solutions</h2>
<div id="attachment_17738" style="width: 2868px" class="wp-caption aligncenter"><a href="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1@1x-4.jpg?ssl=1"><img aria-describedby="caption-attachment-17738" data-attachment-id="17738" data-permalink="https://blog.afexnigeria.com/digitizing-agriculture-in-nigeria-for-better-outcomes/artboard-11x-5/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1@1x-4.jpg?fit=2858%2C2149&amp;ssl=1" data-orig-size="2858,2149" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1566226857&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="AFEX WorkBench" data-image-description="&lt;p&gt;Digitizing agriculture in Nigeria&lt;/p&gt;
" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1@1x-4.jpg?fit=300%2C226&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1@1x-4.jpg?fit=1024%2C770&amp;ssl=1" loading="lazy" class="size-full wp-image-17738" src="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1@1x-4.jpg?resize=2858%2C2149&#038;ssl=1" alt="Digitizing agriculture in Nigeria" width="2858" height="2149" srcset="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1@1x-4.jpg?w=2858&amp;ssl=1 2858w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1@1x-4.jpg?resize=300%2C226&amp;ssl=1 300w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1@1x-4.jpg?resize=768%2C577&amp;ssl=1 768w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1@1x-4.jpg?resize=1024%2C770&amp;ssl=1 1024w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1@1x-4.jpg?resize=600%2C450&amp;ssl=1 600w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/Artboard-1@1x-4.jpg?w=2000&amp;ssl=1 2000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a><p id="caption-attachment-17738" class="wp-caption-text">Digital Solutions &#8211; AFEX WorkBench</p></div>
<p><strong>WorkBench</strong></p>
<p>WorkBench is an integrated ERP, designed for agriculture value chain management. Service providers with field officers can utilize the software to manage the entire value chain operations from input sourcing and sales, to loan administration and repayment, payment and financials.</p>
<p><strong>ComX</strong></p>
<p>AFEX&#8217;s ComX is the electronic platform where securitized agricultural assets are traded. ComX is designed to provide the market with a user friendly and efficient shared-infrastructure, allowing clients of the exchange to put up trades themselves as well as allowing brokers to do so on their behalf.</p>
<p>With these solutions we are one of the key players digitizing agriculture in Nigeria, enabling better outcomes for players across the value chains that we operate in.</p>
<p><strong>See More: <a href="https://afexnigeria.com/youth-employment-in-agriculture" target="_blank" rel="noopener noreferrer">Youth Employment in Agriculture: Opportunities and the Way Forward</a></strong></p>
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Digitizing Agriculture in Nigeria for Better Outcomes

<p>Beyond deciding that you need a website redesign for your brand lies the mental work that goes into making up your mind about what you need to keep from the old and what you absolutely have to have in a new site that will justify the commitment of different types of resources, ranging from time to money. AFEX recently wrapped up one of such projects, trading in our older website for what we like to call AFEX’s new home.</p>
<p>One of the key things that defined our design philosophy as we got into the project is the fact that we wanted two things front and center – the internal culture that makes us such an effective company and the data on events along the value chains we operate in, which we gather as we provide solutions for agriculture in Nigeria, making risks measurable and allowing investors to plug into a market for agricultural commodities.</p>
<p>The paragraphs below featured in our design philosophy document for the website, and show that our focus was ultimately on users while getting into the redesign.</p>
<blockquote><p>“We envision two main groups as users of our website – people who come to the site with a purpose in mind (they are investors or clients who have interacted with the brand before and want to access our reports, stories and price lists) and people who are browsing or shopping around and land on the page curious (they have neither met the brand nor do they know much about the sector that we play in).</p>
<p>We want the website to equip the purpose group with an interface that makes their information search interesting and furnishes them with various views as they search through our historical data. For the curious, we want a website that draws them in from the landing page with a large vision and character stories that make AFEX offerings easy to understand and subscribe to.</p>
<p>Ensuring that everything on the site is two clicks away is one of the major goals that we have for this redesign. The end product also needs to show AFEX’s sweet-spot – a mixture of agriculture, finance and tech solutions.”</p></blockquote>
<p>AFEX’s new home provides visitors with a more in-depth view of our brand and makes it easier to understand the full view of our work along three key areas: <a href="https://afexnigeria.com/access-and-retention" target="_blank" rel="noopener noreferrer">Access and Retention</a>, <a href="https://afexnigeria.com/big-data-analytics" target="_blank" rel="noopener noreferrer">Big Data and Analytics</a>, and <a href="https://afexnigeria.com/efficient-markets" target="_blank" rel="noopener noreferrer">Efficient Markets</a>. We believe that creating and enabling stakeholders to access solutions around these three core concepts will ensure that AFEX fulfills its vision of co-creating solutions to help Africa feed itself.</p>
<div id="attachment_17718" style="width: 2890px" class="wp-caption aligncenter"><a href="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/AFEX-Home.png?ssl=1"><img aria-describedby="caption-attachment-17718" data-attachment-id="17718" data-permalink="https://blog.afexnigeria.com/afexs-new-home-website-redesign/afex-home/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/AFEX-Home.png?fit=2880%2C1576&amp;ssl=1" data-orig-size="2880,1576" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="AFEX&#8217;s New Home" data-image-description="&lt;p&gt;AFEX&#8217;s New Home&lt;/p&gt;
" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/AFEX-Home.png?fit=300%2C164&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/AFEX-Home.png?fit=1024%2C560&amp;ssl=1" loading="lazy" class="size-full wp-image-17718" src="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/AFEX-Home.png?resize=2880%2C1576&#038;ssl=1" alt="AFEX website home page view" width="2880" height="1576" srcset="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/AFEX-Home.png?w=2880&amp;ssl=1 2880w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/AFEX-Home.png?resize=300%2C164&amp;ssl=1 300w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/AFEX-Home.png?resize=768%2C420&amp;ssl=1 768w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/AFEX-Home.png?resize=1024%2C560&amp;ssl=1 1024w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/10/AFEX-Home.png?w=2000&amp;ssl=1 2000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a><p id="caption-attachment-17718" class="wp-caption-text">Home page for new AFEX website</p></div>
<h2>Need to see in AFEX&#8217;s New Home</h2>
<p><strong>Prices! Prices! Prices!</strong></p>
<p>One of our goals at AFEX is to make price data on commodities readily available to the market to foster the transparency that is necessary to drive financing into Nigerian agriculture. The price ticker deployed on the bottom fold of each page of our website furnishes the need for daily price updates for the six crops that are available for trade on the Exchange&#8217;s platform. Users who need further information on price trends can also access weekly and monthly reports on our <a href="https://afexnigeria.com/market" target="_blank" rel="noopener noreferrer">market page</a>.</p>
<p><strong>Trybe Members</strong></p>
<p>AFEX has an incredible team that makes all the magic happen behind the scenes. Visitors to the new site get to see the team responsible for executing the vision: the <a href="https://afexnigeria.com/trybes-men" target="_blank" rel="noopener noreferrer">Trybe members</a> who embody our core values of empathy, excellence and execution.</p>
<p><strong>Mission, Vision and how we&#8217;ve Done</strong></p>
<p>To understand our work at AFEX it&#8217;s necessary to know our vision and mission, which is proudly featured on the <a href="https://afexnigeria.com/about" target="_blank" rel="noopener noreferrer">about us page</a> of the website. Just below that is also a slide that documents our milestones proudly displaying our history and the incredible impact we have been able to have within that time.</p>
<p><strong>Solutions and Products</strong></p>
<p>Our solutions and products are leading the way to a future where Africa feeds itself. We give a brief on the available products under each of the core solution areas mentioned above, allowing producers, processors and investors to subscribe to the <a href="https://afexnigeria.com/market#products-and-services" target="_blank" rel="noopener noreferrer">AFEX products</a> that fit their needs.</p>
<p>We are as committed as ever to making information about the growth and development of Nigeria&#8217;s commodity market accessible, and exploring our website will certainly give investors, processors and producers valuable insights into the market. With that commitment in mind, we would just like to say, welcome to AFEX&#8217;s new home and please stay as long as you like.</p>
<p><strong>See Also: <a href="https://afexnigeria.com/empathy-in-business-afex-culture" target="_blank" rel="noopener noreferrer">Empathy – The Secret Sauce in AFEX Culture</a></strong></p>
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AFEX’s New Website Centers our Culture and Love for Data

<p>AFEX Commodities Exchange Limited, Nigeria’s first private sector commodities exchange firm, is introducing the first ever learning platform for Nigeria’s commodities market. The Exchange has named this initiative EdEX and has kicked off activities under the new initiative with a training for journalists and media personnel tagged Trading Stories. Top on the Exchange’s reasons for introducing this novel initiative are the myriad of wealth creation opportunities along the commodities value chain being harnessed by only a few investors due to limited understanding of the structure and operations of the market.</p>
<p>With inclusion and innovation at the center of today’s commodity markets, investors can find several routes to participate in the market, provided that they are suitably educated and informed about the opportunities present in trading and investing in commodities. EdEX, being AFEX’s education platform, furnishes the need for answers to the education gap in Nigeria’s commodities market. It is designed to accommodate both online trainings and digitally distributed learning materials as well as physical workshops, which will enable AFEX to reach various audience groups and satisfy their unique education needs.</p>
<p>The platform will prove especially valuable for three key groups of participants – institutional and retail investors, brokers and smallholder farmers. Content available on the platform for institutional &amp; retail investors, as well as brokers, span across membership procedure, market access, trading strategies and community engagement. For smallholder farmers, a train the trainer model aimed at effective and efficient knowledge dissemination to smallholder farmers on various farm processes and beneficial practices is adopted.</p>
<p>Ahead of the official launch of the platform in the third quarter of the year, a one-day training workshop was organized for journalists and media personnel in Nigeria. Trading Stories which held on the 18<sup>th</sup> of June 2019 in Lagos was the first off-shoot of EdEX serving as a platform for media and commodity experts to meet and exchange ideas about the growing commodities market in Nigeria.</p>
<div id="attachment_17432" style="width: 860px" class="wp-caption aligncenter"><a href="https://i0.wp.com/afexnigeria.com/wp-content/uploads/2019/06/IMG_2147-Copy.jpg"><img aria-describedby="caption-attachment-17432" data-attachment-id="17432" data-permalink="https://blog.afexnigeria.com/press-release-afex-edex/img_2147-copy/" data-orig-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/06/IMG_2147-Copy-e1561883795445.jpg?fit=850%2C567&amp;ssl=1" data-orig-size="850,567" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;1.4&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;Canon EOS 6D&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1560835077&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;50&quot;,&quot;iso&quot;:&quot;200&quot;,&quot;shutter_speed&quot;:&quot;0.016666666666667&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="Trading Stories EdEX" data-image-description="" data-medium-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/06/IMG_2147-Copy-e1561883795445.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/06/IMG_2147-Copy-e1561883795445.jpg?fit=1024%2C682&amp;ssl=1" loading="lazy" class="size-full wp-image-17432" src="https://i0.wp.com/afexnigeria.com/wp-content/uploads/2019/06/IMG_2147-Copy-e1561883795445.jpg?resize=850%2C567" alt="Trading Stories EdEX" width="850" height="567" data-recalc-dims="1" /></a><p id="caption-attachment-17432" class="wp-caption-text">Participants at AFEX Trading Stories media workshop &#8211; the first initiative of EdEX</p></div>
<p>EdEX aligns with the <a href="https://leadership.ng/2019/06/30/sec-to-commence-capacity-building-on-commodities-exchange/" target="_blank" rel="noopener">Security and Exchange Commission’s focus</a> on investor protection and education, and is a strategic investment by AFEX, which will grow into an open source library for exchanges in Africa. According to AFEX’s Country Manager, Ayodeji Balogun, “EdEX is a market education platform designed to help portfolio managers, fund managers, analysts, traders, brokers and risk managers gain an understanding of the commodities markets in Nigeria, and develop products and services around the commodities exchange ecosystem.”</p>
<p>AFEX’s education platform will make the structure and functions of Nigeria’s commodity market accessible knowledge; handing the knowledge needed to navigate today’s commodities markets to anyone desirous of an entry point to trading commodities. It will ensure that market participants are educated on the operations of the exchange, products and services available and other essential information that can lead to an increase in income for everyone involved.</p>
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Press Release: AFEX Introduces Market Education Platform – EdEX

<p>What are some of the facts you need to know straight off about youth employment in agriculture, especially, as it relates to Nigeria? Of the myriad of papers and research materials that exist on this note, there are two points that particularly stand out:</p>
<ul>
<li>Over 50 percent of the current labor force in Nigeria are employed in the agricultural sector. As a labor-intensive sector with high capacity for exports it has always held high prospects for job creation, and has through a variety of programs and initiatives absorbed a number of Nigerians into its folds. The next point specifies why this is not all good news.</li>
<li>Despite the number of people involved in the sector, a strong line can still be drawn between agriculture and poverty. The sector may account for a high proportion of the employed in Nigeria, but smallholder farmers who are resource poor with characteristics like minimum inputs, small farm units, dependency on rain and eventual poor yield dominate Nigeria&#8217;s agricultural sector. There is therefore a high incidence of poverty in households that are dependent on the agricultural sector.</li>
</ul>
<p>We are changing this narrative <a href="https://www.proshareng.com/news/Commodities/Building-a-Fair-Commodities-Exchange-in-Nigeria/44674" target="_blank" rel="noopener">at AFEX</a>, but before we get to that&#8230;</p>
<p>The youth unemployment rate in Nigeria averaged 23.63 percent from 2014 until 2018, reaching an all time high of 38 percent in the second quarter of 2018. This looks like over 20 million young people actively looking, but unable to find work.  Agriculture still remains a prime candidate as a sector that youths can look to for job opportunities; all that is required is a switch from considering agriculture simply as a subsistence level production activity to one that can accommodate our swelling youth population in a number of ways both on and off the farm.</p>
<h2><strong>Opportunities for Youth Employment in Agriculture</strong></h2>
<p>A number of innovative private sector companies that started up to create solutions for the agricultural sector in Nigeria are counteracting the realities discussed above and slowly changing the narrative. AFEX is one of the companies at the fore of this change, possessing a team of young, vibrant and ethical people who are driving the innovative solutions that we are providing as Nigeria’s first private sector commodities exchange. There are four broad categories in which we can consider some of the opportunities that have risen or been necessitated by the type of solutions that we seek to provide at AFEX, and which are immediately evident to anyone who works in the agriculture/ agribusiness space.</p>
<p><strong>Knowledge/ Research</strong></p>
<p><a href="https://i1.wp.com/afexnigeria.com/wp-content/uploads/2019/05/IMG_6531-2-1-e1556720049362.jpg"><img data-attachment-id="17376" data-permalink="https://blog.afexnigeria.com/youth-employment-in-agriculture/img_6531-2-2/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/05/IMG_6531-2-1-e1556720049362.jpg?fit=800%2C533&amp;ssl=1" data-orig-size="800,533" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;5&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;Canon EOS 77D&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1548302596&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;38&quot;,&quot;iso&quot;:&quot;640&quot;,&quot;shutter_speed&quot;:&quot;0.008&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="IMG_6531 (2)" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/05/IMG_6531-2-1-e1556720049362.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/05/IMG_6531-2-1-e1556720049362.jpg?fit=1024%2C683&amp;ssl=1" loading="lazy" class="aligncenter size-full wp-image-17376" src="https://i1.wp.com/afexnigeria.com/wp-content/uploads/2019/05/IMG_6531-2-1-e1556720049362.jpg?resize=800%2C533" alt="Youth Employment in Agriculture" width="800" height="533" data-recalc-dims="1" /></a></p>
<p>&nbsp;</p>
<p>One of the key roles that youths can play in the agricultural sector is one of research and knowledge sharing targeted at all levels of the value chain. There are a lot of knowledge gaps that exist in Nigeria&#8217;s agricultural sector especially on the part of smallholder farmers who are often the last to hear about new innovations in the sector. By providing informational input to the farmers and reporting on developments in the sector, agriculture in Nigeria will have more room for growth and development.</p>
<p><strong>Credit/ Finance</strong></p>
<p>Access to credit or finance is one of the greatest challenges to the growth of the agricultural sector in Nigeria. Bank lending to the sector has been historically low, currently adding up to only about 4%. Opportunities lie in building infrastructure to derisk the sector and encouraging lending to it or facilitating access to credit and finance via other means.</p>
<p><strong>Technology</strong></p>
<p>Providing innovative solutions in the sector through technology is perhaps one of the biggest opportunities for youth employment in agriculture. Both on farm and off farm, there are a number of challenges that can be solved by employing simple technologies, which will make processes easier and help hedge against losses and even out cash flow.</p>
<p><strong>Services</strong></p>
<p><a href="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2019/05/Operations-e1556717849374.jpg"><img data-attachment-id="17366" data-permalink="https://blog.afexnigeria.com/youth-employment-in-agriculture/operations/" data-orig-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/05/Operations-e1556717849374.jpg?fit=800%2C507&amp;ssl=1" data-orig-size="800,507" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;2.2&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;ASUS_X00LDA&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1548158209&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;3.81&quot;,&quot;iso&quot;:&quot;100&quot;,&quot;shutter_speed&quot;:&quot;0.00099601593625498&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="Operations" data-image-description="" data-medium-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/05/Operations-e1556717849374.jpg?fit=300%2C190&amp;ssl=1" data-large-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/05/Operations-e1556717849374.jpg?fit=1024%2C649&amp;ssl=1" loading="lazy" class="aligncenter size-full wp-image-17366" src="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2019/05/Operations-e1556717849374.jpg?resize=800%2C507" alt="Youth Employment in Agriculture" width="800" height="507" data-recalc-dims="1" /></a></p>
<p>Huge opportunities also exist for youth employment in agriculture in the provision of services for agricultural activities. This can range from logistic services such as transportation and storage to post harvest local processing and packaging.</p>
<p>This is a non-exhaustive list of the opportunities that are inherent in the agricultural value chain, and indeed there is a lot of work to be done as we continue to seek ways  of matching the potential inherent in the sector in Nigeria. The ability of youths to harness these opportunities will create a positive developmental cycle of increased productivity and returns on investment, improvement of the sector&#8217;s image and yet more employment opportunities being generated to increase the space for youth employment in Agriculture.</p>
<p><strong>You should also check out: <a href="http://afexnigeria.com/market-reports-afex-weekly-com-x/" target="_blank" rel="noopener">Market Reports: What Our Weekly Com X Report Can Help You Do</a></strong></p>
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Youth Employment in Agriculture: Opportunities and the Way Forward

<p>One thing that would no doubt interest followers of our Tweet Chat with Proshare &#8211; Nigeria’s leading financial information hub &#8211; on the 17th of April 2019 about Nigeria&#8217;s commodities market is our Q1 trading score card. It was perhaps the first time that the number we have recorded from trades carried out on our platform in Q1 2019 entered the public domain, becoming widely accessible public knowledge. To reiterate, in Q1 2019, AFEX recorded a total of 7,812 MT of commodities traded, valued at N773 million.</p>
<p>We shared some other necessary facts about our business and Nigeria&#8217;s commodities market as people jumped in with their questions with the hashtags #AskAFEX and #AskProshare.</p>
<p>Here are some of the questions and our answers from our Tweet Chat with Proshare on Nigeria&#8217;s Commodities Market.</p>
<h2><strong>Kindly give us an overview of Nigeria&#8217;s Commodities Market so far in 2019</strong></h2>
<p>We started 2019 with projections of a bullish H1 for the commodities market in Nigeria. It was a projection based on the results of the 2018 Wet season and the high demand for certain commodities which were unable to match up with supply.</p>
<p>The start of the year kept with the trend with the uncertainty of the elections leading a lot of people to buy and store commodities, which led to an increase in demand. Logistic costs were also high in the period contributing to price increases and fluctuations.</p>
<p>The market has now settled into a stable price for most commodities with light fluctuations arising mostly from logistic issues, and we expect it to remain that way for a while going forward.</p>
<p>On the international side, the US-China trade war was one important factor that saw both countries look inwards for their commodities thereby cutting down on imports. Prices of commodities internationally therefore stayed down and the flow of commodities satisfied demand.</p>
<h2><strong>What has been the performance of the Commodities Exchange in 2019, how is this measured and what were the driving factors?</strong></h2>
<p>For Q1 2019, a total of 7,812 MT was traded on the Exchange resulting in a value of N773,111,255. We measure the performance simply by looking at the volume of commodities that are traded via our platform and market forces drive performance.</p>
<h2><strong>Nigeria has a lot to gain in developing a robust Commodities exchange ecosystem. How has AFEX been engaging stakeholders, regulators and the government in deepening the ecosystem?</strong></h2>
<p>One of the key things that the Exchange set out to do was fill in a need for information about the commodities market and commodities trading landscape in Nigeria. To do this, the Exchange has launched a lot of engagements through media partners like <a href="https://www.proshareng.com/news/Products%20&amp;%20Services/Proshare-and-AFEX-Form-Strategic-Partnership-to-Boost-the-Nigerian-Commodities-Market/43839" target="_blank" rel="noopener">Proshare</a>, <a href="https://businessday.ng/wealth-and-investing/article/three-soft-commodities-investors-should-not-miss-this-wet-season/" target="_blank" rel="noopener">BusinessDay</a> etc.</p>
<div id="attachment_17332" style="width: 760px" class="wp-caption aligncenter"><a href="https://i1.wp.com/afexnigeria.com/wp-content/uploads/2019/04/AFEX-YTR-Copy.jpg"><img aria-describedby="caption-attachment-17332" data-attachment-id="17332" data-permalink="https://blog.afexnigeria.com/afex-tweet-chat-nigerias-commodities-market/afex-ytr-copy/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/04/AFEX-YTR-Copy.jpg?fit=750%2C500&amp;ssl=1" data-orig-size="750,500" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;2.2&quot;,&quot;credit&quot;:&quot;Obi_Onyeaso&quot;,&quot;camera&quot;:&quot;NIKON D7200&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1553175123&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;50&quot;,&quot;iso&quot;:&quot;500&quot;,&quot;shutter_speed&quot;:&quot;0.00625&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="AFEX YTR &#8211; Copy" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/04/AFEX-YTR-Copy.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/04/AFEX-YTR-Copy.jpg?fit=750%2C500&amp;ssl=1" loading="lazy" class="wp-image-17332 size-full" src="https://i1.wp.com/afexnigeria.com/wp-content/uploads/2019/04/AFEX-YTR-Copy.jpg?resize=750%2C500" alt="Nigeria's commodities market" width="750" height="500" srcset="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/04/AFEX-YTR-Copy.jpg?w=750&amp;ssl=1 750w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/04/AFEX-YTR-Copy.jpg?resize=300%2C200&amp;ssl=1 300w" sizes="(max-width: 750px) 100vw, 750px" data-recalc-dims="1" /></a><p id="caption-attachment-17332" class="wp-caption-text">AFEX Country Manager, Ayodeji Balogun, speaks at BusinessDay&#8217;s Post-Election Outlook Conference</p></div>
<p>Our annual Code Cash Crop event as well as other events still lined up for this year have also been an avenue to discuss activities in the sector as well as our new products and initiatives. Our aim has always been to come up with simpler products and make it easier for everyone to understand the products.</p>
<p>We are also a part of a number of sub-committees that the SEC has set up to help develop a robust framework. This allows us engage with regulators and the government on a regular basis.</p>
<h2><strong>The #CodeCashCrop is a remarkable initiative by AFEX, that brings Technology and Finance to develop Agriculture. What is the update on the adoption of technology and financing to boost the commodities value chain in the country?</strong></h2>
<p>Technology adoption has become increasingly popular due to the untapped potential in the sector. Over the past couple of months, we have seen an increasing number of tech start up providing solutions in agriculture, targeted at attracting investment into the sector and also providing sound solutions towards increasing productivity in the sector.</p>
<p>We have seen an uptick in the conversations on Financial inclusion, which is a big part of the pillars of our service and which has seen us deploy tech/ digital solutions to get more smallholder farmers in our rural communities to finally access financial services.</p>
<h2><strong>The Regulatory environment is very key for attracting critical investments into Nigeria&#8217;s commodities market. Is the current framework incentivizing investments as expected and what more can be done?</strong></h2>
<p>Regulators have set up or are part of a number of committees that are looking to build on the current framework for the commodities market in Nigeria. The focus is on developing rules to encourage investments so there is a lot of positive activity from that end.</p>
<h2><strong>Who are the major players on the Commodities Exchange and how has the interaction been within the Agriculture Value Chain? </strong></h2>
<p>The major players on the Exchange are Producers, who for us are mostly smallholder farmers; buyers or processors, who need access to quality assured commodities of specific quantity; and investors or financiers looking to expand their portfolios.</p>
<p>These three players all have value to offer to one another within the agriculture value chain, but the interaction is often fragmented with no place for the three to meet. AFEX is solving that problem and in that way maximizing the returns for these three players in the agriculture value chain.</p>
<h2><strong>What is AFEX doing to increase the commodities traded on the exchange as well as its participants?</strong></h2>
<p>To increase the commodities traded on the exchange, AFEX is staying focused on farmer engagement; using our outreach structure to get more farmers to take advantage of the Exchange’s offerings from input financing to storage and grading services.</p>
<div id="attachment_17333" style="width: 760px" class="wp-caption aligncenter"><a href="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2019/04/Outreach-03-22-at-10.23.32-AM-1-1.jpeg"><img aria-describedby="caption-attachment-17333" data-attachment-id="17333" data-permalink="https://blog.afexnigeria.com/afex-tweet-chat-nigerias-commodities-market/outreach-03-22-at-10-23-32-am-1-2/" data-orig-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/04/Outreach-03-22-at-10.23.32-AM-1-1-e1555607111771.jpeg?fit=750%2C518&amp;ssl=1" data-orig-size="750,518" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1553250554&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="Outreach 03-22 at 10.23.32 AM (1)" data-image-description="" data-medium-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/04/Outreach-03-22-at-10.23.32-AM-1-1-e1555607111771.jpeg?fit=300%2C207&amp;ssl=1" data-large-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/04/Outreach-03-22-at-10.23.32-AM-1-1-e1555607111771.jpeg?fit=750%2C518&amp;ssl=1" loading="lazy" class="wp-image-17333 size-full" src="https://i0.wp.com/afexnigeria.com/wp-content/uploads/2019/04/Outreach-03-22-at-10.23.32-AM-1-1-e1555607111771.jpeg?resize=750%2C518" alt="Nigeria's commodities market" width="750" height="518" data-recalc-dims="1" /></a><p id="caption-attachment-17333" class="wp-caption-text">AFEX trains and equips Outreach Officers to engage smallholder farmers</p></div>
<p>The Exchange is also making a lot of investment in technology to help automate some of our processes and make for easier data capturing and analysis.</p>
<p>For participants, the Exchange is creating and launching innovative new products that will make investing in commodities accessible for all investors, and we are also lining up trainings and other avenues of interaction that will make it easier for everyone to understand the products.</p>
<h2><strong>What is the process of participation for individuals and businesses on the Exchange?</strong></h2>
<p>Individuals or businesses interested in participating on the Exchange can either visit our website and hit the trade button</p>
<p>Or</p>
<p>They can send a mail to membership@afexnigeria.com stating their intention to be members and we will guide them appropriately from there</p>
<h2><strong>What is your outlook for 2019 and what more should the investing community expect from AFEX this year? </strong></h2>
<p>2019 promises to be a productive year. We expect yields of small holder farmers to increase 1.5 x and returns on investment of 25% and above. On the exchange, we expect to see an increase in retail participation as well as the introduction of key products targeted at increasing participation of key stakeholders</p>
<h2><strong>What should investors look out for when investing in Nigeria&#8217;s commodities market?</strong></h2>
<p>Like in most other investment undertakings investors need to monitor the trends in the market like price movements, external factors that can influence demand and supply e.g weather conditions, and they should also consider trends internationally.</p>
<p>This drives our publication of prices on our website and also the weekly and monthly reports that we send to members with analysis of the market both locally and internationally.</p>
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Highlights From AFEX/ Proshare Tweet Chat on Nigeria’s Commodities Market

<p>How do a bunch of business people in suits connect with a group of smallholder farmers in rural communities? How do a group of young and energetic people relate with a group of older, more experienced investors from around the world? How do we make other people’s problems our problems? How do we understand and relate when we are sometimes very far removed from the immediacy of the realities faced by various people in different parts of the country/ world whom we are all trying to address? Applying empathy in business is the only way we have found to do all these. Empathy is therefore one of the most important business skills at AFEX Commodities Exchange Limited (AFEX) and the secret sauce in our open and accommodating culture.</p>
<p>It is easy to think about empathy as a negligible soft skill that is vital only in personal relationships, but in actual fact, it is a skill that can be learned and drawn upon when conducting business, and as we have found out time and time again it is a major determinant of how far any business can go in creating the right products and building relationships.</p>
<h2><strong>How Empathy in Business helped us create better products</strong></h2>
<p>The issues faced by smallholder farmers in Nigeria have been talked and theorized about for many years with several earlier attempts made to provide solutions. A bulk of these efforts, though laudable, failed or were stalled on the grounds of having an incomplete understanding of the problems or providing incompatible and unsustainable solutions.</p>
<p>At AFEX, we recognized these same problems and sought a deeper understanding of the causes of the problems as well as the pains and inconveniences they created before crafting solutions to address those pain points. It was this ability to put ourselves in the shoes of the smallholder farmers scattered across Nigeria’s fragmented agricultural landscape that gave us the business direction of providing solutions to the challenges faced by Nigerian smallholder farmers around aggregation, storage and financial inclusion.</p>
<p><a href="https://i0.wp.com/afexnigeria.com/wp-content/uploads/2019/04/Outreach-03-22-at-10.23.32-AM-1-e1554124664204.jpeg"><img data-attachment-id="17282" data-permalink="https://blog.afexnigeria.com/empathy-in-business-afex-culture/outreach-03-22-at-10-23-32-am-1/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/04/Outreach-03-22-at-10.23.32-AM-1-e1554124664204.jpeg?fit=800%2C553&amp;ssl=1" data-orig-size="800,553" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1553250554&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="Empathy in business &#8211; Listening" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/04/Outreach-03-22-at-10.23.32-AM-1-e1554124664204.jpeg?fit=300%2C207&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/04/Outreach-03-22-at-10.23.32-AM-1-e1554124664204.jpeg?fit=800%2C553&amp;ssl=1" loading="lazy" class="aligncenter wp-image-17282 size-full" src="https://i0.wp.com/afexnigeria.com/wp-content/uploads/2019/04/Outreach-03-22-at-10.23.32-AM-1-e1554124664204.jpeg?resize=800%2C553" alt="empathy in business" width="800" height="553" data-recalc-dims="1" /></a></p>
<p>As we have grown and expanded, we have continued to ask questions, and listen to the answers that we get back. We also regularly send our office staff out into the field to interact with the farmers who have joined our AFEX network, and also to get an understanding of the full range our business operations. This has kept us empathetic and in tune with the needs of the people whose good we are ultimately working for in developing products.</p>
<h2><strong>How Empathy in Business Helped us to Create and Sustain Relationships</strong></h2>
<p>Applying empathy in business may have helped us to conceptualize and craft the right solutions for Nigerian smallholder farmers, but even those great solutions would have been less effective without the ability to build and sustain solid relationships with those farmers as well as our other stakeholders and partners.</p>
<p>As our country manager, Ayodeji Balogun, once said, “As complex as it seems, all business processes – whether dealing with investors in Manhattan, New York or coffee farmers in Kibuye, Rwanda – still end up with people to people relationships and how they are built and sustained over time. Being able to relate with shareholders in the board room, bankers in the corporate world, and still being humble enough to understand the dynamics of business at the grass root is a key tool for agribusiness startups in Africa.”</p>
<p>Keeping with this belief, we have continued to cultivate and sustain relationships at every level. As an exchange, we are focused on ensuring understanding and building trust in our relationships. It is in this way that we have been able to reach and enhance the livelihoods of over 100, 000 farmers since our launch in 2014, and empathy will continue to be one of our greatest business skills as we aim to reach 1 million farmers within the next 4 &#8211; 5 years.</p>
<p>With empathy as a watchword, AFEX can also boast of a friendly and collaborative workplace that amplifies our efforts and helps us build innovative solutions. We are proud of our staff who continue to uphold this culture. They have shown their willingness to put themselves in the shoes of the poorest and the most under-served in our midst, and to walk with them into more positive realities.</p>
<p><strong>Read Also: <a href="http://afexnigeria.com/women-in-agriculture-balance-for-better/" target="_blank" rel="noopener">Women in Agriculture: Balance For Better Even on the Farm</a></strong></p>
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Empathy – The Secret Sauce in AFEX Culture

<p>As in every relevant sphere of life, it is true that women in agriculture are important &#8211; wielding the capacity to make great impact when they are helped and empowered to access the same opportunities as men. At the launch of the National Gender Action Plan (NGAP) on Agriculture in October 2018, the minister for Agriculture and Rural Development, Audu Ogbeh, said that 95% of farmers in Nigeria still operate at the subsistence level, and more than 50% of these subsistence farmers were women. This paints a picture of women in Agriculture in Nigeria being, for the most part, unable to earn from their activities and contribute meaningfully to food supply in the country.</p>
<p>Gender equality and women’s empowerment are crucial steps to achieving food and nutrition security, and enabling poor rural people to overcome poverty. Evidence demonstrates that when women are empowered, there are significant benefits for agricultural production, rural business development, as well as nutritional and educational outcomes of children. This is why a celebration of the International Women&#8217;s Day cannot be complete for us without looking at the contributions of women in Agriculture, the challenges faced by women in Agriculture and the things that we are looking forward to seeing from all the women who have found and look to find their livelihoods in agric.</p>
<h2><strong>Contributions of Women in Agriculture</strong></h2>
<p>For inspiration we can start from home. In 2015, AFEX began engaging with a group of women numbering around 200 who were only able to access and use about 2 bags of fertilizers for their farms. They took full advantage of AFEX&#8217;s offerings growing their membership to include 400 other women and increasing their productivity by over 150% through increased use of quality inputs. By pulling more women into their cooperative, and together increasing their productivity and yields, these women reinforced our evidence backed belief that empowered women indeed empower women and contribute positively to their communities.</p>
<div id="attachment_17228" style="width: 810px" class="wp-caption aligncenter"><a href="https://i0.wp.com/afexnigeria.com/wp-content/uploads/2019/03/Women-2.jpeg"><img aria-describedby="caption-attachment-17228" data-attachment-id="17228" data-permalink="https://blog.afexnigeria.com/women-in-agriculture-balance-for-better/women-2/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/03/Women-2-e1552032346661.jpeg?fit=800%2C600&amp;ssl=1" data-orig-size="800,600" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="Women 2" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/03/Women-2-e1552032346661.jpeg?fit=300%2C225&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/03/Women-2-e1552032346661.jpeg?fit=1024%2C768&amp;ssl=1" loading="lazy" class="wp-image-17228 size-full" src="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2019/03/Women-2-e1552032346661.jpeg?resize=800%2C600" alt="Women in Agriculture" width="800" height="600" data-recalc-dims="1" /></a><p id="caption-attachment-17228" class="wp-caption-text">Women in agriculture like Hajara Alhassan make incredible impact</p></div>
<p>Another homegrown success story is one of our female farmers who was recently celebrated at the Grow with Nigeria event organized by Diageo. Hajara Alhassan was one of the farmers who recorded the highest yields from the 2017 season despite a number of relevant challenges and setbacks. She gave a goodwill speech at the event telling an inspirational story about being encouraged to plant sorghum in the last farming season, and how much she has been helped by agricultural development initiatives, which have now enabled her to further her children&#8217;s education. Hajara and many other women like her are proof that empowered women empower children and create a better future for us all.</p>
<h2><strong>Challenges Faced by Women in Agriculture</strong></h2>
<p>The immense contributions that women in agriculture can make are often restricted or shut down by a number of challenges. The ability of women to access education, land, inputs and finances becomes a huge factor in their ability to provide for their families or communities and contribute, in the little ways that we have pointed out above and more, to the nation at large.</p>
<p>Some helpful statistics below:</p>
<p>According to The Permanent Secretary, Federal Ministry of Agriculture and Rural Development, Sunny Echono, &#8220;Women supply 70 percent of agricultural labor; 50 percent of animal husbandry related activities and 60 percent of food processing, yet they have access to only 20 percent of available agricultural resources.&#8221;</p>
<p><a href="https://www.sida.se/contentassets/3a820dbd152f4fca98bacde8a8101e15/women-and-land-rights.pdf" target="_blank" rel="noopener">SIDA&#8217;s gender tool box</a> points out that in developing countries women are estimated to own less than 20% of farmland and &#8220;farms managed by female-headed households are between half to 2/3 of farms run by male-headed households.&#8221;</p>
<div id="attachment_17341" style="width: 984px" class="wp-caption aligncenter"><a href="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2019/03/Constraints-of-Nigerian-Women-Participation-974x873.png"><img aria-describedby="caption-attachment-17341" data-attachment-id="17341" data-permalink="https://blog.afexnigeria.com/women-in-agriculture-balance-for-better/constraints-of-nigerian-women-participation-974x873/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/03/Constraints-of-Nigerian-Women-Participation-974x873.png?fit=974%2C873&amp;ssl=1" data-orig-size="974,873" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Constraints-of-Nigerian-Women-Participation-974&#215;873" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/03/Constraints-of-Nigerian-Women-Participation-974x873.png?fit=300%2C269&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/03/Constraints-of-Nigerian-Women-Participation-974x873.png?fit=974%2C873&amp;ssl=1" loading="lazy" class="size-full wp-image-17341" src="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2019/03/Constraints-of-Nigerian-Women-Participation-974x873.png?resize=974%2C873" alt="Women in Agriculture" width="974" height="873" srcset="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/03/Constraints-of-Nigerian-Women-Participation-974x873.png?resize=974%2C873&amp;ssl=1 974w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/03/Constraints-of-Nigerian-Women-Participation-974x873.png?resize=300%2C269&amp;ssl=1 300w, https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/03/Constraints-of-Nigerian-Women-Participation-974x873.png?resize=768%2C688&amp;ssl=1 768w" sizes="(max-width: 974px) 100vw, 974px" data-recalc-dims="1" /></a><p id="caption-attachment-17341" class="wp-caption-text">(<a href="https://guardian.ng/wp-content/uploads/2018/12/Constraints-of-Nigerian-Women-Participation-974x873.png">image source</a>)</p></div>
<p>In all, women have less access to land, credit, information and technology. They also find it harder to participate politically and face difficulties in terms of mobility. All these hinder their participation and contribution to the agricultural sector.</p>
<h2><strong>Looking Forward</strong></h2>
<p>The theme for International Women’s Day 2019 is Balance for Better. As the campaign website points out, &#8220;Balance is not a women&#8217;s issue, it&#8217;s a business issue. The race is on for the gender-balanced boardroom, a gender-balanced government, gender-balanced media coverage, a gender-balance of employees, more gender-balance in wealth, gender-balanced sports coverage&#8230;&#8221; and, to put a fine-point to this article, a gender-balanced agricultural sector. Indeed &#8220;Gender balance is essential for economies and communities to thrive&#8221; and we at AFEX will continue to empower women to participate and grow in Agriculture as we have always done.</p>
<p>The agricultural sector in Nigeria must continue to work to achieve more gender balance. At AFEX, one way that we try to go around the problem of women&#8217;s access to land is by strengthening women cooperatives that pool together resources to engage in agriculture. When these cooperatives are empowered to access loans/ inputs they can increase their yields and productivity and pull more women into their groups thereby increasing the number of female farmers that we are able to reach. About 30% of the farmers that have received services from us are women and we will continue working hard to increase that number.</p>
<p>Happy International Women&#8217;s Day to women all over the world!</p>
<p><strong>Read Also: <a href="http://afexnigeria.com/succeedingtogether-company-retreat-2018-recap/" target="_blank" rel="noopener">SUCCEEDING TOGETHER – COMPANY RETREAT 2018 RECAP</a></strong></p>
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Women in Agriculture: Balance For Better Even on the Farm

<p>When AFEX met Abdul in 2017, he was operating barely a rung above subsistence farmers. Where his aim was to make a living from his farming operations, he was stuck in a vicious cycle of poverty that kept his farming operations small with no real opportunity to expand and increase. As we identified, his problem was both simple and complex, and it all rested in payment systems. Like all the generations of his family before him who had farmed the land, at harvest, Abdul would take his modest yield of maize to the local market and sell to middle men who bought at really low prices. For these transactions, he was paid in cash, and not being in possession of a bank account a limited number of possibilities opened up to him. He could take that money and settle a few debts and familial responsibilities that had accumulated whilst his crops grew and matured; he could spend a little on treats for himself and his family as a reward for a good season; and he could even stash the left over cash in a space in his home that he considered safe. A week after Abdul’s windfall, however, he had mostly gone through his earnings in settling various emergencies and needs that continuously kept cropping up.</p>
<div id="attachment_17123" style="width: 810px" class="wp-caption aligncenter"><a href="https://i1.wp.com/afexnigeria.com/wp-content/uploads/2019/02/IMG_0154.jpg"><img aria-describedby="caption-attachment-17123" data-attachment-id="17123" data-permalink="https://blog.afexnigeria.com/payment-systems-financial-inclusion/img_0154/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/02/IMG_0154-e1549439973408.jpg?fit=800%2C533&amp;ssl=1" data-orig-size="800,533" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="Payment Systems" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/02/IMG_0154-e1549439973408.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/02/IMG_0154-e1549439973408.jpg?fit=1024%2C683&amp;ssl=1" loading="lazy" class="size-full wp-image-17123" src="https://i0.wp.com/afexnigeria.com/wp-content/uploads/2019/02/IMG_0154-e1549439973408.jpg?resize=800%2C533" alt="Payment Systems" width="800" height="533" data-recalc-dims="1" /></a><p id="caption-attachment-17123" class="wp-caption-text">Payment Systems: Abdul holding some of his cash</p></div>
<p>The new farming season often met Abdul back at square one, unable to afford much of anything, least of all quality inputs that would increase his yield or mechanization that would help his productivity. So despite his hard work on his farm, Abdul stayed for a long time straddling the poverty line. AFEX began its outreach activities to Abdul’s community in Soba, Kaduna State in March just as the 2017 wet season was set to begin. Identifying that a bulk of the community was unbanked and financially excluded, one of the first things that AFEX helped Abdul and a number of his peers do was open bank accounts. This opened up a new door of possibilities for Abdul. Going forward, he could now access the benefits of financial services like ease in transactions and payments, savings that can earn interest, and access to credit; all delivered in a more responsible and sustainable way.</p>
<p>As the first in 3 generations of his family to have a bank account, Abdul is now enabled to plan for a better future for himself and future generations, and indeed his reality is already changing.  Since he was financially included by AFEX, Abdul has been able to access loans in the last 24 months that he has ploughed into his farming operations, which has led to increased yields and productivity. He can also go beyond his local market to sell his produce since payment is no longer limited to physical assets.</p>
<h2><strong>AFEX&#8217;s logic for developing payment systems</strong></h2>
<p>Our logic in making <a href="https://www.gatesfoundation.org/What-We-Do/Global-Growth-and-Opportunity/Financial-Services-for-the-Poor" target="_blank" rel="noopener">financial inclusion</a> part of the pillars of our services at AFEX is simple: smallholder farmers earn 70 &#8211; 80% of their annual income from commodities trading so we are with them all through the year, making us a critical point for developing payment systems. To get this done, we are licensed as an aggregator within Nigeria’s financial inclusion ecosystem, which allows us to register farmers and issue BVNs, open bank accounts, and also facilitate transfers, receipt of cash and bills settlement.</p>
<p>AFEX is committed to being part of the solution for financial inclusion in Nigeria, and we have geared up our activities in the financial inclusion space since 2018. There is still quite a lot of work to be done, as our Business Development Manager Akinyinka Akintunde points out, “There needs to be a linkage from where the source of a farmer’s income comes from to the uses of his funds. In essence, we pay from commodities transactions then ensure that the person that is selling other daily provisions that the farmer needs is also financially included. When we have that in place, we are creating an ecosystem that we can leverage on to ensure that in any community where we are in the country, we have a functional payment system that is scalable and that is available to all smallholder farmers at all times.”</p>
<p><strong>Read Also: <a href="http://afexnigeria.com/financial-inclusion-rural-communities/" target="_blank" rel="noopener">Financial Inclusion In Rural Agrarian Communities</a></strong></p>
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Payment Systems: Abdul’s Story and AFEX’s Financial Inclusion Intervention

<p>For people in urban areas involved in the formal sector of the economy, making and receiving payments is often an unthinking activity. Financial services offered them by their chosen commercial banks outfit them with options intended to help them access and settle financial needs in a variety of ways. This access to reliable payment systems puts people in the position to plan, promise and engage in activities that have the potential of making them upwardly mobile members of society. Financial inclusion defined by the <a href="https://www.cbn.gov.ng/devfin/fininc.asp" target="_blank" rel="noopener">Central Bank of Nigeria</a> as a state where financial services are delivered by a range of providers, mostly the private sector, to reach everyone who could use them, therefore becomes a pathway to poverty alleviation, and economic development on a national level.</p>
<h2><strong>Financial Inclusion in Rural Communities in Nigeria</strong></h2>
<p>The story is a little different when we get to rural communities. Commercial banks have little to no presence in these communities leaving a bulk of the populace unbanked and financially excluded. Rural communities are often reliant singly on cash availability. Physical assets form the basis of their payments and savings, leaving them subject to risks like loss and robbery. Even worthy of further consideration is the fact that physical assets are unable to earn interest, and are susceptible to losing value over time. This effectively puts most rural dwellers in the informal sector.</p>
<p>Money is passed around by hand, and travels long distances with the help of expensive, insecure and inefficient systems. Emergencies come with steep consequences like an inability to gather enough resources or a reliance on moneylenders that charge incredibly high rates. Rural dwellers can also be stopped from accessing opportunities due to a lack of financial history records that cause formal institutions to deny them credit facilities.</p>
<p>In these ways, financial exclusion, defined as the inability of individuals, households or groups to access necessary financial services in an appropriate form, is incredibly expensive – contributing to the inability of a huge chunk of the populace to rise out of poverty and create better lives for themselves. According to a study published by the Enhancing Financial and Innovation Access (EFInA) group, 63.3% of Nigeria’s 99.6 million adult population live in rural areas. This significant portion of the population find it harder to utilize the most basic financial services, and often stay below the poverty line.</p>
<div id="attachment_17118" style="width: 650px" class="wp-caption aligncenter"><a href="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2019/02/EFIna-e1549358990493.png"><img aria-describedby="caption-attachment-17118" data-attachment-id="17118" data-permalink="https://blog.afexnigeria.com/financial-inclusion-rural-communities/efina/" data-orig-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/02/EFIna-e1549358990493.png?fit=640%2C403&amp;ssl=1" data-orig-size="640,403" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="EFIna" data-image-description="" data-medium-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/02/EFIna-e1549358990493.png?fit=300%2C189&amp;ssl=1" data-large-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/02/EFIna-e1549358990493.png?fit=1024%2C644&amp;ssl=1" loading="lazy" class="size-full wp-image-17118" src="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2019/02/EFIna-e1549358990493.png?resize=640%2C403" alt="Financial Inclusion" width="640" height="403" data-recalc-dims="1" /></a><p id="caption-attachment-17118" class="wp-caption-text">Source: EFInA Access to Financial Services in Nigeria 2018 survey</p></div>
<p>This is the lived experience of many of the farmers that we have encountered in our work in rural, agrarian communities. A vast majority of farmers in Northern Nigeria are unable to increase their productivity because they cannot access credits, quality agricultural inputs, extension services or even good storage facilities to keep their produce viable for longer periods after harvest. They also find it difficult to weather setbacks like poor harvest outcomes or serious illnesses.</p>
<p>Innovative technologies are creating new ways for more people to be financially included. Recent data is promising with CBN setting a 20% exclusion rate target for adults for the year 2020. AFEX is committed to being part of the solution. We are licensed as an aggregator within Nigeria’s financial inclusion ecosystem, which allows us to register farmers and issue BVNs, open bank accounts, and also facilitate transfers, receipt of cash and bills settlement.</p>
<p><strong>See Also: <a href="http://afexnigeria.com/afex-nigerias-new-year/" target="_blank" rel="noopener">AFEX Nigeria’s Hope for the New Year</a></strong></p>
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Financial Inclusion In Rural Agrarian Communities

<p>AFEX has begun releasing a compiled daily report published once a week in the news print titled the AFEX ComX Report . It is a page that shares valuable data on the prices of featured agricultural commodities (maize, soybean, paddy rice, sorghum, cocoa and ginger) as well as a graph showing the daily movement on the AFEX Commodities Index (ACI). The page currently features on the Wednesday print of <a href="https://businessday.ng/" target="_blank" rel="noopener">BusinessDay</a> newspaper taking its rightful place among other relevant market reports because the commodities market in Nigeria is deservedly gaining strength as a viable, alternative investment class. Trading of commodities, in particular agricultural products, at the capital market puts the nation in a better position to transform the agricultural sector for overall economic growth in Nigeria.</p>
<p>Agriculture is considered Nigeria&#8217;s single largest economic sector. The sector has a potential to become Nigeria&#8217;s greatest asset if harnessed properly. The National Bureau of Statistics (NBS) said in its 2016  report that agriculture accounted for 24.4% of Gross Domestic Product (GDP) in the year. Still, the agricultural production landscape in Nigeria remains fragmented with revenue derived from the sector relatively small compared to its immense potential. Enabling more people access to invest in the sector will lead to greater productivity and yield, which will enrich all stakeholders involved and the economy as a whole.</p>
<h2><strong>AFEX&#8217;s Goal in Sharing Commodities Market Reports</strong></h2>
<p>AFEX aims to make investing in agricultural commodities accessible to all investors, and one big factor that would ensure this is the access to market prices and other relevant information that will enable all players in the value chain make informed decisions. The producing and investing public needs to have access to data on commodities, which will promote price discovery as well as transparency in transactions. The AFEX ComX Report will give parties access to qualitative information that will provide advantage as well as promote transparency in the commodities market, which will give producers greater influence in negotiating prices and strengthening their earning capacity. The ACI data, in particular, will enable current and potential traders on the exchange to follow the trends and hedge against risk.</p>
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<p>AFEX is in the best position to provide this distilled data as we have developed a market data system that shows indicators for key drivers for commodity supply and demand, commodity prices across markets, and trend analysis.</p>
<h2><strong>Market Reports: Need for the AFEX ComX Report</strong></h2>
<p>After considering the immense potential of the commodities market in Nigeria, and AFEX&#8217;s goal in sharing commodities market reports, all that is left to consider are the uses that our AFEX ComX Report can be put to. Below we present three of the greatest benefits.</p>
<p><strong>Price Discovery</strong></p>
<p>Both producers and buyers in the sub-Saharan commodities market, currently, operate on a bilateral basis that sees them completing deals in private transactions. This lead to a large information barrier that blocks either side from having a concise view on prices. Producers are worst hit by this lack of price discovery and are often exploited at the farm gate level on this basis. Through secondary and primary data research, the AFEX ComX Report is able to give an outlook on the price points of various commodities in the Nigerian market. This will work to create a structured market where competitiveness is maximized by the ability of all parties to readily access information on prices.</p>
<p><strong>Identify Market Trends</strong></p>
<p>The AFEX ComX Report distills a lot of data and information about the commodities market in Nigeria in its detailed page. This gives a whole picture view of the commodities market in Nigeria that can enable users to study trends in the market over time.</p>
<p><strong>Validate leanings and make informed decisions</strong></p>
<p>Connected to the point above, the goal of all market reports is to enable users to make informed decisions and the AFEX ComX Report is no different. As users read the page to get information about prices and study trends in the market, they are better able to make informed decisions on how to participate in the market. For the farmers/ producers, there is greater confidence in allotting prices to their produce and for traders, investors and other market participants, they can make purchase and investment decisions that are based on trusted research data.</p>
<p><strong>Read Also: <a href="http://afexnigeria.com/afex-nigerias-new-year/" target="_blank" rel="noopener">AFEX Nigeria’s Hope for the New Year</a></strong></p>
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Market Reports: What Our Weekly Com X Report Can Help You Do

<p>There are many benefits for individuals and nation states in having a well-established and efficient commodities exchange. On the national level, commodities exchanges are critical drivers of economic development and transformation, which present benefits to citizens of the nation in the areas of wealth and job creation. Benefits of commodities exchanges also include improvement of market transparency &#8211; making it easier for players in the commodities value chain to make informed decisions, and hedge against price fluctuations.</p>
<p>Despite the numerous benefits of commodities exchanges, limited understanding of the concept hinders adequate participation in the commodities market. Here we present a definitional guide for commodities exchanges to facilitate understanding.</p>
<h2>Investopedia’s Definition of a Commodities Exchange</h2>
<p><a href="https://www.investopedia.com/terms/c/commoditiesexchange.asp" target="_blank" rel="noopener">Investopedia</a> defines a commodities exchange as &#8220;a legal entity that determines and enforces rules and procedures for the trading of standardized commodity contracts and related investment products.&#8221;</p>
<h2>Business Dictionary’s Definition of a Commodities Exchange</h2>
<p><a href="http://www.businessdictionary.com/definition/commodity-exchange.html" target="_blank" rel="noopener">Business Dictionary</a> breaks that down even further in explaining commodities exchanges as an open and organized marketplace where ownership titles to standardized quantities or volumes of certain commodities (at a specified price and to be delivered on a specified date) are traded by its members.</p>
<h2>Key Words/ Phrases to Understand</h2>
<ul>
<li>Legal entity: The designation of a commodities exchange as a legal entity explains its capacity to enforce contracts and agreements with the ability to assume an obligation and discharge indebtedness.</li>
<li>Standardized commodity contracts: Also known as futures contracts, these are agreements to buy or sell a predetermined amount of a commodity at a specific price on a specific date in the future.</li>
<li>Organized marketplace: Refers to commodities exchanges being a securities marketplace where purchasers and sellers regularly gather to trade securities according to the formal rules adopted by the exchange.</li>
<li>Standardized quantities or volumes: This signifies the requirement in a commodities exchange that specific stipulations of quantity, quality, price and date of delivery of the commodity are made clear in the contracts.</li>
<li>Commodities: These are the goods, property or assets that can be bought or sold on an exchange. They are mainly raw materials or agricultural products; goods that get mined or grown, and their value is intrinsic based on market supply and demand making them distinguishable from securities. Commodities are typically divided into two main categories &#8211; hard commodities which are raw materials that are mined or extracted like gold and oil, and soft commodities which include agricultural products and livestock.</li>
</ul>
<h2>Putting it all together &#8211; What is a Commodities Exchange</h2>
<p>A commodities exchange is an open and regulated market where people can trade in standardized futures contracts. This means, in simple terms, that they get into agreements to buy or sell specific quantities of raw materials or other primary products at a specific price for delivery on a future (specified) date. On the side of the buyer there is an agreement to accept delivery of the commodity on the agreed upon date, and on the side of the seller there is an agreement to deliver the commodity on the agreed upon date. Exchanges primarily present a benefit of managing price risks to buyers and sellers, but they particularly help sellers to improve the marketing of their physical products.</p>
<p>Commodities exchanges are typically categorized in three ways: metals exchanges, fuels exchanges, and soft commodity exchanges or agricultural exchanges. No matter the type, commodities exchanges provide three basic functions: price transparency, price discovery and reduced transaction costs. By simply centralizing trade in a certain commodity, an exchange facilitates title transfer, market transparency, and price discovery.</p>
<h2>Benefits of Commodities Exchanges</h2>
<p>Through the length of this article we have mentioned some benefits of commodities exchanges, and below we spell out five main benefits of a well established commodities exchange.</p>
<ul>
<li>Commodities exchanges provide a ready and continuous market for the purchase and sale of commodities. This enables the producer to be independent of middlemen and therefore to derive more value from their production activities.</li>
<li>They provide hedging facilities, which make them necessary in reducing fluctuations in price of raw material and consequently also reducing fluctuations in the price of finished products.</li>
<li>Commodities exchanges provide the producers an opportunity to transfer their risk to the professional risk-bearers.</li>
<li>By providing continuity in the trading of commodities, commodities exchanges induce bankers and financiers to lend against commodities.</li>
<li>Commodities exchanges provide facilities and opportunities for arbitrating and thus equalizing the price levels of commodities at various centers</li>
</ul>
<p>Consult our <a href="http://afexnigeria.com/faqs/" target="_blank" rel="noopener">FAQs</a> to learn more about commodities exchanges.</p>
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A Definitional Guide To Understanding Commodities Exchanges

<p>After all the reflection and measurements that come with a year ending and a new year beginning, we at AFEX Nigeria are feeling re-energized to continue pursuing some long held goals that our business was set up to attain as well as some others that have joined our lineup of impact as we have grown as an organization. We made quite a lot of impact in 2018, and you can read some of our <a href="http://afexnigeria.com/2018-impact-stories-succeeding-together/" target="_blank" rel="noopener">2018 impact stories here</a>. In 2019, however, we have plans to scale our operations and do even more, and as we share some of AFEX Nigeria&#8217;s new year goals we present a little of what you can anticipate from the exchange in 2019.</p>
<h2><strong>AFEX Nigeria&#8217;s New Year Goals</strong></h2>
<h2>Scaling our input program</h2>
<p>In 2019, AFEX Nigeria has plans to scale the impact of our input program to reach 50,000 farmers. This is double the goal that we set and surpassed in 2018, when we reached over 25,000 farmers in the wet and dry season input program. Our input financing program helps Nigerian smallholder farmers to access necessary inputs like fertilizers and Crop Protection Products (CPPs) that are beyond their reach due to them having limited income and access to credit. We have full confidence in our ability to meet this goal because the results of our input financing program from previous years are doing a lot of the work of convincing for us.</p>
<div id="attachment_16592" style="width: 650px" class="wp-caption aligncenter"><a href="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2019/01/MG_0221-2-e1546343723261.jpg"><img aria-describedby="caption-attachment-16592" data-attachment-id="16592" data-permalink="https://blog.afexnigeria.com/afex-nigerias-new-year/_mg_0221-3/" data-orig-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/01/MG_0221-2-e1546343723261.jpg?fit=640%2C360&amp;ssl=1" data-orig-size="640,360" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;5.6&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;Canon EOS 750D&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1477329270&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;80&quot;,&quot;iso&quot;:&quot;400&quot;,&quot;shutter_speed&quot;:&quot;0.01&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="Smallholder farmers" data-image-description="" data-medium-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/01/MG_0221-2-e1546343723261.jpg?fit=300%2C169&amp;ssl=1" data-large-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/01/MG_0221-2-e1546343723261.jpg?fit=1024%2C575&amp;ssl=1" loading="lazy" class="size-full wp-image-16592" src="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2019/01/MG_0221-2-e1546343723261.jpg?resize=640%2C360" alt="AFEX Nigeria's New Year" width="640" height="360" data-recalc-dims="1" /></a><p id="caption-attachment-16592" class="wp-caption-text">AFEX Nigeria&#8217;s New Year: Reach more farmers with our input program</p></div>
<p>More farmers in our input program means better yields and productivity from agricultural activities in 2019, but it also means better quality of life for smallholder farmers on an individual level.</p>
<h2>Introducing a range of products for the Capital market</h2>
<p>AFEX Commodities Exchange Limited will be launching the first Commodities Index in Africa come January 2019. Along with the AFEX Commodity Index (ACI) will also come other instruments for investors interested in gaining exposure to commodity backed assets. This will include the Exchange Traded Commodity (ETC), which will be a commodity backed asset bought and sold on the Exchange.</p>
<p>These historical products, to be launched by AFEX Nigeria, will make investing in commodities accessible to all investors.</p>
<h2>Hosting Code Cash Crop for the 2nd time</h2>
<p>AFEX Nigeria will be putting on the second Code Cash Crop event as part of the 2019 Social Media Week Lagos (SMW Lagos) session lineup. This will give us yet another opportunity to gather enthusiasts in the technology (code), finance (cash) and agriculture (Crop) space to have conversations about possible avenues for collaboration and impact.</p>
<div id="attachment_16589" style="width: 650px" class="wp-caption aligncenter"><a href="https://i1.wp.com/afexnigeria.com/wp-content/uploads/2019/01/SMW-CCC1b.jpg"><img aria-describedby="caption-attachment-16589" data-attachment-id="16589" data-permalink="https://blog.afexnigeria.com/afex-nigerias-new-year/smw-ccc1b/" data-orig-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/01/SMW-CCC1b-e1546343168285.jpg?fit=640%2C533&amp;ssl=1" data-orig-size="640,533" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="SMW CCC1b" data-image-description="" data-medium-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/01/SMW-CCC1b-e1546343168285.jpg?fit=300%2C250&amp;ssl=1" data-large-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2019/01/SMW-CCC1b-e1546343168285.jpg?fit=1024%2C853&amp;ssl=1" loading="lazy" class="size-full wp-image-16589" src="https://i1.wp.com/afexnigeria.com/wp-content/uploads/2019/01/SMW-CCC1b-e1546343168285.jpg?resize=640%2C533" alt="AFEX Nigeria's New Year" width="640" height="533" data-recalc-dims="1" /></a><p id="caption-attachment-16589" class="wp-caption-text">AFEX Nigeria&#8217;s New Year: Code Cash Crop 2</p></div>
<p>The theme for the 2019 Code Cash Crop event is payment solutions for rural agrarian communities, and we already have a speaker lineup that will guarantee an engaging and insightful panel discussion.</p>
<p><a href="https://sched.co/IuHk" target="_blank" rel="noopener">Register to attend our Code Cash Crop panel here</a>.</p>
<h2>Partnering with NEXIM on financing exports</h2>
<p>In 2019, a partnership between AFEX Nigeria and the Nigerian Export-Import Bank (NEXIM), which began in 2018, to finance exports in the agricultural sector will continue. NEXIM, which has benefited from CBN’s reinstatement of the N500 billion Export Stimulation Facility (ESF), which included a N50 billion Direct Intervention Fund for NEXIM to boost non-oil exports, is financing various projects in the non-oil sector including those identified in the agricultural sector, and AFEX Nigeria is serving as collateral managers for the identified agriculture linked projects.</p>
<p>The partnership will continue to promote export stimulation in the country leading to such benefits as inflow of funds into the country via the receipt of export proceeds, increased production output in the country which will lead to higher employment rates, increased Gross Domestic Product (GDP) figures, and higher foreign exchange earnings for the government.</p>
<h2>Setting up our food security fund</h2>
<p>Achieving food security is one of the biggest goals and challenges for developing countries. Nigeria is not exempt from the challenges, and the quest for solutions has led AFEX Nigeria to work on a Food Security Fund that will provide disruptive, scalable financing structures to agriculture. Setting up this fund and working towards food security for our nation is one of the biggest goals for AFEX Nigeria this year.</p>
<p>We are grateful for all the achievements and successes we recorded in 2018, but we are working for even more in 2019. Two of our greatest hopes for the new year are to make more impact in the lives of smallholder farmers and to empower more people to create wealth through our trading platform. We have put a lot of effort into having a spectacular 2019, and we are excited to have you on this ride with us.</p>
<p>Happy new year from all of us at AFEX Commodities Exchange Limited.</p>
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AFEX Nigeria’s Hope for the New Year

<p>AFEX Commodities Exchange Limited has had a fascinating 2018. We are planners over here, so to say that we did not expect to have such a great time would be underselling the vision and skills of the numerous people that made this year so special. We collaborated and partnered on pushing out a number of initiatives and products tied to our value proposition of growing markets and connecting trade. A few moments stand out as extra special in all our myriad of activities though every single second has been important to our story. Here we feature some of our 2018 impact stories that are our greatest pointers to the truth of us succeeding together.</p>
<h2><strong>2018 Impact Stories</strong></h2>
<h2>Code Cash Crop</h2>
<p>One of the first things that we decided to do in 2018 was a workshop that brought together the three different industries where AFEX Nigeria regularly operates: Code (Technology), Cash (Finance), and Crop (Agriculture). These three industries are vital parts of Nigeria’s growth away from a mono-economy of oil dependence.</p>
<p>Code Cash Crop was therefore an inspired event idea that invited deliberations on the intersections of the three industries. The first format of CCC was held in March as a stand-alone workshop in Lagos, Nigeria. It brought together corporate bodies and startups playing in the Finance, Technology and Agricultural sectors to develop prototypes for collaboration in the agribusiness sector. The workshop was a success with the learnings from the conversations sure to continue inspiring new innovations from the industries.</p>
<div id="attachment_16582" style="width: 310px" class="wp-caption aligncenter"><a href="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2018/12/SMW-CCC1a-1-e1545667076362.jpg"><img aria-describedby="caption-attachment-16582" data-attachment-id="16582" data-permalink="https://blog.afexnigeria.com/2018-impact-stories-succeeding-together/smw-ccc1a-2/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2018/12/SMW-CCC1a-1-e1545667076362.jpg?fit=800%2C667&amp;ssl=1" data-orig-size="800,667" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="2018 Impact Stories" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2018/12/SMW-CCC1a-1-e1545667076362.jpg?fit=300%2C250&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2018/12/SMW-CCC1a-1-e1545667076362.jpg?fit=1024%2C853&amp;ssl=1" loading="lazy" class="wp-image-16582 size-medium" src="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2018/12/SMW-CCC1a-1-300x250.jpg?resize=300%2C250" alt="2018 Impact Stories" width="300" height="250" data-recalc-dims="1" /></a><p id="caption-attachment-16582" class="wp-caption-text">Code Cash Crop 2019</p></div>
<p>Code Cash Crop is being organized again for 2019, this time as a <a href="https://sched.co/IuHk" target="_blank" rel="noopener">panel session</a> in Social Media Week Lagos. An impressive speaker lineup and a topic focus on payment solutions for rural agrarian communities already has us excited for this second outing, which is sure to be bigger and even more impactful.</p>
<h2>2018 Wet &amp; Dry Season Input Program</h2>
<p>At AFEX Nigeria, on an annual basis, we deploy our input financing program to unlock input loans for smallholder farmers, who are often unable to secure these inputs for themselves due to high costs and limited access to credit. The input bundles known as the Agribooster are broken down along three bands: the premium band intended for lead farmers and farmers who desire high yield and quality produce includes inputs of seeds, fertilizers, Crop Protection Products (CPPs) and mechanization where applicable. The Agribooster plus provides fertilizers and Crop Protection Products and the basic package provides only fertilizers.</p>
<div id="attachment_16575" style="width: 310px" class="wp-caption aligncenter"><a href="https://i0.wp.com/afexnigeria.com/wp-content/uploads/2018/12/Tractor-e1545665076942.jpg"><img aria-describedby="caption-attachment-16575" data-attachment-id="16575" data-permalink="https://blog.afexnigeria.com/2018-impact-stories-succeeding-together/tractor/" data-orig-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2018/12/Tractor-e1545665076942.jpg?fit=640%2C343&amp;ssl=1" data-orig-size="640,343" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="Tractor" data-image-description="" data-medium-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2018/12/Tractor-e1545665076942.jpg?fit=300%2C161&amp;ssl=1" data-large-file="https://i1.wp.com/blog.afexnigeria.com/wp-content/uploads/2018/12/Tractor-e1545665076942.jpg?fit=1024%2C548&amp;ssl=1" loading="lazy" class="size-medium wp-image-16575" src="https://i1.wp.com/afexnigeria.com/wp-content/uploads/2018/12/Tractor-300x161.jpg?resize=300%2C161" alt="2018 Impact Stories" width="300" height="161" data-recalc-dims="1" /></a><p id="caption-attachment-16575" class="wp-caption-text">Wet &amp; Dry Season Input Program</p></div>
<p>In 2018, our reach was expanded through partnerships with LAPO Microfinance Bank, Dangote Rice, Thrive Agric, Farmcrowdy, OCP, and Syngenta. This meant an expansion of impact as we were able to provide inputs worth $3.8 million across eight states in the 2018 wet season. We were able to bring onboard over 16,000 farmers, who then had access to input loans that enabled them to maximize productivity and yield, helping them to not only increase their income, but to potentially contribute more to their communities and country at large.</p>
<p>AFEX Nigeria has also begun input disbursement, for the 2019 dry season input program, in Kebbi State, with Sokoto, Zamfara, Kano and Jigawa next in line. We are targeting an additional 10,000 farmers for the dry season input program so as to reach a total of 25,000 farmers for the 2018 period.</p>
<h2>Post-harvest Training</h2>
<div id="attachment_16577" style="width: 310px" class="wp-caption aligncenter"><a href="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2018/12/IMG_0170-d-e1545665601843.jpg"><img aria-describedby="caption-attachment-16577" data-attachment-id="16577" data-permalink="https://blog.afexnigeria.com/2018-impact-stories-succeeding-together/img_0170-d/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2018/12/IMG_0170-d-e1545665601843.jpg?fit=640%2C427&amp;ssl=1" data-orig-size="640,427" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;5&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;Canon EOS 750D&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1477324381&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;31&quot;,&quot;iso&quot;:&quot;100&quot;,&quot;shutter_speed&quot;:&quot;0.005&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="2018 Impact stories" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2018/12/IMG_0170-d-e1545665601843.jpg?fit=300%2C200&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2018/12/IMG_0170-d-e1545665601843.jpg?fit=1024%2C683&amp;ssl=1" loading="lazy" class="wp-image-16577 size-medium" src="https://i2.wp.com/afexnigeria.com/wp-content/uploads/2018/12/IMG_0170-d-300x200.jpg?resize=300%2C200" alt="2018 Impact stories" width="300" height="200" data-recalc-dims="1" /></a><p id="caption-attachment-16577" class="wp-caption-text">Post-harvest Training &#8211; 2018 Impact Stories</p></div>
<p>A bulk of farming activities in Africa are still reliant on manual activities as cost blocks smallholder farmers from mechanizing their operations. Still, the long term outlook for AFEX Nigeria is to heighten farmer productivity and the volume of land cultivated. To do this, AFEX Nigeria has committed to the consistent education and engagement of the farmers. We have always done this and 2018 was no different with our outreach structure having a necessary aspect of educating farmers. Most recently in November, we had a post-harvest training at our Zaria warehouse that was part of our campaign to end post-harvest losses.</p>
<h2>Partnership with Binkabi and Sterling Bank on Blockchain for Agric</h2>
<div id="attachment_16578" style="width: 310px" class="wp-caption aligncenter"><a href="https://i0.wp.com/afexnigeria.com/wp-content/uploads/2018/12/44692916_347204596084564_7036861451966776989_n-e1545665763693.jpg"><img aria-describedby="caption-attachment-16578" data-attachment-id="16578" data-permalink="https://blog.afexnigeria.com/2018-impact-stories-succeeding-together/44692916_347204596084564_7036861451966776989_n/" data-orig-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2018/12/44692916_347204596084564_7036861451966776989_n-e1545665763693.jpg?fit=640%2C422&amp;ssl=1" data-orig-size="640,422" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-image-title="2018 Impact Stories" data-image-description="" data-medium-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2018/12/44692916_347204596084564_7036861451966776989_n-e1545665763693.jpg?fit=300%2C198&amp;ssl=1" data-large-file="https://i0.wp.com/blog.afexnigeria.com/wp-content/uploads/2018/12/44692916_347204596084564_7036861451966776989_n-e1545665763693.jpg?fit=640%2C422&amp;ssl=1" loading="lazy" class="wp-image-16578 size-medium" src="https://i0.wp.com/afexnigeria.com/wp-content/uploads/2018/12/44692916_347204596084564_7036861451966776989_n-e1545665747441-300x198.jpg?resize=300%2C198" alt="2018 Impact Stories" width="300" height="198" data-recalc-dims="1" /></a><p id="caption-attachment-16578" class="wp-caption-text">2018 Impact Stories</p></div>
<p>We have always believed in the power of technology to disrupt processes, and our partnership with Binkabi and Sterling, sealed in 2018, to leverage blockchain technology to solve the issue of financing and international trade is one that speaks directly to that belief. The implications of this partnership are far reaching, but we always start at the incredible benefit it will extend to farmers who through the technology can now be linked directly to consumers and retailers. The blockchain technology will help solve for transparency in the supply chain which will help farmers get fair prices for their produce leading to increased income.</p>
<p>The products and initiatives that we have featured here for our 2018 impact stories come from an obviously great year, which has resulted from the hard work and dedication of every single staff of AFEX Nigeria, and also from the farmers who never give up on the land. They are, however, also the results of the contributions of impact investors and partners with whom we share similar goals like improvement in the stake of smallholder farmers and the work to secure food security for our country and our world.</p>
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2018 IMPACT STORIES – SUCCEEDING TOGETHER

<p>&nbsp;</p>
<p>#CodeCashCrop. A first-of- its-kind workshop and meetup held last week on Thursday, 1st<br />
March 2018 in Lagos where over 90 corporates and startups in the finance and technology<br />
sectors connected with agriculture entrepreneurs to cocreate solutions that should boost the<br />
competitiveness of the agribusiness sector.</p>
<p>Hosted by AFEX Commodities Exchange, the only private commodity exchange in Nigeria in<br />
partnership with Dalberg Advisors, NIRSAL and INTL FCStone, the event featured a panel<br />
conversation, practical breakout sessions and lots of networking opportunities. Delegates<br />
included executives from several local and international investors as well as thriving<br />
agribusiness entrepreneurs.</p>
<p>The Country Manager of AFEX Commodity Exchange, Ayodeji Balogun, says “AFEX has been<br />
a functional exchange for over four years and has created access to markets that boosted<br />
the incomes of over 40,000 farmers by up to 40% over the period. There is so much<br />
potential to do a lot more when all elements of the economic ecosystem are able to find<br />
valuable use cases in the agriculture value chain.”</p>
<p>Nneka Eze, Partner at Dalberg Advisors, said “Dalberg was pleased to partner with AFEX on<br />
#CodeCashCrop’. It was a unique opportunity for all stakeholders in the finance,<br />
technology and agriculture sectors to find a common ground and advance the nascent agri-<br />
fintech space in Nigeria forward. We look forward to continue bringing global best practices<br />
to Nigeria to ensure this sector continues to gain momentum.”</p>
<p>Mr Balogun adds that “the future of #CodeCashCrop is to continue to help participants get<br />
practical insights into developing for or investing in agriculture”. He says further that it “will<br />
also have the invaluable social impact of putting smallholder farmers, who form over 90% of<br />
the commodity exchange’s transactions and produce over 80% of our national food supply,<br />
in the spotlight as an addressable market segment.”</p>
<p>AFEX Commodities Exchange Limited (AFEX) enables the transition from production to<br />
transaction for agricultural commodities. The vision is to ensure food security and support<br />
smallholder farmers to increase their earning capacity as well as provide a more efficient<br />
price discovery system. AFEX is providing solutions to farmers’ challenges in aggregation,<br />
storage, financial inclusion as well as providing a ready market for both farmers and buyers<br />
to participate in, seamlessly and with trust embedded. We have reached 100, 000 farmers<br />
and aggregated over 100, 000 metric tonnes of grain since 2015. AFEX increases the<br />
bargaining power of farmers and creates access to new markets (e.g. industrial users) by<br />
operating warehouses in major trade hubs and crop production clusters in the North-West<br />
and North-Central while linking these communities to agronomic education, access to inputs<br />
&amp; credit in addition to financial inclusion.</p>
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AFEX Commodities Exchange’s #CodeCashCrop

<p>Company retreats have been a part of the AFEX culture since 2015. From partying together (Saminaka Resort) to mini Safaris (Yankari Games Reserve) and everything in between, these special getaways have been a priority, even as we’ve grown from our humble beginnings as a team of a handful to more than 80 people.</p>
<p>We go on retreats for a multitude of reasons, but the most important is getting the entire team together in one relaxed space. It’s a time where names are put to faces and of course planning for the growth of the organization. In summary the objective is to build connections within the team —  which is the basis of this year’s theme, “Succeeding Together!”</p>
<p>This year was clearly AFEX’s most engaging retreat to-date. The team met in Zaria last week for three days of interactions, strategy and fun activities (that tended to revolve around food, because that’s the kind of people we are).</p>
<p>The aim of the retreat was to ensure that AFEX scales to better heights and produce ground breaking results. To this end, a full agenda of strategy sessions, trainings and group projects was created. The sessions were focused around how to remain on track with the organizational growth plan and targets while being more efficient, effective and goal oriented. The AFEX team was challenged through the sessions and exercises to improve not only as individuals but as a team, because the success of the organization is dependent on every team member.</p>
<p>An event worthy of note was the movie night that held the first night. The movie, “Money Ball” based off Michael Lewis&#8217;s 2003 nonfiction book “Money ball: The Art of Winning an Unfair Game” is about a baseball team and its general manager. It focused on the teams analytical, evidence-based, saber-metric approach to assembling a competitive baseball team despite its small budget. The movie which served as the soundtrack of the retreat brought home all management wanted to convene to the team. Resonating qualities such as; Refocus, Ownership, Attitude, Creativity, Teamwork, Trust, Candor, Relationship, Brand and Execution, everyone was tasked with reflecting on them for use in improving positions.</p>
<p>Also on the agenda was a visit to the closest warehouse in the location (AFEX Warehouse Zaria) where members of the backend office were able to learn and see warehouse processes that ensured the continual effectiveness that made the AFEX Collateral Management Service.</p>
<p>Breakout strategy sessions had everyone working on the year’s production figures and individual work goals. This would be the highlight of the retreat. Groups were formed to breakdown figures and strategize on the best execution plans while presentations were made on both plans and the result of a side exercise where everyone spoke of their ideal AFEX.</p>
<p>As it was not all work, we had time to play and relax; from early morning workout sessions to barbecues around bonfires at night. We held little games where prizes were won but most importantly an award night, where team members were recognized for their effort, hard work &amp; performance over the year and were rewarded as such. While not everyone may have been recognized or rewarded particularly, it was made clear by management that the company was a family, the “Ba wasa” family, and by proxy the glue that keeps it all together.</p>
<p>So was the investment in the company and the retreat in Zaria worthwhile? Absolutely! We look forward to putting the conversations we had in Zaria to work in our different locations. Working with each other was a valuable experience, and the AFEX team as a whole learned a lot from the trainings. The key message that will continue to resonate is, “Together Everyone Achieves More (TEAM)”.</p>
<p>Could you be part of our 2019 AFEX team retreat? We’re not actively hiring for any positions but we’re always on the lookout for talented, self-starting individuals. Follow our company social media accounts for news and updates.</p>
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#SUCCEEDINGTOGETHER – COMPANY RETREAT 2018 RECAP

<p>#CodeCashCrop a first-of- its-kind workshop and meetup held last week on Thursday, 1st March 2018 in Lagos where over 90 corporate entities and startups in the finance and technology sectors connected with agriculture entrepreneurs to co-create solutions that should boost the competitiveness of the agribusiness sector.</p>
<p>Hosted by AFEX Commodities Exchange, the only private commodities exchange in Nigeria, in partnership with Dalberg Advisors, NIRSAL and INTL FCStone, the event featured a panel conversation, practical breakout sessions and lots of networking opportunities. Delegates included executives from several local and international investors as well as thriving agribusiness entrepreneurs.</p>
<p>The Country Manager of AFEX Commodities Exchange, <a href="https://www.proshareng.com/news/Agriculture/AFEX-launches--CodeCashCrop-to-Boost-Agriculture--Finance-and-Tech-Collaboration/38665" target="_blank" rel="noopener noreferrer">Ayodeji Balogun, said</a> “AFEX has been a functional exchange for over four years and has created access to markets that boosted the incomes of over 40,000 farmers by up to 40% over the period. There is so much potential to do a lot more when all elements of the economic ecosystem are able to find valuable use cases in the agriculture value chain.”</p>
<p>Nneka Eze, Partner at Dalberg Advisors, said “Dalberg was pleased to partner with AFEX on #CodeCashCrop’. It was a unique opportunity for all stakeholders in the finance, technology and agriculture sectors to find a common ground and advance the nascent agri- fintech space in Nigeria forward. We look forward to continue bringing global best practices to Nigeria to ensure this sector continues to gain momentum.”</p>
<p>Mr Balogun adds that “the future of #CodeCashCrop is to continue to help participants get practical insights into developing for or investing in agriculture”. He says further that it “will also have the invaluable social impact of putting smallholder farmers, who form over 90% of the commodity exchange’s transactions and produce over 80% of our national food supply, in the spotlight as an addressable market segment.”</p>
<p><a href="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2014/05/2014-08-14-13.40.25.jpg?ssl=1"><img data-attachment-id="2552" data-permalink="https://blog.afexnigeria.com/afex-codecashcrop-collaboration-agenda-for-agriculture/2014-08-14-13-40-25/" data-orig-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2014/05/2014-08-14-13.40.25.jpg?fit=5312%2C2988&amp;ssl=1" data-orig-size="5312,2988" data-comments-opened="1" data-image-meta="{&quot;aperture&quot;:&quot;2.2&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;SM-G900H&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1408023625&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;4.8&quot;,&quot;iso&quot;:&quot;40&quot;,&quot;shutter_speed&quot;:&quot;0.00146627565982&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}" data-image-title="Code Cash crop for Nigerian Agriculture" data-image-description="" data-medium-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2014/05/2014-08-14-13.40.25.jpg?fit=300%2C169&amp;ssl=1" data-large-file="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2014/05/2014-08-14-13.40.25.jpg?fit=1024%2C576&amp;ssl=1" loading="lazy" class="aligncenter size-full wp-image-2552" src="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2014/05/2014-08-14-13.40.25.jpg?resize=5312%2C2988&#038;ssl=1" alt="#CodeCashCrop" width="5312" height="2988" srcset="https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2014/05/2014-08-14-13.40.25.jpg?w=5312&amp;ssl=1 5312w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2014/05/2014-08-14-13.40.25.jpg?resize=300%2C169&amp;ssl=1 300w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2014/05/2014-08-14-13.40.25.jpg?resize=1024%2C576&amp;ssl=1 1024w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2014/05/2014-08-14-13.40.25.jpg?w=2000&amp;ssl=1 2000w, https://i2.wp.com/blog.afexnigeria.com/wp-content/uploads/2014/05/2014-08-14-13.40.25.jpg?w=3000&amp;ssl=1 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1" /></a></p>
<p>AFEX Commodities Exchange Limited (AFEX) enables the transition from production to transaction for agricultural commodities. The vision is to ensure food security and support smallholder farmers to increase their earning capacity as well as provide a more efficient price discovery system. AFEX is providing solutions to farmers’ challenges in aggregation, storage, financial inclusion as well as providing a ready market for both farmers and buyers to participate in, seamlessly and with trust embedded.</p>
<p>Since 2015, AFEX has reached 100, 000 farmers and aggregated over 100, 000 metric tonnes of grain. The Exchange is  increasing the bargaining power of farmers and creating access to new markets (e.g. industrial users) by operating warehouses in major trade hubs and crop production clusters in the North-West and North-Central while linking these communities to agronomic education, access to inputs &amp; credit in addition to financial inclusion.</p>
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