Improving food security in Africa

AFEX, a prominent player in Africa's agricultural industry, has recently announced a significant milestone in securing a $26.5 million financing commitment from the British International Investment. This financial backing is aimed at supporting structural improvements in the agricultural sector, with a specific focus on building 20 modern warehouses in strategic locations across Nigeria, Kenya, and Uganda. Additionally, AFEX plans to scale warehouse technology to address post-harvest pricing dynamics, marking a crucial step towards enhancing food security in the region. Ayodeji Balogun, Group Chief Executive Officer of AFEX, recently joined CNBC Africa to shed light on this groundbreaking development. Balogun emphasized the importance of transforming key value chains in Nigeria, Kenya, and Uganda. In Nigeria, the focus lies on the paddy rice market, aiming to reduce food loss by investing in optimizing the drying and conditioning process for paddy rice. In Kenya and Uganda, efforts will be directed towards maize, a staple crop in these regions, with a key objective of mitigating issues such as aflatoxin contamination and ensuring food safety. Furthermore, AFEX plans to target the sesame and soya beans value chains in Nigeria, serving both the domestic protein market and export demands. Balogun stressed the pivotal role of technology in AFEX's strategic initiatives, particularly in combating post-harvest losses. These losses, amounting to significant portions of grain and horticultural value chains, pose a substantial challenge to food sustainability in Africa. By leveraging smart storage facilities with advanced technologies such as solar-powered energy sources and eco-friendly warehouse practices, AFEX aims to revolutionize the preservation and accessibility of harvested crops, potentially saving billions of dollars in food imports and enhancing food security across the continent. Through a network of 200 warehouses serving 450,000 farmers, predominantly in Nigeria, AFEX has already empowered farmers with tools like USSD functionalities to manage their produce effectively. Farmers can access storage facilities, set competitive sale prices, secure advance sales, and even obtain loans against stored commodities, making the agricultural value chain more efficient and inclusive. Looking ahead, AFEX plans to scale its operations and introduce new investments to expand its impact in Kenya and Uganda, while enhancing its support for smallholder farmers in Nigeria. Balogun highlighted AFEX's commitment to empowering farmers and catalyzing their transition to mechanized farming. By implementing sustainable practices and innovative solutions such as solar-powered irrigation systems and collective financing models, AFEX aims to boost the economic viability of smallholder farmers and drive agricultural transformation. Balogun underscored the need to create tailored economic models that cater to the evolving needs of young, educated farmers, providing them with the opportunity to thrive in the agricultural sector and achieve financial independence. As AFEX continues to pioneer advancements in agricultural technology and sustainable practices, the company stands at the forefront of driving positive change in Africa's agricultural landscape, paving the way for a more resilient and prosperous farming community.