The British International Investment (BII), the United Kingdom’s development finance institution, has announced a substantial commitment of $26.5 million to AFEX, a renowned agricultural commodity exchange, to bolster food security efforts in Nigeria, Kenya, and Uganda.
Nick O’Donohoe, the Chief Executive Officer of BII, shared this pivotal development with journalists in Lagos on Wednesday while highlighting the investment’s role in facilitating structural enhancements within Africa’s agricultural industry.
These improvements are anticipated to have a profound positive impact, particularly among smallholder farmers, and subsequently contribute to enhanced food security in the region.
AFEX currently manages a network of more than 200 warehouses across Nigeria, Kenya, and Uganda, serving the needs of over 450,000 farmers.
The BII investment is earmarked for the construction of 20 additional warehouses strategically located in these three nations.
It will also support the expansion of warehouse technology and the implementation of next-generation software to capture post-harvest pricing dynamics.
O’Donohoe stressed that smart storage solutions have the potential to significantly extend the shelf life of harvested crops while concurrently boosting the available food supply.
The introduction of these new warehouses will provide an additional storage capacity of 230,000 metric tonnes, enabling approximately 200,000 more farmers to access cost-effective storage facilities, ultimately maximizing their sales from crop yields.
The CEO asserted that this substantial advancement would translate into a substantial increase in farmer incomes, surpassing the 200 percent mark.
“Supporting smallholder farmers in achieving equitable remuneration is pivotal in ensuring their continued participation in the agricultural sector, leading to increased production and higher-quality crops for local consumption,” O’Donohoe stated.