Sometimes, the luxury of life is experienced in our little interactions with people we come by daily. For someone like Victor, a Clearing and Settlement Analyst at AFEX, social interaction is an essential currency to climbing the corporate ladder and he recognizes the beauty of life as a series of butterfly effects.

In this episode, he shares with us his perspective on how local delicacies can transcend tribes and how a perfect balance between social and career will help anyone win at life. 

**Hello, welcome. Can we meet you?**

My name is Victor Umoru, and I’m an Analyst in the Clearing and Settlement tribe at AFEX. I belong to the settlement part of the title; I stay on the payout for all ComX transactions leaving the organization.

**The ComX app? What does that entail?**

Yes, I oversee every payment transaction, which means I need to always be on my toes, checking that there are no errors and that everything works out fine.

**Tell us about you; interesting facts we may not know, perhaps you are team cash and no transfers. And in that case, how have you been surviving in this cashless economy?**

In this cashless economy (laughs). Omo, I don’t have a choice between cash or transfer; it is the choice of that woman that sells food behind that car park area. But yeah, I’d rather use physical cash sha. It allows for easy movement. Also, I read about it in that *What is your financial love language? [article on ComX](https://medium.com/comx-stories/whats-your-favorite-money-love-language-142652155e90) *. I understood my financial language more after reading that piece.  

However, what I’d say is the most fun about me is people’s confusion about my personality. I agree that I may seem quiet because of my looks; someone once said I am the human definition of “you look quiet.” The thing is - I really am not. People who have spent more time with me say I am much of a talker and much more outgoing than I initially seemed. Also, I am a non-Igbo who eats Okpa (the delicacy that looks like moi moi) almost daily; that counts as interesting abi?

**Yes, it sure does; really interesting.**

You’re welcome.

**What tool makes your job seamless as a Clearing and Settlement Analyst at AFEX?**

Some platforms do the work for me; I can't put the glory on just one, as I work a lot with finance and attending to the needs of our investors on the ComX app. So, a combination of payment portals, bank apps, and Excel do the magic for me. If one works and the other doesn’t na wahala. A day where I get no troubles from all of these turns out to be the best day in the month, and this is due to the rarity of such. 

**What are your earliest memories of working at AFEX, and how long have you been in AFEX?**

I joined in October 2022, and my earliest memories would go around our social life here: The AFEX’s movie outing for Black Panther relaxed me because I have never worked with an organization that cares about your career and balances out your social life. The reward system helps you bond with your colleagues, which is quite refreshing. I’m building on my social capital. Please permit me to spin around “Social Capital”, I’ve been longing to use it.

**Has working in AFEX improved your career journey?**

People only fully grasp their growth once they look back; I recently did a mental check. I realized I had advanced mentally and career-wise in the organization, owing to the incredible people I have met in AFEX. Also, returning to the social capital I mentioned earlier, I’ve always wanted a place with a great bond. I don’t mean James Bond oo; I like that we have time to be serious and business-like and also cruise time. 

**Has your expectation of AFEX been met?**

Before coming to AFEX, I saw a post about “helping Africa feed Itself,” I thought it was one of those lofty and vague visions organizations put out to sound inclusive. However, coming and working here has shown me that it is possible, and AFEX is doing this. So, looking at us pursuing and bridging the gap is an eye-opener, and I'm grateful I am here to help.

**What advice will you give anyone looking to work with AFEX?**

There are few AFEX out there, so if you want to come here, persevere. My current role wasn't the first application I applied for, but I continued applying until I got here, and now I'm also ready to help Africa feed itself. Watchword: Relentless. 


Working in AFEX has shaped my thoughts toward Agriculture advancement in Africa -Victor Umoru   

In this episode, Simi Musa, a Customer Fulfilment Intern at AFEX, a lover of the word “serene, and a melomaniac gives us an insight into a Gen-Z working in a corporate space. She takes us through her journey of learning about the agricultural sector in Nigeria while working to be an excellent customer service agent. She shares with us her love for creating solutions to help people, and how her working environment influences not just her corporate career but serves as a ladder to reach all the positive energies required to go through a day.  

Let’s meet her. 

**Hello, welcome to our seat.**

Thank you. Is this meant to be a corporate version of “Is this seat taken”? 

**“Is this seat taken”?**

 It’s one of the YouTube series I binge-watch at any given time so if this is it, Yay!  Also, check out the web series later; you’d love it.
 
**Lmao, I love your excitement about this. Do you like music as much as you love movies?**
 
 Look at my ear. I always have earbuds on; this is my average thing to do when not on a call with customers.  It’s probably the most soothing thing after a hot bath on a cold evening or even a hot one. I read somewhere that the steam stimulates your body to adapt to the temperature. That’s a thing you know. 
 
**It’s funny; we don’t even know your name yet; what’s your name?**
 
 My name is Simi Musa, Simi not Simisola or Simioluwa. Fun fact, I'm not even Yoruba. I am from Plateau State, my tribe is Berom, one of the several indigenous tribes in the region; my name Simi means Love. Just as I am *Laughs*.  I’m currently interning with the Customer Fulfilment squad here in AFEX, where we answer calls and solve clients’ and customers’ issues.  
 
**How did you find out about AFEX?**

Through a friend who coincidentally works here. We were catching up on our positions in the career world, and he mentioned AFEX; instinctively, I had to check the company out. So, when I saw an opportunity for my current position, I applied. Luckily, it was a role I love. 

**I love it; what tool makes your job seamless as a Customer Fulfilment Intern at AFEX?**

I speak for my team members and myself when I say Hudu- Avertium. 

It helps us integrate and track Info on calls we have had with AFEX’s customers over time. We use it to make calls; if we were to use any other platform, getting reports would be almost impossible. So, it makes your work easier, more efficient, and more effective. For me, tracking info is vital because I wouldn’t know how to track the information of close to 50 clients per day without it. 

Our position (Customer Fulfilment) is an intermediary between the organization and the customers. If we are uncouth with them (clients and customers), it sets off how the entire AFEX will be seen. Have you ever experienced bad customer service with any brand? Did you blame the brand or the person that spoke to you? The truth, is you begin to see the brand in the way its representatives treated you. So, every time I have to relate to customers, I do so amicably, no matter how I feel then. 

**What informed this current career path? You mentioned loving it earlier.**

I am a great listener and always look to solving a problem. I have a positive attitude toward helping people and playing middleman. If I apply these qualities to my daily life, why not pursue them as a career? I got into the best team ever. People complain about the positivity, and those are people who barely know me, though; they think I fake it sometimes. I’ve had someone tell me they thought I was faking my constant brightness. No, dear. I shine with positivity, and that’s on purrrrr.

**Big Energy, we love! Has your expectation of AFEX been met?**

I need to put this out, this is my first time working in the Agric space, so I came in for an exploration mode. AFEX shows that the agricultural value chain is broader than we would ever think about.  Here, I learn something new from every conversation I have with Xperts. The additional knowledge I get beyond relating to customers makes me smile. I can go on a 10-minute talk about technology in agriculture and not stop. I just learned the definition of AFEX in July 2022. So yeah, it met my expectation.

Oh, one last add-on, I’m grateful for empathy from colleagues. I may be a naturally happy person, but we know if you have negative energy around you, it could all sap out. So I’m grateful they help me keep it in.  

**What funny thing can we find in your bag?**

I think “funny” is relative here. So, you’ll see these random things in any bag I carry; I always have sweets, a comb, tissue, and two different types of lip-glosses, my otrivin, to combat my allergy reactions. Do you know how pregnant women have their delivery bags? Well, these are the contents of mine, to get me by any day and occasion. 



Empathy sets the tone in a corporate setting - Simi Musa

We’ve heard how introverts are quiet people who are introspective and always want time alone, however, Adeshola Maryann is probably the most memorable introvert you’ll meet in a workplace because of her beaming smile, a trait that got her the title of the smiling princess at AFEX.

In this episode, she shares with us how an ideal day involves her cooking/sleeping or even doing both if it was possible. She also delved into her role as Clearing and Settlement Analyst at AFEX, how she spends her time away from work, and what real introverts do.

Let’s meet her.

**Hi Maryann, welcome to the seat**

Hello, thank you for having me too, Firstly, is this a serious professional kind of interview? Do I have to speak in career lingo? I’ve used up every business term I have for the week.

**No, it isn’t, why were you worried about the interview at first?**

Lol, I wasn’t worried per se; I thought it was a video, and I wouldn’t say I like the camera, and I also don’t have my favorite blazars on. It’s my lucky camera charm.

**Uhmmmm, tell us more about you, exciting facts we may not know already know; we know you have a lucky charm already.**

You know when you’re asked a question and suddenly do not remember anything about yourself abi. That’s what’s happening. I can’t even remember my favorite food now. 

But I’d say it is my ability to enjoy my presence alone. Not many people want this, so I guess it will count as an interesting piece about me. Introverted people may shy away from crowds, but they would like the company of others. My case is different; I love being absolutely alone; it helps me relax and focus better. 

**Does this affect your performance here in AFEX? Seeing that you need to relate with your team members constantly.**
 
No, not really. I join in on jokes and every other thing once in a while. Besides, you can’t stay with people and be mute forever. My role involves many calculations and that is what keeps me going too. People know I am heavy on the quantitative area, so you can’t expect me to talk when I am computing data. 

**How did you join AFEX?** 

A close friend introduced me to AFEX in 2022, when I was looking for a company to serve as my place of Primary placement, and she told me to try applying to AFEX; luckily for me, I got in, and I’m here replying to these questions.


**What has working in AFEX taught you so far?**

Since I started working at AFEX, I’ve gotten better at applying Tech to everyday life. I’ve also improved my PowerPoint and Excel skills, which has really improved my productivity and helped me scale through. 

The beauty of the combination of both learning and practicality is the best for me. I could learn about a particular app today, and I’ll have to use it tomorrow. This way, it sticks to the memory, and you record actual growth in that regard.  I’ve been impacted greatly, and I am grateful. 

![129A3608.JPG](/uploads/129_A3608_4e41376c74.JPG)

**How would you define the impact?**

I’d say my mindset/expectation was changed. 

When I got in, I thought an interning position would be an excuse for menial jobs and be everyone’s go-to person to get food and run errands in the office. But on reaching here after the onboarding, I was immediately assigned to a team and tasked with responsibilities task; it was pretty shocking and exciting. 

**When you’re not at work, what do you love doing? What excites you the most?** 

Honestly, being by myself is gold. I enjoy my own company because I’m introverted.  So, I’d say lying in bed and probably surfing the internet excites me. However, occasional cooking helps calm my nerves, and I look towards getting new spices and trying new recipes. 

**If we searched your bag, what funny thing would we find?**

You’ll find a couple of things, and I’m unsure what to term funny; I always keep a lip gloss in the bag because a lady shouldn’t be caught with dry/ashy lips. It’s my number one rule on etiquette.

**Do you have more etiquettes we need to know?**

Quite a handful, a little and a little there, something I know many are aware of too, wash your hands after using the toilet, never leave an unfinished food open etc. 

Thank you, Maryann, it was wonderful having you here. 
You’re welcome. 








How the combination of learning and practice helps Maryann internalize new things.

Ask anyone who works in tech, and they’ll probably tell you a version of the same story; tech is challenging but it’s fun. For Hemense Lan, a Software Developer at AFEX, the transition into Tech was quite interesting. 

In this episode, he shares his honest insight into life, the inside life of a tech bro in a 9-5.  His undying love for philosophy, the mantra that has kept him running in his career, and how being surrounded by family is the biggest motivation that will get you to any destination in life. 

**Hello, tell us about yourself, in “Emmanuella’s voice,” is this your real face?**

Lol. I am Hemense Lan, a different person to different people; I mean, the version of Hemense at work differs from the one in the office; centrally, I’m loved by all. At home, I’m goofier with my siblings. For corporate life, I try to balance out the two. All work and no play will drag you down, so I don’t want that. 


**What was childhood like for you? You just mentioned you’re goofier at home.**

My childhood was rich in laughter and playing around. We all grew up imitating the brightness of the sun. At least, that’s something someone told me. My siblings are my biggest support systems and cheer persons, so naturally, my home is my happy space.

**I see now, the reason, you’re almost always cheerful. **

Yeah, that and my teammates too. When we’re not cracking codes, we definitely are cracking jokes, or doing both at once. 

**Speaking of which, how did you find out about AFEX?** 

It was the middle of last year when I was looking for a career change, and I knew I needed to do something different in a new environment. So, when I stumbled upon an opening for a software developer role in AFEX, I grabbed it. Mind you, I’ve loved playing around with computers since I was little Funnily, I applied in passing (One of those jobs you apply for and do not expect a reply or forget). In my case, I forgot that I had applied, I was randomly going through my unread emails for unopened messages and realized I got a slot for an interview.  Also, shout out to LinkedIn for directing the role to my timeline. 

**This is a real “God when situation”, would you call it luck or grace?**

Is this like that religious luck or grace question? I’ve seen a few skits on this.  But it’s grace, always grace. The thing is I forgot because I was caught up in a lot of things then. Questioning where I was and what I wanted to be and do.  

**Okay, has working in AFEX impacted your career journey so far? Do you think you made the right decision transitioning?**

I barely track that, now you mention it, yeah. There was a very recent “breakthrough” for me. My shoulder pads are still high from the event. 

**Please tell us, let’s know if we will help you keep it higher.** 

First things first, Tanner Linsey (Tanstack) is a god in Software development. 

Recently, I wanted to use his component-React table to build software here in AFEX. It came out nice, but it wasn’t giving me what I wanted, I had to look at his source code to see the arrangement of his code. I checked his implementation and combined it with mine and it gave me the exact thing I wanted to create. 

So, the excitement of getting work done made me reach out to him on Twitter and he reacted to it! So yeah, AFEX gave me an opportunity to reach out to my career idol and I am grateful.

**That’s huge, I’ll go and shoot similar shots soon.** 

Oh, please do, it is pleasing and satisfying. I was the happiest person on earth for days. 

**So, what tools would you say make your job as a Software developer seamless here at AFEX?**

So, I’d say Tech-stack.  Coming to AFEX and realizing that we use react and typescript was a blessing in a pack. React is one of the coolest tools out there, it helps you catch the bugs early and also architect your codes better. So, for me, a mixture of this current tech stack and our designing/developing pathway makes coding an easier task. 

Something worthy of note is that if a coder is not properly equipped, frustration will take the person out. As a developer, there are apps that can frustrate your efforts and turn all your inputs and coding futile. This frustration will come if you like coding or not sha. 

**Does coding frustrate you?**

You know the answer, I love coding, easily one of my favourite things after two plates of peppered snails of course. bugs are cruel, they don’t care, just to cause trouble and anxiety. So, sometimes it does.

**Asides from coding, what else excites you?** 

Philosophy! I’ve been a fan since my early days. Guys like Confucius, Socrates, Immanuel Kant, and Plato all inspire me. Also, codes swing the magic wand for me, can’t imagine myself in any alternate universe where I do not code. Finally, music -the soul whisperer. But there’s a twist, I listen to afrobeat and pop, but they don’t “whisper” to my soul like metal, or rock does for me. I recommend people be acceptive of those genres in this part of our world. 

**You mentioned you needed a job transition before joining AFEX. Did you have expectations on joining the Organization?** 

This question is tricky, prior to coming here I had this Google workspace in my head, where you get lunch food carts every day. A break room (that has PS5) and also creative corners, anyways that hasn’t been met fully but I look forward to it. Also, maybe a small pitch. I’ll score us 85/100 on those grounds. However, every other expectation has been met.


**Football in the Office?**

Why do you sound surprised?  For after office hours sha. But we have somewhere we use, so, I’m good on that one. 


**You’re funny, what’s something unusual we’d likely find in your bag?**

Nothing so funny, but I’ll say a sock, but hear me out, I play football. There’s usually a need to change socks before games (I can’t be playing in my corporate socks). Thing is, I keep a football kit in my bag, so when I get home and throw everything out, there are chances that I may forget a sock or a pair in the bag.

**What advice will you give anyone looking to work in AFEX?**

This advice is for anyone looking to work anywhere, you have to know what you want and how the organization will help you achieve it. 

In 2021, Dare Obasanjo said something that struck me and I’ve lived by it “Employment is a transaction, you for the company and the company for you.  

So, in every transaction you should be looking to gain for it, if it is only the company that gains, then you are disadvantaged. Make sure your growth is not impeded, and always leave the office better than you came into it.  


How LinkedIn helped Hemense land his Dream Job at AFEX


Food is not only something we need every day, it is also a complex system of actors and processes that account for one-third of greenhouse gas emissions, according to a report by [FAO](https://www.fao.org/news/story/en/item/1379373/icode/); at the same time, food production is affected by the adverse impacts of climate change. 

Conversations around climate change are not uncommon in our sector; the reality of its effects on food security and the livelihood of rural households is more and more visible. Yet, climate action is not scaling up rapidly enough. With a growing population projected to reach 10 billion in 2050, there is more pressure on the food being produced, and a reduction in crop yield would cause more harm to an already distorted food system.

At this crossroads, looking at the larger picture of food and its role in climate change is essential. Agriculture has the potential to accelerate climate action, so how do we shape a food system that nourishes people, restores our environment, and adapts to changing weather? Specifically, how can climate technology transform our food systems to be climate smart, ensuring we mitigate and adapt to the impact of climate change? 

![IMG_3796.JPG](/uploads/IMG_3796_98fe02926b.JPG)

In Nigeria for example, smallholder farmers are experiencing climate disasters, including increased flooding as well as drought across some states, which is made worse by a lack of access to seasonal climate and weather information services. The implication of this is a significantly lower production volume across the agricultural value chain. Additionally, one-third of the world’s droughts occur in sub-Saharan Africa, with Ethiopia and Kenya currently enduring the worst droughts in at least four decades. Torrential rains and floods are severely impacting countries such as Chad.

The time to innovate around Africa’s agriculture in the face of a climate crisis is now, however, it will require significant investment. In Africa, climate tech investment is already booming, with more and more agritech startups facing food-related climate challenges head-on. A report by PwC shows that in 2021, investments in climate tech surged globally to $87.5 billion from $28 billion in the second half of 2020. Investment in technologies including AI, IoT, satellite & sensor data, crop insurance and other innovations, can support farmers to better manage climate risks and help agriculture become more sustainable and resilient to climate change.

Through climate technology, increased productivity can be achieved by offering tools and services that allow farmers to prepare and respond to weather incidents, implement precision agriculture, access new varieties of seed suited to new environments, storage facilities to prevent food loss, and access remote soil analysis that helps lower emissions and improved yields. 

Beyond the investment in the tools that allow farmers to adapt to climate change, there needs to be mitigation of further emissions and deforestation to prevent further disruptions to climate and the environment. Appropriate use of agricultural inputs is key to reducing emissions, and knowledge transfer can be supported by agritech as well. Furthermore, the traceability of traded commodities to farmers can identify and mitigate deforestation risks, as is also required by upcoming EU due diligence. Traceability will likely become a requirement for access to markets.

But investing in climate technologies is only possible if the farmers have the appropriate access. We have to intensify farmers’ sensitization on climate-smart practices to help them adapt better to the new realities and gradually build resilience to survive its impact on their livelihoods. Farmers need more access to crop insurance that protects them against extreme weather events and other risks. 

There are agritech companies already working on these strategies. AFEX has utilized technology in numerous ways to ensure transparency and efficiency in several commodity value chains. As with many other agritech companies that are working to transform Africa’s food systems, AFEX’s technology investments are also rightfully expanding to climate solutions. An initial frontier is the combination of partnerships and technology to deliver relevant data to farmers to enable them to combat climate shocks. On the other hand, AFEX’s continued deployment of financing structures and instruments to unlock funding for various value chain operations in African agriculture remains key as an evolving answer to the questions on climate finance on the continent. 

We continue to rethink the future of Africa’s food system in the face of climate change. Our bet is on the prioritization of a data-rich environment with adequate funding being unlocked to drive innovations for adaptation, and technology remains at the center of these endeavors.

_Written by Sanne Steemers, President, Rest of Africa, AFEX._

 Climate Tech for Agriculture: how technology can help tackle climate change in Africa.

Agriculture has been touted as the backbone of Nigeria’s socio-economic development due to its age-long contribution to the country's GDP. As seen in recent reports, the trading business has also undoubtedly boosted economic growth in Nigeria and other sub-Saharan African countries, with Agriculture contributing an average of [24% to the nation’s GDP over a seven-year period (2013 – 2019)](https://www.pwc.com/ng/en/assets/pdf/afcfta-agribusiness-current-state-nigeria-agriculture-sector.pdf). Agriculture is currently the largest sector in Nigeria, as it also accounts for job creation and boosts the economy. 

Agricultural commodity trading builds an ecosystem within which commodities trading occurs directly or indirectly, affecting the activities and development of the commodities market and the Exchanges. Commodities trading comprises various elements such as Farmers, Commodity exchanges, Merchants, Aggregators, Processors, Commodity market operators and Warehouse operators. Through an organized collaboration between these elements in the agro-commodity ecosystem, companies such as AFEX are able to build value and increase economic growth, food security, job creation, and economic diversification across the continent.

Commodity Exchange accounts for most of the income generated in rural areas. Smallholder farmers are equipped with easy access to merchants and warehouse operators, making trade execution seamlessly easy. However, it is essential to note that the price of commodities can be very volatile or relatively stable depending on the specific asset or currency involved. Market factors, inflation, and financial depression can also impact these fluctuations. According to [AFEX’s annual report](https://africaexchange.com/reports/special/afex-annual-commodities-review-and-2023-outlook), possible increases in food inflation, and other inflationary pressures will continue to rise due to the declining production of major grain commodities, thereby reducing the supply level in the domestic market. 

Notwithstanding, with a good ecosystem of operators and merchants, commodities traders can provide vital support for a global model of production and consumption in a complex value chain that includes refining, processing, storage, and shipping. This also brings increased food security, self-sufficiency and food safety through well-functioning markets contributing to a diversified GDP.

At AFEX, our Commodities Exchange has contributed to increased productivity and trade execution. We specialize in soft commodities such as Cashew Nuts, Sorghum, Paddy Rice, Ginger, Maize, and Cocoa. Over the past few years, as AFEX built its commodities exchange trading platform, it has enabled effective trade and settlement commodity transactions and increased productivity of smallholder farmers, as such helping them attain healthy, decent, and profitable farming occupations.

Nigeria’s agriculture sector provides livelihoods to households in rural areas, this sector contributes towards ensuring smallholder farmers are adequately protected. With AFEX’s trade execution, farmers can access output markets, thereby reducing waste, ensuring a year-round supply of focus commodities and steady income generation. The Nigerian government is equally committed to introducing effective policies to improve the commodity trading landscape and protect farmers by integrating new agricultural technologies to improve the sector’s efficiency and increase land productivity.

With proper implementation of policies and infrastructure, the future of the Agro Commodity sector poses scalable and sustainable benefits as the Exchange supports securitization and structured trade finance for commodities.

To trade agricultural commodities, it is necessary to have proper knowledge and understanding of the commodities you need to trade at what time and also to be able to diversify your portfolio. AFEX is happy to help with that - we make available daily data on how each commodity is being traded on the Exchange performs and also do periodic live sessions to educate investors. You can visit the [ComX by AFEX page](https://africaexchange.com/) to trade and invest in commodities. 







WhatsApp Image 2023-03-21 at 1.51.36 PM (1).jpeg

Demystifying agricultural commodities trading

Life at AFEX can be dynamic. Full of new projects, exciting opportunities, and daunting challenges for Xperts to navigate, it makes for a rich work experience that can turn a newbie into an actual expert provided they are willing to show up every day and put in the work. 

In this episode of the AFEX story, we sit with Timothy Akagwu, an Internal Control and Compliance Analyst and an avid Chelsea fan, who shares with us his journey into the Risk and Audit world, his first-ever job interview, what sets the AFEX culture apart, and how Excel is the “Beyonce” of all computing spreadsheet systems.

![WhatsApp Image 2023-03-07 at 10.50.46 AM.jpeg](/uploads/Whats_App_Image_2023_03_07_at_10_50_46_AM_a1759df0ea.jpeg)


**Hi Timothy, welcome to my seat; tell us a bit about you, exciting facts we may not know. Do you love dangerous pets, I recently found out someone has a cub as a pet.**

My name is Timothy Akagwu, an Internal Control and Compliance Analyst at AFEX.  Lol, I’m not even a pet lover. One thing you don’t know about me is that I sing: I’m an excellent musician, only in the bathroom. Honestly, the best musicians and artists worldwide have nothing on me when it comes to bathroom concerts. I’m the best, nothing short of a fantastic performer. I’d say ask around, but no one knows that yet. The concerts are impromptu, but it is my superpower.  

**Our very own artiste. Out of curiosity though, how did you find out about AFEX?** 

The National Youth Service Corps (NYSC) posted me to AFEX for my primary assignment. Before that period, I hadn’t ever heard about the organization. So, I had to research my PPA(AFEX) before coming for an interview with the CEO himself. The interview itself remains a highlight of my AFEX memory to date.

**So, a lot of people don’t get to sit down with the CEO in an Interview and I’m wondering how that went, what made your interview memorable?**

Uhhhh, it’s not every day you see a CEO interviewing for an internship position, I thought it would be just myself and HR, considering I was sent in by NYSC. However, I turned up and met the CEO.  I felt confused, diffident, excited, and intrigued, the feelings were rolling out at the same time. It’s like being happy that I was talking to this person, but also scared that I wasn’t properly prepared for that situation. The end they say justifies the means, though. I left there happy because he commended my confidence, something I thought I lacked then.  

**What are some of your earliest memories of working at AFEX?**

It’s been a minute here; however, one that stands out of the many was the launch of our commodity trading app; ComX.  I came into the company in the thick of the planning and launch of the app. Honestly, every Xpert felt the impact; I’d say it was my own launch into the organization too. Also, after my service year, I had to go to the field to audit, immediately I came face to face with over 40,000 sacks, and my heart skipped. I couldn’t believe I wanted to leave the comfortable office for that. Still hilarious to date.  So, yeah, that and my excellent interview.

**Do you have any tool that makes the job seamless now?**

Microsoft Excel!  

You can only excel with understanding your spreadsheets in this line of work because we deal with numeric data. Inputting, balancing, and all of that awesome stuff associated with data analysis requires accuracy, and Excel makes little to no mistakes with data. So, it’s Excel for the win here.

**So, are you an all-work, no-play person?**

Never, I balance out the equation; all parts have to succeed for the other to be effective. 

**Okay, I see you, which social platform does it for you, and where do you find yourself laughing away?**

Twitter- the bluebird app and TikTok. I doubt you’d ever be bored surfing both apps. Just have an internet connection and bant away!  I’ll give credit to Nigeria’s Twitter; it has the best things to offer, and no matter how you feel at that moment, you find yourself laughing.


**What advice will you give anyone looking to work with AFEX?**

I’d say maximize resilience, and you need to stay on top of trends and understand that dynamics are constantly evolving within the organization. Above all, know how to enjoy yourself because problem no dey finish.

WhatsApp Image 2023-03-07 at 10.50.46 AM (1).jpeg

Timothy’s inspiring transition from a Corp Member to a Senior Analyst at AFEX and lessons on Resilience 

If you have a bag of grains or tray of vegetables in your kitchen today, there’s a 50% chance it was produced by a female farmer. About 80% percent of Africa’s food is produced by small-scale farmers and women account for 43% of this workforce. These are women who till the soil, work tirelessly to feed their households, and even strive to feed a bigger family: Africa’s growing population.

However, an African female farmer today is a farmer who bears all the burden of food production on her tired, busy shoulders with little or no access to land, credit, technology, and markets. In Sub-Saharan Africa, only 15% of landholders are women and they receive less than 10% of credit and 7% of extension services compared to their male counterparts, a [report by FAO](https://www.fao.org/3/I8796EN/i8796en.pdf) revealed. For instance, in Nigeria, women farmers own a smaller share of farmland than men and can’t access credit without consent from their husbands. 

Essentially, equalizing the gender gap in agriculture could boost food productivity and sustain food security for an ever-growing population. We need to level the agricultural playing field for women farmers and address the barriers keeping them from accessing adequate credit for investments in their agribusiness as well as quality farm inputs, advanced farming tools, and techniques to not only increase productivity but bolster their linkages in the food chain. 

To close the gender gap in Africa’s food systems, we need to first establish an intrinsic perception of women as being able to participate in the value chain through financially viable projects. Women are often perceived as a higher risk for financial institutions and money lenders, and this hinders their access to cash flow or finance. As a result, women farmers experience major constraints in seeking access to agro-inputs for increased productivity.

A big part of the solution to changing this perception is to create policies that give property ownership rights to women, increasing their chances of getting credit loans to bolster their productivity on farms. But to make policies for women means to acknowledge the participation of women in fueling growth in the food systems and prioritize women’s education and empowerment across all sectors.

Second, increasing the penetration and adoption of tech-enabled solutions among women farmers is critical to their success in the field. With the significant advances made in the penetration of digital innovations to drive agricultural production, adoption by farmers, especially women continue to be low. Hence, we must prioritize digital literacy training for these women and foster programs that encourage inclusivity and help women learn new skills, receive, and deliver market-related services in the food space.

Although there is no blueprint for achieving gender equality in agriculture, we believe that if women are given access to inputs, and resources and shown the same support as men, agricultural output could increase and potentially reduce food insecurity. With these specific limitations towards women dealt with, we come back to a drive for infrastructure and market support needed to drive productivity and livelihood improvements for smallholder farmers. Unlocking finance, creating market linkages, providing storage solutions, and end-to-end extension support will enable even greater contributions of women farmers to our food systems in Africa. 

Here at AFEX, our operations align with the United Nations SDG 5, which is to achieve gender equality and women’s empowerment, in line with the 2023 Agenda for Sustainable Development. With the right support in storage, capital, and markets, women can make farming and agriculture work. To drive change for women farmers, we are prioritizing women’s leadership to act as a voice for them. Our goal in working with women farmers is to help them create sustainable and profitable farm businesses, where they are financially included in the system and have access to credit and efficient markets. 

Women are the face of our food systems and the frontline of ensuring Africa achieves SDG1, zero hunger, SDG 2, No poverty, and SDG 5, gender equality. In 2023, we must work collaboratively to ensure they have access to the basic tools to make them thrive and improve their livelihoods.

Written by: Nancy Olisakwe, Vice President, Clearing and Settlement AFEX.

Closing the gender gap for women in Agriculture in 2023

AFEX Fair Trade, Kenya, a farmer service company and supply chain solutions company in Kenya has received a certification for one of its warehouses as a warehouse receipt operator. The certification, which was done by the Warehouse Receipt System Council (WRSC) at the Soy Mateeny warehouse in Uasin Gishu county marks the first time that a warehouse receipt operator license has been issued to a private sector company.

Speaking during the visit to the certified warehouse, the Principal Secretary State Department of Trade, Alfred K'ombudo, commended AFEX and said that the government has plans of increasing certified warehouses across the country for the safe storage of farmers' produce. 

"We want to strengthen our Warehouse Receipt System (WRS). This is because it's key to ensuring that post-harvest losses are greatly reduced and that farmers can rely on well-established and well-managed facilities," remarked the PS.

This landmark achievement follows several significant milestones that AFEX has recorded since beginning operations in Kenya in 2021. With 17 warehouses spread across two counties in Kenya, AFEX has registered over 11,000 farmers and traded over 11,000MT of maize. The company also successfully conducted a $1 million input program between March and May of 2022. The company’s Managing Director, Tabitha Njuguna, indicates that this certification will enable it to do more. 

According to Njuguna, “Warehouse receipt systems are fundamental to AFEX’s work in unlocking finance and further strengthening financial inclusion for farmers across Kenya. The benefits of functional warehouse receipt systems are well documented, especially for farmers. Particularly exciting for us is the ability to improve the livelihoods of farmers who work with us.”

Launched in July 2020 by Kenya’s Ministry of Agriculture Livestock, Fisheries and Cooperatives (MoALFC), the Warehouse Receipt System (WRS) allows farmers to hold their produce in certified warehouses where they can be tested, cleaned, graded, and then stored, with the owners of the commodity receiving a receipt as proof of ownership. This provides the farmers with the option to sell their produce when prices are favorable, while also serving the purpose of reducing post-harvest losses in the country. 

“We look forward to a time when every AFEX warehouse is certified and licensed as a warehouse receipt operator, and we are further enabled to provide services to the market in a way that is transparent and fair. We thank the WRSC for their guidance through this process and look forward to more milestones with the team,” said Njuguna. 

The CEO of WRSC, Samwel Ogola, also congratulated the AFEX Fair Trade Kenya team, stating, “The Warehouse Receipt System Council congratulates AFEX Fair Trade Kenya as the first WRS-certified private Warehouse Operator. This certification opens the space for private investment and participation in the Warehouse Receipt System in Kenya. Additionally, the Council recognizes AFEX’s effort in capacity building of farmers, farmer societies, and resident youth and women in the various extension training carried out.”

AFEX which recently announced its entry into Uganda in January 2023 is doubling down on its promise to East African farmers and its contribution to the agriculture sector in Kenya. The company is well-positioned to help more Kenyan farmers grow through the disbursement of input loans, provision of post-harvest storage facilities, and access to markets.

AFEX Fair Trade Kenya Licensed as the First Private Warehouse Receipt Operator in Kenya

Nigeria’s leading commodities market player, AFEX, unveiled its Annual Commodities Outlook report for 2023 in a virtual event on Tuesday, forecasting that the impact of flooding, devaluation of the naira, high logistics costs, and the social-political situation in the country will keep commodity prices at historically high levels, amid concerns of an impending food crisis and global recession. 

The report attributes this surge in prices to the low production volume of maize, paddy rice, sorghum, and cocoa. These commodities declined by an average of 11.5% in the 2022/23 trading season due to price-induced low fertilizer usage because of the Russia-Ukraine war. Climate change realities such as flooding also had a significant effect on the market among other unfavorable conditions. The Annual Commodities Outlook by AFEX also alludes to price pressures being exacerbated by the fact of 2023 is an election year, which could cause some market uncertainty.

In his remarks, during the report launch, David Ibidapo, Head, Market Data and Research at AFEX, explained that “Every year, AFEX reviews Nigeria’s commodity market and gives an in-depth analysis of the outlook for the new year. In the last 2 to 3 years, we have seen the commodities market susceptible to global shocks as evidenced by the COVID-19 pandemic's impact and the ongoing Russia-Ukraine crisis on supply chain and food prices. It’s then critical to monitor the market closely and give an objective picture of these agricultural commodities which would bring transparency and clarity in a bid to ameliorate the impact of the next global shock.”


Despite the economic slowdown, the report reveals that the agricultural sector still shows resilience as it outperformed most sectors, including trade, oil and gas, telecoms, and manufacturing, contributing 27.6% to Nigeria’s GDP in Q3 of 2022.  However, food inflation rose for nine consecutive months in the year reaching an all-high 24.13 in November 2022.

For 2023, the report further reveals that inflationary pressures will continue to rise due to decline in the production of major grain commodities thereby reducing the supply level in the domestic market. 

Providing the outlook for the global commodities market, the report predicts that Maize prices will decrease by 8% in 2023, while prices for wheat, which were anticipated to rise by 36% in 2022, will slightly fall in 2023. Meanwhile, the average price of rice which decreased by 5% in 2022 is forecast to remain the same this year.

In the international scene, “The fertilizer index which rose by 66% in 2022, is projected to decline by 12% in 2023 as supply disruptions gradually subside. Increased input costs, new sanctions on Belarus and Russia, and lengthened export restrictions by China are all positive risks to the forecast. However, the commissioning of some fertilizer plants, which have not yet ramped up to full capacity in 2022, will suppress the positive risks” the report reads. 

Speaking on the commodities outlook for the year, Oluwafunto Olasemo, Vice President, Financial Markets at AFEX said, “The shift in global commodities supply has greatly influenced the commodity market and exposed the vulnerabilities in our food system. There is a growing imbalance between the food supply and the demand of the growing population, putting upward pressure on prices. Developing a holistic approach to mitigate food insecurity and improve the shocks to climatic change, inadequate financing, and low access to efficient markets is a priority. With this report, we seek to provide high-quality, timely, accurate, and accessible data for investors while addressing the real pressing issues of the agricultural sector in Nigeria.”

AFEX has long recognized that farmers are part of the social fabric of Africa’s commodities market, hence, robust data is essential to identifying solutions that address food system challenges, build trust, and increase the capacity of supply chain businesses for farmers, processors, investors, and other key stakeholders in the value chain.

Mainstreaming environmental sustainability, and prioritizing policies that encourage public and private sector players to work together to improve farmers’ productivity and transform food systems is thus a key recommendation from the report to pave the way for sustainable solutions.

Read the full report [here.](https://africaexchange.com/reports/special/afex-annual-commodities-review-and-2023-outlook)

AFEX Releases Annual Commodity Outlook for 2023, predicts a decline in production of grain commodities.

AFEX, Africa’s leading commodities exchange and commodities market player, has announced its expansion into Uganda, seven months after it first entered the East African continent. Similar to Kenya and Nigeria, farmers in Uganda will benefit from AFEX’s revolutionary tech-enabled services for agricultural producers. In its first year of operations, AFEX Uganda aims to reach 10,000 farmers and aggregate 15,000 metric tons of commodities, while extending its aggregation, storage, and financial inclusion services to Ugandan farmers and processors. 

Continuing its pan-African expansion plans, AFEX will be implementing its scalable model that combines advanced technology and infrastructure with a unique understanding of Africa’s food systems and local markets to replicate its successes in Nigeria and Kenya to Uganda. Working closely with local and international partners, the operation will focus on maize, sorghum, soybeans, barley, and coffee, with maize being the initial priority. 

According to the International Trade Administration, Uganda is lacking the necessary infrastructure in storage, credit, and access to markets to sustain food production. To begin tackling these issues, AFEX Uganda has established warehouses in Bulambuli and Kapchorwa districts in Eastern Uganda, and in Lira district of Northern Uganda. Under the leadership of Abdul-Hafeez Odusanya, Managing Director, AFEX Uganda, AFEX will be introducing its range of solutions including it’s technology platform, WorkBench, to enable farmers to participate in market opportunities and scale their operations. 

Starting with a network of over 1500 farmers, AFEX Uganda will be addressing the following problems: 
- Reducing post-harvest losses by providing storage facilities 
- Providing access to loans for farmers to purchase quality farming inputs including agrochemicals, fertilizer, and seedlings 
- Provision of advisory and extension services to tackle poor agricultural practices and post-harvest handling practices.
- Access to markets for smallholder farmers, with transparent prices
- High quality and traceable supply of food and feed-grade commodities to processors


Abdul-Hafeez Odusanya, Managing Director, AFEX Uganda expressed excitement about the new opportunity: “I’m thrilled to be leading the next stage of growth for AFEX in East Africa and eager to see how Uganda’s success contributes to AFEX’s portfolio of innovative food system interventions. I’m confident AFEX Uganda will contribute massively to building an inclusive and efficient market system, giving Ugandan farmers the support and infrastructure, they need to improve efficiency and access bigger markets,” he revealed.

Often referred to as Africa’s ‘bread basket,’ Uganda has one of the most dynamic commodities markets in Africa with significant potential for growth, and positive government interest in commercializing agriculture through collaboration with private sector players. In the first quarter of 2022, agriculture accounted for 24% of the country’s GDP. In addition, the government has ratified the African Continental Free Trade Area (AFCTA) and the East African Community Customs Union which provides access to the international market.

Since inception, AFEX’s focus has been to establish a strong foothold across Africa, and AFEX Uganda is the latest in a series of a planned expansions to 10 African countries over the next 5 years. In restructuring for the future and to provide efficiency and focus on the regions, AFEX has announced new appointments and internal promotions among its leadership. Appointed in October 2022, Sanne Steemers is now President, Rest of Africa, overseeing the expansion across the continent; Akinyinka David Akintunde (previously Chief Operating Officer) has become President, AFEX Nigeria, responsible for all operations in the country; and CEO Ayodeji Balogun has been appointed Group CEO, heading all entities globally. 


Speaking of her new responsibilities, Sanne Steemers said:” With twenty years’ experience working at the intersection of global supply chains, finance, and agricultural commodities, I’m very excited to be joining AFEX as we expand into yet another market, and look forward to driving the expansion across the rest of Africa. In just a few years, AFEX has achieved exemplary success in Nigeria and Kenya, I’m looking forward to adapting these winning strategies, services, and approaches to service farmers, processors, and partners in Uganda and beyond.” 

AFEX Expands Operations To Uganda, Appoints Group CEO and Presidents 

_In a time where inflation and high cost of living is the defining factor of the economy, Gloria Eromonsele, Analyst Talent management, shows us that beyond managing talents at AFEX she has a pretty good hold on her personal financial management. Take a dive into how she manages her finances in this episode of Year in Money._


**What’s your top money lesson in 2022?**

Save! Save as much of your earnings as possible and try everything you can to avoid debts.  Never allow your debts to pile nor exceed what you earn. It will come back to bite you.

**What did you spend money on this year that gave you joy?**

Photoshoots and new outfits. This year I paid for about 4 photoshoots (I see it as an investment into happiness). I like pictures so any opportunity to appear before a camera, I'll grab it. Photos and videos are therapeutic for me. 

To make me happy, suggest going to the studio for a shoot, I’ll light up immediately. I also do not mind spending a lot on pictures.

**What’s the biggest money mistake you made this year?**

I try not to make money mistakes ever; I however tried the hardest this year.  I learned from what happened in 2020/2021, during the rave of Forex, I tuned in though I had the slimmest idea of how it worked. I asked questions but not the right and deep-rooted ones necessary to fully understand it. It showed me shege.

Since then, I've been extra careful about how I spend money.  I invest in physical goods, hence my current business. 

**How did you up your money game this year?**

I pushed funds into my business, I have never been frivolous with money, it’s either I save or invest in my business so I can get returns. Also, I don’t spend the profit from my business, I reinvest. Put it back into the market and increase the base. I'm not a make-money-then-splurge kind of person. So, this has always worked for me.

**What did you spend the most money on this year?**

I said it before and I'll reclaim it now, photoshoots! and every single session was worth the penny I put into it. I'd say clothes and hairs take the next position. I mean you need to look good for your shoots. 

**Describe your money journey this year with a word**

I'll say evolving, like my business. Taking dynamic positions and seeing what works best for my growth.  


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Take dynamic positions and see what works best for your growth – Gloria Eromonsele

We are at the 2022 finish line, and we are pleased and proud to look back fondly on all the memories, accomplishments, and highs of the year as we are spurred on to set even more ambitious goals in 2023. 

At AFEX, while we have long been committed to closing the opportunity gap in Africa’s commodities ecosystem, this year significantly changed the context in which we operate, positioning us to really make our mark in the commodities landscape throughout the continent. In 2022, we established a foothold in different African markets starting with Kenya, thus, accelerating our African vision to expand, digitize, and innovate on our uniquely AFEX operations across the continent. 

We collaborated across different sectors and key players in the value chain to gather new perspectives and extend our impact in transforming lives in the agricultural value chain. We also dwelt a lot this year on building infrastructure and implementing educational initiatives that can deliver even greater value to producers, processors, and investors, and get us to the future we have imagined. 

In this roundup article, we are happy to share with you some of the notable highlights and historic milestones 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're so excited about.

**African expansion**

This year, we embarked on a forward-thinking mission to enable seamless pan-African commodities trading by expanding our operations to Kenya. It was important to replicate our success in Nigeria to other countries in providing access to logistics delivery, advisory services, inputs, and access to the market in the value chain while bolstering Africa’s food security.

As part of the expansion, AFEX Fair Trade Limited Kenya (AFTL Kenya) launched a $1 million loan program that allowed 5,000 Kenyan farmers access quality seeds and fertilizers for higher yields and increased income earnings in the market. We are delighted to have enabled 80% of the farmers who approached AFTL Kenya for input loans as we continue to help Africa feed itself while making further plans to unlock prosperity for more farmers in more countries such as Uganda, Benin, Ghana, Ethiopia, and more. 

**FT Ranking as first Africa’s fastest-growing company** 

2022 was truly historic and one of our favorite moments was when we came in third place on the Financial Times’ fastest-growing companies in Africa list, coming first place in Nigeria and in the Agriculture & Commodities Category. This achievement detailed our 4289.795% absolute growth over a period of 4 years. It also reinforced our commitment to creating a more inclusive and profitable ecosystem that works for everyone.

The FT’s Africa Fastest Growing companies list comprised innovative, modern, and fast-growing companies that are driving forces of the international economy in the 21st century. We are honored to have been near the top of the list of 75 companies spotlighted from thousands of entries.

**AFEX 100,000MT/ year Grain Quality Enhancement Center**

Recognizing food sustainability and post-harvest storage as one of the biggest challenges encountered in the sector, we launched a new 100,000MT/ year Grain Quality Enhancement Center and 30,000 MT storage capacity warehouse at Zaria-Kano Highway, Kaduna State. This is in addition to over 150 warehouses we have across grain-producing states in Nigeria. The new infrastructure, which was commissioned by His Excellency, the Governor of Kaduna State, Mallam Nasiru el-Rufai, would meet the challenges of grain quality enhancement in Nigeria through cleaning, grinding, heating, drying, packaging, and storage services for grains like maize, paddy rice, and soybean. 

With this new facility, we are leveling the playing field for food producers, manufacturers, and processors to gain access to quality commodities, minimizing post-harvest losses, and enabling better access to the market at fairer rates.

**Code Cash Crop 3.0**

2022 was the year in which we dove even deeper into boosting youth participation in the commodities market through the third edition of AFEX’s Code Cash Crop (CCC) event. Themed “Disrupting Agriculture Trade Infrastructure”, CCC 3.0 was aimed at identifying and producing solutions that bolster sustainable and inclusive trade opportunities leveraging the potentials of three key sectors – Agriculture, Finance, and Technology – and an ag-hackathon as a major component to drive that. 

The event brought together next-generation innovators, business professionals, entrepreneurs, Agric specialists, investors, development partners, and policymakers in the three sectors to identify innovative and viable solutions to Africa’s Trade Infrastructure issues in a series of panel discussions, mentorship sessions, and network meetings. In the end, three finalists were awarded a sum of N5 million among other incentives. 

**One million Cocoa project**

In another major development for food sustainability and the growth of the entire agricultural ecosystem, we launched the one million Cocoa Tree Planting Initiative across cocoa-planting regions in Nigeria. The overall project will see us plant one million trees, and we began by first distributing 200, 000 cocoa seedlings to cocoa farmers. The seedlings were a product of 12 years of research and were able to produce 5 times the yield of earlier varieties used. 

The project was commissioned by His Royal Majesty, Ooni Adeyeye Enitan Ogunwusi, and is a long-lasting collaboration for value creation in cocoa production to improve economic resilience and livelihoods of cocoa farming communities. 

**Launch of Data-driven crop production reports and a comic book**

We launched 2 major reports and a comic book – the AFEX 2022 Annual Commodity Outlook, the 2022 Wet Season Crop Production report, and Tradvers. We recognized the need to close the data gap in Africa’s commodity market and give solid market intelligence to major stakeholders to make the best-informed trading decision. 

On the other hand, we launched Tradvers, a financial literacy comic book to provide institutional and retail investors with simplified investment knowledge on the capital market, especially commodity-backed investments in a fun and relatable way. These reports are available on our website for your perusal.

**$240 million Asset-Backed Commercial Paper (ABCP)**

Another major headline in our books for 2022 was the reopening of AFEX $240m (₦100bn) Asset-Backed Commercial Paper (ABCP) to help stabilize Nigeria’s agriculture sector by offering Agro-processors low-cost financing to bridge the funding gap between lenders and borrowers. This year, we raised an additional $175 million, and also closed out series 1 of the total $240m program.

**MOU signing with NG Clearing Limited for Commodity Derivatives**

One of the notable partnerships we formed was with NG Clearing Limited to deepen the market and unlock financing options and alternative investment classes for capital market players in the ecosystem. The collaboration will see that we develop infrastructure that would facilitate trading and central clearing of futures contracts, especially derivatives for commodities in the coming year. 

**AFEX Food Security Fund**

In 2022, we launched a $100 million 10-year bond food security fund to enable farmers to produce as much as three million metric tonnes of food annually on the continent. This year, we took it a step further with the introduction of programs to help Africa achieve food security, sustainable and inclusive industrialization, and shared prosperity by 2030, by providing robust and impact-driven capacity-building activities, community support.

**AFEX Bar Raisers and Tech Stars**

This year, we also launched two graduate internship programs, the AFEX Bar Raiser and AFEX Tech Star programs to develop the experience and skills of young graduates from the start and set them up for a brighter future in today’s competitive job market. With over 30 recruits, the aim for us was to essentially increase the talent pipeline, not in terms of quantity but the quality of the people that join the organization on a yearly basis. We created job opportunities for young Africans who were passionate, energetic, and creative to join AFEX and lead the vision of building a sustainable, inclusive, and efficient market system for commodities.


2022 has truly been a remarkable year for us at AFEX. We are fortunate to have incredible partners and stakeholders supporting us in our mission to transform Africa’s food systems. we have great things planned for 2023 and beyond and we look forward to what we can accomplish together in these coming years. 


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2022 Roundup: 10 significant events that shaped us at AFEX

_If you are young and you want to be more financially savvy, then listen to what our Product Lead Exchange, Mustapha Akanni has to say about money. In this article, he shares with us the importance of enjoying life, trying new experiences but also staying frugal. Take a look at his 2022 Year in Money story._ 

**What is your top money lesson in 2022?**

My top money lesson would be life is short and money finishes, be less extravagant and more frugal. That will give you peace of mind.

**What did you spend your money on in 2022 that gave you joy?**

To be honest, I spend quite a bit on food. I’m a man of simple pleasures and it tops it for me. Also tossed a few more coins into smelling nice. That’s always worth the money. 

**What’s the biggest money mistake you made this year?**

It still boils down to the frugality I mentioned earlier, I wasn't as frugal as I should have been. It's a character trait I’m working on. Hopefully, I’m much better in 2023.

**What did you spend the most money on this year?**

I think everyone who is young and lives away from home wails over the outrageous rent prices in the entire country. But also making my space feel comfortable, welcoming, and liveable put a major dent in my reserves. My home has to be refreshing for me, it is where I can unwind from my 9-5, (scratch that 8-6). So, it has to feel safe, and the ambiance is just right.

**What funny name do you call money?**

It’s really just money for me, I’m not big on slangs I guess. To be honest, I don’t think I ever really reference money in conversation. Only in passing like “how much does that cost” or “I wonder if I can afford that.”

**Describe your money journey this year with a word.**

Irresponsible. That’s it pretty much. I’m not mad about it, but maybe be better, Dami.

**One thing you'd do now if you had all the money you wanted?**

I’ll take it easy, just not stress about things. If we’re being honest expenses take the lead in stressing us and I’d really want to rest from it. So yeah, that’s what I will do.

I’ll really just take it easy. The idea is, we work to earn so we can really live. If I didn’t have to work to earn, then all that’s left is the living. So, I’ll most likely spend time on the things I really enjoy and my hobbies (even though I get a new one virtually every 3 months). 


Be less extravagant and more frugal – Mustapha Akanni

_One of the best ways to learn about money is through experience. To do this, one way is to gain knowledge from some financial experts, understand what money can do for you, and become mindful of your expenses. Here, one of our Legal Analysts, Oladipupo Mutiu Eluyera shares these learnings with us on financial prudence and literacy.  Take a look._

**What’s the biggest money mistake you made in 2022?**

The biggest money mistake I made this year is not even related to a failed investment or imprudent spending but to lending someone a huge chunk of money. He absconded with the entire money almost immediately.

**What did you spend your money on in 2022 that gave you joy?**

I believe the purpose of life is to live it, to taste new experiences to the utmost, and to reach out eagerly without fear for a newer and richer experience. Knowing this, I spent on things that gave me maximum excitement such as Philanthropy, spending on connection: arranging lunches to reunite with buddies and strengthen social bonds and learning new sports (horse riding, bowling, and kayaking). I also ticked off my bucket list of fun spots to visit in Abuja and paid every weekend to watch Lionel Messi play football.

**What is your top money lesson in 2022?**

The best way to solve your money problems is by managing your money better. It doesn’t matter how much money you have or earn, if it’s managed poorly, because of imprudent financial decision-making; you will still end up with the same financial problems. 


**Do you have a money action plan?**

Yes, essentially, my money action plan now and going forward is to do the following:
•	Determine my financial priorities
•	Record my expenses
•	Include saving in my budget
•	Find ways to further trim needless expenditures
•	Set better savings goals and make savings automatic


**How did you up your money game this year?**

Before I got to AFEX, I was completely financially illiterate. The kind of guy who splashed money as soon as it came in. So, I sought the advice of Zara Dogo, Yusuf Ogunbiyi, and Oluwafemi Kehinde on money management and investment.

From their several pieces of advice, I did a self-inventory and started tracking every single penny leaving my account/pocket; automated the diversion of at least 40% of my salary into savings and investments; I devised other sources of revenue apart from monthly salary in order to augment my monthly income. Just baby steps. 


**Share one thing you don’t mind spending money on and why?**

I won’t mind spending money on learning a new sport every three months and trying out new spots/locations in Abuja with fun sports and games. The reason is attributable to the fact that I discovered very early that I derive the purest and undiluted form of joy and excitement from doing sports and games, and also learning new ones after I get bored of the old ones.



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Manage your money better – Oladipupo Mutiu Eluyera

Production shortages, surging commodity prices, trade disruptions due to the Russia-Ukraine war, and more have been the highlights of the year in the industry. In 2022, we saw a challenging demand, supply, and price movement for many of the key commodities adding more volatility to the agricultural commodities market. 

New analytics from [AFEX’s 2022 Wet season crop production report](https://africaexchange.com/reports/special/2022-crop-production-report) reveals that we will continue to see a price hike in key commodities like maize, paddy rice, and sorghum as there is a projected decline in the production level of up to 11.5 percent across these commodities. Looking ahead, despite the trade disruptions, especially with 2022 ending and 2023 rapidly approaching, these are key commodities trends we can expect in the coming year:

**Commodities prices to peak in 2023**


Agricultural commodity prices are forecast to hit a new historical high as they are highly susceptible to swings in production levels and economic uncertainty. While the Russia-Ukraine war is a triggering factor for the price hike of commodities such as rice, sesame, soybean, and sorghum, low productivity due to weather conditions, high cost of fertilizer, and inputs as well as larger macroeconomic global events are reasons for the increase in prices. 
 
Currently, Nigeria’s most consumed grains are currently faced with declining food balanced sheets as consumption levels rise faster than production levels, worsening food insecurity. The long-run impacts of higher staple food prices can be cushioned through intervention on policies either on the physical or monetary side that enables the increase of supply of more grains from the Strategic Grain Reserve to stem the prices.

**High fertilizer price shocks**

Fertilizer prices are expected to remain at historically high levels due to the ongoing Russia-Ukraine war. This would be a severe blow to farmers across the world, especially those who can’t raise enough money to purchase the high costs, which would reduce crop yields. The elevated prices of fertilizer and energy would have a ripple effect on the availability of commodities needed in day-to-day living. 

Together, Russia and Ukraine export 28% of fertilizers made from nitrogen and phosphorus, and disruptions in supply due to the sanctions and war will continue to skyrocket fertilizer prices. Hence, farmers won’t be able to purchase fertilizer at reasonable prices except if supply returns to international markets.


**Pressure on logistics**


We are likely to see constraints in logistics due to high transportation costs, a challenge that will be driven by the recent surge in the prices of diesel. With the global supply chain disruption amid escalating crude oil prices, farmers and consumers across the globe may have to contend with a volatile market well into 2023 as the upside risks to the prices of agricultural commodities and inputs loom. These lingering challenges continue to present a challenging environment for grain traders which will further stretch into the new year.

**Bearish run on the equities market**

Capital market analysts are expecting bearish trading activities in the equities market, forcing investors to consider diversification of portfolios to hedge against inflation. The outlook for the equities market is bleak because of the inflationary pressure in the economy, which means there is a possibility of CBN taking a hawkish stance to continue to battle inflation. 
 
This induces a level of sell-off in the equities market which makes the market performance bearish. As a result, it would stimulate some level of portfolio rotation from equities into safer asset classes that would provide an edge against inflationary pressures such as the commodities market. On the back of the outlook in the commodities market, in relation to the decline in production level and forecast in price increase across key staples, early positions in the securitized asset of these commodities classes would mean an increase in the value of the investor’s portfolio.

**Demand shift of oilseeds and grains from Africa**

The more the war escalates, the more we are to expect rising commodity prices in 2023. The global consumption of oilseeds and grains is predicted to outpace production. There would be an increased demand from Africa driven largely by rising oilseed prices and supply disruptions from Ukraine. Hence, Africa is predicted to keep an upward trend in oilseed production levels to meet both local and international demand.

**Climate change** 

The climate condition in the last 2-3 years has constantly been deteriorating. Every sector is feeling the impacts of climatic change and extreme weather conditions in some way. For instance, in Nigeria, we have experienced incessant rainfall which is liable to induce flood.

There is a greater chance that this will continue through the coming years. However, 2023 will see more interventions both from private and public sectors to contribute to tackling critical issues from climate challenges, especially on food production and sustainability.



paddy-seed-wooden-bowl-background_55716-1802.jpg

Key commodities trends to watch in 2023

_While inflation was kicking hard at many people, our Analyst Origination and Structuring, Sulyman Sulyman found a way to beat it by saving in dollars and also taking on freelance gigs. In this interview, he shares his low and high money moments in 2022 and more_. 

**What’s your top money lesson in 2022?**

What I have learned is that I shouldn’t defer any of my expenses, I should get whatever I want/need immediately because inflation will heighten the prices if I hesitate. The inflation level in Nigeria in 2022 is really high, so get things immediately if there’s a need for them. 

**What did you spend money on in 2022 that gave you joy?**

I'd say food, but I got a big, when I say big, I mean large blender and it has spiced my life. I love cooking and the blender helps.  And this in many ways makes me happy. I get to cook a lot, ultimately food is the winner of my heart.

**What’s the biggest money mistake you made this year?**

This may sound weird, but I don't think I made any mistakes, at least I can't pinpoint any. I have been extra cautious, and I also saved a lot. I'd just say not buying things on time and allowing inflation to beat me were probably the mistakes I made.

**What did you spend the most money on in 2022?**

It will be my apartment! I got a bigger space and renovations took most of my finances, but I love every bit of it. 

**How did you up your money game this year?**

I took more freelance projects, usually, I do those for free, because it is what I enjoy, but this year, I monetized it, and it has been beautiful earning from that. Oh! And the best of it all is the fact that I save in dollars. 

**Was this year’s money game better than 2021?**

I’d still have to refer to the answer to the previous question, freelancing as a side gig helped my money game get better. Also, if you check the stats for the dollar to Naira disparity since January, you’d notice an increase of close to 60%. Saving in dollars is the koko.

**What funny name do you call money?**

I sometimes call money resuscitation. It's an inside joke between myself and a friend. “Guy, can you resuscitate me?”



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Saving in dollars saved me – Sulyman Sulyman

_For Sanne Steemers, our President, Rest of Africa, AFEX, her inspiration for money decisions in 2022 came from the aftermath of COVID-19. The pandemic spurred her to embrace savings and take care of her financial health, all of which she shares in this episode of the AFEX Year-In-Money series_. 


**What’s your top money lesson in 2022?**

Over the years I have learned many things about money, however, the biggest is that both income and cost are much better when it is shared. 

**What did you spend money on this year that gave you joy?**

I went on holiday this year. It was literally one of my best moments in 2022.  I went to Senegal, and I had the best time in years. I enjoyed the good food and music; reminiscing about the experience makes me smile and I look forward to another one next year. 	


**What’s the biggest money mistake you made this year?**


I was raised in an accounting home, so the values of finance and money were imbibed in me at an early age. Hence, I hardly take any money risks that would lead to mistakes. Currently, nothing comes to mind as a big mistake. 


**What did you spend the most money on this year?**


That would be the rent for my new apartment in Lagos. It was an investment, and it makes me very happy.

**How did you up your money game this year?**

I focused a lot on savings this year. 2020 taught me savings are a necessity. Watching the catastrophe that came with the Covid year, it’s only right that more focus is placed there and that’s what I am doing currently.

**What are your most valuable skills?**

I get paid to develop strategy and make sure it is brought to life. However, the most valuable in terms of joy, I'd say cooking and dancing. It brings me more joy than another thing money can afford. 

**What funny name do you call money?**

To me it is normal, but it becomes funny when others try to pronounce it, the Dutch name guilder.





Savings is essential, and 2020 showed us reasons we need to save – Sanne Steemers

_For our Vice President, Corporate Services, Mariam Tobun, hitting financial goals for the year also means having a good balance of your professional and personal life. In this article, she shares with us how to balance a 9-5 and enjoyment, highlighting some of the things she wished she had done earlier in 2022._


**What’s your top money lesson in 2022?**

If I have to recount the several important money lessons that transformed my life and business in 2022, the top of them is to always have money to take advantage of opportunities. There were certain opportunities I missed out on because I hadn’t even a fraction of the money to pursue them.

**What did you spend money on in 2022 that gave you joy?**

Travel. Spent some time with a friend celebrating this year. To put it mildly, that trip was enjoyable and fun. If I had my way, I would go on more trips like that. 

**What’s the biggest money mistake you made this year?**

This year, mistakes were made. I’ll say my biggest money mistake would be not having enough funds to take advantage of opportunities that came my way.  Opportunities come up every day and it is important to have enough money to be able to capitalize on opportunities that come your way in your everyday life unexpectedly.


**What did you spend the most money on this year?**

I will say food and other household consumables really. Aside from the fact that prices of food went up significantly, I also realized that in this life you must enjoy your own money so my stomach got prioritized well this year.

**How did you up your money game this year?**

Naturally, I am conservative with risks, but this year, I took risks that keep me in shock to date “am I really the one doing all this?”  Some of the risks paid off, while some backfired. But that’s what you get from investing. 

**One thing you’d do right now if you had all the money you wanted?**


Sign me up for more enjoyment!

If I got all the money I wanted, I’d share it in 3 parts, one will go into investments, then I’d travel. I’ve always wanted to see the world with my clique and finally, the last one will go into aiding others.  


**What’s the best money lesson you got from your parents?**


Luckily for me, I got it from my both parents. My dad would always say “spend like you’re still hustling” I understand you work and need to enjoy your money, however, don’t go overboard spending. Prioritize Investment.

I learned by watching my mum, she always buys things in bulk and following this now, I see it saves you from the average buying cost.  I’m grateful for the lessons they both instilled in me.






 Always have money to take advantage of opportunities - Mariam Tobun

_Some say that the best way to learn a money lesson is to learn from your past mistakes, and for Our Sales Operations Manager, AFEX Uganda, Lambert Manzi, that’s the way you live and learn. In this article, he shares how his wedding was his greatest money pleasure in 2022 and his retirement plans._

**What’s your top money lesson in 2022?**

Wow, this question is simple yet means a lot. This year I have grown mentally and financially, I’ve come to understand key aspects of financial management, but the top lesson of the year is budgeting. Every shilling matters and you need to account for and be accountable for every penny you make. If I had known these things earlier, I’ll then have been miles ahead in my finances.

**What did you spend money on in 2022 that gave you joy?**

Oh! that would be my wedding, I got married on the 26th of February. It drained my savings, but it made me the happiest man. My wedding is the best thing to have ever happened to me. It was worth every money! If given another chance I’d do it all over.

**What’s the biggest money mistake you made this year?**

Impulse buying! This is not my default but comes from the fact that I am newly married, and I want to give everything my wife wants. So, if she requests, I’m buying it straight away. I know better now, if what she wants is way out of budget, I make her see the reason why we should get it later. It is a discipline I am trying to instill in us.

**How did you up your money game in 2022?**

The year has been quite interesting financially, I have a pool of friends that have similar money hunger. We have an investment/savings club, a percentage of what we earn is put into that pool and we have a rotation for who gets a share of it at the end of the month, and we do this alphabetically.  We also explore different ideas; this has helped me grow immensely.

**What did you spend the most money on this year?**

The answer is still my Wedding. Made me break the bank, but I loved every single detail of it.  You can see how happy I am in the picture I used as DP on my WhatsApp. 


**One thing you’d do right now if you had all the money you wanted?**

Woohoo!  I have quite a lot, but since you’ve asked for one, it will be setting up farmland for and also as my retirement home. I am passionate about agriculture, and I’ve always envisioned commercial farming to a great extent, when I can afford to explore this dream, I’d go for it. 


**What’s the best money lesson you got from your parents?**

I learned a lot, however, the ones that stood out are disciple and budgeting. I got that from my dad. No matter what you say and what excuse you give; he’d always say no to money unbudgeted for. Now, I am married I want to also practice that.






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Every shilling matters and you need to be accountable for everything you earn – Lambert Manzi

_If you find yourself pondering these questions recently - did I stick to our investment/ saving plans? What did I do with my money? Did I accumulate the wealth I wanted? You are not alone. Our Commercial manager, Physical Markets, Adeniyi Adenuga has been reflecting on the same thing. In this interview, he talks about his financial journey in 2022 so far, the importance of putting your money to work, and gives insightful tips on taking loans._

**What’s the biggest money mistake you made this year?**

The biggest money mistake I made this year, was taking a loan to fund a liability! Please and please don’t take a loan if it is not for a business! the math never maths up at the end. So, don’t do it, don’t use a loan for frivolities, and always research properly on the type of business you want to embark on too.

**What did you spend money in 2022 that gave you joy?**

2022 was a reset financially for me, I’m still recovering from a business loss. Other than that, there was no major spending this year, but I was glad to spend on personal health and food. Try to dey enjoy your money once (Dey chop am sometimes).

**What did you spend the most money on in 2022?**

Omo! must be food, fuel, and Oga at the top (Madame). Jokes apart, I think the answer to this would be my side hustle, any money that did not enter flenjo, had to go into the business. Profit or loss, the point is to keep the wheel rolling and that’s what I did.

**How did you up your money game this year?**

I don’t think I got more cash, the cash didn't go up, but I put money in assets that either fetch me something or are steadily increasing in value. 


**What’s your top money lesson in 2022?**


This year more than ever, experience has shown us that everyone needs to work their cash rather than keep it in the bank, keep in the bank only in forex that gains value against the Naira.

**What’s the best money lesson you got from your parents?**

"Save for Rainy days" it doesn't make sense sometimes, but when life happens...it would be the best advice you ever had because everybody has their own battles.

**One thing you’d do right now if you had all the money you wanted?**

Honestly want to get on a private Jet to visit some of the most beautiful places in the world!  Just feed my eyes the different things earth has to offer and smile while at it. 


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Always save for rainy days – Adeniyi Adenuga

Africa has a booming agritech scene. Between 2016 and 2019, the agritech sector on the continent grew by 44 percent year-on-year with over US$19 million invested in agritech start-ups using digital technologies to build innovative solutions like AI-based analytics operations, drone and satellite services, crowdfunding interventions, and other digital services to meet the growing demand for food and ensure sustainability in the agricultural value chain.

Despite the growth and success recorded in solving a diverse range of needs in the value chain, a bulk of these agritech innovations only emphasize digitized platforms that help to connect small-scale farmers with buyers. Although digital technology can deliver scaled solutions to the challenges faced in the sector, a weakness of the agritech ecosystem is the limitation posed by a lack of adequate infrastructure that is required to operationalize interventions and service delivery. As a result, agritech start-ups have less capacity to address the core challenges in the value chain, especially for small-scale farmers. 


The challenges posed by these infrastructural dearths make up a core aspect of the work of enabling efficient agriculture on the continent. Agritech innovations in Africa that attempt to leapfrog addressing physical infrastructure gaps are severely hampered in their operational capacities either immediately or down the line as the scale is attained. Still, these infrastructure gaps are notoriously difficult to fill, requiring agritech companies to seek out significant patient capital and necessary partnerships.

In celebration of World Food Day 2022, AFEX launched a 100,000MT/ year Grain Quality Enhancement Center with a 30,000 MT storage capacity warehouse in Kaduna State, Nigeria. As one of Africa’s leading private commodities market players, AFEX has always combined the core platform trading structure of its business, which is heavily supported by technology, with a focus on addressing the need for infrastructure through storage and distribution solutions for Africa’s small-scale farmers and the larger supply chain. The new infrastructure investment by AFEX is set to strengthen quality criteria in grain value chains and improve the livelihoods of primary producers who can earn higher incomes on better-quality grains. News of such infrastructure wins remains as vital to the agricultural sector in Africa as they have always been, especially, when coming from heavily technology-enabled agriculture companies.  

Agritech innovations built to match Africa’s current realities need to be hinged on three key pillars of infrastructure, market knowledge, and then technology. Of the three, infrastructure seems to be a key missing piece in solutions that seek to reorganize fragmented food systems in Africa. Small-scale farmers’ ability to benefit significantly from digital technologies still depends on the infrastructure and market structures readily available to support their production activities. 

The scalability and sustainability of current and future agritech solutions in Africa could be dependent on the coupling of infrastructure solutions with innovative technology and localized market knowledge to realize actual game-changing effects for the agricultural sector on the continent.


The missing piece for AgriTech in Africa

Nigeria’s leading commodities market player, AFEX, has unveiled its 2022 Wet Season Crop Production Report in a hybrid event hosted at the AFEX head office in Abuja on the 16th of November 2022.

The report which seeks to provide accurate and reliable data to aid the understanding of national food system through farmer surveys and measurement of transaction level data, tracks six key commodities and their performance in the preceding season. As reflected in the report, price and market changes across maize, paddy rice, sorghum, soybean, cocoa and sesame have been affected both by predictable seasonality effects and activities in the agricultural value chain as well as larger macroeconomic and global events. 

The 2022 Wet Season Crop Production Report forecasts an average decline in production levels of up to 11.5% across commodities like maize, paddy rice, sorghum, and cocoa, while soybean and sesame will experience a close to 6.5% increase in production levels. Nigeria’s most consumed grains are currently faced with declining food balance sheets as consumption levels rise faster than production levels, worsening food insecurity. 

![15.jpg](/uploads/15_3398d01cbb.jpg)

AFEX’s Head of Market Data and Research, David Ibidapo, who presented the report findings at the launch event, indicated that “AFEX’s annual crop production report seeks to provide robust market intelligence for agriculture value chain players in Nigeria. We have more than doubled the count of farmers surveyed for this research, up from 9117 farmers surveyed last year to 20,677 farmers surveyed for this year’s report.” He also specified key indicators measured through the survey, stating that “Factors such as land usage, inputs (quality of seeds and fertilizer usage), weather conditions, and the farmers’ output expectations were put into primary consideration.” 

Higher prices were forecasted across all commodities in the report. Maize which faces a projected decline in production levels of up to 14% is subsequently projected to reach a higher average price point ranging between (486.72USD) NGN214,980/MT and (498.09USD) NGN220,000/MT by the end of Q4 2022, compared to an average price of (475.97USD) NGN210,229/MT in Q4 2021. Also, soybean price is projected to rise by 6% by May 2023. 

The projected price hikes across commodities in the report were also tied majorly to incidences of flooding resulting from incessant rainfall in key producing regions. This is indicated to further heighten the gap between production and output levels by farmers.

Effects of the Russia-Ukraine crisis continue to be felt in the local agricultural commodity markets, especially because of the hike in the price of fertilizer. This negative impact was also highlighted in the report as affecting the output level of most commodities. The report forecasts paddy rice as being the most susceptible to production and output pressures, facing close to a 22.47% decline in production volumes this year in the wake of the crisis-induced fertilizer price hike. 

![13.jpg](/uploads/13_2a240fc7ee.jpg)

Access to reliable data is a reoccurring limitation for agriculture on the continent. AFEX has consistently advocated for a food balance sheet for the continent that will strengthen productivity improvement efforts, subsequently enhancing food security. 

Access the full [report here](https://africaexchange.com/reports/special/2022-crop-production-report)




 AFEX Unveils 2022 Wet Season Crop Production Report

Nigeria’s leading commodities market player, AFEX, marked a milestone as they celebrated their cocoa farmers on their sustainability list at the Certified Cocoa Farmer Premium event.

In his speech at the event in Ile-Ife, Osun State, Managing Director, AFEX Fair Trade, Kamaldeen Raji, said cocoa farmers who have adopted the sustainable approach to cocoa production, adhered to AFEX incentives, deserve to be celebrated and made to understand that no matter how little they think they have done, they have immensely contributed to the value chain.

![129A1179.jpg](/uploads/129_A1179_0b3155cb3b.jpg)

He said: “AFEX has always promoted sustainable agricultural practices, the aim is to see that in the nearest future, all cocoa farmers spanning from the smallholder farmers and beyond practice and utilise sustainable agricultural mechanisms and management methods.

AFEX’s big vision to see Africa feed itself has impacted over 200,000 smallholder farmers, in view of this, they are well positioned to help more farmers grow through disbursement of input loans down to provision of post-harvest storage facilities and grant easy access to market.

![129A1194 (1).jpg](/uploads/129_A1194_1_19ec4840ea.jpg)

Over the years, AFEX activities in the cocoa value chain has cut across engagement with cocoa farmers, sustainability, and engagement with clients (domestic and foreign). In a bid to improve the productivity of cocoa farmers, AFEX has maintained a consistent commitment to providing cocoa farmers with key inputs and especially certifications to ensure that they are harvesting products of very high standards.

AFEX through this event has acknowledged the significance of these farmers as key players in the cocoa system and is celebrating them.


AFEX Celebrates Cocoa Farmers

AFEX, Africa's leading commodity exchange, and NG Clearing Limited, West Africa's premier Central Counterparty, have signed an agreement to develop the infrastructure that facilitates trading and central clearing of futures contracts for commodities such as cocoa, paddy rice, maize, and soybean in Nigeria. 

The signing ceremony was held on Wednesday November 9, 2022, in Lagos, Nigeria. Ayodeji Balogun, the CEO of AFEX, and MR. Tapas Das, the CEO of NG Clearing represented their companies respectively. The signing ceremony formalizes the commencement of a partnership aimed at transforming the agricultural value chain.

The agreement is a precursor to the development of technological infrastructure and the introduction of commodity futures in Nigeria. AFEX’s commodity exchange will serve as the trading venue while NG Clearing will serve as the Central Counterparty that guarantees the settlement of trades. 

Currently, trading commodities such as cocoa, maize, paddy rice, and others are limited to the spot and OTC markets. The spot and OTC market exposes market participants to frequent price movements and counterparty risk. With the futures market, participants can lock in prices and positions of various commodities ahead of time without facing the risk of default by a counterparty. 

Beyond helping market participants mitigate price risk, the commodity futures market will deepen the financial system while acting as a catalyst for the continued development of the agricultural sector. 

Speaking at the ceremony, Ayodeji Balogun highlighted the significance of the agreement in light of AFEX's mission of being a reference point for commodities in Africa. He said that " we share a drive with market regulators and other players in Nigeria’s capital market to deepen the market and unlock financing options and alternative investment classes for players in the commodities ecosystem. This collaboration with NG Clearing is a new leap for the financial market in the country that further opens opportunities for generating shared prosperity through the commodity market. We believe that this would further position the country as a preferred capital destination with a viable path of effectively managing risks in key sectors of the economy."

At the ceremony, Mr. Taps Das of NG Clearing said that " this partnership with AFEX will usher in a new phase in the development of Nigeria's financial and agricultural sectors. As the central counterparty, we bring confidence and trust to the market as we will be guaranteeing the execution of the trades through our resilient collateral management processes." He also mentioned that " we are proud of this collaboration and confident it will unlock the untapped potential of commodity derivatives in Nigeria." 

The agreement between AFEX and NG Clearing comes at a time when unlocking value in Nigeria's agricultural sector is at the front burner of government initiatives. 

The AFEX market turnover currently stands at N123.72 billion while NG Clearing earlier facilitated the introduction of equity index derivatives in April 2022, serving as a Central Counterparty to the NGX Exchange.


 AFEX Commodities Exchange Ltd and NG Clearing Limited Set to Unlock the Potential of Commodity Derivatives in Nigeria. 

AFEX, Nigeria’s leading commodities market player, on Monday, rang the bell for financial literacy to flag off the sixth edition of World Investor Week 2022, in collaboration with the Securities and Exchange Commission (SEC) and Financial Literacy Technical Committee (FLTC) at a ring the bell ceremony held at the Exchange office in Lagos State.

The ring-the-bell ceremony flags off a week-long event themed **“Investor Resilience and Sustainable Finance”**, which is aimed at driving awareness about the importance of investor education and protection, while also promoting financial literacy and inclusion that can engender shared prosperity in the commodities market.

As a commodities exchange, AFEX has invested in financial education initiatives to enhance financial literacy among investors and improve participation for retail and institutional investors in the commodities market. Over a span of eight years, the Exchange has executed a number of robust education campaigns to deepen the financial market knowledge and confidence of investors through digitally distributed learning materials, data-driven market reports, webinars, and outreach programs, which have driven up active participation in the commodities market. 

“AFEX is pleased to once again ring the bell to advocate for financial literacy on the commodities market in Africa. Financial literacy and investor protection are important tenets that drive growth and inclusivity in the financial market, and as part of our efforts to promote sustainability in the ecosystem, we have developed a wholistic engagement framework that empowers retail and institutional investors to take advantage of the opportunities in the commodities market within the current market environment.

Currently, we are gearing up to launch a four-part comic book designed to educate new and existing investors of all ages on how the commodities market works and how they can grow their wealth by leveraging alternative assest classes. As a participation grows, it is improtant to simplify financial management and investment so that no one is left behind in the commodities ecoysystem," stated, Oluwafunto Olasemo, Vice President, Financial Markets, at AFEX.

To bridge knowledge gaps, initiatives like knowledge-sharing sessions, video tutorials, one-on-one sessions with financial experts, and detailed reports on commodity value chains are being incorporated into AFEX's technology platforms, allowing access to important trading data, trends, and financial information, thereby bringing support and growth to the commodities market.

According to Fiona Ahime, MD, FBN Quest, “Investors should embrace diversification of investment”. Charles Egbunonwo, the MD of Forthright Securities, and a member of the Financial
Literacy Committee also commented that “It is important to create awareness on financial literacy to unlock the potentials in the commodities space. If we are looking to diversify our
economy, commodities are one of the key products to consider and develop. I am happy we are putting hands together to propagate the investment culture in the commodities market.”

Achieving investor resilience and sustainable finance requires a broad-based effort on the part of all capital market players to provide investors with the tools and knowledge required to make informed investment decisions. Addressing these core areas lays a foundation for market intergrity that will enable a thriving commodities market and shared prosperity for everyone involved. 




AFEX Celebrates World Investor Week 2022 with the Securities and Exchange Commission of Nigeria

AFEX, Nigeria’s leading commodities market player, on Friday, marked World Food Day, with the launch of a new 100,000MT/ year Grain Quality Enhancement Center and 30,000 MT storage capacity warehouse at Zaria-Kano Highway, Kaduna State. 

The plant represents AFEX’s renewed commitment to infrastructure investments that cut post-harvest losses, strengthen quality and standardization criteria in grain value chains and improve the livelihoods of primary producers who are able to earn higher income on better quality grains. The plant, which has an annual capacity of 100,000MT, meets the challenges of grain quality enhancement through cleaning, grinding, heating, drying, packaging, and storage services for grains like maize, paddy rice, and soybean. 

“Over the years, we have seen a growing demand for grain commodities in the animal feed, food, and drink industries. However, 3.5 trillion naira is lost annually after harvest because the national storage capacity can only accommodate 5-7 percent of agricultural produce. At AFEX, we believe that the grain quality enhancement center will help meet that demand, support the closure of quality and quantity gaps, maximize income returns for smallholder farmers, and increase access to markets that will benefit key players in the value chain and society at large. The activities in the processing plant will include quality and quantity checks, packaging, storage, and other processes in the value chain.

This historic milestone aligns with our UN SDG goals 1, 2, 5, 8, and 12. We are working towards resilience and sustainability of the agricultural supply chain to ensure that farmers and growers get a better deal for their produce, everyone has access to affordable and nutritious food, alleviate poverty, and ensure that no one is left behind.

Our partnership with the Kaduna State Government and the USAID-Funded West Africa Trade & Investment Hub has also been instrumental in moving the project forward. We are delighted for their contributions as we continue to explore together the true potential and market opportunities of grains in Nigeria” Commented, CEO, AFEX, Ayodeji Balogun.

Currently, Nigeria’s storage capacities stand at less than 5%, resulting in excessive post-harvest losses, all of which impact food security. To solve the problem, the new facility will strengthen food supply chains, boost grain prices for producers and serve as a reliable source for processed grain meal and hulls in the growing markets whilst bolstering food production in the country. Essentially, by depositing commodities in the warehouse, farmers will be able to pay for the processing services and have access to buyers on the AFEX platform at a higher price. 

Speaking on the commissioning of the AFEX Grain Quality Enhancement Center, His Excellency, the Governor of Kaduna State, Mallam Nasiru el-Rufai said “I am happy to see this new development in the agricultural value chain. Oftentimes, when farmers harvest their produce, they sell quickly at low prices to prevent post-harvest loss and in return, they never get the best value. With this center, AFEX has closed the gap in preparation, cleaning, and logistics, helping farmers to sell at the right price.

I am grateful to all the partners behind AFEX, USAID-Funded West Africa Trade & Investment Hub, AGRA, for collaborating on this project and enhancing access to a structured and ready market for farmers and job creation for Nigerian youths.”
 
Since 2014, AFEX has built a robust network of warehouses to support the growth of agricultural commodities and provide offtake agreements to farmers at market prices with a same-day payment model. Currently, AFEX has a footprint of over 100 warehouses across 23 grain-producing states in Nigeria which accounts for over 300,000 MT of the total national storage capacity. They have reached over 430,000 farmers and traded over 1 million MT of commodities to transform rural households and boost economic prosperity. 

With more efficient pricing mechanisms and transparent, fair distribution fees, agricultural producers working with AFEX benefit from significant – and often life-changing – savings on taxes, charges, transportation costs, and better storage/disruption.
 
 



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AFEX Celebrates World Food Day with the Launch of 100,000MT/ year Grain Quality Enhancement Center


Eleni Gabre-Madhin established the first [commodity exchange](https://www.theguardian.com/global-development/2012/dec/13/africa-commodity-exchange-ethiopia-economy) in Africa following a famine in her home country, Ethiopia, in 2002. The country had witnessed a bumper crop harvest for the preceding two years and was shocked by this famine. At that point, Eleni knew it was time to try a different approach - strategic distribution - that went beyond food production as the latter alone could not solve Africa’s food problems. This commodity exchange established a reliable market for buyers and sellers to meet and inspired other African countries to develop their own commodity exchanges.


Since the establishment of AFEX in 2014, we have been facilitating trade in Africa through the deployment of a trusted commodities exchange model for the African market; creating the backbone for sustainable consumption and production of commodities. Through our work, at AFEX we are making African economies more inclusive, and boosting the critical links between agriculture and finance, especially in a continent where information crucial to efficient trading is limited.

![_JCP4931 (1).jpg](/uploads/JCP_4931_1_8346a99395.jpg)

African farmers have been victims of fractured and disorganized markets where they have had to[ sell their products lower than the market price](https://www.mckinsey.com/industries/agriculture/our-insights/winning-in-africas-agricultural-market). This is why Africa's poorest are small-scale farmers who remain poor because they lack access to investment and techniques to optimize their farming. Without the infrastructure to connect their rural areas to large markets where their products can be bought and sold, they get cut off from profitable opportunities to stable and prosperous supply chains. This type of fragmentation means most [farmers will remain poor and vulnerable to exploitation.](https://www.selinawamucii.com/african-coffee-farmers-are-losing-billions-every-year-from-exploitative-prices/)

Covid19 [caused significant disruptions in the supply chain](https://allafrica.com/stories/202008070012.html) to Africa's already weak food systems and affected both food itself and the people who farm. Social welfare mechanisms that could mitigate the impact of the pandemic are limited and struggling, and this has exposed the vulnerabilities of our food systems and created the need to strengthen the continent's resilience to manage future shocks.  

According to the Global Network Against Food Crises report referenced by Tony Blair Institute for Global Change, before COVID-19, Africa was already home to more than 70% of the world's poorest people and 55 percent of the world's hungry. However, because of Covid19, in Africa alone, 22 million more people will need food assistance soon.

African agriculture would greatly benefit from improved seeds, fertilizer, machines, and other inputs but even more, farmers would benefit from significant investment in agri-processing facilities to reduce post-harvest losses. The Tony Blair Institute for Global Change estimates that [48 million people](https://institute.global/advisory/different-approach-strengthening-african-food-systems) can be fed on post-harvest wastages yearly south of the Sahara.


**Ways Commodity Exchanges Can Help Food Systems In Africa**


1.	Create access to market: Commodity Exchanges allow farmers to access an ethical trading platform and benefit from fairer transactions. As a result, they will make better investment decisions and economic growth.

2.	Enable infrastructural development: Agriculture and food systems provide income for almost half of Africa's population and as much as 70 percent in East Africa alone. If the continent has developmental ambitions, resilient food systems must exist, and exchanges can act as conduits for better infrastructure such as roads and warehouses to transport or store goods.

3.	Potential to boost intra-regional trade - Africa has an almost non-existent intra-regional trade. However, the African Continental Free Trade Area (AfCFTA) is poised to transform the face of commodity and other trading in Africa. The AfCFTA is a trade agreement between 44 of the 55 African Union countries to create a single market bolstered by the free movement of trade services and a single currency union.

4.	Help farmers save on high transaction costs - By their very nature, Commodity Exchanges can reduce high prices in commodity value chains. These can include expenses incurred by farmers when trying to find buyers for their produce and costs associated with securing finance, among others. These benefits stimulate agricultural growth. 

5.	Help reduce financiers’ risk - Investors and financiers usually classify Africa as high risk and low profit, this has affected farmers' access to investment, and even loans attract high interest. But through commodity exchanges, ecosystem forms of financing now exist that help reduces the financiers' risk. 

6.	Make it possible for farmers to lock prices Market participants in commodity markets can lock prices of crops months before they are harvested and benefit from price changes. Farmers can plan, choose the most profitable crops to grow, and discern the best time to sell, minimizing the risk of revenue loss due to price fluctuation. 

At AFEX we are empowering farmers with research and innovation, access to market, funding, and resources to thrive and ultimately strengthen Africa's weak food systems.


Ways Commodity Exchanges can help Food Systems in Africa

Abuja, Nigeria. 5th September 2022 - AFEX, Nigeria's leading commodities market player on Monday, held a side event at Africa Green Revolution Forum (AGRF) 2022 summit, to advocate for financing for Agri-SMEs in Africa to boost their growth and impact potential in pushing forward sustainable and inclusive production in the sector. 

Themed “Finance for Agri-SMEs in Time of Crises: Opportunities and Challenges”, the side event hosted together with Smallholder and Agri-SME Finance and Investment Network (SAFIN) and the International Fund for Agricultural Development (IFAD), provided a platform for different stakeholders to explore coordinated large-scale actions to unlock access to finance for agri-SMEs. 

In many contexts, agri-SMEs such as farmer organizations, processors, input providers, producers, and distributors are a critical backbone of the sector and play essential roles along the entire value chain. Therefore, access to finance enables Agri-SMEs to invest in the infrastructure, equipment, and cash flow that help them produce, purchase, store, process, and better market their products. 

AFEX CEO, Ayodeji Balogun, during the panel session, said that ‘there is a need to redefine the perception of agricultural risk in Africa. A critical issue that is faced in the production within the sector is the transaction cost between producer smallholders and Agri SMEs. Hence, we are embracing new technology in the field that is aggregating data for over 1000 – 10,000 farmers and bringing better visibility to the fragmented and polarized space.

Over the years, agricultural policies across African countries have that underlining phase where the crux of the policy is rural poverty alleviation rather than competitiveness, growth, or macro-economic transformation, though it is not bad, it just means we will continue to be sub-optimal from a food balance sheet standpoint. 

I believe Africa needs to start looking at it from an economic of competitiveness that is aligned towards the macro priorities of the country rather than prime focus on reducing the number of poor people in rural areas and solving that problem.’ He commented. 

In another panel session, under the theme “Climate Finance and Technology: Opportunities for Youth, speakers highlighted how Agriculture is at a huge risk of climate change. The issues in agriculture on the continent are all integrated and cannot be evaluated in silos – climate, finance, youth inclusion, and poverty. To create resilience and promote sustainability and equitable food systems, we must invest in climate-smart and efficient seed technologies. Hence, to unlock more capital for Climate Smart Agriculture, it is important to create an ecosystem of service providers that can engage youth in agriculture and provide bundled solutions. This will reduce the barrier to adoption and start-up cost.

According to Hemense Orkar, VP, of Corporate Services, AFEX on the panel of “Learnings from demand-led approaches to value chain development”, Technology (Digital solutions) should be applied to reduce bottlenecks in the value chain whilst taking cognizance of the nuances in the market.  It is essential to deploy digital solutions that are specifically tailored to the needs in the value chain rather than copying what may seem to have worked in another clime and pasting that in another market thereby causing more bottlenecks and making the technology doomed for failure.’

Since its inception in 2014, AFEX has built significant platforms and operations to strengthen the resilience of Africa’s food system, especially smallholder farmers with access to finance, infrastructure, and markets as underlying factors. Known for its vision to be a reference point for commodities in Africa, AFEX has reached over 430,000 farmers and has over 100 agri-business registered on its Exchange to enable the next generation of smallholder farmers to escape poverty cycles and boost production levels.

Additionally, as part of its African vision, AFEX has committed to leveling-up Africa’s Agric-tech sector by replicating its infrastructures across the continent in countries like Kenya, Uganda, Cote d’Ivoire, and Ghana. Recently, the trading arm of the company, AFEX Fair Trade Limited launched a $1 million loan program that will enable 5,000 Kenyan farmers to gain access to seed and fertilizer for their crops, to mitigate the ever-rising commodities prices. 

Bolstered by an existing supply chain infrastructure of over 100 warehouses and digital trading platforms like ComX and Workbench, which link investors with producers and processors, AFEX’s commitment to the agricultural sector and deep industry knowledge will add crucial expertise to this much-needed activity.


WhatsApp Image 2022-09-05 at 12.42.17 PM.jpeg

AFEX Advocates for Financing of Agri-SMEs at AGRF 2022 Summit

Samuel Akame emerged as the second runner-up at Code Cash Crop 3.0 hackathon. Ever wonder what it takes to build a business solution that works? Samuel’s got plenty of answers for you in this interview.

![129A576544.jpg](/uploads/129_A576544_d23e6a5731.jpg)

**Tell us about yourself.**

I am an Entrepreneurial sustainability professional, passionate about local food systems, urban agriculture, commodity trading, agtech, and reducing food waste through upcycling and regenerative agriculture. I am also a technology enthusiast. My interest and passion lie in the application of technology to food systems for the purposes of business expansion, social good intervention, and revenue growth opportunities. I'm familiar with Agtech x NFTs, and Virtual Kitchens, and I love traveling.


**How did you hear about the Hackathon? What was your motivation to sign up for it?**


I heard about Code Cash Crop 3.0 on LinkedIn, and when I came across it, I felt it was a good opportunity to reach industry leaders and important stakeholders in the system. So, I decided to give it a shot.

**What was the idea of the project? Can you describe in a few words your solution?**

I was constantly a victim of being scammed or failing to initiate a transaction due to a lack of trust while trying to make an honest living by trading commodities and connecting commodity buyers and sellers.  I was aware that the state of trade finance was not where it should be, and there were few technological solutions to address pressing issues like this that solved real-world problems. Because I understand how the system works, I figured if anyone could serve as a trustworthy third party to protect the integrity of transaction payments and facilitate them with technology, it would be me.

As a result, we are developing Africa's most comprehensive suite of digital solutions for farms, food companies, and commodity traders via an end-to-end supply chain and financing network platform that acts as a dependable third party that protects the integrity of a transaction.

**When did you first begin exploring this idea?**

I started building Credence in 2019 after a lot of times failing to initiate a transaction.

**What was the most challenging part of the hackathon for you?**

I guess it was the part of mental preparation and the fact that you know that you don't want to screw things up.

**What is life after CCC looking for you?**

Knowing that my project has been validated by industry leaders, I believe it is a springboard for me to capitalize on the opportunities I have and make the most of them. I am definitely pushing forward for more opportunities in the industry.

**Key advice for next year C.C.C 4.0 Participants?**

I would say simply bring your A-game, network, and leverage the opportunities provided by the Code Cash Crop program. I believe it is a good starting point for further expansion.


Building a System that works through Credence – Samuel, Code Cash Crop 3.0 Second Runner - Up

After an intense pitch session at the Code Cash Crop 3.0 Ag- Hackathon, Folasewa Abdulsalam emerged as the first runner-up in the competition. In this article, she talks about her Code Cash Crop story, with honest advice on how you can follow your own dreams. 

![CCC.jpg](/uploads/CCC_ddee4d8c86.jpg)


**Tell us about yourself**

My name is Folasewa Abdulsalam, I am a 5th-year student of computer science with maths student at Obafemi Awolowo University, Ile-Ife. I currently work as a research and Innovation intern at Data Scientist Network. I am into Python for Data Science and Machine learning. I love watching Kdrama. I am more of an indoor person but sociable. 

**How did you hear about the Hackathon? What was your motivation to sign up for it?
**

I came across CCC as a sponsored post on Twitter. I was just going through my timeline and came across it.  To be honest, my number 1 motivation was the money, come on, the money is quite enticing. However, I just got served tech breakfast that very day, and I thought this was probably a sign for me to register and it might be successful. I am glad I took the shot. 

**What was the idea of the project? Can you describe in a few words your solution?**

The idea of my project (PalmFarms) which I pitched at the Code Cash Crop 3.0 hackathon is to ensure someone like you and I get easy access to fresh vegetables without the hassles. I believe I can provide a solution that brings all fresh food farmers together and allow direct access to their products by providing the farmers with what they need to get me fresh vegetables, while in return I get fresh vegetables without moving an inch from my comfort zone. 
Basically, PalmFarms is a B to C farm management platform that enables customers to shop for fresh vegetables directly from the farmer and helps the farmers in their sales analytics.


**When did you first begin exploring this idea?**

Oh! I am someone that writes down whatever comes to her mind in her notepad. Trust me, if you check my notepad, you will see ideas scribbled. I had that idea in my notepad like 3months before I saw the hackathon post, so I started researching on the constraints attached to it, designing the user journey on Figma, and so on.

**What was the most challenging part of the hackathon for you?**

The most challenging part for me was juggling my 9-5 while also preparing for what was required at each stage of the hackathon. My nights suffered a little because I had to burn some candles to ensure I deliver a great pitch.  

**What’s life after Code Cash Crop 3.0 looking for you?**

Aish! I keep getting connections on LinkedIn, and Twitter. Some people want to collaborate, some people just want to be a friend. Well, the good side is I am making new connections, the bad side is I am getting more attention and I am someone that just likes to come out occasionally and do my thing with not much attention.

**Key advice for next year’s Code Cash Crop 4.0 participants?**

I would say just do it. Have the right motivation, because seeing something till the end is a whole lot of work. Oh! And one more important thing, have the right circle of friends.


Creating Impact with PalmFarms – Folasewa, 1st Runner-up of Code Cash Crop 3.0 Ag Hackathon

From 20th April to 30th of July 2022, hundreds of participants, young professionals, investors, and development partners from the fields of agriculture, finance, and technology, came together to be part of the third edition of the [AFEX Code Cash Crop Hackathon: ](https://techpoint.africa/2022/08/04/code-cash-crop-3-0-highlights-the-importance-of-technology-and-finance-in-agriculture)Disrupting Agriculture Trade Infrastructure. The hackathon took place in Oriental Hotel Lagos with 6 finalists pitching innovative business solutions with a shared goal: to solve the challenges faced in Africa’s food systems.

At the end of the hackathon, 3 participants emerged winners and were awarded a whopping sum of money, training school, and mentorship class as channels of support to bring their ideas to fruition.

We sat down with the winner of Code Cash Crop 3.0, Prince Achoja, to talk about his journey and the secret ingredient to winning the hackathon.

![1111.jpg](/uploads/1111_5e0d5c4f10.jpg)

**Tell us about yourself.**

My name is Prince Achoja and I hail from Kano State, Nigeria. I am a young tech entrepreneur passionate about solving problems in communities leveraging technology. I am a product designer and a founder of a growing tech hub in Kano as well as Ma’aji, an agro fintech platform in Kano. 


**How did you hear about the Hackathon? What was your motivation to sign up for it?**

One day I was working on my laptop, and I got tired. I decided to take a time out by scrolling through social media and I found out about Code Cash Crop 3.0 on AFEX’s Instagram page. It was random. I was scrolling through posts, and it popped up.  I applied almost immediately because it connects agriculture, finance, and technology together. As a young entrepreneur, I have always wanted to build solutions that relate to the fintech style. 
So, the name alone was a motivation to apply for the competition.

**What was the idea of the project? Can you describe in a few words your solution?**

Our solution Ma’aji is a Hausa word that means payments and savings.

It is a fintech platform that offers farmers access to relevant information, Agro experts’ loans, and a swift platform upline using USSD while having a financial wallet and carrying out financial services on the platform. This eliminates the need for a third party like the banks.

Farmers can send pictures of their goods and interact with their clients without going through third parties for both physical and financial services. The platform leverages the simplicity and user-friendliness like language transcription options where the farmer can select his preferred language and also voice interaction options to chat with clients.



**When did you first begin exploring this idea?**

The Idea was conceived a year ago. Its sole focus was on fintech to serve as a platform for financial innovations. It was first built in February. The hackathon’s problem statement helped us gain insight into speaking with farmers to know the pressing issues and problems they faced. We realized that access to information in their local dialect was the major issue, so we tailored Ma’aji to that.

**What was the most challenging part of the hackathon for you?**

 The most challenging aspect wasn’t even the building of the platform, it was the phase where I saw other contestants talk about their brilliant creations and solutions, it caused a sense of chills. I had to go back and work all night to put touches where necessary. 
 
Another challenge was when the mentor AFEX provided had to change my slides from the beginning, I remember thinking I had the worst slide amongst everyone, having to start that afresh was tasking. However, I am grateful because it was a lovely avenue to learn.


**What’s life after Code Cash Crop 3.0 looking for you? **

Life has been awesome; I have gained recognition from the publicity the Hackathon afforded me. I have also implemented a lot of the tips and advice the judges gave to me. I am looking forward to the full implementation of Ma’aji to help farmers solve these problems.


**Key advice for next year’s Code Cash Crop 4.0 participants?**


Firstly, I’d start by appreciating the entire AFEX team for putting together a wonderful platform to identify young people in the Agrotech community and sector. 

My advice to Code Cash Crop 4.0 participants is to ensure that you are solving a real problem, and not build a solution because of the hackathon there will be a life for the product after the event. Make sure that the solution is tangible, and the impact is wide stream. Lastly, believe in the process and believe in what AFEX will train you to do. Remember, the sky is your limit!



How Ma’aji can solve farmers’ challenges – Prince Achoja, Winner of Code Cash Crop 3.0

_Focus: The blog post explores how trading commodities, particularly agricultural commodities, can help people hedge against inflation._ 
 
Inflation is a major global problem. Nearly all countries of the world are witnessing a rise in [inflation due to increased food and energy prices](https://www2.deloitte.com/xe/en/insights/economy/global-food-prices-inflation.html) resulting from the Russia-Ukraine conflict. [Global inflation](https://www.stears.co/premium/article/inflation-will-prices-ever-go-back-down/) is projected to climb to 7.4% in 2022 from 4.7% in 2021. The situation is [particularly tense in North and West Africa](https://www.theafricareport.com/181526/inflation-is-coming-back-to-africa-and-its-not-going-away/), and Nigeria is no exception. [Nigeria’s inflation rate](https://www.bloomberg.com/news/articles/2022-07-15/surging-inflation-raises-pressure-on-nigeria-to-hike-rates-again#xj4y7vzkg) surged to 17.7% in June, a five-year high.
 
Inflation is like a pest that eats your money. The Oxford dictionary describes it as ‘a general increase in prices and a fall in the purchasing value of money.’ A simple definition of inflation offered at an elementary economics level is ‘when too much money is chasing after few goods.’ Whatever definition you find easier to go with, the impact is uncontested - that is, when inflation is on the increase, it essentially signifies that your money will not go as far as it formerly did. 
 
So, how do you preserve monetary value and beat inflation at its own game? One of the ways to hedge inflation is by investing in commodities. Investment in commodities always gains interest when inflation rises. [Research](https://advisors.vanguard.com/insights/article/howcommoditiesstandapartasaninflationhedge) shows that commodities (commodities are produced or extracted products, often natural resources or agricultural goods, that are often used as inputs into other processes) are one of the asset classes most positively correlated with inflation. Commodities are not the primary cause of inflation but are a significant factor in its rise, and this link makes commodities an automatic effective inflation hedge. In particular, [agricultural commodities](https://www.wisdomtree.eu/en-gb/blog/2022-06-21/agricultural-commodities-could-offer-a-hedge-against-inflation) have been tipped as one of the best commodities to trade now. 

![WhatsApp Image 2022-08-10 at 11.33.29 AM.jpeg](/uploads/Whats_App_Image_2022_08_10_at_11_33_29_AM_f09f574996.jpeg)
 
The rising prices of grains and oilseeds and the plethora of supply-side issues due to the Russia-Ukraine war have pushed up agricultural commodity costs. [Agricultural commodities are up 26.8 percent](https://www.wisdomtree.eu/en-gb/blog/2022-06-21/agricultural-commodities-could-offer-a-hedge-against-inflation) at a time when global equities have declined by approximately 13.88 percent due to rising inflation and tightening liquidity circumstances.
 
Here are a few reasons why these agricultural commodities counter inflation.

- Traditional asset types, such as equities and mutual funds, have a limited correlation with commodities. This indicates that if the price of equities falls, the price of commodities will increase.

- The supply-and-demand dynamics have a substantial impact on commodities as well. For instance, if there is a large harvest of a particular crop, the price of that crop typically decreases. In contrast, fears that future supply would be disrupted by drought or flooding might cause prices to rise.

- As the demand for various items rises, so does the demand for the commodities used to manufacture them, increasing commodity prices.

While trading commodities can be very good, you should know a few things before investing in commodities.
 
As highlighted earlier, commodities are heavily dependent on supply and demand. Some agricultural commodities may not perform well during economic downturns as people might consider cheaper alternatives. For instance, due to the war in Ukraine, many countries have resorted to getting alternatives to wheat. The Cameroon government is encouraging local substitutes like cassava and yams to replace the wheat usually imported from Russia and Ukraine.
 
Also, the commodity market is quite volatile, which sometimes leads to underperformance. Because the supply and demand characteristics change frequently, volatility in commodities tends to be higher than in stocks, bonds, and other types of assets. 
 
To trade agricultural commodities, you need proper education on the commodities you need to trade at what time and also to be able to diversify your portfolio - AFEX is happy to help with that - we make available daily data on how each commodity is being traded on the Exchange performs and also do periodic live sessions to educate investors. You can visit the [ComX by AFEX](https://comx.afexnigeria.com/) page to trade and invest in commodities. ComX is Africa's first commodities trading app.


How Trading Commodities can Help you Save your Money against Inflation

On Saturday, July 30th, 2022, we hosted the 3rd edition of our industry platform, Code Cash Crop themed ‘Disrupting Agriculture Trade Infrastructure’. This is an initiative that celebrates the convergence of Technology, Finance, and Agriculture to unlock sustainable solutions to food system challenges in Africa.  ![CCC.jpg](/uploads/CCC_ddee4d8c86.jpg)

Since its inception in 2018, Code Cash Crop has continually provided fun and educative space for learning and creating solutions to Agricultural commodities growth challenges on the continent, and it aligns with AFEX’s mission to build infrastructure and platforms that drive capital to power a trust economy in Africa’s commodity.
![123099A5764.jpg](/uploads/123099_A5764_7b938d630f.jpg)

The event which was held in Oriental Hotel flagged off at 8 am with a keynote speech by Olatomiwa Williams Country Manager, Microsoft (Nigeria & Ghana). She centered her discussion on Coding Solutions for Transforming Agriculture Trade Infrastructure, stating the importance of innovation in areas where agriculture faces challenges.
 
![7 (2).jpg](/uploads/7_2_44cb6d0b4a.jpg)
 

> “We need to focus on accelerating growth in the sector. Innovating in areas where agriculture faces challenges will help farmers scale their business, and it’s essential to simplify technology for smallholder farmers.”

This was immediately followed up by a panel session themed The Present and Future of Agriculture Commodity Trade in Africa.   The panelists, included Teslim Shitta-Bey, Managing Editor, Proshare, Ayo Arikawe, Co-Founder & CTO, ThriveAgric; Nancy Olisakwe, Head, Clearing, and Settlement, AFEX and  Zeal Akaraiwe, CEO, Graeme Blaque Group. 

![129Aqssa5764.jpg](/uploads/129_Aqssa5764_6b7b541123.jpg)
Second-panel session “Derisking Crossborder Transactions to Simplify Trade,” moderated by Mr. Olaolu Ajose, Head of Engineering, Chaka, had Puneet Arora, Country Manager One Part 365; Sikemi Tayo, Founder, KIT for Professionals; John Bosco DCEO, PAPSS, and Dr. Akeem Oyewale, CEO, Marble Capital Limited as panelists. One of the speakers on the panel, Sekemi Tayo noted the importance of secure borders “to derisk cross-border transactions, it’s critical that data be readily available, and this can be achieved by understanding the key players in the value chain and having cogent conversations on how to use technology to standardize trade in the commodities market.” 


The third and final panel with the topic “Financing the Emergence of Efficient Agriculture Marketplace for Africa” was moderated by Mr. Martin Mbonu, Investment Associate, Vested World, and had panelists like EduAbasi Chukwunweike, Start-up lead, Microsoft W&E Africa; Kolawole Osinowo, CEO Baobab+, and Oluwatoyin Olubake, ID, Novastar Ventures West Africa. The Microsoft Start-up Lead, EduAbasi Chukwunweike , in her discourse, focused on the need to focus on the traceability of creditworthiness of farmers. “When we can solve the problem of the marketplace and how to increase farmers' yield using data then we can boast about Africa Feeding Itself”.

![winners.jpg](/uploads/winners_7723f80272.jpg)
A nice twist to the event was the Ag-hackathon which brought together young talents from the fields of agriculture, finance, and technology in Nigeria to pitch viable business solutions that address Africa’s Trade Infrastructure to a panel of judges.

The hackathon first kicked off with a call for proposals on the 20th of April from innovators in the technology, finance, and agriculture fields to proffer AgriTech solutions that address these five key United Nations SDGs; SDG 1, No poverty, SDG 2, Zero Hunger, SDG 5, gender inequality, SDG 8, Decent work and economic growth, and SDG 12, responsible consumption, and production. We got about 250 registrations and over 100 proposal submissions from this action. However, 6 participants that fit the criteria were picked.

![CCC.jpg](/uploads/CCC_ddee4d8c86.jpg)
The finalists namely; Abubakar Sadiq Amao (Tarkin), Folasewa Abdulsalam (PalmFarms), Samuel Akame (Credence), Chibueze Opata (Greener Agro), Oluwasanmi Giwa (Agricede), Prince Achoja (Ma’aaji-Noma), each had viable innovations/solutions ideas for taking Africa’s food system to a whole new level.


In the end, Prince won the grand prize of 2.5 million naira, a free training program with Arravo, and a 6-month mentorship at AFEX. His platform (Ma’aji-Noma) wishes to integrate financial services built for farmers in poor and remote communities to help them access both offline and online financial services (Payments, Savings, thrifts, and Loans) and access agricultural information easily and faster in their local dialect. 


Yusuf Oguntola, AFEX's Chief Technology Officer, in his concluding speech elaborated the urgency to trust culture of collaboration and innovation is essential, especially in Agriculture. While giving the vote of thanks expressed his pleasure in seeing the next generation of innovators from the fields of technology, finance, and agriculture come up with sustainable solutions to optimize agricultural business infrastructure.


Everything you missed from Code Cash Crop 3.0

Nigeria’s leading commodities market player, AFEX, today hosted the third edition of its Code Cash Crop event at Lagos Oriental Hotel, to support the integration of agriculture, finance, and technology that create sustainable solutions to some of the most pressing food system challenges in Africa. 

The theme of the event was “Disrupting Agriculture Trade Infrastructure” and it brought together next-generation innovators, business professionals, entrepreneurs, Agric specialists, investors, development partners, and policymakers in the three sectors to identify innovative and viable solutions to Africa’s Trade Infrastructure in a series of panel discussions, mentorship sessions, and network meetings. 

Additionally, Code Cash Crop 3.0 featured an ag hackathon, focused on young professionals representing the fields of agriculture, finance, and technology competing and pitching innovative ideas to real-world challenges in the sector. The objective was to create a transformative business idea for the markets which can increase better opportunities for producers, ease participation for various levels of investors in supply chain activities and increase transparency and security for players on both ends of the market. More than 5 million naira in prizes were awarded to the top 3 participants, and more than 200 submissions were made to solve the challenges in UN SDGs 1, 2, 5, 8, and 12.

![3 copy.jpg](/uploads/3_copy_c8a4deeb0b.jpg)

Commenting on the significance of Code Cash Crop, Yusuf Oguntola, the Chief Technology Officer, AFEX, said, “We believe that it is essential to nurture a culture of collaboration and innovation, especially if we are to effectively tackle some of today’s urgent agriculture challenges. We are happy to see the next generation of innovators from the fields of technology, finance, and agriculture pitch viable solutions for optimizing agriculture trade infrastructure.” He added that technology will be key in promoting a platform model for agriculture trade that can focus on providing access to logistics, access to advisory services, access to inputs, and access to the market, which are all key to the future of agriculture in Africa. 

Ikenna Nzewi, CEO, Co-founder, Releaf, speaking at the panel discussion on the topic “The present and future of agriculture commodity trade in Africa” stated that ‘it’s important to carry out comprehensive research for solutions, especially technologies that are applicable to smallholder farmers which should be tailored to their needs.”

“We need to focus on accelerating growth in the sector. Innovating in areas where agriculture faces challenges will help farmers scale their business, and it’s essential to simplify technology for smallholder farmers.” Olatomiwa Williams, Country Manager, Microsoft (Nigeria & Ghana) commented in her opening remarks.

![6.jpg](/uploads/6_0192968cd3.jpg)

Since its inception in 2018, Code Cash Crop has been at the forefront of advocating for agritech solutions that boost the competitiveness and inclusiveness of the agribusiness sector. Additionally, Code Cash Crop builds on AFEX’s long-standing efforts to foster digital innovation and sustainability in Africa’s food system in a way that drives prosperity and immense social value for all.

“Code Cash Crop showcases the importance of fusing technology-led solutions along with agriculture and finance to create a better, connected, and sustainable future for our food systems. Solving the challenges in the supply chain requires collective expertise and I am glad young men and women in Nigeria are leading this conversation with new and innovative ideas. Through this ag hackathon, in association with our partners, we hope to help make these ideas a reality,” said Akinyinka Akintunde, COO AFEX.

Bolstered by an existing supply chain infrastructure of over 100 warehouses and digital trading platforms that link investors with producers and processors, AFEX’s commitment to the agricultural sector and deep industry knowledge will add crucial expertise to this much-needed activity.

Since its launch in 2014, AFEX has committed to leveling-up Africa’s Agric-tech sector; by helping the continent trade with itself and the world, while boosting food security and making food production more efficient.




Press Release: AFEX Code Cash Crop 3.0 Creates Solutions to Boost Agriculture, Finance, and Technology Sectors

**The following blog post explores how Commodity Exchanges can transform the lives of farmers and reduce food insecurity.**

The Russia-Ukraine conflict and soaring inflation rates have created a surge in global commodity prices that has left many African countries struggling to address shortages in essential commodities. 

Nigeria, Egypt, Kenya, Sudan, Algeria, and South Africa are some of the many African countries that rely on imports of wheat, maize, and fertilizer to feed their growing populations. But the surge in commodity prices threatens food insecurity in these countries and the continent. The price of wheat alone is expected to increase by more than 40 percent in 2022, according to the [World Bank](https://openknowledge.worldbank.org/bitstream/handle/10986/37223/CMO-April-2022.pdf ).

The supply chain disruptions have raised questions about what African countries are doing to help farmers maintain their livelihoods and reduce food insecurity.

![Bloomberg Wheat Graph.png](/uploads/Bloomberg_Wheat_Graph_d8b251cea9.png)

According to the FAO, in Nigeria alone, more than [70 percent](https://www.fao.org/nigeria/fao-in-nigeria/nigeria-at-a-glance/en/) of the population engages in Agriculture, mainly at the subsistence level. Some analysts have pointed to the potential of commodity exchanges to transform the lives of African farmers. Commodity exchanges allow buyers and sellers to trade commodities under a fair, transparent, and standardized process. 

One of the most successful exchanges in Africa is the AFEX Exchange, which ranked third in the Financial Times’s list of [Africa’s fastest-growing companies](https://www.ft.com/reports/africas-fastest-growing-companies) and recently expanded its operations to Kenya. 

“Over 45% of AFEX farmers are food secure or have enough food to sustain them for the entire year,” said AFEX CEO, Ayodeji Balogun, in an [interview](https://www.youtube.com/watch?v=nnp4DJq0fyk&t=132s) with CNBC Africa. “Compared with baseline data, only 15% of farmers in Nigeria are food secure.” In 2021, the total number of registered farmers in the government’s database was 5.7 million.  

Here are five ways that commodity exchanges can transform the lives of farmers: 


- Access to Finance 

Access to finance is critical for African farmers as they need money to purchase seeds and fertilizer. Commodity exchanges can solve this problem through loan programs or through a warehouse receipt system. AFEX has launched a $1 million loan program that allows 5000 farmers in Kenya to take out loans to purchase commodities. 

The exchange is also helping farmers get better access to finance through its Workbench Platform. The platform allows farmers to use the receipts of the inventory they hold at an AFEX warehouse as collateral to borrow money from banks.

- Better prices 

Commodity exchanges allow farmers to access a larger group of buyers and sellers on a regular basis, which leads to better prices for crops. Many farmers struggle to find a market for the goods they produce, which means they are forced to rely on middlemen who charge inflated prices.

One of the functions of a functioning commodities exchange is to establish a standardized price for commodities. 

- Access to storage for smallholder farmers  

Nigeria loses N3.5 trillion to post-harvest loss each year because it lacks proper storage facilities, according to agritech firm Farmcrowdy. Another report by SBM Intel says 47% of farmers have zero access to any kind of storage facilities during harvest. 

The absence of storage facilities forces many farmers to store their produce in their homes, which causes the crops to spoil and drives up production costs. AFEX has built a network of more than 100 warehouses across 23 states - the largest in the country. Under AFEX’s warehouse system, farmers can store grains for up to seven months.  

- Access to a larger market

Commodity exchanges use their platforms to give farmers access to several buyers of their crops. These platforms allow farmers to get precise market information about the market for their crops. Timely access to information also allows farmers to plan ahead, raise their prices when best suited, and make more money.

How you can help

At AFEX, we are committed to fighting for greater food security for Africans. Changemakers can support our mission by registering on our trading platform - [ComX](https://comx.afexnigeria.com/) - which enables financing for various value chain activities while allowing investors to make a decent at per or above market return.





4 Ways Commodity Exchanges Can Reduce Food Insecurity 

Economies around the world have experienced huge volatility in commodity prices following several factors since the global pandemic and the recent Russia’s invasion of Ukraine in February as the two countries play a significant role in global agricultural markets. Recently, Ukraine’s agriculture minister told Reuters that the war will likely create a global wheat shortage for “at least three seasons”, pushing prices sky high. 

While inflation in food commodities has experienced globally, African economies have been particularly exposed. 

**Overdependence on imports threatens food prices**

In 2020, African countries imported agricultural products worth US$4 billion from Russia, roughly 90% of which was wheat, and 6% sunflower oil. Russia is also a key producer of fertiliser. As such, when Nigeria-bound vessels stocked with potash, a key ingredient in fertiliser production, become trapped in the Black Sea region, it is a problem for the country. 

The grim reality laid bare by the conflict is that Nigeria (one of the highest food importers in the African region) must limit its exposure to sudden global disruptions. Not only does Nigeria's overdependence on Russia and Ukraine threaten food prices in the area, but it also impacts the livelihood of farmers.

Agriculture is hugely important to Nigeria and accounts for about 24 percent of the country’s GDP, smallholder farmers comprising over 80 per cent of all Nigerian farmers. Strong agricultural trade infrastructure that can help to boost productivity at a national level should also enable efficient trade within regional and global systems. And this is where the markets come into play.

Although agricultural commodity markets are still developing in Africa, they can positively affect every part of the food value chain. They can help equalise infrastructure for efficient trade on the continent, from production to supply chains.

**Commodity exchanges help unlock finance and level the playing field**

![Comex image.jpg](/uploads/Comex_image_308642c9fc.jpg)

Commodity exchanges provide a critical link to unlocking finance for various commodity value chains within the African context. They can help smallholder farmers access finance and advisory services, enabling them to produce and trade more. As the world strives toward gender equality and empowerment of all women and girls. 

It is comforting knowing that women farmers, who are disproportionately affected by the ongoing conflict because they are five times less likely to own land than men and lack the financial resources to invest in farming supplies and services, can increase their yields with the help of a commodity exchange. 

At AFEX, we enable farmers to participate in market opportunities through our unique platform WorkBench. It allows farmer transactions with our network of warehouses as well as access input loans to purchase items such as fertilisers - a key component to help increase yields. A well-functioning commodities exchange on the continent will encourage multiple actors to enter the local ecosystem, reducing dependencies on one channel for trade. 

**Ditch the status quo**

As global trade interactions become more standardised, adequately priced, and legitimate, Nigerian farmers will be less dependent on Wheat imports from Russia or Ukraine.  

As many governments speak of the need to strengthen food security and become self-sufficient in the face of threats to supply chains, Africa's food systems remain far from this ideal. Agricultural commodity exchanges on the continent can support a move towards improved productivity on a national level, where comparative advantage for the production of the commodity exists. 

Rather than continuing with the status quo, African commodity exchanges can play an essential role in helping the continent feed itself in and out of periods of crisis.

**How you can help**

![AFEX female farmers.jpg](/uploads/AFEX_female_farmers_b862bd4893.jpg)

At AFEX, we are committed to fight for greater food security for Africans. Young changemakers can support our mission by registering for our Code Cash Crop Hackathon. Registration is open[ here. ](link)https://africaexchange.com/ccc3

A Functioning Commodities Exchange Could Help Address Food Insecurity

# When you speak to Ayanfe Agbede, there’s a feeling you get that this is a lady driven by excellence and action. She is a product management graduate intern in AFEX’s Bar Raiser Program. In this article, she walks us through her internship experience at AFEX.

An avid lover of thrillers and a fashion enthusiast, the graduate of soil science from the University of Benin recounts how the journey to AFEX started.

“Before I joined AFEX, I worked as a research assistant for a data analysis consultant. I found out about the internship program through a friend that knows an AFEX employee. He just dropped the flyer in my DM, and I hopped on it.

As I look back on how my career started here, I believe I made the right decision to apply for the Bar Raiser Program because AFEX presented an opportunity for me to learn at a very fast pace. I am motivated by the pace of my growth here. 

I remember when I was interviewed, I was nervous at first when I saw the number of people interviewing me. Then I realized they don’t bite. There were lots of questions asked and even though it was a lot, it was a learning point for me, and I enjoyed every bit of it.

Currently, I work as a product management intern, and I work on the Workbench system. In this role, I must wear many hearts and I am proud to take on every challenge.  I have come to learn that prioritization is one important thing as a product manager and this learning curve for me has been satisfying.

My journey as a Bar Raiser has been smooth. I have learned that with the right support and mentorship you can get the work done effectively. I am surrounded by amazing and brilliant people in my corner that make it easy and enjoyable such as my work buddy and my senior colleague, Kamal, who never gets tired of explaining the commodities ecosystem to me. 

If I were to name, the favorite thing I love about AFEX that would be the positive environment that you encounter at the company and the fact that excellence is a focal point for everyone. This is one of the few companies I know that gives room for career growth and I am not capping.

For future bar raisers who would love to join the company one day, AFEX is a place to be, however, don’t get so worked up, be expressive and be yourself. “



Internship Stories: AFEX is a place to be with the right support and mentorship - Ayanfe

**_Nwobodo Somto has only one feeling when you mention the name AFEX – an intense yellow glowy feeling – that stems from being granted an opportunity to help Africa’s commodities ecosystem in her own unique way. We sit down to talk about her interests, her career journey in the AFEX Bar Raiser Program, and her expectations. In other words, a typical day at work for a new product management intern navigating the space._**

“It all started when my friend, Simi, told me about the Bar Raiser Program. Prior to that, rewinding back to the start of the year, I became very interested in product management and started applying for courses and even proceeding to join product management communities.  I had gathered from a lot of people that it was difficult to get an entry-level experience in product management in Nigeria. I ranted about it to a few friends but decided to keep getting better and praying about it. Months after, my friend sent the AFEX Ad to me,” she explains.

Though Somto is a newbie to the world of product management, she brings with her a handful of experiences working in other fields. “Before I joined AFEX for the Bar Raiser Program, I had just concluded my youth service where I served as a software developer intern at Niger Delta Power Holding Company. In that same period, I did a lot of freelance copywriting and website development. I graduated over a year ago from Covenant University with first-class honors in Computer Science and dabbled lightly in different fields of tech before coming across product management” 

Now she’s ready to make her mark in the field, “At AFEX, I work as a Graduate Intern Product Manager. In my role, I work on the Exchange Communications Network and WorkBench Mobile Systems, and I am primarily responsible for ensuring the success of these technology stacks. This involves working with users, designers, developers, management, and other stakeholders to ensure everyone is on the same page. I must ensure that whatever tech we’re building effectively solves the users’ problems, enhances their experience, and pushes our business goals.” However, when Somto is not working, she is learning painting techniques and food recipes among other hobbies that bring her alive. “I have a new and profound love for food that suspiciously started around the time I started at AFEX. I also enjoyed writing at some point, but procrastination. I love pink things, books, cats, and fun bonding activities. I love Lin Manuel Miranda and everything he has ever written. Also, Benedict Cumberbatch, and every proof of his existence.” 

By the looks of it, the Marvel fan is already off to a strong start at AFEX. One particularly memorable moment for Somto was her interview for the AFEX Bar Raiser Program and her experience so far in the organization. 

“I remember I did a little dance as soon as I got out of sight of the panel. When we started the interview, I was told that it would be more of a conversation, but I automatically assumed that those were just words. Much to my surprise, I was laughing with the panel at some point. I thought I was coming into the interview to sell myself as a person who could potentially bring value to the company, but it was a lot more than that.

During the interview, I got to understand what the company did and what the overarching goal was, and I was completely sold on it. I got to witness a bit of the AFEX culture through the way the panel interacted with each other and myself. I could tell that AFEX would be a healthy environment to learn, grow, and work.

I even bonded with a few of the panel members over shared interests like anime and board games. I could tell that the main objective was establishing that I was a cultural fit and willing to learn. I was literally in a panel with my favorite kind of people – passionate, driven, empathetic, and at least a little geeky. When the interview was over, I had to do a little dance of victory.

Coming into the program, I expected that I would work on smaller tasks or learn from scratch, but within a bubble that would stop me from making any real impact on the general operations because nobody would want an intern derailing their operations. Boy was I wrong. To my absolute surprise, I was put on products and major projects barely one month into the internship. The other graduate interns and I were put in charge of driving the redesign of two major products. We get to work with minimal supervision but with all the support we require, and it has been such a learning experience. We are making decisions and mitigating risks and strategizing as we move the product through its development life cycle, and I literally wake up every day excited to get to work.

I thought the orientation program at the resort would be the extent of our welcome into the company, but I got to the office and the people in my squad got me and the other Graduate Interns lunch throughout the first week. The way we were treated at the resort was the same way we got treated at the office. With much acknowledgment, respect, and consideration. Everyone has been friendly and supportive, and I have been able to learn and grow a whole lot.

There are also a lot of nicknames, for example, the Product Management graduate interns are called GI Joe and Janes (there’s just one guy in my squad) and I’m called Slim Shady! Well, it’s just the one person calling me for now but I’m hoping it would stick as it beats my last nickname, and I feel people hearing it would think I probably have deep mysterious layers and would never guess why I’m being called that. Hehe. But work-wise, I’m currently working on multiple projects and co-driving one of them. As I’ve said before, the team members are amazing, the projects themselves are self-fulfilling and I’m having a great time. 

Also, I love that everyone I’ve encountered in the company is very interested and people’s opinions or ideas are heard, valued, and considered. It did something to me when my opinion about things was sought during meetings and people responded to things, I said in ways that showed that they listened. It made me feel valued. It’s also amazing that we have snack days and hangouts. There’s always some food or snack available, and that has me like food. 

For interns looking forward to working with AFEX in the future, I would say be passionate about growing. The possibilities and opportunities at AFEX are limitless.”


Internship Stories: The Possibilities and Opportunities at AFEX are Limitless - Somto

_**Grace Abikoye is a graduate intern with the Strategy and Corporate Finance team at AFEX. As one of the awesome talents from the AFEX Bar Raiser Program she has a lot happening for her and in this interview, she really lets us in.**_

“Before I joined AFEX, I was everywhere…” Grace states, laughing at comments about her impressive resume that seems to underscore a relentless quest to redefine what it means to be a young professional.

“…I realized early enough the importance of extra-curriculars in developing my skills and competencies as well as in creating the necessary opportunities to earn a place in a reputable organization like AFEX. So, I became an active member of Association Internationale des étudiants en sciences économiques et commerciales (AIESEC) where I worked in the Incoming Global Entrepreneur arm. I was one of the fellows of the first cohort of Millennium Campus Fellowship – a fellowship by Millennium Campus Network in partnership with the United Nations focused on student-led community projects. 

During this program, I founded an NGO called Sponsor a Beske Child to School to mentor and sponsor the formal education of the indigent children who hawk and beg for alms in Ilorin, Kwara State. I also worked at HA Blissful Farms, for the fulfillment of the compulsory internship program of my school. I participated in the Hult Prize competition, where I came third in my university; the CFA Ethics challenge, where I came third in Nigeria, and the CFA Equity Research challenge, which took me to the finals. The highlight of my experience has been an internship at Bank of America Merrill Lynch, after which I was appointed the President of The Investment Society in my University.” 

Things were coming together nicely for Grace, who is a graduate of Agricultural Science from the University of Ilorin. Her answer to that has been to seek new challenges and step up even more in the fast-paced industry that she has chosen.

Speaking about coming into the AFEX Bar Raiser Program, Grace shares, “I am a visionary and I am a pretty confident young lady. I have a passion for the commodities market and exchanges, so I had an eye on AFEX since October 2021. I was in communication with the AFEX Talent Manager since November 2021 and was definitely hoping for an in. Interestingly, the CEO had requested CVs on LinkedIn a few months ago and I sent mine. However, I came across the internship program e-flier on LinkedIn, and I applied. It was mostly great and shocking interviewing for the bar raiser program because I was not expecting so many interviewers on board.

At the orientation program, I got to learn a lot about AFEX which set a good foundation for my role as a Strategy and Corporate Finance intern. I learned the importance of having a good culture in ensuring the productivity of staff. The induction was super fun and the food, how could I forget that. We love food at AFEX and it’s just a great experience.”

Starting a new job in a new environment can be tasking, but Grace is bringing new ideas to the building, and working to drive AFEX’s vision forward.

“In my role, I help to build the strategy decks for the firm, monitor the goals of each squad, and assist with management presentations and weekly reports of the capital markets and CBN policies.

My experience so far has been good and fun. There has been a balance of learning and playing while at it. I have a great boss that is supportive and it’s great to know that everyone is approachable at AFEX. 

I would advise future graduate interns to be open to learning, be ready to work, make friends, and most importantly, find time for personal development because it helps. Just be yourself.”

Internship Stories: Grace Abikoye Always Makes Time for Personal Development and so Should You

****The first time you meet Vision, he is either smiling or cooking up a joke. He is also rather fond of peering into his computer while rubbing his forehead, and occasionally passing comments to his colleagues. But is there more to AFEX’s new product management intern? We had a conversation with the graduate intern from the AFEX Bar Raiser Program to find out.***

“I am not a fan of Marvel movies,” he says. So, you know quickly that you will not succeed in bribing him with a movie ticket to watch Dr. Strange in the multiverse of madness. However, a football date to watch a Manchester United match would work as the 25-year-old human dignity advocate is an avid lover of sports. That however is not the only thing that Vision loves. A man of many interests, Vision takes research seriously and is deeply excited about building a great career for himself.

“I hold a BSc in Biochemistry from the Federal University of Agriculture, Makurdi. After I graduated, I worked as a research intern at Sheda Science and Technology Complex, (SHETSCO) Abuja and National Centre for Genomic Research and Biotechnology (NACGRAB) Ibadan. I also volunteered with an international NGO, The World Youth Alliance, with our key value proposition being the promotion of human dignity”

The dance with the NGO cemented Vision’s drive to get involved with impact-driven projects, especially, those that focus on human rights and dignity. 

“The idea of dignity is fundamental to how we perceive ourselves and relate with other people. I believe the world will be a better place if we all have dignity, we just need to recognize it and cherish it.”

Still very much with an eye on impact, Vision is experimenting with his career again, and this time he is looking to help Africa feed itself at AFEX. The opportunity to become a graduate intern at AFEX was one that even his sister could not let slip by.

“I remember stumbling on the call for graduate interns at AFEX on social media. It had the Bar Raiser Program written boldly on it. Then my sister also sent the post to me on WhatsApp. I remember scrolling through Twitter when my elder sister called me and yelled as to why I had not applied for the internship program she sent to me through WhatsApp. I immediately opened the message, applied, and was like "okay, I've applied, can you stop disturbing me now"

My official interview was so much fun. First, I had to choose my preferred location for the interview, and I picked Abuja, only to make another request for a virtual interview due to logistics difficulties. After my request for a virtual interview was granted, on the D-Day, my network connectivity decided to have a mind of its own. At a point, the interviewer had to say, “Abi village people de disturb your network?” It was hilarious. After the back and forth with my network, I was able to start my interview and before I could blink an hour had gone and I thought to myself, am I in an American movie where I am being interviewed? Because it was different from the norm. It was an interesting session and most importantly, I learned how to pronounce the name of the company for which I was applying.” 

Like most of the graduate interns for the AFEX Bar Raiser Program, Vision had a blast during onboarding. The one-week orientation program for this cohort of graduate interns delivered an immersive and interactive experience that allowed the new talents to connect to the company’s values, vision, culture, and job expectations. About his orientation, Vision states, 

“Joining the internship program, I had one thing in mind – to learn as much as possible and add valuable working skills to my skillset. My experience in the orientation program was surreal, from the welcome pleasantries I got from the team to the surprise package to the food, the fun, the conversational lectures, and extra-curricular activities. It was a top-notch experience. My key takeaway from that program was that hard work drives success.

Today, I am a product management intern and I work on one of AFEX’s technology stacks, ComX. I get to not only learn about how the system works but also apply what I learn to resolve real-life challenges logged by clients. I also collaborate with a team of fellow bar raisers on designing the WorkBench mobile app.

My journey so far has been all about learning – learning across the systems in my tribe, understanding the importance of teamwork, and eating a lot of cake. It is always fun to eat cake and I get to do that a lot here. I love the journey so far. The work culture here is impeccable and the mentality to BE BETTER, DO BETTER, is motivating. Being part of this team is amazing, AFEX cares for the E in the TEAM - "Everyone"

On his valuable tip for a future graduate interns, he says “have a growth mindset, be open to learning new things, and most importantly, be ready to be part of wonderful new work culture. Be mentally prepared to be thrown into a fast-paced world of business.”



Internship Experience: Vision Olufeagba Loves Impact and that Led Him to AFEX

AFEX, Nigeria's leading commodities market player has launched the one million Cocoa Tree Planting Initiative. The initiative would see AFEX plant one million cocoa trees across cocoa-producing regions in Nigeria.

The flag-off ceremony, hosted by His Imperial Majesty (H.I.M), Ooni Adeyeye Enitan Ogunwusi, Ooni of Ife, took place on Friday, 20 May at the Ooni’s palace in Ile-Ife, Osun State. The ceremony marked the beginning of a long-term commitment to reach 50,000 farmers in 5 years to enable their transition to sustainable cocoa farming production with immersive training on best agronomic techniques, assured access to finance, structured markets, and secure commodity storage.

“Our ambitious goal is to plant one million cocoa trees, starting with the first phase of distributing 200,000 cocoa seedlings to cocoa farmers. The seedlings are a product of 12 years of research and are of a high maturing variety. In about 18 months of field establishment, they start flowering and are able to produce 5 times the yield of earlier varieties used,” AFEX CEO Ayodeji Balogun said during the flag-off ceremony. 


>“In addition to the seedlings provided, we would monitor the planting and growing processes of these cocoa farmers. We are delighted to launch this initiative with the Government and key stakeholders to create an enabling environment where the cocoa industry can thrive.”

Balogun said Nigeria’s cocoa production levels are greatly affected by low productivity, lack of access to quality seedlings, inputs, and finance among other factors, hence, the initiative. 


>“The initiative is a novel approach to contribute to the protection, sustainability, and economic resilience of the entire cocoa ecosystem while improving the livelihoods of cocoa farming communities.  This is a lasting collaboration for value creation in Cocoa production, sustainability, trade, and the development of the entire agricultural ecosystem." 

“I am very impressed with the drive of AFEX. They are looking into the future and this initiative would have a great impact on Nigeria’s economy in another two to three years,” Ooni Adeyeye Enitan Ogunwusi said, while also commending the Osun State government and the Federal Government for the support of the program.

Osun State Commissioner for Agriculture and food security, Adedayo Adewole, speaking at the flag-off ceremony, said “our efforts to plant more cocoa trees would contribute significantly to the rebuilding of Africa's cocoa nation and the return of gold to our land. 


>“That’s why we are delighted to work along with institutions like AFEX to improve sustainable cocoa farming, improve livelihoods, and provide a safer, more secure environment for cocoa farmers. This is all about value creation, encouraging farmers and youths in the sector to strengthen their productivity.” 

AFEX has worked over the last 6 years to improve the livelihoods of smallholder farmers across Nigeria, by creating models that enable agriculture production and trade. Recently ranked first on the list of fastest-growing companies in Nigeria by the Financial Times, AFEX has provided support to over 350,000 farmers across major grain-growing states in Nigeria. The company has over 126 warehouses in Nigeria, and Kenya, with a storage capacity of 314,000MT.

Since its launch in 2014, AFEX has committed to levelling-up Africa’s agro-tech sector. By bridging the gap between Agro-processors and investors, AFEX boosts food security and makes food production more efficient.


WhatsApp Image 2022-05-20 at 8.58.54 PM.jpeg

PRESS RELEASE: AFEX Announces Planting of One Million Cocoa Trees for Cocoa Production and Sustainability in Nigeria

Like almost every single project at AFEX, the AFEX bar raiser program started up with the creation of a WhatsApp group. As Damilola, one of the committee members of the Bar Raiser Program and the Product Manager of the Exchange Crossing Network (ECN) describes;
 
>“I woke up one morning and saw that Ayodeji, the CEO, had added me and four other Xperts along with some management staff to a WhatsApp group. He told us to carry out research on the Amazon Bar Raiser Program on the internet and devise a plan to implement something similar for AFEX”

For people who are not intrinsically Amazon fanboys or girls, the Amazon Bar Raiser is a program that enables Amazon staff in different roles, ranging from human resources to software developers and product managers, to serve as third-party advisers during an interview process, thus presenting an unbiased point of view while hiring. The goal is to ensure that this unbiased process can bring in new hires with skills and abilities that could surpass their counterparts in similar roles within the organization.

#### The AFEX Twist

The awesome Xperts who came together to structure the Bar Raiser Program went further than their initial research to create a program that could potentially prepare Nigerian graduates for careers in the fields of product management, economics, corporate finance, and strategy. So, on one hand, there was strategizing about the hiring process and how to conduct an unbiased assessment of candidate skills and knowledge, and on the other hand, there was deep consideration around what it would take to ensure that successful candidates could get ahead in the talent pool, gain exposure, and be empowered with the skills and resources needed to succeed in a professional environment. 

 
“The AFEX Bar Raiser Program is essentially increasing the talent pipeline, not in terms of quantity but the quality of the people that join our organization on a yearly basis. The idea was to get a select group of young people who are passionate, energetic, and creative to join AFEX and contribute to our vision of building a sustainable, inclusive, and efficient market system for commodities in Africa,” said Michael, one of the Xperts behind the program and a Portfolio Manager at AFEX.

![Bar Raiser Picture.png](/uploads/Bar_Raiser_Picture_8a49b7d2fd.png)

#### Making the Idea Tangible

In bringing the idea for the AFEX Bar Raiser Program to life, the team spent6-weeks brainstorming and designing tests for applicants to take. This was, of course, followed by the different rounds of applications and the final selection of successful candidates. On the 4th of April 2022, we welcomed our new intern Xperts and launched into a week-long orientation to incorporate them into the AFEX culture. 

“We had to understand what the need was, what our realistic responsibility could be, and adapt the Amazon style. It was important to get the word out there about the graduate internship program and filter the applicants into the bucket of excellence” Damilola commented.

“This wasn’t a test you study for; it was something you are expected to know as a graduate. But we as Xperts had to take the test first too. We had over 600 applicants and for the first round, we selected 300 people based on their resumes and ability to qualify for these criteria. We started checking for bias in action, empathy, excellence, execution, and leadership, which are the attributes we prize quite highly in our organization.

We wanted impressionable and smart young professionals with a certain level of skill and competence, which they should have built before leaving school. The expectation is that after 6 months when they are settled into their roles, they would have the capabilities to move on to leadership roles and steadily climb the career ladder.” said Michael.

#### The Series

Today we have 14 graduate interns from the AFEX Bar Raiser Program, who are spread across our offices in Abuja, Lagos, and Ibadan. This story is the first of many to come, as we share their journey as AFEX graduate interns and learn what they’re looking forward to as they begin their career journey.

In the next story, you’ll be reading their personal stories and their internship experience so far. Stay tuned.






Internship Stories: Memoirs from the AFEX Bar Raisers Program

**Lagos, Nigeria – 26 January 2022.** Nigeria’s leading commodities player, AFEX, unveiled its Annual Commodities Outlook report for 2022 in an event on the 26th of January 2022, forecasting that the high food prices which have been caused by inflationary pressure would continue to spike in 2022.

The report predicts that the combination of rising inflationary pressure as Nigeria approaches the end of the petroleum subsidy, a possible naira devaluation in the parallel market, and increased demand pressure on commodities in the country, would increase the price of grains during the new 2021/2022 trading season. The annual commodity outlook by AFEX also alludes to price pressures being exacerbated by the fact of 2022 is a pre-election year, which will cause some market uncertainty. 

Speaking at the report launch, AFEX’s Vice President, Financial Markets, Oluwafunto Olasemo, explained that "the AFEX Annual commodities outlook is a yearly outlook that is shared at the start of each year to provide some perspective on how the commodities market performed in the previous year and how commodities may perform in the new year."

“The report's primary objective is to close a data gap in Africa's commodity sector and to give solid market intelligence to major stakeholders in the commodities value chain,” Olasemo said. 

Reviewing the previous year, the report showed that after the COVID-19-induced lockdowns were lifted in 2021, the Nigerian agriculture sector expanded by an average of 1.60 percent in the first three quarters of the year. Although this expansion was lower than the 1.72 percent recorded in 2020, it depicted some resilience compared to other significant sectors such as industry and services. Agriculture contributed an average of 25.35 percent to Nigeria's GDP in 2021.

Among other commodities, sesame seeds, fermented cocoa beans, cashew nuts, ginger, crude palm kernel oil, soyean, frozen shrimps and prawns drove overall agriculture exports between 2016 and 2021 and agriculture exports generated N1.79 trillion cumulatively for the country. During the same period, Nigeria's overall agriculture import cost was N3.78 trillion with a trade imbalance of N1.99 trillion, making Nigeria still a net food importer.

“Global food prices maintained a northward trend from July 2020 up until May 2021, reaching record highs adding to pressure on household budgets. Extreme weather conditions and COVID-19 induced disruptions in supply activities, all contributed to pressured prices, income losses and exacerbated food insecurity in 2021,” the report said. 

Providing an outlook for the new year, AFEX predicts that the new Omicron variant will have negligible impact on Nigeria's commodity supply chain. However, prices across commodities started the current season at a higher minimum base price than the previous season, owing to increased demand that has surpassed supply levels. The report indicates that the naira's depreciation against the US dollar and the CFA Franc has raised demand for most staple commodities, particularly sorghum. This will also help export commodities including cocoa, sesame, ginger, and cashew. 

“We believe other upside risks to domestic commodity prices this year are insecurity, FX rate deterioration, government policies. Also, the inability to close the supply shortfall by increasing harvest from dry season farming is a potential risk to pressured prices in 2022,” the report reads. 

Improving the productivity of Nigerian farmers is a key recommendation from the report to surmount the supply shortfall in most agro commodities value chains. AFEX advocates for the provision of inclusive services towards farmers, which should leverage technology infrastructure that works together to increase farmer productivity across the major grain-producing regions in Nigeria. The emergence of a more productive agro-sector in Nigeria requires a concerted effort from both the public and private sectors.


AFEX Releases Annual Commodity Review and Outlook for 2022

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.

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.

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.

![ayodeji_cocoa.jpeg](/uploads/ayodeji_cocoa_676621ae3c.jpeg)

“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.

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),

“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. 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.”

![afex_staff.jpeg](/uploads/afex_staff_e41372bf09.jpeg)

The Chairman of AFEX, Mobolaji Adeoye also spoke on the bigger picture of the Impact Report, stating that, “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.”

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.

The AFEX Impact report can be [downloaded here](https://drive.google.com/file/d/1SA7BY8dkYBImKqLqhnwr8ZoqbWNWzhO0/view)

##### About AFEX

At AFEX we harness Africa'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'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.

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.

AFEX Launches 5 Year Impact Report

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 - the 2021 Commodities Outlook - features the AFEX 2020 Commodities Review and 2021 Outlook all in one.

### AFEX 2020 Commodities Review

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.

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.

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.

![powdered_pepper_on_sale.jpeg](/uploads/powdered_pepper_on_sale_a7cc1c15a9.jpeg)

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).

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.

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.

![farmer_and_worker_pouring_harvesting_grains_into_a_sack.jpeg](/uploads/farmer_and_worker_pouring_harvesting_grains_into_a_sack_5bbacfecfa.jpeg)

### 2021 Outlook

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.

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.

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.

Access the [full report here](https://drive.google.com/file/d/1Yr1H-OayErPfTLFVAsOzHTLWGSj_foBo/view?usp=sharing).

Introducing the AFEX 2020 Commodities Review and 2021 Outlook

_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._

Maize (_Zea mays L._) 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).

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.

### Demand and Supply of Maize in Nigeria

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.

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's adverse effects have affected the quantity and price resulting in high demand and importation.

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.

### A Leveling Field for Production

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.

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.

![farmer_carrying_two_bags_of_commodity_on_their_heads.jpeg](/uploads/farmer_carrying_two_bags_of_commodity_on_their_heads_8d80a4eab6.jpeg)

### The Outlook for Maize

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.

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, [click here](https://drive.google.com/file/d/17BnJtEuhlwRxjK6hJo5kOs9Embl-8933/view?usp=sharing).

**Read Also:** [Introducing the Kaduna State in Focus Report by AFEX](https://afexnigeria.com/blog/introducing-kaduna-state-in-focus-report)

female_farmer_in_the_field_holding_maize.jpeg

AFEX Commodity Focus on Maize- the Goldmine of Feedgrains

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.

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.


![deji_shocked_in_a_meeting.png](/uploads/deji_shocked_in_a_meeting_c6dbbf67fa.png)

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.”

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”.

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.

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.

**Read Also:** [AFEX, Other Agriculture Sector Stakeholders to Operationalize Government’s AFJP Program](https://afexnigeria.com/blog/afex-other-agriculture-sector-stakeholders-to-operationalize-governments-afjp-program)

afex_executives_standing_behind_afex_branded_table.png

AFEX Rings the Bell for Financial Literacy

Last year we had the first ever AFEX harvest party intended to mark AFEX'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 - Pampaida and Saminaka - 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'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.

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.

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.

![farmer_holding_a_hoe_and_smiling_to_the_camera.jpeg](/uploads/farmer_holding_a_hoe_and_smiling_to_the_camera_6522373450.jpeg)

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 - 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.

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's operating environment, which will give room for agriculture stakeholders working within the state to continually strive for sustainable growth.

To read more on the Kaduna state in focus report, [click here](https://drive.google.com/file/d/1YEs60lrUKrTcjGC5C6RLBFo5yM5k9w_-/view?usp=sharing).

**Read More:** [COVID-19 and Commodities: Impact, Outlook and Recommendations](https://afexnigeria.com/blog/covid-19-and-commodities-impact-outlook-and-recommendations)

farmer_carrying_two_bags_of_commodity_on_their_heads.jpeg

Introducing Kaduna State in Focus Report

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.

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.

![deji_speaking_to_nta_and_the_press.jpeg](/uploads/deji_speaking_to_nta_and_the_press_6e7c83efcc.jpeg)

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.”

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.

![deji_and_afex_representatives_standing_with_a_guest_at_the_event.jpeg](/uploads/deji_and_afex_representatives_standing_with_a_guest_at_the_event_c8a97e7106.jpeg)

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.

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.

**See Also:** [COVID-19 and Commodities: Impact, Outlook and Recommendations](https://afexnigeria.com/covid-19-and-commodities-impact-outlook-and-recommendations)

afex_representative_wearing_branded_facemasks_and_caps.jpeg

AFEX, Other Agriculture Sector Stakeholders to Operationalize Government’s AFJP Program

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.

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.

![global_commodities_market_performance_from_2017_to_2020.png](/uploads/global_commodities_market_performance_from_2017_to_2020_7cf5ef0d11.png)

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.

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.

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.

Access our full report on COVID-19 and Commodities [right here](https://drive.google.com/file/d/1Ig8OSrAHQofRijm2-d-YWpidP0r3WSyH/view).

**Read More:** [AFEX Releases First Annual Commodity Review Report for 2019](https://afexnigeria.com/afex-annual-commodity-review-2019)

warehouse_manager_standing_beside_bags_of_commodities.jpeg

COVID-19 and Commodities- Impact, Outlook and Recommendations

**4th March 2020, ABUJA, NIGERIA** — AFEX Commodities Exchange Limited (AFEX) has announced a partnership with the Dubai Gold & 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.

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.

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.

![ceo_of_dubai_gold_and_commodities_exchange_talking_in_a_meeting_with_afex_executives.jpeg](/uploads/ceo_of_dubai_gold_and_commodities_exchange_talking_in_a_meeting_with_afex_executives_2ae5b42c16.jpeg)

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's second commodities derivative market, and this partnership sets the tone for that journey.”

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's stakeholders.”

![ceo_of_dubai_gold_and_commidities_exchange_shaking_hands_with_ceo_of_afex.jpeg](/uploads/ceo_of_dubai_gold_and_commidities_exchange_shaking_hands_with_ceo_of_afex_d8f4e8e1fa.jpeg)

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's capital markets.”

**See Also:** [AFEX meets with Investment Community in Abuja to Introduce New Platform](https://afexnigeria.com/afex-meets-with-investment-community-in-abuja-to-introduce-new-platform)

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AFEX Signs MoU with Dubai Gold and Commodities Exchange to Promote International Market Opportunities

**4th March 2020, ABUJA, NIGERIA** — 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.

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.

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.

![ceo_of_afex_and_ceo_of_fmdq_shaking_hands_and_holding_up_their_collaboration_agreement.jpeg](/uploads/ceo_of_afex_and_ceo_of_fmdq_shaking_hands_and_holding_up_their_collaboration_agreement_cc36171e3e.jpeg)

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'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's capital markets, promoting broad-based wealth creation that’s accessible to every Nigerian.”

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.”

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.

**See Also:** [AFEX Signs MoU with Dubai Gold and Commodities Exchange to Promote International Market Opportunities](https://afexnigeria.com/afex-and-dgcx-promote-international-market-opportunities)

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AFEX and FMDQ Sign MoU to Promote Product Innovation for Nigeria’s Capital Market

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.

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.

![corn_and_rice_in_bowls.jpeg](/uploads/corn_and_rice_in_bowls_07e76022fd.jpeg)

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 market education platform, EdEX. 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.

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.

“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.”

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'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.

The full AFEX Annual Commodity Review for 2019 can be accessed here.

**See Also:** [AFEX meets with Investment Community in Abuja to Introduce New Platform](https://afexnigeria.com/afex-meets-with-investment-community-in-abuja-to-introduce-new-platform)

woman_holding_a_sickle_and_standing_by_a_x_standpost.jpeg

AFEX Releases First Annual Commodity Review Report for 2019

2019: it's the end of a decade, it'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.

Why?

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.

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'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're so excited about.

### AFEX 2019 Impact Stories

##### Code Cash Crop 2.0

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 - financial inclusion - 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.

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.

##### AFEX Reports

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 weekly commodities price data for commodities traded on the Exchange. 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.

##### Xpert Sessions

This year saw the emergence of the Xpert brand - 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.

##### EdEX Launch

![akinyinka_sitting_with_three_men_introducing_Ed_EX.jpeg](/uploads/akinyinka_sitting_with_three_men_introducing_Ed_EX_3e07c15528.jpeg)
_AFEX 2019 Impact Stories: Educating the Market on Investing in Commodities_

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.

##### AFEX Website Redesign

In 2019, we successfully completed a website redesign that'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: Access and Retention, Big Data and Analytics, and Efficient Markets. 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.

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.

##### The 60 Decibels Report

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:

- 64% of our farmers say the quality of their lives have improved since working with us
- 50% of farmers would recommend us to a friend or family member
- 87% of AFEX farmers lived below $3.20 / day, showing a commitment by AFEX to reach and transact with farmers living in poverty
- Qualitative data revealed that producers valued products offered by AFEX and the monetary benefits that stemmed from them

![farmer_holding_a_hoe_and_smiling_to_the_camera.jpeg](/uploads/farmer_holding_a_hoe_and_smiling_to_the_camera_6522373450.jpeg)
_AFEX 2019 Impact Stories: Farmer Insights on AFEX Services_

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.

##### Taruwa Manoma

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.

##### 2019 Input Financing Programme

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.

We have run this programme since 2015, delivering continuous impact in unlocking input loans for farmers through financing from retail and institutional sources.

##### AFEX Harvest Party

![deji_talking_to_reporters_at_the_afex_harvest_party.jpeg](/uploads/deji_talking_to_reporters_at_the_afex_harvest_party_1b75af6691.jpeg)
_AFEX 2019 Impact Stories: Celebrating Harvest with Producers_

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.

##### Our Fundraising Round

To close out the year we were indeed proud to announce the close of our fundraising round 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.

We'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'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.

2019 Impact Stories - AFEX's Year in Review

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.

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.

![man_holding_a_pen_using_comx_on_his_phone.jpeg](/uploads/man_holding_a_pen_using_comx_on_his_phone_1f17e3a4ad.jpeg)

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.

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.

![deji_in_a_conference_meeting.jpeg](/uploads/deji_in_a_conference_meeting_8529ffa349.jpeg)

Is'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.”

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.”

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.

**See Also:** [AFEX Introduces Market Education Platform – EdEX](https://afexnigeria.com/press-release-afex-edex)

AFEX meets with Investment Community in Abuja to Introduce New Platform

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.

### Soybean Outlook Supply-Side Dynamics

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 - November.

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.

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.

### Soybean Outlook Demand Side Dynamics

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% - 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.

#### Strategy to Adopt

We recommend a dual strategy with an objective to achieve volume targets, but at a comparative price advantage to the competition.

1. Aggressive trade volumes but with a closed pricing approach, so the market isn't further upset.
2. Aggressive stock build-up at farm gate/AFEX Warehouse for shipment in June/July.

To get in touch with an AFEX representative, email [sop@afexnigeria.com](mailto:sop@afexnigeria.com)

**Read Also:** [Maize Outlook for the 2019/2020 Season](https://afexnigeria.com/maize-outlook-2019-2020-season)

soybean_in_a_bowl_poured_out_onto_a_packer.jpeg

Soybean Outlook for 2019/2020 Season

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.

### Maize Outlook Supply-Side Dynamics

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.

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.

In multiple large markets in the North West, the price started at ₦6,000 per 93Kg Bag or ₦65,000 per MT and quickly appreciated to ₦72,000 ending October. Now in mid-November, the price is N78,000. In the North East, prices are at ₦65,000 per MT with huge and increasing stock availability, however, we envisage that logistics will not readily available for volumes.

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 ₦78,000 per MT mid-November.

### Maize Outlook Demand Side Dynamics

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.

#### Strategy to Adopt

We recommend a dual strategy with an objective to achieve volume targets, but at a comparative price advantage to the competition.

- Aggressive trade volumes but with a closed pricing approach, so the market isn't further upset.
- Aggressive stock build-up at farm gate/AFEX Warehouse for shipment in May/June.

To get in touch with an AFEX representative, email [sop@afexnigeria.com](mailto:sop@afexnigeria.com)

**Read Also:** [Ginger Outlook for 2019/ 2020 Season](https://afexnigeria.com/ginger-outlook-2019-2020-season)

uncooked_corn_unshealthed_in_the_farm.jpeg

Maize Outlook for the 2019/2020 Season

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.

### Ginger Outlook Supply-Side Dynamics

Ginger cultivation was good with sufficient rainfall and many of the farmers increasing their farm holdings due to favorable prices in the preceding season.

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.

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.

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.

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.

Supply is expected to commence mid - end November/ early December and quick price appreciation is likely to characterize this season.

### Ginger Outlook Demand Side Dynamics

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.

Demand is expected to be higher than supply with attendant flight of prices within a short period.

### Strategy to Adopt

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.

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.

To get in touch with an AFEX representative, email [sop@afexnigeria.com](mailto:sop@afexnigeria.com)

**Read Also:** [AFEX Cocoa Outlook for 2019/2020 Season](https://afexnigeria.com/cocoa-outlook-2019-2020-season)

ginger_roots_with_powder_and_slices_on_wooden_board.jpeg

Ginger Outlook for 2019/2020 Season

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.

### Cocoa Outlook Supply-Side Dynamics

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.

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.

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.

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.

Overall, this season will be characterized by quick price appreciation, scarcity and high incidence of poor quality beans.

### Cocoa Outlook Demand Side Dynamics

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.

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.

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.

### Strategy to Adopt

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.

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.

To get in touch with an AFEX representative, email [sop@afexnigeria.com](mailto:sop@afexnigeria.com)

**See Also:** [Paddy Rice Markets in 2019: A Primer on AFEX’s Outlook](https://afexnigeria.com/paddy-rice-markets-2019-afex-outlook)

image_of_cocoa_courtesy_of_shutterstock.jpeg

AFEX Cocoa Outlook for 2019/2020 Season

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.

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:

- 56% year-on-year growth recorded over 2017
- 58% proportion of the total $178.44 million invested in startups in 2018 going to fintechs
- $103.41 million total investments recorded for fintech firms

![fintech_in_nigeria_infographic_by_afex.png](/uploads/fintech_in_nigeria_infographic_by_afex_64eb49d6c4.png)

Still, the global fintech industry is valued at approximately $40 billion leaving a lot of room for growth in Nigeria's own local industry.

### Impact of Fintech in Nigeria

Some other key considerations for the impact of fintechs include:

- **Promoting cashless systems**: The digital nature of fintechs will enhance the delivery of value via non cash channels.
- **Deepening financial inclusion**: Due to the lower transaction costs incurred by fintechs and the wider reach possible, they have significant ability to help expand financial inclusion.
- **Diversification of credit channels**: The emergence of fintechs have expanded the credit channels available with P2P lending gaining more credence.
- **Increasing Access to capital markets**: Fintechs operating in the investments landscape have expanded access to the capital markets via retail products.

### Fintech Challenges in Nigeria

![fintech_challenges_in_nigeria_infographic_by_afex.png](/uploads/fintech_challenges_in_nigeria_infographic_by_afex_ffa59360cc.png)

Some challenges hinder the impact that fintech solution providers can have in Nigeria. As contained in the report of the FinTech Roadmap Committee of the Nigerian Capital Market 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.

### Taking Fintech Impact to Rural Communities

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.

### Partnering with AFEX for Impact

To strengthen the position of financial services in these rural communities, fintech companies can work with partners like AFEX who are already transacting and providing solutions 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.

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.

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

**See Also:** [Financial Inclusion In Rural Agrarian Communities](https://afexnigeria.com/financial-inclusion-rural-communities)

women_holding_phone_talking_to_afex_representative.jpeg

Fintech in Nigeria - Reaching Rural Communities through Partnerships

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.

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.

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 ₦125,000 / MT as witnessed at the end of the past marketing year (2017/2018) to ₦140,000 / MT which we currently experience (2018/2019). By implication, supply side agents (farmers, traders and merchants) are faced with a more profitable year ahead.

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.

![paddyrice_market_chart_for_2019.png](/uploads/paddyrice_market_chart_for_2019_f0d05feb01.png)

**Source**: AFEX Research

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.

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.

To get in touch with an AFEX representative, email [sop@afexnigeria.com](mailto:sop@afexnigeria.com)

**See Also:** [Market Reports: What Our Weekly Com X Report Can Help You Do](https://afexnigeria.com/market-reports-afex-weekly-com-x)

Paddy Rice Markets in 2019 - A Primer on AFEX’s Outlook

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.

With Nigeria earning a score of 4.5 out of 9 in the World Bank'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.

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.

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.

### 5 Key Drivers for Digital Transformation

- Evolving customer behaviors and preferences
- Growth opportunities in new markets
- Increased competitive pressure (sector-oriented competition)
- New standards in regulatory and compliance requirements
- New emerging technologies

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.

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.

![comx_on_web_and_mobile.jpeg](/uploads/comx_on_web_and_mobile_9428747ce2.jpeg)

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.

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.

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.

These solutions for digitizing agriculture span five major use cases:

- Advisory services
- Market linkages
- Financial access
- Supply chain management
- Macro agricultural intelligence

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.

### AFEX Digital Solutions

![workbench_on_mobile_displayed_on_apple_phone.jpeg](/uploads/workbench_on_mobile_displayed_on_apple_phone_067a2850f1.jpeg)

##### WorkBench

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.

##### ComX

AFEX'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.

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.

**See More:** [Youth Employment in Agriculture: Opportunities and the Way Forward](https://afexnigeria.com/youth-employment-in-agriculture)

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Digitizing Agriculture in Nigeria for Better Outcomes

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.

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.

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.

>“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).

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.

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.

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.”

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: [Access and Retention](https://afexnigeria.com/access-and-retention), [Big Data and Analytics](https://afexnigeria.com/big-data-analytics), and [Efficient Markets](https://afexnigeria.com/efficient-markets). We believe that creating and enabling stakeholders to access solutions around these three core concepts will ensure that AFEX fulfils its vision of co-creating solutions to help Africa feed itself.

![afex_website_homepage.png](/uploads/afex_website_homepage_a168aa532c.png)

### Need to see in AFEX's New Home

##### Prices! Prices! Prices!

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's platform. Users who need further information on price trends can also access weekly and monthly reports on our [market page](https://afexnigeria.com/market).

##### Trybe Members

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 [Trybe members](https://afexnigeria.com/trybes-men) who embody our core values of empathy, excellence and execution.

##### Mission, Vision and how we've Done

To understand our work at AFEX it's necessary to know our vision and mission, which is proudly featured on the [about us page](https://afexnigeria.com/about) 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.

##### Solutions and Products

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 [AFEX products](https://afexnigeria.com/market#products-and-services) that fit their needs.

We are as committed as ever to making information about the growth and development of Nigeria'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's new home and please stay as long as you like.

**See Also:** [Empathy – The Secret Sauce in AFEX Culture](https://afexnigeria.com/empathy-in-business-afex-culture)

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AFEX's New Website Centers our Culture and Love for Data

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.

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.

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 & 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.

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 18th 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.

Participants at AFEX Trading Stories media workshop - the first initiative of EdEX

EdEX aligns with the Security and Exchange Commission’s focus 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.”

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.

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AFEX Introduces Market Education Platform - EdEX

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:

- 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.
- 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's agricultural sector. There is therefore a high incidence of poverty in households that are dependent on the agricultural sector.

We are changing this narrative at AFEX, but before we get to that...

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.

### Opportunities for Youth Employment in Agriculture

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.

#### Knowledge/ Research

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'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.

#### Credit/ Finance

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.

#### Technology

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.

#### Services

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.

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's image and yet more employment opportunities being generated to increase the space for youth employment in Agriculture.

**You should also check out:** [Market Reports: What Our Weekly Com X Report Can Help You Do](http://afexnigeria.com/market-reports-afex-weekly-com-x/)

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Youth Employment in Agriculture - Opportunities and the Way Forward

One thing that would no doubt interest followers of our Tweet Chat with Proshare - Nigeria’s leading financial information hub - on the 17th of April 2019 about Nigeria'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.

We shared some other necessary facts about our business and Nigeria's commodities market as people jumped in with their questions with the hashtags #AskAFEX and #AskProshare.

Here are some of the questions and our answers from our Tweet Chat with Proshare on Nigeria's Commodities Market.

### Kindly give us an overview of Nigeria's Commodities Market so far in 2019

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.

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.

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.

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.

### What has been the performance of the Commodities Exchange in 2019, how is this measured and what were the driving factors?

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.

### 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?

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 Proshare, BusinessDay etc.

![deji_speaks_at_businessday_post_election_outlook_conference.jpeg](/uploads/deji_speaks_at_businessday_post_election_outlook_conference_45e8bb1897.jpeg)

>AFEX Country Manager, Ayodeji Balogun, speaks at BusinessDay's Post-Election Outlook Conference

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.

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.

### 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?

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.

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.

### The Regulatory environment is very key for attracting critical investments into Nigeria's commodities market. Is the current framework incentivizing investments as expected and what more can be done?

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.

### Who are the major players on the Commodities Exchange and how has the interaction been within the Agriculture Value Chain?

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.

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.

### What is AFEX doing to increase the commodities traded on the exchange as well as its participants?

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.

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.

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.

### What is the process of participation for individuals and businesses on the Exchange?

Individuals or businesses interested in participating on the Exchange can either visit our website and hit the trade button

Or

They can send a mail to membership@afexnigeria.com stating their intention to be members and we will guide them appropriately from there

### What is your outlook for 2019 and what more should the investing community expect from AFEX this year?

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

### What should investors look out for when investing in Nigeria's commodities market?

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.

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.

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Highlights From AFEX/ Proshare Tweet Chat on Nigeria's Commodities Market

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.

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.

### How Empathy in Business helped us create better products

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.

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.

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.

### How Empathy in Business Helped us to Create and Sustain Relationships

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.

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.”

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 - 5 years.

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.

**Read Also:** [Women in Agriculture: Balance For Better Even on the Farm](http://afexnigeria.com/women-in-agriculture-balance-for-better/)

Empathy - The Secret Sauce in AFEX Culture

As in every relevant sphere of life, it is true that women in agriculture are important - 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.

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'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.

### Contributions of Women in Agriculture

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'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.

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's education. Hajara and many other women like her are proof that empowered women empower children and create a better future for us all.

### Challenges Faced by Women in Agriculture

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.

Some helpful statistics below:

According to The Permanent Secretary, Federal Ministry of Agriculture and Rural Development, Sunny Echono, "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."

SIDA's gender tool box points out that in developing countries women are estimated to own less than 20% of farmland and "farms managed by female-headed households are between half to 2/3 of farms run by male-headed households."

![Constraints_of_Nigerian_Women_Participation_974x873.png](/uploads/Constraints_of_Nigerian_Women_Participation_974x873_7c03bc4c81.png)

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.

### Looking Forward

The theme for International Women’s Day 2019 is Balance for Better. As the campaign website points out, "Balance is not a women's issue, it'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..." and, to put a fine-point to this article, a gender-balanced agricultural sector. Indeed "Gender balance is essential for economies and communities to thrive" and we at AFEX will continue to empower women to participate and grow in Agriculture as we have always done.

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'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.

Happy International Women's Day to women all over the world!

**Read Also:** SUCCEEDING TOGETHER – COMPANY RETREAT 2018 RECAP

Women in Agriculture - Balance For Better Even on the Farm

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.

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.

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.

### AFEX's logic for developing payment systems

Our logic in making financial inclusion part of the pillars of our services at AFEX is simple: smallholder farmers earn 70 - 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.

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.”

**Read Also:** Financial Inclusion In Rural Agrarian Communities

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Payment Systems - Abdul's Story and AFEX’s Financial Inclusion Intervention

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 [Central Bank of Nigeria](https://www.cbn.gov.ng/devfin/fininc.asp) 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.

### Financial Inclusion in Rural Communities in Nigeria

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.

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.

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.

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.

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.

**See Also:** AFEX Nigeria’s Hope for the New Year

Financial Inclusion In Rural Agrarian Communities

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 [BusinessDay](https://businessday.ng/) 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.

Agriculture is considered Nigeria's single largest economic sector. The sector has a potential to become Nigeria'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.

### AFEX's Goal in Sharing Commodities Market Reports

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.

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.

### Market Reports: Need for the AFEX ComX Report

After considering the immense potential of the commodities market in Nigeria, and AFEX'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.

#### Price Discovery

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.

#### Identify Market Trends

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.

#### Validate leanings and make informed decisions

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.

**Read Also:** [AFEX Nigeria’s Hope for the New Year](http://afexnigeria.com/afex-nigerias-new-year/)

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Market Reports - What Our Weekly ComX Report Can Help You Do

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 - making it easier for players in the commodities value chain to make informed decisions, and hedge against price fluctuations.

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.

### Investopedia’s Definition of a Commodities Exchange

[Investopedia](https://www.investopedia.com/terms/c/commoditiesexchange.asp) defines a commodities exchange as "a legal entity that determines and enforces rules and procedures for the trading of standardized commodity contracts and related investment products."

### Business Dictionary’s Definition of a Commodities Exchange

[Business Dictionary](http://www.businessdictionary.com/definition/commodity-exchange.html) 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.

### Key Words/ Phrases to Understand
- 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.
- 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.
- 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.
- 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.
- 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 - hard commodities which are raw materials that are mined or extracted like gold and oil, and soft commodities which include agricultural products and livestock.

### Putting it all together - What is a Commodities Exchange

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.

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.

### Benefits of Commodities Exchanges

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.

- 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.
- 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.
- Commodities exchanges provide the producers an opportunity to transfer their risk to the professional risk-bearers.
- By providing continuity in the trading of commodities, commodities exchanges induce bankers and financiers to lend against commodities.
- Commodities exchanges provide facilities and opportunities for arbitrating and thus equalizing the price levels of commodities at various centers

Consult our [FAQs](http://afexnigeria.com/faqs/) to learn more about commodities exchanges.

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A Definitional Guide To Understanding Commodities Exchanges

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 [2018 impact stories here](http://afexnigeria.com/2018-impact-stories-succeeding-together/). In 2019, however, we have plans to scale our operations and do even more, and as we share some of AFEX Nigeria's new year goals we present a little of what you can anticipate from the exchange in 2019.

# AFEX Nigeria's New Year Goals
## Scaling our input program

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.

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.

## Introducing a range of products for the Capital market

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.

These historical products, to be launched by AFEX Nigeria, will make investing in commodities accessible to all investors.

## Hosting Code Cash Crop for the 2nd time

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.

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.

Register to attend our Code Cash Crop panel here.

## Partnering with NEXIM on financing exports

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.

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.

## Setting up our food security fund

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.

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.

Happy new year from all of us at AFEX Commodities Exchange Limited.

AFEX Nigeria’s Hope for the New Year

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.

## Code Cash Crop

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.

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.

Code Cash Crop is being organized again for 2019, this time as a panel session 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.

## 2018 Wet & Dry Season Input Program

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.

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.

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.

## Post-harvest Training

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.

## Partnership with Binkabi and Sterling Bank on Blockchain for Agric

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.

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.

2018 IMPACT STORIES - SUCCEEDING TOGETHER

#CodeCashCrop. A first-of- its-kind workshop and meetup held last week on Thursday, 1st March 2018 in Lagos where over 90 corporates and startups in the finance and technology sectors connected with agriculture entrepreneurs to cocreate solutions that should boost the competitiveness of the agribusiness sector.

Hosted by AFEX Commodities Exchange, the only private commodity 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.

The Country Manager of AFEX Commodity Exchange, Ayodeji Balogun, says “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.”

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.”

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.”

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. We have reached 100, 000 farmers
and aggregated over 100, 000 metric tonnes of grain since 2015. AFEX increases the bargaining power of farmers and creates 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 & credit in addition to financial inclusion.

AFEX Commodities Exchange’s #CodeCashCrop

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.

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!”

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).

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.

An event worthy of note was the movie night that held the first night. The movie, “Money Ball” based off Michael Lewis'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.

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.

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.

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 & 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.

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)”.

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.

#SUCCEEDINGTOGETHER – COMPANY RETREAT 2018 RECAP

#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.

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.

The Country Manager of AFEX Commodities Exchange, [Ayodeji Balogun](https://www.proshareng.com/news/Agriculture/AFEX-launches--CodeCashCrop-to-Boost-Agriculture--Finance-and-Tech-Collaboration/38665), said “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.”

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.”

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.”

![farmers_pushing_a_plough_machine.jpg](/uploads/farmers_pushing_a_plough_machine_41172f9ef2.jpg)

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.

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 & credit in addition to financial inclusion.


Events