British International Investment Commits $26.5 Million to Boost Food Security in Nigeria, Kenya, and Uganda
The British International Investment (BII), the UK’s development finance institution, has pledged a significant investment of $26.5 million to support AFEX, an agricultural commodities exchange. This commitment aims to enhance food security in Nigeria, Kenya, and Uganda by bolstering the agricultural industry’s infrastructure, particularly benefiting smallholder farmers and contributing to overall regional security.
Key Points:
- Warehouse Expansion: The BII’s investment will facilitate the construction of 20 new warehouses strategically located in Nigeria, Kenya, and Uganda. Currently, AFEX already operates over 200 warehouses in these countries, serving more than 450,000 farmers.
- Technological Advancements: The capital injection will also be directed towards upgrading warehouse technology and implementing cutting-edge software for post-harvest pricing, thereby improving storage efficiency and optimizing agricultural practices.
- Impact on Food Preservation: Smart storage solutions are poised to extend the shelf life of harvested crops, ultimately leading to an increase in the volume of available food supply.
- Expanded Storage Capacity: The additional warehouses are projected to provide storage space for up to 230,000 metric tonnes of agricultural produce. This expansion will enable an additional 200,000 farmers to access affordable storage solutions, maximizing sales from their crop yields.
- Income Boost for Farmers: By investing in storage infrastructure, farmer incomes are anticipated to surge by over 200 percent, providing a substantial financial uplift to smallholder farmers and reinforcing their crucial role in local food production.
- Addressing Economic Challenges: Agriculture constitutes a significant portion of GDP in Nigeria, Kenya, and Uganda, employing 70 percent of their populations, particularly smallholder and subsistence farmers. These vital contributors face challenges such as market access limitations, economic uncertainty, and unreliable sales outlets for their harvests.
- Additional Ventures: The capital infusion will also be allocated towards the establishment of a soybean processing plant in Ibadan, Nigeria, and a drying facility in Uganda, enhancing processing capacities and adding value to agricultural produce.
Conclusion: The BII’s substantial investment in AFEX represents a pivotal step towards bolstering food security in Nigeria, Kenya, and Uganda. By addressing critical issues in agricultural infrastructure, the initiative aims to empower smallholder farmers, increase their incomes, and fortify the region’s overall economic stability. Additionally, the adoption of innovative storage solutions underscores the commitment to sustainable agriculture and long-term food security.
