British International Investment (BII), the UK’s development finance institution, has pledged a substantial investment of $26.5 million to AFEX, Africa’s foremost commodities platform. This collaboration aims to drive structural improvements in Africa’s agricultural sector, providing significant benefits to smallholder farmers and ultimately enhancing food security across the continent.
Key Points:
- AFEX’s Prominent Role:
- AFEX currently operates a network of over 200 warehouses across Nigeria, Kenya, and Uganda, serving over 450,000 farmers. This commitment from BII will significantly bolster AFEX’s capabilities in supporting agricultural development.
- Strategic Warehouse Expansion:
- BII’s investment will be instrumental in constructing 20 modern warehouses strategically located in Nigeria, Kenya, and Uganda. This capital infusion will also facilitate the adoption of cutting-edge warehouse technology and advanced software for precise post-harvest pricing.
- Empowering Smallholder Farmers:
- Smart storage solutions hold the potential to extend the shelf life of harvested crops, leading to increased food availability. The additional warehouses will provide capacity for 230,000 metric tonnes of storage, benefiting up to 200,000 more farmers and potentially raising their incomes by over 200 percent.
- Significance of Supporting Smallholder Farmers:
- Agriculture forms a substantial part of the GDP in Nigeria, Kenya, and Uganda, employing 70 percent of their populations, with 80 percent being smallholder and subsistence farmers. These farmers often face challenges like market access limitations and price fluctuations in agricultural inputs.
- Impact on Local Economy and Employment:
- The construction of storage facilities and soybean processing plants in Nigeria and Uganda will generate over 700 temporary jobs and more than 80 permanent positions, contributing significantly to local economic development.
- Addressing Food Import Bill:
- BII’s commitment aligns with the goal of reducing Africa’s significant food import bill, estimated at approximately $30 billion. By empowering smallholder farmers and enhancing local food production, this investment aims to foster self-sufficiency.
- UN Sustainable Development Goals (SDGs):
- This investment aligns with several UN SDGs, including Zero Hunger (SDG2), Decent Work and Economic Growth (SDG8), and Responsible Consumption and Production (SDG12).
Conclusion:
The partnership between British International Investment and AFEX represents a substantial step towards strengthening food security and agricultural development in Africa. Through targeted investments in modern warehouses and advanced technologies, this initiative is poised to bring about positive transformation, benefiting both smallholder farmers and the broader economy. The commitment to UN SDGs underscores the significance of this collaboration in achieving sustainable and inclusive growth across the continent.