AFEX, Kano State Investment and Properties Signs MoU to Revive Commodities Sector

Gilbert Ekugbe

AFEX, Nigeria’s leading commodities market player, has announced the signing of a Memorandum of Understanding (MoU) with the Kano State Investment and Properties Limited (KSIP).

The MoU signing, which took place on the 21st of February at the AFEX Abuja office, is aimed at fostering cooperation and partnership for the development and growth of the commodity sector within Kano State.
This MoU signing reflects AFEX and the KSIP’s commitment to driving growth for the commodities sector, and largely agriculture in Nigeria.
Under this partnership, AFEX will deploy its capacity to revitalize the commodities ecosystem in Kano State, identifying idle and untapped commodity assets, deploying infrastructure development, market expansion, and a feasible market for commodity trading and commerce.
In addition, the partnership will also see AFEX and Kano State work to explore debt capital raise opportunities on the Exchange, focusing on funding projects and operations related to the commodity sector.
Speaking on the partnership, Auwalu Muktari, Managing Director, Kano State Investment and Properties Limited said, “A core focus for us for KSIP has always been securing wealth for the people of Kano State. This partnership with AFEX sets a precedence to revive the agriculture sector, leveraging adequate human and capital resources to enhance economic productivity and generate value for the state.”

Kano is a key producer of staple consumption commodities like Maize, Paddy Rice, Sorghum, Soybean and Sesame, and export commodities like groundnut, however, challenges across droughts, minimal storage, low fertilizer application and lack of quality seeds limit production and export capacities.

The KSIP was set up to promote industrial and commercial activities in the state through facilitation of direct equity investment and assistance to entrepreneurs engaged in industry, commerce, agriculture, and through this partnership, the KSIP is set to drive financing to the agriculture sector to boost productivity.

Present at the MoU signing, Ayodeji Balogun, Group CEO AFEX, expressed, “we are delighted at the opportunity to collaborate with the Kano State Investment and Properties Limited to increase efficiency and innovation across the commodity value chain in Nigeria. Our exchange model, which we will be deploying during this project, provides a centralized platform for farmers, aggregators, and processors, to engage in transparent and efficient trading and improve fair pricing across the value chain, while providing a path to unlocking the significant capital required for such a project.”

AFEX’s commitment to leveraging technology aligns with the broader goal of enhancing productivity for farmers and strengthening the agricultural sector in Nigeria. By facilitating efficient input access, AFEX empowers farmers to increase their yields and improve their livelihoods. This partnership sets the foundation for an inclusive commodities ecosystem for Kano, utilizing home grown models and expertise to deliver a more efficient and inclusive value chain that works for all players and enriches Nigeria.

AFEX is a platform business that enables efficient trade for commodities in Africa. Solutions start at producer level, ensuring improvement in productivity and livelihoods while building up commodity volumes in the right quality and quantity for local and regional trade.

Operating through 3 business units, AFEX addresses the challenges faced by smallholder farmers, providing better access to inputs, credit facilities, micro-insurance, storage services, training, and markets. Partnership with different key players across the agricultural value-chain, including processors, logistics service providers, financial institutions, and regulatory authorities, makes our goal of supporting Africa’s food security possible.

A range of clients and members also trade physical commodities and commodity contracts through AFEX’s technology platforms as AFEX continuously bridges the gap between the capital market and the commodities market; unlocking finance for production, trade, processing and export of commodities.