AFEX secures new investment for commodity markets

Collins NwezeAFEX Commodities Exchange Limited (AFEX), a market leading commodity exchange in Nigeria, has secured new investment from Consonance Investment Managers, a Sub-Saharan Africa focused early-stage and growth investment firm.The fund will be used to increase liquidity of the commodity markets and strengthen the firms operations and technology systems.In a statement, the company explained that with more participation in the sector, more innovative products will be listed over time, translating to growth for Nigerias capital market and increased funds being directed towards the agricultural sector in the country.AFEX will ease the access of retail and institutional investors to the commodity markets in Nigeria by deploying its established infrastructure to securitize agricultural products, ensuring efficient and transparent clearing and settlement.AFEX Chief Executive Officer, Ayodeji Balogun said: We are delighted to welcome Consonance Investment Managers as partners on this journey. The future requires AFEX to provide our infrastructure as a service to the market and unlock capital for the agriculture sector in Nigeria. We will grow our operations 10-fold over the next five years; we also aspire to increase funding to agriculture in Nigeria from about N500 billion (US$1.5 billion) to more than N2 trillion (US$ 7.5 billion) by 2025 .Managing Partner at Consonance Investment Managers, Mobolaji Adeoye, said: We are proud to support Ayodeji and the AFEX team in their mission to transform Nigerias agricultural sector. AFEX increases trust and transparency in local agricultural supply chains by connecting farmers to market. AFEX has established the infrastructure which will undergird Nigerias food security agenda and the Central Bank of Nigerias economic diversification programme. It will also be vital in deepening capital markets in line with the mission of the Securities and Exchange Commission of Nigeria.This key part of AFEXs operations requires the deployment of funds towards market sensitisation, training and product development.To support the growth and stability of its systems, AFEX will also continue to build out technology solutions that support traceability: covering activities all the way from the financial inclusion of producers, through the outreach operations, and AFEXs warehouse receipt system, to a trading platform that fosters shared prosperity between producers, processors and investors.
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