Business a.m
AFEX, a leading Nigerian commodities market player, has announced the signing of a Memorandum of Understanding (MoU) with the Kano State Investment and Properties Limited (KSIP), a special purpose vehicle owned by the Kano State Government.
The MoU signing between AFEX and KSIP, which was held recently at the AFEX Abuja office, reflects both organisations’ commitment to driving growth in the commodities sector and agriculture in Nigeria.
AFEX and KSIP will work together to ensure that the commodities sector in Kano State grows, leading to economic development and job creation. The MoU is expected to benefit Kano State’s economy by helping to increase revenue, create jobs, and drive development. AFEX and KSIP will work together to provide access to financing for smallholder farmers and commodity businesses, as well as create market linkages for farmers.
Beyond capacity building and increased revenue generation, the MoU also includes provisions for AFEX and KSIP to explore debt capital raise opportunities on the Exchange. These opportunities will focus on projects and operations related to the commodities sector in Kano State.
Despite being a key producer of staple consumption commodities like maize, paddy rice, sorghum, soybean, and sesame, as well as export commodities like groundnut, Kano State faces numerous challenges that limit its production and export capacity. These challenges include droughts, limited storage facilities, low fertiliser application, and lack of access to high-quality seeds.
The KSIP was established to promote industrial and commercial activities in Kano State through the facilitation of direct equity investment and assistance to entrepreneurs in the fields of industry, commerce, and agriculture. With the signing of the MoU with AFEX, the KSIP is set to drive financing into the agriculture sector to increase productivity and drive economic development in the state.
Commenting on the partnership, Auwalu Muktari, managing director of 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 precedence to revive the agriculture sector, leveraging adequate human and capital resources to enhance economic productivity and generate value for the state.”
Speaking at the MoU signing, Ayodeji Balogun, the group CEO of AFEX, expressed his excitement at the prospect of collaborating with the Kano State Investment and Properties Limited to increase efficiency and innovation across the commodity value chain in Nigeria.
He added; “Our exchange model, which we will be deploying during this project, provides a centralised 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.”
