By Onome Amuge.
AFEX, Nigeria’s leading commodities player, has highlighted the need for streamlined trade, harmonised standards, and improved infrastructure in African agriculture to foster food security across the continent.
The private commodities exchange firm took this position during a high-profile session themed “The Real Cost of Food Security ” in preparation for the forthcoming African Food System Forum (AGRF) 2023, centred on the intra-African trade which stands at just 14.4 per cent of total African exports, according to market data.
Speaking at the session,Sanne Steemers, president of Rest of Africa at AFEX, said Africa currently lacks essential infrastructure for inter-continental trade, which is hindering the achievement of robust food security across the continent.
Steemers recommended the implementation of a more efficient agreement with African communities,noting that this would promote sub-regional production networks and encourage cooperation initiatives, while promoting good agricultural practices throughout the continent.
Samirah Ade-Adebiyi, managing director, AFEX Investment Limited, said the company’s primary mission is to contribute to Africa’s self-sufficiency in food production. To achieve this objective,she emphasised the importance of tackling three fundamental challenges including financing, storage infrastructure, and facilitating market access.
“We have successfully implemented solutions to address these challenges in Nigeria, Uganda, and Kenya. Looking ahead, we are excited to announce our expansion into Cote d’Ivoire this year, marking a significant step towards realising our vision of establishing a presence in 10 African nations within the next five years, thus fostering and enhancing regional trade,” Ade-Adebiyi added.
Concerning the formation of a recent partnership with Ghana Commodities Exchange, AFEX said the move is rooted in the unwavering belief that together,African commodities players can catalyse transformative change.
AFEX stated that the partnership has been structured to facilitate cross-border knowledge exchange, foster synergistic research endeavours, and enable the seamless cross-listing of commodities, heralding a new era of progress and prosperity for Africa’s agricultural landscape.
The first licensed private commodities exchange in Nigeria also reiterated its commitment to enhancing trade within Africa by utilising its distinctive exchange model to enter new African markets, highlighting its strategic Pan-African expansion objective of setting up in ten African countries within the next ten years.
According to the United Nations Conference on Trade and Development (UNCTAD), the African Continental Free Trade Area (AfCFTA) could boost intra-African trade by about 33 per cent and cut the continent’s trade deficit by 51 per cent.
Dwelling on this, AFEX stated that its expansion goal is aimed at setting a solid foundation for transparent and inclusive agricultural commodity systems to make trade easier and increase opportunities for farmers by setting grading standards, establishing fair prices, and using advanced technology for quick and efficient trading while strengthening intra-African trade in line with the AfCFTA’s goals.
