A $26.5 million partnership has been signed by AFEX, a Nigerian commodities trading platform, the United Kingdom’s development finance institution (DFI) and the British International Investment (BII) to assist small-scale farmers across Africa. BII stated that the investment will be used to promote structural developments in the agricultural industry that is in Africa. Hence, the investment will enhance food security efforts and support small-scale farmers. The investment will also entail launching and development of a soybeans processing plant in Nigeria south-western state, Ibadan, in 2025.
Also, the investment will be implemented towards constructing 20 modern warehouses in countries like Uganda, Kenya and Nigeria, as stated by the UK firm. The warehouses will be used along with AFEX’s warehouses, which are more than 200 in the aforementioned countries. BII is optimistic that the fund will also avail next-generation software and warehouse technology that targets post-harvest pricing. It was stated that there is potential in smart storage solutions for preservation of the lifespan of harvested crop.
It will increase the incomes of the farmers by over 200 percent.
Additional warehouse, according to the investment company, will generate 230,000 MT of storage capacity which will equip about 200,000 farmers to have access to low-cost storage and maximization of sales from crop harvest. Significantly, it will increase the incomes of the farmers by over 200 percent. BII announced that it is vital to assist small-scale farmers to attain a fair wage. This is to guarantee that the farmers remain in operation and ensure production of higher quality crops for local consumption.
According to BII, agriculture in Uganda, Kenya and Nigeria is accountable for a quarter of GDP and ensures employment of 70 percent of their populations, of whom 80 percent are subsistence and small-scale farmers. Currently, due to poor reliability on sales from crop harvests, limited market access and macroeconomic uncertainty, farmers encounter a difficult financial outlook. Consequently, incomes of farmers are greatly affected by the extreme weather events and inflation of the prices of agricultural inputs, even as yields have fallen.
State of emergency on food security was declared by Nigerian President.
More so, the development of a soybean processing plant in the third-largest city by population in Nigeria, Ibadan, and the construction of a drying facility in Uganda will be initiated through the capital. The impact investment firm hopes to see the soybeans and storage processing facilities yield more than 80 permanent roles and 700 temporary jobs. 25 million Nigerians were projected by the United Nations Children’s Fund (UNICEF) to likely experience hunger around June and August this year if measures are not taken.
The World Bank announced that 64 million Nigerians are in danger of emergency nutritional and food assistance as a result of the effects of increasing inflation of prices of goods, climate change, and many more factors. Thus, a state of emergency on food security was declared by President Bola Tinubu on July 13 this year. Owing to the declaration, the national security council (NSC) purview of matters included concerns of essential livelihood items, affordability and availability of water and food. According to the federal government, savings that were generated from petrol subsidy removal will be used to revamp the agricultural sector.
Agricultural productivity in Nigeria will be enhanced by investment.
However, the declaration of a state of emergency on food security was viewed as a restatement of the vulnerability of Nigeria’s food ecosystem by some experts. The British deputy high commissioner in Lagos, Jonny Baxter, restated that the investment will bolster food security and support agricultural productivity in Nigeria. Baxter said that agricultural sector takes a vital position in the economy of the country, acting a major role in investment potential and job creation. BII’s chief executive officer, (CEO), Nick O’Donohoe, stated that Africa’s food import bill was estimated by the World Bank to have reached $30 billion.
Related Link
British International Investment: Website
Nigerian company partners with DFI and BII. – Investment will promote development in Africa’s agricultural industry. – Express your point of view.
This $26.5 million partnership between AFEX, a Nigerian commodities trading platform, and UK-based development finance institutions is a positive step toward supporting small-scale farmers across Africa. It’s essential to promote structural developments in the agricultural industry to enhance food security and improve the livelihoods of small-scale farmers. The construction of warehouses and soybean processing plants will contribute to better storage and income generation for farmers, which is crucial given the challenges they face. Agriculture plays a vital role in Nigeria’s economy, and this investment will help boost productivity and food security.
this agricultural investment is a positive development. Improving food security and addressing growing food costs are imperative. Our economy depends heavily on agriculture, therefore this collaboration might be beneficial.
It sounds like this collaboration between BII, DFI, and the Nigerian enterprise will revolutionize the agricultural sector in Africa. The money being invested to advance growth and enhance agricultural methods is encouraging.
That’s fantastic news! The partnership between the Nigerian company, the Development Finance Institution (DFI), and the Business Innovation and Investment (BII) will undoubtedly have a significant positive impact on the development of Africa’s agricultural industry. Agriculture plays a crucial role in the continent’s economy, providing employment opportunities, ensuring food security, and contributing to overall economic growth.
Investments in the agricultural sector have the potential to transform the industry, improve productivity, and create sustainable value chains. By partnering with reputable institutions like the DFI and BII, the Nigerian company is demonstrating its commitment to driving innovation, promoting inclusive growth, and harnessing the full potential of Africa’s agricultural resources.
This partnership can bring several benefits to the agricultural industry in Africa. First and foremost, it can provide much-needed financial support to farmers, agribusinesses, and other stakeholders in the value chain. Access to affordable credit and investment capital is crucial for the adoption of modern farming techniques, the acquisition of quality inputs, and the expansion of agricultural operations. By facilitating access to finance, the partnership can help unlock the untapped potential of the agricultural sector, enabling farmers to scale up their production and improve their livelihoods.
Additionally, the collaboration between the Nigerian company, DFI, and BII can bring technical expertise, knowledge sharing, and capacity building opportunities to the agricultural industry. This can include training programs, mentorship initiatives, and the transfer of best practices in areas such as sustainable farming methods, agribusiness management, and market access. By equipping farmers and entrepreneurs with the necessary skills and knowledge, the partnership can enhance their competitiveness and enable them to seize opportunities in both local and international markets.
Importantly, this partnership aligns with the broader goals of sustainable development and climate resilience. By promoting sustainable farming practices, resource efficiency, and climate-smart agriculture, the Nigerian company, DFI, and BII can contribute to mitigating the environmental impacts of agricultural activities and ensuring the long-term viability of the sector.
Overall, I believe that this partnership between the Nigerian company, DFI, and BII holds great promise for Africa’s agricultural industry. It demonstrates a commitment to driving inclusive and sustainable growth, empowering farmers, and unlocking the