Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
Enhanced business methods broaden horizons beyond subsistence level
Upon hearing about AFEX Commodities Exchange, Ige Akinwale Benson, a cocoa farmer from Nigeria, initially dismissed the company as dubious. The offer seemed too good to be true. However, AFEX, ranked as Africa's fastest growing company by the FT, provides loans to smallholder farmers for purchasing seeds, fertilizers, and pesticides. Furthermore, AFEX purchases their produce at market prices, stores it in warehouses, and transports it to the market.
Such services are commonplace in developed economies, but in Nigeria, where an estimated 34.5 million smallholder farmers exist, this package is revolutionary. Agriculture holds immense importance in a country where approximately 70 percent of the population (220 million people) is engaged in the sector, mostly at subsistence level, according to the UN's Food and Agriculture Organization (FAO). Challenges such as limited financing, inadequate access to farming inputs and markets, and a lack of warehouses are widespread issues, as identified by the FAO.
Since joining AFEX's system in 2019, Benson has overcome the obstacles that have perpetuated poverty within his family for generations. Previously, their annual income amounted to about 1.2 million naira ($1,463), but now they earn between 4.5 million ($5,488) and 5 million ($6,098) naira. Benson, who cultivates approximately 65 acres in the village of Ajue, Ondo state, emphasizes that he uses the money wisely, saving it in a bank account. He has acquired a house and a car, and intends to invest in his children's education by sending them to better schools.
Founded in 2014, AFEX achieved a compound annual growth rate of 502 percent between 2018 and 2021, according to the Financial Times and Statista. Its president and group chief financial officer, Kunle Adesuyi, aims to raise $75 million in equity and debt by the end of the year, potentially from international investors.
AFEX's business model centers around integrating Nigerian farmers into an interconnected agricultural system, thereby lifting them out of isolation and subsistence. After farmers register on AFEX's platform, they undergo months of training on crop selection, suitable seeds, fertilizers, fungicides, pesticides, flood prevention, pest control, and post-harvest loss reduction, among other competencies. Rather than providing money, AFEX offers loans in the form of farm inputs, such as seeds and fertilizers, with an annual interest rate of 15 percent. When farmers sell their produce to AFEX after harvest, the cost of the inputs plus interest is deducted from the sum they receive.
Applying improved farming inputs has led to a significant increase in crop yields. Around 500,000 farmers registered on AFEX's platform produced approximately 500,000 tonnes of crops last year, up from 307,000 tonnes in 2021, as stated by Adesuyi.
AFEX has addressed the issue of post-harvest waste through its network of warehouses, which have a total capacity of 600,000 tonnes. These warehouses store various harvested crops, including cocoa, sesame, cashew, ginger, rice, sorghum, coffee, and barley. Before the establishment of these warehouses, post-harvest losses due to inadequate storage reached as high as 40 percent. However, after implementing AFEX's methods, the waste percentage has significantly reduced.
While AFEX is a prominent player, it is not the sole company in this domain. ThriveAgric, backed by California-based start-up accelerator Y Combinator, has a database of 514,000 farmers and operates in 26 Nigerian states, according to its CEO, U
