The British International Investment (BII), a UK development fund, has committed KES 3.99 billion (USD 26.5 million) to establish modern warehouses in Kenya, Nigeria, and Uganda. This investment is a collaborative effort to combat post-harvest crop losses and food insecurity in Africa.
Afex, Africa’s commodities platform, which manages more than 200 warehouses across these nations, will receive the funding. The objective is to support smallholder farmers by providing upgraded storage facilities and advanced technology solutions. Afex currently serves more than 450,000 farmers, and this financial injection has the potential to transform agriculture in the region.
BII’s investment comes at a critical juncture, as the World Bank reports that Africa’s food import bill has surged to USD 30.0 billion in recent years. Small-scale farmers in Africa have long grappled with challenges, including inadequate storage options, limited market access, and fluctuating incomes due to poor harvests, hindering the region’s ability to meet food demands and attain self-sufficiency.
Afex’s mission, supported by BII, is to modernize agriculture in Africa by building technologically advanced warehouses and vital facilities. These facilities will increase storage capacity, adding 230,000 tonnes of storage space and enabling an additional 200,000 farmers to access cost-effective storage for their harvests. This, in turn, will boost the sales of agricultural produce and increase farmer incomes.
RELATEDPOSTS
Ayodeji Balogun, CEO of Afex, stated, “This investment from BII is a milestone in our mission to transform agriculture and enhance food security across Africa. By directing fresh capital towards the development of technologically advanced warehouses and critical facilities, we significantly improve market access and income potential for smallholder farmers.” The focus on technology-driven solutions in agriculture aligns with the growing need to reduce food import costs in Africa.
Nick O’Donohoe, BII’s CEO, stressed the importance of supporting companies like Afex, which empower smallholder farmers to increase local food production and, in the process, boost their incomes. The investment not only addresses infrastructure development but also job creation and economic growth. BII’s capital will be utilized to construct a soybean processing plant in Ibadan and a drying facility in Uganda, creating over 700 temporary jobs and more than 80 permanent positions.
This investment in African warehouses represents a comprehensive strategy to address the challenges facing smallholder farmers in Africa. By improving storage, enhancing market access, and utilizing advanced technology to enhance post-harvest pricing, BII and Afex are taking a significant step towards ensuring food security on the continent.
