ELECTRONIC WAREHOUSE RECEIPT

proj2AFEX Nigeria is now licensed as West-Africa’s first private commodities exchange by the Nigerian Securities and Exchange Commission. We have established a network of warehouses running the electronic warehouse receipt system, with a focus on offering collateral and inventory management, agricultural financing services, and commodity trading.Currently, through partnerships with international development partners.

AFEX Nigeria is now licensed as West-Africa’s first private commodities exchange by the Nigerian Securities and Exchange Commission. We have established a network of warehouses running the electronic warehouse receipt system, with a focus on offering collateral and inventory management, agricultural financing services, and commodity trading.Currently, through partnerships with international development partners.

REGISTERED FARMERS

AFproject1EX has over 25,000 registered farmers within its network, and plans to scale up to 250,000 farmers within three years. Farmers who store in AFEX accredited warehouses at harvest period realize up to 25% increase in income and additional 7 – 15% reduction in post-harvest losses.We offer contracts in an over-the-counter (OTC) market, and will progress to offering forward and futures contracts as our operations mature.

ACCESS TO AGRICULTURAL CREDIT

We are positioning our exchange in Nigeria to become a model for other ECOWAS countries, including Ghana. To facilitate access to agricultural credit using the electronic warehoumarketse receipt, AFEX Nigeria has anagreement with UBA to provide credit facilities of up to ₦5,000,000 to registered traders and farmers .Negotiations with additional banks have reached advanced stages and are ongoing.

 

IMPACT

30,000 farmers skilled-up on reducing post-harvest losses

 AFEX trained about 30,000 farmers in 2 major grain producing areas on reducing post-harvest losses, increasing incomes and gaining access to finance. This was driven through an outreach programme designed in collaboration with development partners.

 

15,000 farmers linked to trade on the e-WRS

 AFEX registered 15,000 smallholder farmers on the e-WR portal and Mobile Wallet accounts; currently with an adoption rate of less than 10%, and huge growth potential. We will scale this up to 100,000 farmers by end of 2015, and up to 250,000 farmers in 2016. This will translate to over USD 100 million in sales by 2016, and USD 25 million increased income to the rural communities.

Access to financing of over $350,000 using grains as collateral

 Though our network of warehouses nationwide, we provided aggregation, treatment and storage services that qualified farmers’ grains to be used as collateral for loans of up to 75% of the stored value.

Direct and indirect employment for over 150 Nigerians

 We created 33 direct jobs between the Abuja head office and the warehouses, and another 100+ indirect jobs, including laborers, truck drivers, 3rd party security agents, contract outreach officers etc.

PLANNED ACTIVITIES

We are on course to achieving a throughput of 100,000 metric tonnes in our first year, while we work towards an ambitious target of 500,000 metric tonnes by the end of 2017.

AFEX Nigeria is also in the process of creating a national commodity exchange to link its warehouses with larger commodity markets within Nigeria, West and East Africa, and the world. This exchange will be powered by the NASDAQ OMX X-Stream trading platform and accessible to traders worldwide.