AFEX, commodities exchange and commodities market, has opened a shop in Uganda — seven months after it first entered the East African market.
AFEX’s entry into Uganda is the latest in a series of planned expansion to 10 African countries over the next five years, with the firm seeking at building on its success in Nigeria and Kenya.
In its first year of operations, AFEX Uganda aims to reach 10,000 farmers and aggregate 15,000 metric tonnes of commodities, while extending its aggregation, storage, and financial inclusion services to Ugandan farmers and processors.
AFEX said it will implement its scalable model that combines advanced technology and infrastructure with a unique understanding of Africa’s food systems and local markets to replicate its successes in Nigeria and Kenya to Uganda.
AFEX also targets working closely with local and international partners, noting that its operation will focus on maize, sorghum, soybeans, barley, and coffee, with maize being the initial priority.
Citing a report by the International Trade Administration, AFEX pointed out that Uganda is lacking the necessary infrastructure in storage, credit, and access to markets to sustain food production.
Several warehouses in Bulambuli and Kapchorwa districts in Eastern Uganda, and in Lira district of Northern Uganda have been opened.
Also, under the leadership of Abdul-Hafeez Odusanya, managing director, AFEX Uganda, the commodities market player will introduce its range of solutions including its technology platform, WorkBench, to enable farmers to participate in market opportunities and scale their operations.
Starting with a network of over 1500 farmers, AFEX Uganda outlined its role towards addressing the challenges hindering the development of Uganda’s commodities market. These include:
-Reducing post-harvest losses by providing storage facilities
-Providing access to loans for farmers to purchase quality farming inputs including agrochemicals, fertiliser, and seedlings
-Provision of advisory and extension services to tackle poor agricultural practices and post-harvest handling practices.
-Access to markets for smallholder farmers, with transparent prices
-High quality and traceable supply of food and feed grade commodities to processors
Abdul-Hafeez Odusanya, managing director said: “I’m confident AFEX Uganda will contribute massively to building an inclusive and efficient market system, giving Ugandan farmers the support and infrastructure they need to improve efficiency and access bigger markets,” he said.