AFEX Commodities Exchange Limited (AFEX) has secured funds from Consonance Investment Managers to boost the former’s technology development and operations.
The Sub-Saharan Africa investment firm, which focuses on early-stage and growth support, invested in AFEX as it looks to increase its operations.
The partnership is expected to ensure funds are available for AFEX’s product development, technology solutions and training in order to strengthen its operations. The agricultural sector will also benefit from the latest capital infusion as AFEX is planning to increase its funding for the sector to N2 trillion in the next five years.
Why Consonance invested in AFEX: The role of AFEX in the agricultural sector in Nigeria was one of the motivating factors for Consonance. The investment firm also pointed out the effort of AFEX in connecting farmers to market.
While reacting to the deal, Mobolaji Adeoye, the Managing Partner of Consonance Investment Managers said, “We are proud to support Ayodeji and the AFEX team in their mission to transform Nigeria’s agricultural sector. AFEX increases trust and transparency in local agricultural supply chains by connecting farmers to market.
“AFEX has established the infrastructure which will undergird Nigeria’s food security agenda and the Central Bank of Nigeria’s economic diversification programme. It will also be vital in deepening capital markets in line with the mission of the Securities and Exchange Commission of Nigeria.”
The Chief Executive Officer of AFEX, Ayodeji Balogun is also confident the company can grow in ten-fold in the next five years, the same period it intends to increase its funding to the Agriculture market in Nigeria.
“We are delighted to welcome Consonance Investment Managers as partners on this journey.
“The future requires AFEX to provide our infrastructure as a service to the market and unlock capital for the agriculture sector in Nigeria. We will grow our operations 10-fold over the next five years; we also aspire to increase funding to agriculture in Nigeria from about N500 billion (US$1.5 billion) to more than N2 trillion (US$ 7.5 billion) by 2025.”