Pan-African commodities player, AFEX, has stated that over 80 per cent of farmers in Nigeria are below the poverty line.

This was revealed in its second impact report covering its activities over the past five years, released on Thursday.

The report said, “Rural poverty in Nigeria is more widespread in 2023 compared to baseline measurements in 2020. Over 80 per cent of Nigerian farmers still exist around and below the poverty line, compared to 43 per ent of Kenyan farmers existing around and below the poverty line.

“AFEX, which has operations across these two countries, highlighted its efforts to secure livelihoods, including providing farmers with certified seeds, quality fertilizer, as well as extension and storage services through strategically distributed warehouses.”

AFEX launched operations in 2014 and during that time, it has worked with over 500,000 farmers and executed over 1,000,000 MT in trades.

Its first impact report was published in 2021.

Since then, AFEX has doubled down on driving impact through its work in Africa’s commodities markets, positively contributing to SDGs 1, 2, 5, 8, 12 and 13.

This second report also featured an updated version of the AFEX theory of change, released for the first time in 2021.

Speaking on the work of AFEX over the years, the Group Chief Executive Officer, Ayodeji Balogun, noted, “Our impact goals are essential as we grow our business and expand, as it ensures that we are able to build a commodities market that is as inclusive as it is efficient. We look to create a positive difference in the places that we operate, empowering farming communities, fostering economic opportunity and helping Africa sustainably provide for itself.”

The President of AFEX Nigeria, Akinyinka Akintunde, noted, “This report marks a significant milestone for AFEX. It serves as a roadmap that guides us towards a more sustainable and responsible future by building an efficient marketplace for commodities in Africa.

“We will continue to build a food system for the future and create shared prosperity, ensuring that no one is left behind in the journey to transform the agricultural ecosystem.”

The report added that climate change effects have become increasingly relevant in Africa, with farmers facing record impacts on their activities.

“Floods, increased droughts, and fewer rainfalls have threatened farmer productivity, resulting in food insecurity. AFEX is contributing to enabling sustainable climate-resilient agriculture for farmers in Africa, which helps increase Africa’s food security while achieving self-sufficiency for the continent.

“Comprehensive efforts are required to create sustainable value in the commodities market particularly as challenges are being compounded by climate change effects. AFEX continues to drive change in this tough environment as its operations focus on contributing to improved livelihoods, quality food and well-functioning markets,” said the statement accompanying the report.