NIGERIA- AFEX, Africa’s leading commodities player, has once again reshaped the landscape of commodities trading on the continent with the launch of Africa Exchange, a cutting-edge digital platform.
This move comes as a progression from AFEX’s initial foray into digital commodities trading with the introduction of ComX in 2020.
Africa Exchange offers a dynamic space where commodities market players can seamlessly interact in both physical and financial markets. The platform, regulated by Nigeria’s Securities and Exchange Commission (SEC), provides users with comprehensive and informed trading experiences, with crucial data and information readily available.
The launch marks a strategic transition as Africa Exchange replaces ComX, which successfully served over 80,000 investors in Nigeria and facilitated trades worth over USD 200 million since its inception in 2020.
AFEX envisions this shift to fortify its mission of facilitating wealth creation for a new generation of Africans by offering alternative investment options and enriching existing portfolios.
Akinyinka Akintunde, CEO and President of AFEX Nigeria expressed his enthusiasm about the launch, stating, “With this launch, our goal is to boost the commodities market in Africa and allow more investors to participate with all the information that they need at their fingertips.”
Beyond enhancing intra-African trade, AFEX aims to contribute to the African Continental Free Trade Agreement (AfCFTA) objectives, which seek to improve regional trade integration, boost economic development, and enhance food security across the continent.
Presently, only 14.4% of Africa’s exports come from trade between African countries, and the AfCFTA has the potential to increase intra-African trade by approximately 33%, according to the United Nations Conference on Trade and Development (UNCTAD).
Commenting on the broader impact, Akintunde stated, “The launch of Africa Exchange is a significant milestone towards achieving the AfCFTA. The platform promotes fair market prices that help farmers earn more and increase food production. It also enables investors to diversify their portfolios while supporting the financing of the food ecosystem.”
In conjunction with the platform launch, AFEX reintroduces its innovative Fair Trade ETC (FETC) product, a commodity bundle providing investors exposure to the market with a focus on maximizing the risk-return balance.
The FETC, historically delivering significant returns, will be tradable within the tenor period for the first time, offering investors increased flexibility.
Funto Olasemo, Vice President, Financial Markets at AFEX, emphasized the company’s commitment to innovation, stating, “We are facilitating wealth creation for a new generation of Africans by providing them with alternative investment options to enrich their portfolios.”
The company plans to further extend its footprint to six other African countries in the coming years, aligning with the AFCFTA’s objectives to boost regional trade integration and promote efficient commodities trade across the continent.
The Africa Exchange launch positions AFEX as a trailblazer in advancing African commodities trading, fostering economic growth and sustainability.
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