AFEX Commodities Exchange Limited (AFEX), Nigeria’s leading private commodities exchange company, has announced the first warehouse receipt-backed commercial paper in Africa, with tech-enabled operations and a 24-hour fast cash turnaround for borrowers.
With over $50 million raised for agri-SMEs, this bridges the funding gap between lenders and borrowers in the Nigerian agricultural sector with a commodity-backed instrument – for the first time.
The AFEX financing deal will help eradicate the high cost of procurement incurred by processors by deploying a discounted value of a warehouse receipt distributed among five leading players in the food and beverage, trading poultry, and animal feed segments in Nigeria.
According to AFEX, the receiving companies are top 10 players in their respective segments. Now, they have been enabled access to a tool for managing price volatility, creating 30percent direct savings on prices.
Source: Business Day NG