9th March, 2022
Nigeria’s leading commodities market player, AFEX, has signed a partnership agreement with the Chartered Institute of Stockbrokers (CIS)AFE to encourage and facilitate the development and dissemination of knowledge products on commodities trading among capital market participants.
The MoU signing ceremony which took place at the AFEX head office in Abuja on Tuesday, 8th March 2022 saw the two entities committing to the fulfillment of the mandate of the Securities and Exchange Commission (SEC) on investor protection and education.
The collaboration allows the creation and organisation of certificated courses on the commodities market as well as the commodities value chain ecosystem and allied sectors, which will be added to other Continuing Professional Development (CPD) Programs of the CIS Academy.
This will allow for the emergence of certified commodity brokers, increasing the participation and level of activity of investors in the commodity market.
Speaking at the MOU signing event, AFEX’s Chief Executive Officer, Ayodeji Balogun, said the partnership would help in the development and expansion of knowledge on the commodities market and commodities backed securities.
“As a commodities exchange and a capital market player, we are able to educate and raise knowledge about the commodities trading ecosystem among CIS members and other capital market participants,” Balogun said.
According to Balogun, “Knowledge is a critical indicator of a thriving commodities exchange ecosystem,”
He therefore expressed excitement at the partnership, stating that “AFEX and CIS are happy to be extending this vital resource of knowledge to the larger market through this partnership.
We will leverage our combined experience and knowledge to equip CIS members and other participants in the capital market with the necessary tools to make sense of agricultural asset risks, local and international commodity market trends, and other underlying factors that drive movements in the market.”
Balogun also expressed confidence in the partnership’s potentials to further close the gender gap in the commodities market, and in commemoration of the International Women’s Day, he announced a commitment by AFEX to sponsor the first 50 women who would be enrollees in the commodity market trainings developed by the two entities.
The President and Chairman of the Governing Council of the Chartered Institute of Stockbrokers (CIS) Nigeria, Olatunde Amolegbe, while speaking at the event said,
“We are glad for the solid footing AFEX has planted in the commodity market in Nigeria and the exciting opportunities ahead for the inclusion of commodities as an alternative asset class in the portfolio of the clients,”
Expanding on the necessity of this portfolio hedge, Amolegbe said that “Prior to now, the focus in the capital market has been on equities, bonds, shares and stocks but the ability to diversify client portfolios with an additional asset class such as commodities provides the needed diversification for the reduction of risks and can enhance returns. So, for us as professionals in this industry, partnering with AFEX was a given.”
This strategic collaboration is bound to address the financial education gap in the commodities market, thereby increasing the sector’s creditability and confidence. This will allow more investors tap into the myriad of wealth creation opportunities along the commodities value chain, which are right now being harnessed by only a few investors due to limited understanding of the structure and operations of the market.
About AFEX
AFEX harnesses Africa’s commodities and talent to build shared wealth and prosperity. Its infrastructure and platform investments work to unlock capital to power a trust economy in Africa’s commodities markets. Since its inception in 2014, AFEX has developed and deployed a viable commodities exchange model for the West African market and is on track to impact one million producers; providing services in productivity and value capture and access to finance and markets. By deploying an efficient market system, the company will facilitate trade with Africa worth over USD500 million in the next five years.
AFEX’s vision is to be the reference point for commodities in Africa. To achieve this goal, AFEX looks to introduce products that de-risk the sector, drive financial inclusion for rural communities, develop technology for data collection and market access, and enable capital deployment.