Overview
AFEX (Africa Exchange) is Nigeria’s first private sector-led commodity exchange and pan-African organization championing efficient trade and wealth creation through Africa’s commodities market. Founded in 2014, AFEX operates as a comprehensive platform business built on three key pillars: infrastructure, markets, and capital to unlock value in Africa’s agricultural sector.
The platform serves commodity traders, agricultural producers, institutional investors, and financial institutions seeking exposure to Africa’s commodity markets. AFEX targets farmers looking for better market access, traders seeking price discovery mechanisms, and investors wanting diversification into African agricultural commodities. The exchange facilitates trading in grains, legumes, and other agricultural products while providing warehousing, quality assurance, and financing solutions. Users can access spot markets, futures contracts, and structured commodity financing through the platform’s digital infrastructure.
Key Features
Commodity trading
Spot and futures trading in agricultural commodities
Warehouse Receipt System
Standardized commodity storage and quality certification
Price Discovery
Real-time market prices and trading data for African commodities
Quality Assurance
Professional grading and certification services
Trade Financing
Structured financing solutions for commodity transactions
Pros & Cons
Advantages
- First private commodity exchange in Nigeria
- Comprehensive warehouse receipt system
- Professional quality assurance and grading
- Integrated financing and logistics solutions
- Strong regulatory compliance and transparency
Limitations
- Limited to agricultural commodities only
- Requires significant minimum trade volumes
- Complex onboarding process for new users
- Limited geographical coverage in Africa
- High barriers to entry for small traders
Security Features
Regulatory Compliance: Licensed and regulated by Nigerian Securities and Exchange Commission (SEC)
Warehouse Certification: ISO-certified warehouses with professional storage standards
Quality Assurance: Third-party commodity grading and certification processes
Quality Assurance: Third-party commodity grading and certification processes
Technology Security: 256-bit SSL encryption and secure data transmission protocols
Pricing & Fees
| Service | Fee | Details |
|---|---|---|
| Membership Registration | ₦100,000 - ₦500,000 | One-time membership fee based on category |
| Trading Commission | 0.1% - 0.5% | Per transaction based on commodity type |
| Warehouse Storage | ₦15 - ₦25/bag/month | Monthly storage fees for certified warehouses |
| Quality Assurance | ₦50 - ₦100/MT | Grading and certification per metric ton |
| Trade Financing | 15% - 25% APR | Interest rates on commodity financing |
Getting Started
Detailed Ratings
Final Verdict
AFEX represents a groundbreaking development in African commodity trading, offering comprehensive infrastructure and professional-grade services. The platform excels in quality assurance, regulatory compliance, and market transparency. However, high membership fees and complex requirements limit accessibility for smaller traders. The integrated approach combining trading, warehousing, and financing creates significant value for qualified participants. Ideal for institutional traders and large-scale agricultural businesses seeking professional commodity market exposure.