#73: AFEX (Africa Exchange) - How the commodities exchange is facilitating commodity trade by offering training, credit, storage to farmers & providing investment solutions to financial partners

Afrobility: Africa Tech and Business

Overview: Today, we’re going to explore AFEX, the African commodities exchange. We’ll discuss the story across the following areas:

1. African Agriculture context

2. AFEX's launch & early history

3. Product & monetization strategy

4. Competitive positioning & potential exit options

5. Overall outlook.

This episode was recorded on Dec 24, 2023

Companies discussed: AFEX, EAX (East African Commodity Exchange), Tony Elumelu Foundation, Heirs Holdings, Apollo Agriculture, NCX, Cargill, Louis Dreyfuss, 50 Ventures & Berggruen Charitable Trust

Business concepts discussed: Agriculture technology (AgTech, AgriTech or AgroTech), Agribusiness marketplaces, farming financing, Farmer market access opportunities, Agriculture insurance strategy, Commodity trading & Internal Entrepreneurship (Incubated company strategy).

Conversation highlights:

• (01:10) - What Afex is and why we’re talking about it

• (08:36) - Context of agriculture in Africa

• (21:49) - AFEX Founding story

• (33:28) - Fundraising

• (39:56) - Growth, geographical expansion and partnerships

• (49:42) - Product strategy, monetization and growth

• (59:14) - Cost structure, revenue and margins

• (1:10:00) - Business and user metrics

• (1:13:14) - Competition and options for exit

• (1:21:02) - Bankole’s overall thoughts and outlook

• (1:34:25) - Olumide’s overall thoughts and outlook

• (1:47:45) - Recommendations and small wins

Olumide’s recommendations & small wins:

• Interested in investing in Africa Tech with Olumide: Read about Adamantium fund & contact me at [e-mail]. Founders looking for funding: If you're a B2B founder working on Education, Health, Finance or food, please contact me for funding at [e-mail]

• Checkout my FIREDOM book = FIRE (Financial Independence, Retire Early) + Freedom = personal finance and financial independence book. Website, Read: Substack Newsletter & Buy: Print, eBook or Audiobook)

• Recommendation: I went back and re-read some of my classic books: How I found freedom in an Unfree world (Harry Browne), Don't Sweat the Small Stuff and It's All Small Stuff (Richard Carlson) & A Guide to the Good Life - The Ancient Art of Stoic Joy (William B. Irvine)

• Small win: Hiking with new friends in St Thomas. Cool

Bankole’s recommendations & small wins:

• Recommendation: FiveBooks.Com - FiveBooks.com shares lists of the best five books on many topics, chosen by experts in that area

• Recommendation: Jeff Bezos on Lex Fridman Podcast. A rare Jeff Bezos long form interview.

• Small win: Running while listening to Big 7 - Burna Boy

• Fact check: Tony Elumelu narrates How He Went from Second Class Lower Degree to Nigeria's Billionaire

• Other content: FT ranking: Africa's Fastest Growing Companies 2023 & AFEX Nigeria loses maize worth N85m to 'police raid'

Listeners: We’d love to hear from you. Email [e-mail] with feedback!

Founders & Operators: We'd love to hear about what you're working on, email us at [e-mail]

Investors: It would be great to link up with you. Contact us at [e-mail]

Join our insider mailing list where we get feedback on new episodes & find all episodes on Afrobility.com