AFEX 2024 Report Predicts a Decline in Commodity Production Levels

AFEX, a commodities player in Africa, launched its 2024 Wet Season Crop Production report at a hybrid event held at its Abuja office. This annual report provides comprehensive insights into factors influencing the commodities landscape, such as production levels, price trends, and market outlook. For the first time, AFEX’s research includes data on Kenya’s agricultural sector and Nigeria, offering a broader view of key commodities like maize, paddy rice, soybean, sesame, ginger, cocoa, and sorghum.

The report, based on data collected from over 51,000 farmers across Nigeria and Kenya, serves as a resource for stakeholders in the agricultural sector, guiding policy development and data-informed trading decisions.

Nigeria’s Agricultural Landscape: Opportunities and Challenges

The Nigeria section highlights the untapped agricultural potential hampered by high input costs, limited financing, climate challenges, and pest infestations. Despite a general decline in production, crops such as sorghum, ginger, cocoa, and sesame show upward trends, benefiting from expanded cultivation and market response efforts following last year’s price increases.

Paddy rice production, however, is projected to decline by 2.6%, reaching around 8.1 million metric tons. Contributing factors include high fertilizer costs, insecurity in major rice-producing areas, and severe flooding, which has led many farmers to switch to more cost-effective and resilient crops like sesame and sorghum. This shift is expected to impact rice’s availability and price, raising food security and affordability concerns.

Maize production in Nigeria is also set to decrease by 5.6%, mainly due to reduced cultivated land and lower fertilizer usage, exacerbated by adverse weather conditions. The report anticipates a significant increase in maize prices during the 2024/2025 season, affecting farmers and consumers.

Kenya’s Agricultural Sector: Reliance on Imports and Production Challenges

In Kenya, agriculture relies on rainfed farming, with average farm sizes of 0.2 to 3 hectares, limiting production potential. Structural challenges hinder local production, including inadequate infrastructure, post-harvest losses, and climate impacts. The country’s dependency on imports also poses risks to national food security, highlighting the need for targeted interventions.

Maize production in Kenya is expected to decline by 1%, with decreased fertilizer use due to high input prices. Despite government efforts, maize prices have fallen by 29%, driven by continued imports from neighbouring countries that have offset expected yield gains, impacting local farmers’ output projections for the coming season.

Commodity Pricing Trends and Policy Implications

Price trends across Nigeria and Kenya show notable variations. In Nigeria, ginger prices are expected to increase by over 90% due to strong demand and the lasting effects of last season’s fungal attacks. The report underscores the importance of developing policies to boost agricultural productivity, improve food security, and attract investment in agro-processing and infrastructure to mitigate these challenges.

At the event, AFEX Nigeria President and CEO Akinyinka Akintunde commented, “Each year, we conduct this extensive survey with over 40,000 farmers to better understand the challenges in our agricultural sector. The findings reveal an urgent need for interventions to enhance productivity, especially for staples like maize and rice. Addressing issues such as access to quality inputs, climate resilience, and market stability can improve food security, support our farmers, and drive economic growth in Nigeria.”

Moroccan Logistics Startup Cathedis Secures USD 676 K in New Funding

Moroccan logistics startup Cathedis has secured new investment totaling USD 676 K from BMCE Capital Investments and Beltone Venture Capital. This latest funding round includes USD 483 K from BMCE’s venture capital fund (FCV) and an additional USD 193 K from Beltone Venture Capital.

Cathedis, founded in 2015, provides e-logistics and delivery services and manages all aspects of delivery operations through a digital platform. The platform oversees the entire process from production to cash returns, including real-time tracking capabilities.

This funding follows a USD 735 K investment in early 2023, which included funding from Afrimobility, the venture capital branch of AKWA Group, and a bridge investment of USD 243 K from CDG Invest.

With this new investment, Cathedis plans to enhance its infrastructure and operational capacity to serve better the growing demands of both domestic and international markets. The company has already developed an automated sorting centre capable of handling up to 4,000 parcels per hour, with additional plans to improve its resources and delivery efficiency across key markets.

Japan’s Kyocera Group Launches USD 100 M Venture Fund

Kyocera Corporation, a Japanese semiconductor components manufacturer and telecommunication leader, has announced two new venture funds totalling USD 100 M, a move that reinforces its growing commitment to emerging technology markets worldwide.

With a 10-year investment timeline, these funds will target companies making advancements in artificial intelligence, renewable energy, and mobility—sectors that Kyocera believes are key to its future growth.

The Kyoto-based company has designated USD 60 M to the Kyocera Venture Fund-I, which aims to support technology startups across the U.S., Middle East, and Africa. An additional USD 40 M will flow through its Kyocera Venture Innovation Fund-I to back promising early- and growth-stage ventures across Asia.

With the Kyocera Venture Fund-I, the company is making its first significant move into the African startup ecosystem, joining other Japanese corporations in recognizing the continent’s tech potential. By investing in African, American, and Middle Eastern companies, Kyocera seeks to identify innovations that align with its established expertise in semiconductor technology.

Shouichi Nakagawa, Kyocera’s Senior General Manager of Corporate R&D, noted the strategic importance of these investments, saying, “We’re keen on startups offering innovations that complement our core expertise, especially those with AI-driven approaches that could enhance our semiconductor and telecom businesses.”

Kyocera’s Kyocera Venture Fund-I has already invested in two U.S.-based companies at the cutting edge of chip technology. Texas-based Chipletz and California-based Mixed-Signal Devices.

Texas-based Chipletz, a chip packaging startup, for instance, has developed a novel chip packaging technique that eliminates the need for interposers—small connectors traditionally used to link chips—boosting processing speeds and supporting high-performance AI applications. By removing this element, Chipletz’s approach enables faster processing speeds and enhanced performance, both essential for AI and machine learning applications.

Its other investment is in California’s Mixed-Signal Devices, which focuses on clock and timing technologies essential for data centre synchronization, addressing Kyocera’s growing interest in data infrastructure.

Beyond these initial investments, Kyocera is exploring AI applications that integrate with its printer and electronics divisions, aiming to enhance document security, energy-efficient data transmission, and even thermoelectric conversion to capture waste heat as power.

This aligns with Kyocera’s focus on reducing environmental impact through tech innovations, offering benefits that could transform product efficiency and sustainability.

The Kyocera Venture Innovation Fund-I, targeting Asia, has also already invested in Turing, a Tokyo-based startup that develops autonomous driving solutions. Turing’s technology uses real-time AI for adaptive driving decisions, moving beyond sensor-based navigation—a versatile approach Kyocera hopes to leverage as it expands in the mobility sector.

Nakagawa noted that these investments build on Kyocera’s history of venture involvement, dating back to a private equity partnership with Goldman Sachs in 2000 that targeted Japanese startups and continued through partnerships with U.S.-based accelerators like Plug and Play.

Founded in 1959 by Kazuo Inamori, Kyocera has evolved from a ceramic components manufacturer into a global technology leader in high-performance materials and communications, holding a dominant share in ceramic semiconductor packaging.

Through these new venture funds, the company seeks to blend its manufacturing expertise with cutting-edge technology solutions, establishing a foothold in AI, clean energy, and mobility across continents. These investments position Kyocera as an influential player in the next wave of semiconductor and tech advancements, reflecting its strategic shift toward cross-continental growth in sustainable and high-impact technologies.

Nigeria’s Wealthtech Startups Scramble To Survive As Wealth Grows Scarce

Amid inflation, currency depreciation, and economic uncertainty, Nigeria’s wealthtech startups face a daunting question: Can investment platforms thrive where wealth itself is becoming scarce?

This question is particularly relevant as companies like Bamboo, Risevest, and PiggyVest grapple with a shifting landscape, navigating a wave of challenges at home while making strategic moves abroad.

Inflation and Currency Troubles

PiggyVest’s latest Savings Report for 2024 highlights just how grim the economic situation has become. Inflation has skyrocketed, rising from 25.08% in 2023 to 32.15% in 2024. Nearly 90% of the 10,000 Nigerians surveyed have experienced a sharp increase in expenses.

Income remains low as 37% earn below NGN 100 K (~USD 60.00) monthly and another 28% earn no income at all, while the proportion of Nigerians earning within various higher income brackets (between NGN 100 K and NGN 1 M) has dipped significantly relative to the previous year.

As a result, savings habits have deteriorated. As much as 43% of respondents are unable to save at all while only 47% of respondents say they save monthly, a steep drop from 64% last year. The burden of inflation and rising costs is palpable. As one Mr James Uche, a civil servant, lamented, “The increase in school fees, electricity tariffs, and even the cost of fuel has made it very difficult to continue [saving].”

This economic strain extends to investment behaviours. The naira’s value has plunged more than 70% against the U.S. dollar in the past year, drastically eroding wealth. For platforms like Bamboo, which built their brand on offering access to U.S. securities, this currency devaluation has hit hard. As the cost of buying foreign stocks has soared, user activity on these platforms has inevitably declined.

Strategic Diversification

In response to these pressures, wealthtech startups are not standing still. Bamboo has executed a series of calculated expansions and product launches. In May 2024, it introduced Nigerian stocks on its platform, giving local investors access to blue-chip companies like MTN Nigeria and Dangote Cement. Bamboo CEO Richmond Bassey emphasised the growing demand for these assets, citing their strong returns: “Nigerian stocks are the most in-demand asset class due to their outstanding ROI.”

Beyond Nigeria, Bamboo has expanded into Ghana and South Africa, and this week, it rolled out a new remittance service, Coins by Bamboo, aimed at reducing cross-border transfer costs for the African diaspora.

With Nigeria ranking as the fourth-largest source of immigrants to Canada, Bamboo has secured a Money Service Business (MSB) license to operate there. “Many Africans want to invest back home, but complexity, high commissions, and fees discourage it,” Bassey explained. This remittance play, entering a competitive market against players like Nala and LemFi, is critical to Bamboo’s survival strategy.

Risevest’s East African Play

Meanwhile, Risevest is eyeing East Africa, having recently acquired Kenyan investment startup Hisa. This acquisition allows Risevest, which has some 600,000 users, to operate in Kenya without securing new licenses, leveraging Hisa’s local market knowledge. It follows Risevest’s acquisition of Chaka in 2023, another move aimed at strengthening its local and regional foothold.

By expanding beyond Nigeria, Risevest hopes to tap into the burgeoning digital investment market in Kenya. Risevest CEO Eke Urum has hinted at a cautious approach, saying, “It’s time to understand the company, culture, context, and market” before implementing any sweeping changes.

The stakes are high. As these startups pivot and diversify, the underlying challenge remains: building wealth management platforms in a context where wealth is scarce. Odunayo Eweniyi, Co-Founder & COO of PiggyVest which boasts 5 million users, underscores the gravity of the situation, emphasising that saving has “become more difficult for many Nigerians in the current economic climate.”

Yet, she remains committed to offering features that make saving and investing as accessible as possible, even under immense economic pressure. Inflation-resistant assets and savings options catering to recurring meagre sums are among its solutions.

Market Consolidation and Future Outlook

The wealthtech sector is also seeing signs of consolidation. With Risevest’s recent acquisitions and increasing competition, more mergers and strategic partnerships may be on the horizon. The trend is clear: startups must adapt or risk obsolescence. But can they thrive long-term? The answer could depend on their ability to innovate, localise, and scale across diverse markets.

The proliferation of stock trading platforms across Africa is a testament to the continent’s investment potential. However, their success hinges on more than just product offerings. As economic headwinds batter their core user base in Nigeria, the sustainability of these wealthtech platforms depends on a delicate balance: catering to an audience under severe financial strain while expanding into markets with untapped opportunities.

Bamboo, Risevest, and PiggyVest are betting that their adjustment strategies will pay off. But in an environment where wealth itself is becoming a luxury, the path forward is anything but certain. For now, these startups remain resilient, adapting to serve a user base facing unprecedented economic challenges.

Kenya’s Eneza Education and Pakistan’s Knowledge Platform Merge

Knowledge Platform, Pakistan’s prominent edtech company, has merged with Eneza Education, a Kenyan edtech firm, to form a new African-Asian edtech venture. The merged entity will operate under the Knowledge Platform brand and be headquartered in Singapore. The financial details of the merger have not been disclosed. Following the merger, Wambura Kimunyu, CEO of Eneza Education, will be Chief Growth Officer at Knowledge Platform.

The combined venture uses mobile, web, and SMS technologies to serve over 1 million learners across Africa and Asia.

Founded in 2011, Eneza Education is a growth-stage edtech company headquartered in Nairobi with operations in Kenya, Rwanda, Côte d’Ivoire, Ghana, and Sierra Leone. The company reports that it has served over 12 million learners, delivered more than 91 million SMS lessons, and facilitated over 62 million questions answered.

Knowledge Platform, established in 2000 as a corporate training company, is headquartered in Singapore and supports various affiliated ventures. The company provides digital learning content and technology solutions for Southeast and Asian partners. In 2012, it sold its pan-Asian compliance e-learning business to Thomson Reuters, and in 2011, it sold its pan-Asian IT market research business, also to Thomson Reuters.