Tuesday, October 22, 2019 / 4:00PM / AFEX Nigeria / Header Image Credit:
In 2018, a growing number of Exchange clients believed in the vision of AFEX and invested in agricultural products through our platform. From purchasing and storing tons of maize to making investments in soybean, there was increased investment activity in these asset classes. The market in true form took shape, reacting to a variety of factors in the local and global environment, handing out both gains and some losses in the course of the investment year.
Over the course of the year, several factors, both internal and external, shaped the direction of the commodities ecosystem, and by extension, returns on investment. Some of these factors contributed to lower prices on agricultural commodities like skewed demand and supply dynamics as well as the high level of political activities in the year, while others signaled a need for further investor education in agricultural commodities trading to drive up an understanding of pricing dynamics, agricultural seasonality and capital market structure and operations. All these are gaps that AFEX identified, which led to the Exchange setting in motion a series of activities and products to mitigate reoccurrences in the season.
AFEX is therefore set to introduce several products into the market that are targeted at increasing the knowledge base of agriculture/commodities investing by retail and institutional investors. There is also a lineup of other products designed to ensure seamless clearing and settlement of securitized commodities transactions. Two of the key products to be introduced in the new trading season are:
ComX: A revolutionary trading platform designed to make transactions in commodities trading/investing a seamless process that drives investors' confidence in the capital market underpinned with innovation, transparency and price discovery.
EdEX: An educational series developed by the Exchange to drive investors' knowledge and understanding of key drivers of trends in the commodities market. Such trends include pricing dynamics, clearing and settlement operations as well as other activities which are key to the successful growth of investment activities in the agricultural sector.
These products and others are targeted at addressing the knowledge gap in the market and ensuring that savvy and innovative investors, derive value from commodities investing. More products can be found on the AFEX website via https://afexnigeria.com/market#products-and-services
AFEX is leading the charge in promoting commodities as a viable alternative investment class in Nigeria, and as more Nigerians come to understand the ecosystem and processes, wealth creation through commodities trading and investing is becoming a reality.