NIGERIA – Agriculture has for a long time been viewed as a traditional low productivity sector that had to provide labor and other resources to fast-growing modern sectors such as manufacturing.
Mr. Ayodeji Balogun, the CEO of AFEX Commodities Exchange however notes that if proper investments are made in the agricultural sector, the current contributions being made to the economy by this sector can be doubled or even tripled.
As its own contribution to improving the agricultural situation in Africa, AFEX developed ComX – a digital commodities trading App for Africans to Invest and Profit from the Commodities Market.
According to Balogun, the introduction of ComX is also intended to permanently change the nature of commodities investing in Nigeria and Africa.
He further notes that ComX will help democratize this asset class by simplifying access to markets that were previously accessed by a relatively small club of sophisticated institutional investors.
ComX is already having an impact in the continent, having recently won the prestigious AppsAfrica Award in the Agri and Food Tech Category.
Apart from its revolutionary app, AFEX has further developed and introduced an array of securitized financial instruments backed by commodities that can serve as alternative investment products for investors.
The Fair Trade ETC for instance, is an investment product containing soybean, maize, and sorghum, in one contract.
It enables investors to enjoy a return on investment with lower risks because the Fair Trade ETC delivers the average market performance of the underlying commodities.
This lowers the risk an investor is exposed to when they invest in individual commodity contracts.
The AFEX CEO notes that as population increases the demand for commodities both locally and globally will also increase.
This according to him will create a strong demand for commodities and hence a great potential to maximize return with commodity trading.
“Commodity trading provides the right climate for investors who are seeking investments outside of the traditional markets of stocks, fixed-income or savings,” Balogun says.
He further adds that commodity trading as an alternative investment option has a potential for a higher return on investment than that of conventional investments.
For those wishing to join, AFEX CEO says, “ComX is a simple yet innovative platform that allows investors to gain exposure to commodities as an alternative investment class”
“At its heart, it is an impact investment platform that allows investors to make a decent at per or above-market return while also giving back to a needy community.”
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