#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

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

African Agriculture context

AFEX's launch & early history

Product & monetization strategy

Competitive positioning & potential exit options

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 [email protected]. Founders looking for funding: If you're a B2B founder working on Education, Health, Finance or food, please contact me for funding at [email protected]

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 [email protected] with feedback!

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

Investors: It would be great to link up with you. Contact us at [email protected]

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