AFEX, a key player in African commodities, recently unveiled its 2024 annual report, providing crucial insights into the socio-economic factors influencing commodity dynamics. Globally, the commodities market faced challenges, witnessing a 24% decline from 2022 peaks due to energy scarcity, geopolitical tensions, and financial crises. In contrast, Nigeria experienced a 0.63% growth in its commodities market during the first three quarters of 2023, influenced by inflation and economic reforms.
The report highlighted surging prices in agricultural commodities, particularly maize, which exhibited 24% volatility, reaching N550,000/mt in Q3 and closing the year at N480,000/mt. The surge was linked to decreased input usage, a lingering effect of the Russia-Ukraine crisis impacting fertilizer prices. Predictions for 2024 global commodity prices indicate a downward trend, with energy prices expected to drop by 5 % in 2024 and further decrease by 0.7 % in 2025. Domestically, the report forecasts a consistent rise in commodity prices throughout 2024, with key export commodities like Cocoa and Sorghum projected to rise by 50% and 20%, respectively.
To boost agriculture productivity, the report recommends adopting sustainable farming practices, like diversified crop rotation, known to optimize soil capacity and increase productivity, leading to a 21% boost in farming income. Investors are encouraged to explore licensed fund managers and commodities market experts, such as Marble Capital Limited, whose halal commodities fund, approved by the Nigerian Securities and Exchange Commission, offers a diversified investment option with competitive returns.
The fund was launched in April of 2023 and has had a 5 % increase in the past month and as of today 31st of January 2023 the fund is trading at N106.75kb. For more information about the fund and other marble capital limited products and portfolios, visit www.marblecapitalltd.com