A consortium of fintech startups has launched a blockchain initiative to provide $10 million in financing to some 50,000 small farmers in Africa, Global Trade Review reports.
The participating in this project are blockchain-focused commodities trader Block Commodities, cryptocurrency provider Dala, crop marketing solutions group FinComEco, and blockchain-based financial services platform Wala.
Block Commodities CEO Chris Cleverly described the initiative as “a huge opportunity and potential reset for finance in Africa.”
The “first-of-its-kind partnership” plans to develop and operate several platforms and projects for the agricultural commodity market in Sub-Saharan Africa. Farmers will be given access to funding and the ability to track their goods via blockchain platforms to maximize the value of their produce.
Uganda has been chosen for the pilot project, with Block Commodities and FinComEco lending $10 million worth of Dala tokens to small farmers in the region for the purchase of farm inputs like fertilizers. The credit facility will soon be available to farmers in Congo, Malawi, South Africa, Zambia, and Zimbabwe.
Stefania Barbaglio, head of public relations at Block Commodities, said this was the first time digital currencies would be used for commodities lending. She noted that using blockchain and cryptocurrency would fast-track the loan, applications, and payments while giving farmers greater access to credit facilities with lower interest rates.
She said:
“It’s very difficult for smallholder farmers to get fertilizers. With blockchain, we reduce the cost for the farmer to buy fertilizer at present consumer interest rates in the region, which are between 25% and 80%, and which they must pay monthly. We will charge around 12%, which will only be charged once the farmer has sold his goods.”
South Africans most ‘hungry’ for Bitcoin
January data from Google (NASDAQ:GOOGL) Trends showed that people in South Africa were the most active when it comes to looking for information about Bitcoin: this was the most searched term for the period December 17-23.
Other countries actively digging up information on “Bitcoin” were Slovenia, the Netherlands, Australia, and Austria. The top 10 was rounded off by Singapore, Nigeria, Switzerland, Canada, and Ghana. The US ranks at number 14, while Germany and the UK placed 19th and 20th, respectively.
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