Home > Business > Equity blockchain fund targets 700 million unbanked African farmers

Equity blockchain fund targets 700 million unbanked African farmers

Swarm, a private equity (PE) blockchain fund is aiming to provide financial opportunities to the estimated 700 million unbanked African farmers through the FarmCoin pan-African financial and commodities ecosystem, Philipp Pieper, the CEO and Co-Founder has said.

The introduction of FarmCoin to its investment marketplace, he said, would lure investors into the major unbanked global market, availing them the opportunity to help subsistence farmers across the poorest parts of Africa.

He explained that the support would support farmers who lack access to loans or are forced to take on loans via moneylenders at uneconomic rates.

FinComEco is currently engaged with over 20 countries across Africa.

According to Pieper, in a statement realeased by the firm, the development places the company at ground zero for much of the world’s unbanked population.

“Our strategy is based on using our unique ecosystem to create real value to hundreds of millions of people, enabling them to trade responsibly with an objective of increasing income to farmers to deliver economic security across Africa,” he said.

READ ALSO:  Kano, Calabar Emerge Best Performing Airports In Nigeria

“Our primary concern is providing needed infrastructure and resources to unbanked farmers in Africa, enabling them to feed their families by providing security of transaction, eliminating corruption, reducing costs of borrowing, and ensuring the liquidity for the purchase of inputs by ensuring the sale of produce,” said Hirander Misra, Co-Chairman and Founder of FinComEco.

Investors who participate via Swarm’s marketplace will be able to purchase asset-backed or farm tokens, which represent fractional ownership in FarmCoin infrastructure, according to the statement.

FarmCoin has been created by a joint venture between financial and commodities ecosystem FinComEco (a subsidiary of GMEX Group) and fertilizer group Block Commodities (formerly African Potash).

The FarmCoin model allows farmers to bring surplus crops to a warehouse, rather than going to waste, where they will receive immediate payment or get financing via a loan of FarmCoins that can then be used to buy certified seeds, fertilizer or education at discounted rates.

READ ALSO:  ‘Ghost’ workers and indulgent exorcists

The deposited crops are aggregated and sold via a facilitated commodities exchange, with the farmers getting prices via mobile texts.

Once the crops are sold, the warehouse fees and loan interest are paid and the surplus is given to the farmer in more FarmCoins.

The interest rates on FarmCoins will be at a mutually agreed, decentralized rate of interest, expected to be more than 50 percent lower than the current bank lending rate and 75 percent less than the commercial rate, according to the statement.

“Support from Swarm Fund allows Block Commodities and FinComEco to make real progress on these goals enabled by blockchain technology,” said Chris Cleverly, Executive Chairman of Block Commodities.

The post Equity blockchain fund targets 700 million unbanked African farmers appeared first on Businessamlive.

Source:: Businessamlive