FinComEco, an integrated financial and commodities ecosystem in the agricultural value chain and African commodity trader Block Commodities (formerly African Potash) have partnered with Wala, a blockchain-powered financial services platform, and Dala, a cryptocurrency token issuer to support the operation and development of scalable, blockchain-enabled financial platforms for developing markets.
The agreement complements the BLCC’s joint venture with FinComEco, announced last November, whereby Block Commodities, FinComEco, Wala and Dala will develop and operate a web-enabled platform using the blockchain ledger for its agricultural commodity trading initiative in sub-Saharan Africa.
The collaboration agreement establishes a relationship whereby Wala will support the use of the Dala utility token as the functional token for the food commodities cycle trading ecosystem which is currently being established by BLCC and its partner, FinComEco.
Under the agreement terms, the BLCC and FinComEco joint venture will provide the equivalent of $10-million in Dala token loans to approximately 50 000 smallholder farmers across sub-Saharan Africa to purchase fertilizer. This wil begin in Uganda then extend to Malawi, Zambia, Zimbabwe, South Africa and Republic of Congo (ROC).
Wala will support BLCC and FinComEco with software solutions and integration into Wala’s financial platform and the Dala ecosystem.
The collaboration aims to integrate the BLCC trading business and the FinComEco agricultural commodities ecosystem through the deployment of blockchain to maximise the value of African agricultural commodities to smallholder farmers.
Hirander Misra, chairman of GMEX Group and CEO of FinComEco, comments: “This partnership will drive financial inclusion across Sub-Saharan African countries by providing smallholder farmers with cheaper access to finance and inputs (pesticides, fertilisers and seeds), which will result in an increase in agricultural output.
“This, combined with electronic warehouse receipts financing and easier access to markets through the FinComEco commodity exchanges, will ensure better price transparency enabled by blockchain technology therefore increasing individual incomes and national GDP.”
Chris Cleverly, executive chairman of Block Commodities, adds: “This collaboration represents a potentially significant reset for finance and commodities market development in Africa, a problem that is being addressed by bold and innovative technologies and partnerships.
“We are helping to empower African farmers through loans to purchase fertilizer and have better access to markets.”
Tricia Martinez, founder and CEO of Wala and director of Dala Director, says: This is an industry changing partnership that will drive much needed economic growth and financial inclusion in African markets. Blockchain technology and cryptocurrency have the potential to start financial innovation in these markets and Dala is at the forefront.
“We are very pleased to work with Block Commodities and FinComEco to provide the necessary tools and resources for these farmers and markets.”