10 million worth of loans has been provided to farmers in Africa by a new blockchain initiative bringing cryptocurrencies to the commodity financing space.
The project is join run between block commodities, wala, dala and fincomEco, wala is blockchain-powered financial service platform, while dala is a provider of a crypto-token designed to enable instant, free and borderless micropayment, and FinComEco is a company that helps farmers to have access to a wider market for their crops.
The involved parties are to develop and operate a range of platform, projects and initiatives in the agricultural commodity markets sector in sub-Saharan Africa.
The aim of this project is to maximize the value of agricultural output of farmers, by granting access to financing and the ability to monitor their commodities through blockchain technology platforms.
The project will start in Uganda and later in south Africa, Congo, Malawi, Zambia and Zimbabwe.
Block commodities and FinComEco will lend 100million Dala tokens which is equivalent to $10million to small holders farmers in Uganda to be able to purchase fertilizer.
The introduction of cryptocurrency and blockchain technology will allow the companies to streamline payments and loans, and thereby provide farmers with access to financing at a cheaper interest rate.
Block commodities decide to work with dala as its token is widely use across Africa, the token will work as a bridge currency between fiat currencies, making cross-border transactions earlier.
The fertilizer project in Uganda is just the beginning there are aspiration of expanding to other projects as well as other commodities and countries- laterin 2018. And this could warrant partnership with other companies and using other tokens.