The initiative will see Block Commodities and FinComEco Joint Venture provide an equivalent of US$10M in Dala token loans to approximately 50,000 smallholder farmers across Sub-Saharan Africa, starting in Uganda, in order for them to purchase fertiliser to help farmers raise productivity and secure better returns for produce.
According to Block Commodities Executive Chairman, Chris Cleverly, “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”.
The agreement complements the Company’s JV with FinComEco announced last November, whereby Block Commodities, FinComEco, Wala and Dala to develop and operate a web-enabled platform using the block-chain ledger for its agricultural commodity trading initiative in sub-Saharan Africa.
Wala will support the Company and FinComEco’s integration into Wala’s financial platform and incorporating the Dala token to maximize the value of African agricultural commodities to smallholder farmers.
Dala already has utility, through its launch partner Wala, within the Wala Financial Platform. The Dala ecosystem expands through partnerships across borders and financial services, enabling consumers and enterprises to transact, save, lend, and invest with Dala.
The Wala Financial Platform provides access to transactional banking, remittances, loans and insurance for the unbanked and underbanked. Wala works with best-of-breed specialist providers in each market they operation in, including banks, to offer a full suite of financial services. Wala will support this collaboration with software solutions and integrations into the Wala Financial Platform and the Dala ecosystem.
Wala Founder and CEO and Dala Director, Tricia Martinez, said “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.”
Chairman of GMEX Group and CEO of FinComEco, Hirander Misra said this partnership will drive financial inclusion in Uganda and 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 combined with electronic warehouse receipts financing and easier access to markets.