The Problems of Agriculture Finance. The success of agriculture/agribusiness depends on three major factors, which are the character of the Farmer, competence and Finance. Most of Africa’s farmers need better exposure to training and modern agricultural technologies and methodologies. Until the humans begin to run on fossil fuel, microchip or solar energy, food and agriculture at large will remain a viable and important sector of the world’s economy and peace. While major breakthrough are being recorded in the agricultural space, maximizing these opportunities require finance.

Africa’s agriculture is grossly underfinanced, with about 90% of food produced in the sub-Saharan Africa’s region coming from women, most of whom are poor and do not have access to finance[1] to access modern farming techniques. Africa’s government budgetary allocations are usually low. It is also important to understand that the transformation of Africa’s agricultural sector is in the hands of private businesses who are adaptive to the modern global trend in agriculture. From 1980 till date, there had not been one African country on the list of the world 20 biggest economies. It is also important to note that many of the countries in this class were based on agriculture, before other divestments. Though the Africa Development Bank, projects 1 Trillion USD for the African food market by 2030. Africa agriculture will continue to suffer while the continent awaits investments from governments and reluctant banks. Some countries also embraced crowd funding of agricultural projects, but majority failed on structural faults.

So how do we change the game?

FarmKoin is the world’s first agricultural utility token, developed to scale Africa’s food and agriculture industry. FarmKoin seeks to provide solution to Africa’s agricultural finance, by bringing the power of Fintech, Info-tech, E Commerce and food into Blockchain Technology, which decentralizes agricultural finance and commonwealth. Also facilitating cross border agricultural transactions with hassle free payment solutions. The platform, seeks to create pedestal for innovative agricultural systems to raise funds, monitor the utilization of the funds, and ensure proper documentation and consumer protection. Therefore the FarmKoin will be solving the following problems

For more details visit www.farmkoin.com

Please download whitepaper here

  1. Currency Risk.        Nigeria as a case study has diaspora funding as one of its major source of Foreign Exchange, but due to the instability of the Naira, diaspora funding dropped by 26% from $23Bn to $17Bn in 2020 alone. Necessitating the creation of a mechanism to help diaspora investors preserve their monies, should they decide to invest back home.
  2. Policy Risk.             Policies in operation countries may cripple any business without prior warnings. Blockchain and decentralized system proffer some protections to users.
  3. Difficulty in International Transactions.  Accepting investments and payments of dividends had been difficult due to several banking policies which even change without prior warning or due consideration to how it affects businesses. It is has become critical to facilitate international transactions with minimal dependencies on complicated barriers.
  4. Regulatory Agencies.      Regulatory agencies sometimes constitute challenge to Africa’s agriculture through cumbersome regulatory procedures and time on task. It is therefore necessary to create systems that are fast and less cumbersome that enables entrepreneurs raise capitals for their business.
  5.  Non Flexibility of Investments. Most investors do not have the privilege of diversifying their portfolio or moving from one agricultural investments to another without cumbersome procedures. It is important to create system that enables portfolio diversification and investment flexibility. This is one of the tasks of FarmKoin.
  6. Liquidity of Investments. Most investors want to have liquidity of their portfolio. Therefore, a blockchain system will help tokenize investment that will be easy to liquidate.
  7. Cheap Investment Options. Most investment opportunities in agriculture are huge, making it a selective playground to investors. But FarmKoin changes that to create opportunities that allow mini investments that are easily accessible to the all and sundry.

For more details visit www.farmkoin.com

Please download whitepaper here

FarmKoin will therefore facilitate tokenization of agricultural investments with the following objectives:

  • Micro Investments. Investments can be as low as 5 USD.
  • High Profit. Volatility in pricing create opportunities for high yield beyond just profit from the farms.
  • Liquidity. Because the coin could be sold on the exchange, investments remain liquid.
  • Dollar Based Investment. Dollar based transaction helps to preserve value of investment.
  • International Transactions. With network of traders and the blockchain system, international transaction hurdles can be reduced overcome.
  • Internet Based. Business is accessible to all who have access to the internet.
  • Investor Controlled. Investors have control over their investments portfolio.
  • Food Security. Since the backup of the structure is agriculture, the funds raised will contribute to food security.
  • Environmentally Friendly System. Web based business will reduce the use of papers and also promote investments into climate smart agriculture.
  • Capital Raising. The exchange will be a capital raising platform for agriculture and agribusiness companies across Africa.
  • Commonwealth of Agriculture. The platform will enable investment opportunities and capital raising opportunities that will promote wealth building using the technologies of climate smart farming and crypto currency.

Structure of Ecosystem.                 The Ecosystem is structured in a way that allows the raised capital to be utilized in real-time agricultural ventures across diverse value chains.

The Value Chains of Interest include

  • Climate Smart Agriculture.
  • Production, Processing and Distribution Solutions.
  • Agricultural Information Technology and Data.
  • Agricultural Real Estate.
  • Food and Nutrition.
  • Agricultural Media.
  • Input Development and Supply.
  • Agricultural commodity trade.

For more details visit www.farmkoin.com

Please download whitepaper here

FarmKoin – Scaling Africa’s Agriculture

Leave a Reply

Your email address will not be published. Required fields are marked *