Financial inclusion can create impactful changes for the Agricultural Sector in Africa. Closing the gaps for farmers would mean access to market and finance. Exploring Blockchain myriad application and platforms will boom up the Agricultural sector for Africa, through transparency, efficient payments and access to finance. NanoBNK has a portfolio of application and platforms possibilities to connect the unbanked to financial services powered by blockchain technology.
Blockchain closing the gaps between farmers and markets
With 60% of the world’s remaining arable land, one of Africa’s super powers is undoubtedly its agricultural capacity. The gaps in the African agricultural sector lies in formal identification, collateral, and credit histories; difficulties in contract enforcement; and the high cost of serving geographically dispersed customers are just a few of the myriad obstacles standing between small farmers and formal financial inclusion.
Inaccessibility to formal financial services affects the efficient functioning of agricultural value chains as farmers produce below optimum capacity and customers demand are not be served. With financial services reaching farmers, investment will be injected in farms for higher cultivation and the supply value chain of agricultural products will be more efficient.
Add up to supply chain efficiency smart contract to avoid default payment and financial services over the counter can help farmers to recover payments faster. Blockchain technology smart-contract, digital payments, financial services functionality solves this problem because everyone on the blockchain is holding a smart-contract for ;sales, loans, production, storage, transport, insurance and money can easily be attributed such as – you can only use it for XYZ and spend it YZ way on the blockchain through accounts on the Blockchain.
Applying blockchain features possibility in the Agricultural framework
Blockchain technology a weapon to empower farmer:
- The African agriculture industry is traceability and transparency, which lack in fragmented agriculture supply chains. Blockchain technology could securely record information and trace products right from the small-scale farm all the way to consumers’ forks. This would not only satisfy consumers’ demand for provenance but allow farmers to build their reputations and charge more fair prices
- Blockchain technology could also be used to facilitate payments, a challenge for farmers across Africa who must deal with numerous intermediaries and processes. Smart contracts can streamline this and reduce transaction costs. These contracts would build trust and can reduce buyer default.
- Access to finance remains a constraint for farmers Blockchain technology can help small-scale farmers access financing by providing a decentralised platform to build a reliable identity and transaction history which are often required for credit.
To realise Blockchain possibilities for the Africa agriculture a revolution of tech-empowered application and platforms is the most appropriate solution. NanoBNK platforms solutions such by blockchain technology has tailor-made platforms solution to match your needs if you target to achieve, transparency, efficient payments and access to finance, email us roshaan.kulpoo@nanobnk.com
