African Potash and FinComEco collaborate to create a complete Blockchain based agricultural ecosystem solution

Linking agricultural supply to demand supported by partner GMEX Group

Mauritius, London, 28th November 2017. African Potash Limited (“AFPO”), a company focused on creating a vertically integrated platform for the mining, production and distribution of fertiliser and FinComEco, the fully integrated Financial & Commodities Ecosystem providing services, financing, capacity building and enablement solutions from supply to demand, have signed a Master Collaboration Agreement to jointly develop a range of platforms, projects and initiatives in the agricultural commodity markets sector across Sub-Saharan Africa. This will be underpinned by the deployment of a complete blockchain-based agricultural ecosystem solution in conjunction with the public and private sector commodities focussed community.

The partnership will facilitate microloans direct to Small Scale Farmers (SSF). The rate of interest will be significantly cheaper than present agricultural finance costs and more accessible. All supply chain financing and transaction logging will be accomplished via secure blockchain technology and provided through existing co-operatives, agricultural infrastructure and commodity exchanges enabling SSF to buy agricultural inputs at designated warehouses. FinComEco backed by majority shareholder GMEX Group will also ensure purchase of commodities grown by the SSF through existing warehouse receipt systems and commodity exchanges.

The partnership will deliver improved access to inputs plus associated financing and a better price for their produce. It will also provide opportunities for further income growth, opening alternative added-value opportunities such as the provision of market information, training and capacity building.

The two organisations will include other partners as appropriate, to support areas such as legal and regulatory framework enhancement, assurance of accuracy (quantity/quality) of warehouse deposits and the protection of the sanctity of the Warehouse Receipts System with guarantees, insurances and bonds at various levels of operations. Other activities will include the creation of asset backed tokenisation and the potential for Potash reserve assets in Republic of Congo to be used in addition to the tokenisation of warehouse receipts and eVouchers. Tokenisation is the process of converting rights to an asset into a digital token on a blockchain.

Dr. Chris Cleverly, Executive Chairman of AFPO commented, “We are excited to be in a joint venture with FinComEco to deploy an integrated microloan financed, token based, input and output trading ecosystem. This is a significant step in our strategy to build a vertically integrated fertiliser business from initial resource through to selling, direct to the farm, and demonstrates the role of blockchain technology based solutions to commodity trading. He continued “By linking agriculture to the latest blockchain technology, the joint venture will facilitate significant agricultural value chain efficiencies and generate new opportunities across the region”

Hirander Misra, Founder and Deputy Chairman of FinComEco and CEO of GMEX Group stated, “We are delighted to be working with AFPO to transform the lives of smallholder farmers across Sub-Saharan Africa. Our unique collaborative approach is delivering best-of-breed technology, standards and inputs (including seeds, fertilisers and pesticides) coupled with agricultural finance facilitation to link the supply to market side demand creating a holistic agricultural value chain.” He added, “Our initiative, which involves increasing production of agricultural commodities, is designed to be aligned to African Development Bank’s Feed Africa programme.”

Additionally African Potash is proposing to change its name to Block Commodities Limited to reflect its strategy direction.

–Ends–

Media Contact:
AFPO
Chris Cleverly
Phone: +44 (0) 20 7408 9200

Media Contact:
FinComEco
Melanie Budden
The Realization Group
Phone: +44 (0)7974 937 970
Email: melanie.budden@therealizationgroup.com

About African Potash (AFPO)
African Potash is an NEX Exchange quoted company focussed on building a vertically integrated platform for the mining, production and distribution of fertiliser, primarily within Africa.

The Company operates the Lac Dinga Project in the Republic of Congo, which is prospective for potash, a key source of potassium fertiliser, and has a trading agreement to supply and deliver fertiliser primarily to the African continent.

For more information visit www.africanpotash.com

About FincomEco
FinComEco, the financial and commodities ecosystem is fostering financial inclusion with social responsibility in collaboration with local stake-holders, development organisations, governments and the private sector with the aim of improving food security and economic diversity.

The new electronic commodities exchange solution is establishing and reinvigorating local spot exchanges and enabling trade across multiple regions with a focus on the agricultural sector to create a holistic secure financial system.

It includes:

  • Price discovery and transparency
  • Electronic warehouse receipts
  • Trade finance and micro lending facilitation as a distribution hub
  • Risk management and hedging
  • Integrated Electronic banking and payments platform
  • Standards framework
  • Traceability and tracking enablement
  • Capacity building and education
  • Operational and technology consultancy
  • Working with trusted local partners

Operational objectives include:

  • Maximising the earnings potential for smallholder farmers
  • Supporting smallholder farmers to thrive enabled with best of breed-of-technology and inputs (including seeds, fertilisers and pesticides), coupled with a unique Agri-finance business model to solve credit and financing issues.
  • Leveraging as well as enhancing current logistics, warehousing and standards to establish a fully vitalised agricultural ecosystem efficiently linking supply to demand.

FinComEco has proven its concept in Malawi at the Agricultural Commodity Exchange for Africa (ACE) through GMEX Group and is establishing fully regulated market places in other African countries and South-East Asia.

Current shareholders include GMEX Group Limited, Saescada Limited and Houghton Street Capital Limited as well as individuals.

For more information visit www.FinComEco.com

About GMEX Group
GMEX Group is a set of companies that offer sustainable and innovative solutions for a new era of global financial markets. Providing business expertise, the latest technology, connectivity & operational excellence delivered through an aligned partnership driven approach. We use our extensive market infrastructure experience and expertise to create an appropriate strategic master plan with exchanges, clearing houses, depositories, registries and warehouse receipt platforms.

Our key business solutions enable the creation and operation of cost effective electronic exchanges and post trade infrastructure in multiple asset classes including equities, debt, FX, derivatives and commodities. We operate in both developing and developed markets through the establishment of cohesive business and technology ecosystems. GMEX offers the added benefit of interconnection to multiple partner exchanges, to create global networks of liquidity.

For more information visit www.gmex-group.com or follow us on Twitter @GMEX_Group