FinComEco and Block Commodities Limited announce blockchain crypto token collaboration agreement with Wala and the Dala Foundation

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Maximising the value of African agricultural commodities inputs, financing and market access

London, Mauritius, Uganda, 26 March 2018. FinComEco Limited (FinComEco), the fully integrated Financial and Commodities Ecosystem fostering financial inclusion with social responsibility throughout the agricultural value chain and Block Commodities Limited (BLCC), the innovative commodity trader operating in Africa, previously known as African Potash, are pleased to announce they have entered into a strategic partnership with Wala, a blockchain-powered financial services platform, and Dala, a cryptocurrency token issuer that will support the operation and further development of scalable, blockchain-enabled financial platforms for developing markets.

The agreement complements the BLCC’s Joint Venture with FinComEco, a subsidiary of GMEX Group Limited, announced last November, whereby Block Commodities, FinComEco, Wala and Dala, will be working together to develop and operate a web-enabled platform using the blockchain ledger for its agricultural commodity trading initiative in sub-Saharan Africa. In particular, this collaboration agreement establishes a relationship whereby Wala will support the use of the Dala utility token as the functional token for the food commodities cycle trading ecosystem which is currently being established by BLCC and its partner, FinComEco.

Under the agreement terms, the BLCC and FinComEco Joint Venture will provide the equivalent of $10M (US) in Dala token loans to approximately 50,000 smallholder farmers to purchase fertilizer across Sub-Saharan Africa, starting in Uganda and then extending to Malawi, Zambia, Zimbabwe, South Africa and Republic of Congo (ROC). Wala will support BLCC and FinComEco with software solutions and integration into Wala’s financial platform and the Dala ecosystem.

The collaboration aims to integrate the BLCC trading business and the FinComEco agricultural commodities ecosystem through the deployment of blockchain to maximise the value of African agricultural commodities to smallholder farmers.

Chairman of GMEX Group and CEO of FinComEco, Hirander Misra commented, “This partnership will drive financial inclusion 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. He added, “This combined with electronic warehouse receipts financing and easier access to markets through the FinComEco commodity exchanges will ensure better price transparency enabled by Blockchain technology therefore increasing individual incomes and national GDP.”

Block Commodities Executive Chairman, Chris Cleverly, said “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.” He added, “We are helping to empower African farmers through loans to purchase fertilizer and have better access to markets”.

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.” Adding, “We are very pleased to work with Block Commodities and FinComEco to provide the necessary tools and resources for these farmers and markets.”

The Block Commodities and Wala/Dala joint venture will be initially piloted in Uganda before being rolled out across Sub-Saharan Africa. The local Ugandan community has been instrumental in testing Wala prototypes and demonstrating that digital technology can be used to effectively remove key barriers to the adoption of financial services by the underbanked and underserved: access, cost and embedded economic incentives.

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For further information, please contact:

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

Block Commodities Limited
Chris Cleverly
+44 (0) 20 7408 9200

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.

FinComEco has developed a business model, which will, where the ecosystem warrants, be deployed together with financing models designed by its African partners and approved by requisite Central Banks, to solve credit and financing issues that affect small-scale farmers throughout Africa. The linkage of the trading platform to a financing mechanism is a very important part of the FinComEco offering. The initiative looks beyond the typical exchange objectives of reducing costs and increasing transparency as well as focusing on a desperately needed, effective electronic warehouse receipt system. As part of the wider FinComEco model, enabled by scalable technology supported by its partner GMEX Group, FinComEco will work with, local and international partners to facilitate private and development finance funding for the Agri finance initiatives, as appropriate.

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

FinComEco is a subsidiary of GMEX Group, an innovative provder of exchange and post trade business services and technology.

For more information visit www.gmex-group.com

About Block Commodities

Maximising commodities ecosystem with blockchain technology

Block Commodities’ strategy is to maximise the value of African agricultural and other commodities through the deployment of blockchain technology. The resources will be linked through the vertical integration of primary industries down to consumers via blockchain platforms. Using blockchain’s ability to dynamically incorporate all market participants into an efficient ecosystem, Block Commodities aims to facilitate the commercial operation of such ecosystems in the context of the agricultural production cycle.

In reclaiming the value lost in African agricultural and extractive industries through inefficient supply and distribution systems, Block Commodities will help African farmers raise productivity and secure better returns for produce. This is an important step in establishing African communities as significant future global agricultural producers.

About Dala

To enable a zero-fee and borderless financial system for emerging market consumers, a new cryptographic token, Dala, was issued by the Dala Foundation. Dala is a general-purpose ERC-20 token that will support the operationalization and further development of scalable, blockchain-enabled financial platforms for developing markets around a common unit of account and microeconomic incentive structure to create strong network effects. 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.

For additional information please visit: www.dala.org

About Wala

Wala, the launch partner of Dala, is a mobile financial services platform built on the Ethereum blockchain. Tackling financial exclusion, their mission is to close the gap between consumers and financial service providers in emerging markets. Wala works with specialist providers in each market they’re operational in, including banks, to offer a full suite of financial services like transactional banking, remittances, loans and insurance. Partners benefit from the reach and low-cost access to previously unserviceable customers enabled by the Wala platform. 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.

For additional information, please visit: www.getwala.com

Zimbabwe Government signs MoU with FinComEco to deliver FinTech enabled Economic and Social reform in Agriculture

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Multi-faceted mandate will support agricultural commodity markets development and financing

Zimbabwe, Mauritius, UK, 21th March 2018. The Government of Zimbabwe, under the aegises of the Ministry of Foreign Affairs and International Trade (MoFAIT) and Ministry of Lands, Agriculture and Rural Resettlement (MLARR) and FinComEco, the fully integrated Financial & Commodities Ecosystem (FinComEco) providing services, financing, capacity building and enablement solutions from supply to demand, have signed a Memorandum of Understanding (MoU) to jointly develop a range of platforms, projects and initiatives in the agricultural commodity markets sector in Zimbabwe.

This is expected to be extended into a Memorandum of Agreement (MoA) subject to approval under the new Joint Ventures Act which came into force in January 2018. FinComEco with local partners and MLARR will then establish a joint venture company to develop high impact initiatives to facilitate agricultural value chain efficiencies through provision of strategic value-added services including an electronic Warehouse Receipt System (eWRS), Exchanges, Trading Platforms, Commodities and Input Finance and Electronic Banking, training and capacity building including the establishment of a commodities exchange underpinned by Blockchain technology.

The mandate will also deliver marketing information and other value-added services, such as market access and policy change interventions, identifying project opportunities in high growth segments of the agricultural industry working together and with appropriate partners including International Development Agencies and Development Finance Institutions as well as the private sector. There will also be investment in existing and new warehouses with related infrastructure and logistics.

Based on estimates, the value-added by FinComEco to the agricultural sector in Zimbabwe will be in excess of US$1.5Bn over a 5 year period in terms of GDP growth resulting in considerable economic and social impact for the population with the GDP per capita of Zimbabwe estimated to increase by 1.5 times between 2018 to 2022 as a result of this and wider initiatives. This is expected to create 90,000 direct jobs in the agricultural sector. According to the Farmers Unions every job created in the farming sector creates 7 more jobs in other related sectors. The FinComEco ecosystem will, therefore, have additional benefits and spill-on effect on other sectors such as construction and creation of new direct and indirect jobs with the creation of additional indirect jobs across all related sectors estimated at 630,000 over a 5 year period.

The Rt Hon Major-General (Rtd) Dr Sibusiso Moyo, Minister of Foreign Affairs and International Trade said, “This collaboration marks the beginning of Zimbabwe’s participation in international trade, which is the backbone of Zimbabwe’s economy.”

The Rt Hon. Perence Shiri, Minister of Lands, Agriculture and Rural Resettlement, Zimbabwe commented, “This collaboration sets Zimbabwe on track to becoming the bread basket of Africa and beyond with access to international markets.” He added, “The FinComEco initiative will promote a viable sustainable agricultural and horticultural sector, by optimising productivity in addition to ensuring ongoing food security and job creation for our country.”

Hirander Misra, Co-Chairman of FinComEco and CEO of GMEX Group added, “We are delighted to be working with the Government of Zimbabwe to facilitate positive economic and social impact for farming communities and related sectors. The whole FinComEco ecosystem will be based on the set-up of the Zimbabwe Commodities Exchange, optimising agricultural inputs, facilitating access to finance and credit facilities, provision of warehousing and logistic facilities to enable GDP growth and job creation.”

FinComEco is enabled by scalable, centralised, de-centralised & Hybrid technology solutions delivered by its partner GMEX Group including the use of Blockchain technology.

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Media contact
GMEX and FinComEco:
Melanie Budden
The Realization Group
+44 (0)7974 937 970
melanie.budden@therealizationgroup.com

Office of the President of the Cabinet (O.P.C.)
Dr. Mutambudzi
+263 (0) 712867335
info@opc.gov.zw

About the Ministry of Foreign Affairs and International Trade (MoFAIT)

The mission of the Ministry of Foreign Affairs is to promote the political and economic interests, image and influence of the Republic of Zimbabwe in the international community and to protect the interests and safety of Zimbabwean nationals abroad through our Diplomatic and Consular Missions abroad, interface with foreign Diplomatic Missions accredited to Zimbabwe and coordination of Zimbabwe’s responses to regional and international development.

The strategic objectives of the Ministry are to promote and enhance Zimbabwe’s national interests and influence in the international community to protect a positive image of Zimbabwe abroad; to protect and secure the interests and safety of Zimbabwe’s nationals abroad; and to coordinate with other Ministries in the formulation and implementation of Zimbabwe’s foreign policy.

About the Ministry of Lands, Agriculture and Rural Resettlement (MLARR)

Ministry of Lands, Agriculture and Rural Resettlement (MLARR) has the responsibility to promote and sustain a viable agricultural sector and to develop and manage land resources through the provision of appropriate technical, administrative and advisory services in order to optimise, technical, administrative and to contribute to equitable and sustainable social and economic development in Zimbabwe.

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.
FinComEco has developed a business model, which will, where the ecosystem warrants, be deployed together with financing models designed by its African partners and approved by requisite Central Banks, to solve credit and financing issues that affect small-scale farmers throughout Africa. The linkage of the trading platform to a financing mechanism is a very important part of the FinComEco offering. The initiative looks beyond the typical exchange objectives of reducing costs and increasing transparency as well as focusing on a desperately needed, effective electronic warehouse receipt system. As part of the wider FinComEco model, enabled by scalable technology supported by its partner GMEX Group, FinComEco will work with, local and international partners to facilitate private and development finance funding for the Agri finance initiatives, as appropriate.

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

Notes to Editors

Benefits to farmers, farming communities and the wider economy in Zimbabwe:

  • The whole FinComEco ecosystem will be based on the set-up of a Commodities Exchange, optimising agricultural inputs, facilitating access to finance and credit facilities, provision of warehousing and logistic facilities.
  • Registration of land owners/farmers by using enhanced blockchain technology. This will gradually eliminate frauds and encourage efficiency of Government programmes related to agriculture.
  • Full use of technology for land management and yield improvement which farmers can use through mobile applications. Purchase and supply of agricultural inputs such as irrigation, fertilizers, soil testing results and seed quality can be optimised.
  • Removal of certain non value adding intermediaries which means higher margins on price of commodities sold.
  • Lower cost of finance and credit facilities can be approved quickly through electronic warehouse receipts. This will allow farmers to plan crop plantation/rotation early and effectively which will boost crop yields over the long term.
  • Provision of warehousing and logistics facilities will allow farmers to focus on growing crops and enhancing yields instead of worrying about storage, finding clients and wastage.
  • Working with Government and partners to build or facilitate construction of warehouses and road-related infrastructures and transportation.
  • Expenditures related to irrigation projects and flood control measures will also need to be incurred through help of DFIs and International Agencies
  • Adequate credit facility facilitation from local, regional and international banks through use of electronic warehouse receipts. This can start from recognition by regional trade blocs such as SADC, COMESA and recognised and adopted by regional banking groups.
  • Improvement of marketing facilities through consolidation into co-operatives/major companies or associations to benefit from economies of scale. Logistics and transport services to be linked between warehouse and co-operatives/associations/companies.
  • Over the long-term, consolidated operations can seek vertical integration into processing, packaging and transformation into value-addded products.
  • Opening the market to suppliers of inputs from friendly nations in joint ventures between Zimbabwe Government/ private businesses who will recognise the electronic warehouse receipts, provide revolving credits to duly registered farmers. This will ensure good supply of agricultural inputs which will be available at appropriate time and through controlled prices.
  • The FinComEco ecosystem will gradually built its own database related to agricultural inputs, financing trends, commodity prices, demand and supply which will be important parameters for future reference. Education related to agriculture will also benefit from this programme.
  • On the long-term, the ecosystem will allow proper allocation of labour. Surplus labour can be absorbed in value-added agricultural processing, organic agriculture.
  • Land reform programme can be monitored, administration set-up can be streamlined and necessary measures can be taken by the Government.