A cryptocurrency firm is launching a mobile voucher system to help rural farmers in Africa grow more food.
In Zimbabwe, Zambia and Malawi, farmers would buy fertilizer at a subsidized price.
A physical voucher system was successful, but it got corrupted. A blockchain system can eliminate that corruption.
IATA and Cleverly believe blockchain technology can improve the way fertilizer vouchers are used.
KamPay’s partnership with Africa Grain & Seed is a micro-finance solution that lends to farmers to buy seeds.
The company is using the token system to pay back borrowed funds. Farmers can use profits to buy goods on the KamPay platform, but can also use other cryptocurrencies to purchase goods.
To fund loans, KamPay is developing lottery licenses in Africa, along with sports betting licenses and digital casinos licenses, in addition to a live streaming service and mobile gaming platform.
Lottery has created a cyclic profit cycle that allows you to do social good and create a financial service that can provide sums that you need to loan out.
KamPay’s lottery system is a good model for customer acquisition, but the real dream is to fund its loans with decentralized finance.
DeFi uses blockchain technology to enforce agreements between lenders and borrowers. Its success has led to a surge in cryptocurrency wealth, which has been used to fund speculative yield.
KamPay, a startup that helps farmers get loans, hopes to offer loans that generate yields for both lenders and farmers.
Cleverly believes African agriculture will be the first industry to adopt new financial models, and that technology will leapfrog existing banking systems in the West.
If you want to build a financial system in Africa, you wouldn’t start with the systems that exist right now.
Smartphones are the key to feeding the maximum number of people in Africa, but they are not widely used due to poor landline telecommunications services.
Africa’s adoption of bitcoin is one of the highest in the world, partly because the government hasn’t been in Africa.
The way to reduce hunger is to put the farmer at the center of the process and have the decisions made by the farmer.