Problems and Challenges of Agriculture 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 finance1 to access modern farming techniques. Some of the challenges with investments into agriculture in Africa include but not limited to:
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.
Policies in operation countries may cripple any business without prior warnings. Blockchain and decentralized system proffer some protections to users.
Cheap Investment Options
Most investment opportunities in agriculture are huge, making it a selective playground to investors. But changes that to create opportunities that allow mini investments that are easily accessible to the all and sundry.
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.
Non Flexibility of Investments
Most investors do not have the privilege of diversifying their portfolio or moving from one investments to another without cumbersome procedures. It is important to create system that enables portfolio diversification and investment flexibility.
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. There is therefore the need to create a mechanism to help diaspora investors preserve their monies should they decide to invest back home.
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 therefore expedient to create platforms that will enable international transactions with minimal dependencies on complicated banking structure.
Meet the team behind the success of the project.
Emmanuel Mezoh Dolakeh
Dr Joshua O Awesome
- South Africa
Thebault Vaclav Stybr
Business Expansion Lead
- Czech Republic
Systems and Data