There is an ever increasing need to invest in agriculture due to a drastic rise in global population and changing dietary preferences of the growing middle class in emerging markets towards higher value agricultural products. In addition, climate risks increase the need for investments to make agriculture more resilient to such risks. Some of the challenges in agriculture financing include:
• High transaction costs to reach remote rural populations
• Covariance of production, market, and price risks
• Absence of adequate instruments to manage risks
• Low levels of demand due to fragmentation and incipient development of value chains
• Lack of expertise of financial institutions in managing agricultural loan portfolios
The World Bank estimates that agricultural development is “two to four times more effective in raising incomes among the very poor than growth in other sectors.” Not only is this a high-impact sector, it’s also a large one. Farmers account for more than 30% of the global working-age population, and most of them live in poor countries.
WaxedMobile aims through its innovative biometric solution to aid Microfinance companies in managing some of the risks associated with microfinancing of small farmers. We do this by insuring that the release of funding is based on completion of farming activities thus also helping the microlender manage the ecosystem that the farmer is reliant on for their inputs and services. We give the microlender the mechanism to control the farming process and thus also enable the farmer to meet their financial responsibilities. We also minimise the need for any payments to be made in cash making transactions simpler and cheaper in more rural areas.
Waxed Eanables the Agriculture industry in 2 key areas, The management of microfinancing for the informal farmers through a cashless agri ecosystem.
All transactions will have a transaction Fee that will be agreed with the microloan organisation.
The Raven solution allows the Microloan provider to monitor each task that is required in the crop farming process.
All Stakeholders are registered in the system with their biometrics which then become the means of authenticating activities and payments.
Then we enable informal farmers to get their goods to market through a cashless logistics network
The Raven logistics solution allows for participants in the system to track goods and make seemless secure payments using currency pegged tokens. Participants will then be able to transfer the tokens out of their system wallets into a bank or for cash.
Loans between participants can be facilitated to ensure tokens are made available on exchange of goods.