African Potash, is pleased to announce that it has entered into a Joint Venture agreement with FinComEco a subsidiary of GMEX Group Limited. The agreement is to jointly develop and operate a range of platforms/projects and initiatives in the agricultural commodity markets sector in sub-Saharan Africa. This will be underpinned by the deployment of a complete blockchain-based agricultural ecosystem solution.
It is anticipated that demand will be driven by the provision of microloans by the Company direct to Small Scale farmers (“SSF”). The microloans are expected to bear interest at approximately 12% per annum, a rate which will be a significant disrupter in the countries of operation where farmers can pay well over double this rate. The portfolio of loans will be insured against non-performance. All supply chain financing and transaction logging will be by blockchain.
Change of Name
This joint venture with FinComEco to deploy an integrated microloan financed, token-based, input and output trading ecosystem is a significant step forward in our strategy to build a vertically integrated fertiliser business from initial resource through to selling directly to the farmer.
In light of this significant development of the Company’s strategy, the Board is proposing changing the Company’s name to reflect the technology that will be core to its envisaged growth.