Tuesday, November 27, 2018 6.00PM / Nifemi Taiyese, Proshare WebTV
AFEX Commodities Exchange Limited, alongside Binkabi in partnership with Sterling Bank have decided to make use of Blockchain Technology to streamline the process of financing agriculture to smallholder farmers and other players in the commodities markets.
Quan Le, CEO Binkabi in an interview with Proshare WebTV, explained how Blockchain will help transform Agriculture in Nigeria and Africa.
According to him, the name of the initiative is “Uber for Grain”, which is designed to make domestic grain trading easier.
He said “Uber for Grain” is available for all users to post their order on the platform from the seller perspective.
However, he stressed for this to be possible, the individual needs to bring the commodity into the warehouse of AFEX and once AFEX receives the issue, they go further to make a digital representation of that on their platform.
Thereafter, a trading account is opened on the buyer’s side with Sterling Bank where he or she deposits money and this is done in order to enable the platform, connect with both AFEX and Sterling.
He stated that this was required for the purpose of confirming that the sellers have the goods for sale, and the buyer has the money to pay.
Once this has been confirmed, Quan Le shared that the swap can be made in one transaction.
Speaking further he noted that the farmers who are sellers will receive the payment, and the buyers will receive commodity warehouse receipts, which they can decide to sell on to other people or they can actually redeem for the actual commodities in the warehouse.
The CEO of Binkabi said the “Uber for Grain” initiative is not only a platform for connecting buyer and sellers, but is also responsible for connecting them with warehouse providers and the banks.
He was optimistic that the partnership will add value and create a source of financing to the Nigerian Agriculture Sector, providing multiple types of services.