FinComEco, a subsidiary of GMEX, will buy crops grown by farmers who have received microloans from African Potash.
The microloans are expected to bear interest at approximately 12% per annum, a significant discount to rates currently on offer to farmers, said African Potash, which will change its name to Blockchain Commodities Limited at the next AGM.
Mark Simmonds, a non-exec at African Potash, is also currently chairman of FinComEco.
Blockchain to generate other e-commerce opportunities
Chris Cleverly, African Potash’s executive chairman, said: "By linking agriculture to blockchain technology, the joint venture will facilitate agricultural value-chain efficiencies.
“Demand for agricultural inputs will be driven by the provision of low cost microloans direct to Small Scale Farmers for them to purchase inputs from our designated warehouses; with repayment in the form of warehouse receipts of SSF outputs.
“The blockchain system tokens are expected to generate other e-commerce opportunities as demand evolves.”