African Potash Ltd (LON:AFPO) has agreed a joint venture with FinComEco to execute its new block chain-based agriculture distribution network in southern Africa.

FinComEco, a subsidiary of GMEX, will buy crops grown by farmers who have received microloans from African Potash.

READ: African Potash to raise £400,000 for block chain payment scheme

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.”