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African Potash extends reach into blockchain with TokenCommunities joint venture

The group said this will complement the FinComEco joint venture struck in November
farm workers
The firm will provide loans direct to small scale farmers (SSF)

African Potash Ltd (LON:AFPO) furthered its entry into game-changing blockchain technology - striking a deal on a joint venture with Gibraltar firm, TokenCommunities Limited.

The group said this will complement the FinComEco joint venture struck in November and will bolster its plans to operate a range of platforms and projects in the agricultural commodity markets sector in sub-Saharan Africa.

READ: African Potash announces new joint venture for Republic of Congo

"It will help enable smallholder farmers to raise productivity and potentially obtain a better price for their produce. In the longer term, it may provide opportunities for further income growth as well as opening alternative added-value opportunities including broader e-commerce-enabled enterprises," said the company.

TokenCommunities will advise on the deploying tokens, which will allow users to gain access to a digital resource.

AFPO expects that demand will be driven by microloans provided by African Potash direct to so-called small-scale farmers (SSF) all within the blockchain space.

These microloans are expected to bear interest at around 12% a year, which will be a significant disrupter because farmers currently can pay well over double this rate. 

READ: African Potash will partner GMEX for block chain joint venture

"The blockchain system tokens are expected to generate other e-commerce opportunities as demand evolves. This agreement represents a further step in our strategy to build a vertically integrated fertiliser business from initial resource through to selling, using blockchain technology, direct to the farm," said Chris Cleverly, executive chairman at African Potash.

"This strategy is reflected in the proposed change of name to Block Commodities limited".

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