AgriFi connects smallholder farmers in Africa with global investors through a blockchain-based platform that utilizes smart contracts and tokenization to facilitate secure lending pools. This approach addresses the lack of access to capital for farmers, enabling them to purchase necessary inputs and ensuring a market for their crops while providing investors with attractive returns and risk mitigation through agricultural insurance and loan guarantees.
Funding
Funding not disclosed
Founders
Product
Problem
Smallholder farmers in Africa lack access to capital from traditional financial institutions, hindering their ability to purchase necessary inputs and expand their operations. This limited access restricts their potential to increase yields and reinvest in their communities.
Solution
AgriFi connects these underserved farmers with global investors through a blockchain-based platform, providing a secure and transparent lending ecosystem. The platform utilizes smart contracts to manage lending pools, ensuring that funds are used specifically for purchasing agricultural inputs. By pre-matching buyers for crops and requiring agricultural insurance, AgriFi reduces investment risk for both farmers and investors. Constant monitoring of farmers through extension partners and technologies like satellite imagery further ensures quality and yield.
Target Audience
AgriFi targets smallholder farmers in Africa seeking access to capital and global investors looking for opportunities to generate returns while making a social impact.
Features
- Blockchain-based platform built on ToroNet, designed for real-world agricultural finance.
- Tokenization of farmer profiles using zero-knowledge proof KYC technologies for verifiable digital identities.
- Smart contract-managed lending pools that restrict fund usage to agricultural inputs.
- Pre-arranged crop purchase agreements to guarantee market access for farmers.
- Mandatory agricultural insurance to protect against floods and other unforeseen events.
- First loss credit guarantee, with USAID and DFT partners covering 50-75% of investments in case of default.
- Constant monitoring of farmers via extension partners, satellite imagery, and soil biopsies.
- Digital extension and financial literacy workshops provided in partnership with USAID's Feed the Future Program.