Mozambique links agriculture with fintech
12 July 2017 | 1765 views | 0
Institute of Cereals of Mozambique (ICM), responsible for regulating and promoting agricultural production and commercialisation in Mozambique under the remit of the Ministry of Industry and Trade, announced the signing of a collaboration agreement with FinComEco, the fully integrated Financial & Commodities Ecosystem providing services, financing, capacity building and enablement solutions through a venture, linking agriculture to the latest financial technology.
The agreement was signed in the presence of Rt. Hon Mr Ernesto Max Elias Tonela, Mozambique Minister of Industry and Trade by Mr. João Macaringue, Director General of ICM and Mr. Hirander Misra, Deputy Chairman of FinComEco.
The collaboration will develop a range of projects and high impact initiatives in the agricultural commodity markets sector. ICM, with its Mozambique domain knowledge, country wide network of warehouses facilitating smallholder farmers, traders and buyers, will deliver commercialisation and operational capabilities. FinComEco will provide the commodity trading platform and electronic warehouse receipts capabilities, as part of the wider FinComEco model. This includes distribution of third party agri-finance and electronic banking facilitation enabled by scalable technology supported by its partner GMEX Group.
The joint venture, supported by the Republic of Mozambique Government, will implement the programme as part of a coordinated effort to create a food reserve capable of filling the national deficit. Through collaborative efforts, both parties will work to drive improvements in food security, economic diversity and financial inclusion through a socially responsible commercial delivery partnership. To support the programme, FinComEco has established FinComEco Mozambique SA as a majority owned Special Purpose Vehicle with local partners. GMEX Group has also acquired a 10% stake in the venture.
The parties will also work with development organisations, governments, research bodies and the private sector to strengthen the legal and regulatory framework, apply effective standards, and provide technical assistance and capacity building.
João Macaringue, Director General of ICM, commented, “The implementation of the Operational Plan for Agricultural Marketing (POCA) will deliver on the Presidential initiative to increase production and productivity, for the benefit of our population, achieving a sustainable agricultural sector.” He added, “The signing of this agreement provides a solid response to supporting POCA and solving the problem of abstraction, transport, storage and distribution. The involved industries will also record all production, whether domestically consumed, exported or stored in reserve for national food security.”
Hirander Misra, Founder and Deputy Chairman of FinComEco and CEO of GMEX Group commented, “This high impact initiative in Mozambique will facilitate the effective linking of the supply to demand agricultural value chain enabled by best-of-breed technology, standards and inputs (including seeds, fertilisers and pesticides).” He added, “This, coupled with a unique agri-finance business model to solve credit and financing issues underpinned by improvements in logistics and warehousing, will help improve food security and encourage value added agricultural industries and wider trade.”