AB InBev Africa is rolling out a Blockchain solution developed by BanQu, a US-based FinTech company.
This technology enables farmers in the AB InBev value chain to have a line of sight of their barley, sorghum and cassava sales, and receive cash through a mobile money solution.
AB InBev has also invested in BanQu, advancing an undisclosed amount to ZX Ventures, the company’s global growth and innovation group, in June 2019.
“Our investment in BanQu is an investment in our future through empowering our farmers,” says AB InBev’s Solutions Africa Director of Innovation & Analytics, Sameer Jooma.
AB InBev and BanQu’s partnership dates back to August 2018, when BanQu and AB InBev launched a successful pilot project in Zambia. Successive roll-outs in Uganda, India, and Brazil have since taken place, making Brazil the fourth market where BanQu will assist AB InBev in reaching the global brewer’s 2025 sustainability goals.
Since the second implementation was unveiled earlier this year in Uganda, through Nile Breweries Limited, 1,200 farmers have signed up on the BanQu Blockchain platform. These farmers now have access to full accounting information, such as sales price, volume sold, and payment – with this information made available via SMS. They also have records that they can take to the bank, allowing them access to credit and form a verifiable economic identity.
This possibility is realised as farmers now have access to an immutable digital record of their financial transactions, through BanQu’s signature Dignity Through Identity solution.
Another benefit to AB InBev’s smallholder farmers, which has recently been made available by BanQu, is the integration of mobile money, which means that farmers do not have to walk around with cash that could be stolen, and can, instead, store money, pay bills or send remittances online directly through the free, secure platform.
“What BanQu has done, as the world’s first company to offer this solution, is to take this technology and expand it beyond cryptocurrency. After all, what is being moved is information, because even money can be distilled down to data now,” said Jooma.
The partnership also gives AB InBev Africa better visibility of farmers in their supply chain, and the Group can easily see how much, and when, a farmer was paid, as well as track produce from the farm to the brewery through geo-location tags.
Now that the farmer is connected, AB InBev Africa can also connect with farmers to ensure that they receive the training and resources they need.
“Through developing the world’s first and only non-cryptocurrency Blockchain platform, BanQu connects people to global supply chains, enabling them to do business with brands, organisations, and governments,” says BanQu Co-Founder and CEO, Ashish Gadnis.
“Almost 2.7 billion people across the globe don’t have access to credit or other banking services, because they don’t have what we call an economic identity – the data record of their financial position. BanQu seeks to solve this dilemma by providing auditable financial records, which are bankable, allowing more people to participate in the global economy.”