Government of Zimbabwe signs MoU with FinComEco to drive innovation in
agriculture markets
March 22, 2018 9:06 AM
Source: Government of Zimbabwe signs MoU with FinComEco to drive
innovation in agriculture markets
The Government of Zimbabwe, under the aegises of the Ministry of Foreign
Affairs and International Trade (MoFAIT) and Ministry of Lands,
Agriculture and Rural Resettlement (MLARR) and FinComEco, the fully
integrated Financial & Commodities Ecosystem (FinComEco) providing
services, financing, capacity building and enablement solutions from
supply to demand, have signed a Memorandum of Understanding (MoU) to
jointly develop a range of platforms, projects and initiatives in the
agricultural commodity markets sector in Zimbabwe.
This is expected to be extended into a Memorandum of Agreement (MoA)
subject to approval under the new Joint Ventures Act which came into force
in January 2018. FinComEco with local partners and MLARR will then
establish a joint venture company to develop high impact initiatives to
facilitate agricultural value chain efficiencies through provision of
strategic value-added services including an electronic Warehouse Receipt
System (eWRS), Exchanges, Trading Platforms, Commodities and Input Finance
and Electronic Banking, training and capacity building including the
establishment of a commodities exchange underpinned by Blockchain
technology.
The mandate will also deliver marketing information and other value-added
services, such as market access and policy change interventions,
identifying project opportunities in high growth segments of the
agricultural industry working together and with appropriate partners
including International Development Agencies and Development Finance
Institutions as well as the private sector. There will also be investment
in existing and new warehouses with related infrastructure and logistics.
Based on estimates, the value-added by FinComEco to the agricultural
sector in Zimbabwe will be in excess of US$1.5Bn over a 5 year period in
terms of GDP growth resulting in considerable economic and social impact
for the population with the GDP per capita of Zimbabwe estimated to
increase by 1.5 times between 2018 to 2022 as a result of this and wider
initiatives. This is expected to create 90,000 direct jobs in the
agricultural sector. According to the Farmers Unions every job created in
the farming sector creates 7 more jobs in other related sectors. The
FinComEco ecosystem will, therefore, have additional benefits and spill-on
effect on other sectors such as construction and creation of new direct
and indirect jobs with the creation of additional indirect jobs across all
related sectors estimated at 630,000 over a 5 year period.
The Rtd Hon Major-General (Rtd) Dr Sibusiso Moyo, Minister of Foreign
Affairs and International Trade said, “This collaboration marks the
beginning of Zimbabwe’s participation in international trade, which is the
backbone of Zimbabwe’s economy.”
The Rtd Hon. Perence Shiri, Minister of Lands, Agriculture and Rural
Resettlement, Zimbabwe commented, “This collaboration sets Zimbabwe on
track to becoming the bread basket of Africa and beyond with access to
international markets.” He added, “The FinComEco initiative will promote a
viable sustainable agricultural and horticultural sector, by optimising
productivity in addition to ensuring ongoing food security and job
creation for our country.”
Hirander Misra, Co-Chairman of FinComEco and CEO of GMEX Group added, “We
are delighted to be working with the Government of Zimbabwe to facilitate
positive economic and social impact for farming communities and related
sectors. The whole FinComEco ecosystem will be based on the set-up of the
Zimbabwe Commodities Exchange, optimising agricultural inputs,
facilitating access to finance and credit facilities, provision of
warehousing and logistic facilities to enable GDP growth and job
creation.”
FinComEco is enabled by scalable, centralised, de-centralised & Hybrid
technology solutions delivered by its partner GMEX Group including the use
of Blockchain technology.