AB InBev, the owner of Budweiser, has unveiled a blockchain-enabled system to help African farmers improve their income.
The system, which was developed in collaboration with BanQu, is mainly aimed at tracking AB InBev’s domestic suppliers of barley and malt.
“And now this farmer, who was never bankable — because she couldn’t prove income of any source, had no reports, or material or paperwork — now in a flip phone, she has in the blockchain proof that she is a supplier to AB InBev, a global company,” said AB InBev CEO Carlos Brito.
The move will help suppliers prove their income to local banks through opening bank accounts. In addition, the system allows farmers to increase their returns.
“They become commercial farmers and everybody wins. Consumers are safer and we create more formal jobs. The government collects taxes. Instead of sending the money to Europe, or Australia, or Canada buying barley or malt, we keep the money there,” Brito said.
“We need the middlemen to consolidate this cargo to send to our breweries by the truckload. And this middleman was not necessarily passing the money we were paying to him or her to [the farmer],” he added.
The BanQu product is widely used by thousands of farmers in Uganda and India. The blockchain industry has revived in Uganda, especially as Binance opened its branch in the African country in 2018.