Binkabi Commodity Monday #12 |  View online  in your own language

Uber for grains

Commodity Monday, 26 November

Nigerian bank commits to financing ‘tokenised’ commodities on blockchain


Sterling Bank Nigeria has committed to providing at least N10bn (approximately US$30mn) in financing against ‘tokenised’ warehouse receipts in a partnership agreement with AFEX, a Nigerian commodities exchange, and Binkabi, an Africa-focused blockchain firm.

Binkabi’s platform uses blockchain-based smart contracts to secure and automate commodity trading and financing. Through the new programme, a farmer can deposit commodities for sale at one of Afex’s warehouses throughout Nigeria, which in turn will issue a warehouse receipt representing the ownership of the commodity. This warehouse receipt will then be converted into a token— which can be traded on Binkabi’s blockchain platform and used as collateral for financiers to fund it.

This brings huge opportunities to a bank like Sterling Bank, which has never provided financing on the back of warehouse receipts before. “It will enable us to finance more and provide better pricing,” Awosanya says. “Before, the bank would need additional collateral — something more tangible than a warehouse receipt, such as a mortgage.”

Binkabi’s long-term ambition is to build a broad network of individual commodity exchanges across Africa that share a common blockchain-based infrastructure. The firm is already working with TAK Agro, a local agricultural conglomerate, to acquire a license for another exchange that will run on the same platform.

Nigeria’s Biggest Opposition Candidate Promises Cryptocurrency Regulation


Ahead of Nigeria’s general elections in February 2019, Atiku Abubakar, the presidential candidate of the People’s Democratic Party (PDP)- the country’s largest opposition party — has included the creation of a “comprehensive blockchain and digital currency policy” in his policy document.

The move comes as a significant surprise as the country’s regulatory establishment led by the Central Bank of Nigeria has consistently held a very cautious albeit non-hostile line toward cryptocurrency. Despite a growing awareness and adoption of bitcoin and other cryptocurrencies among the general population, authorities have repeatedly issued statements warning against cryptocurrency investment..

Atiku is seeking to present his vision of large-scale job creation as necessary for national security. He is also trying to position himself as a leader who is well-positioned for the 21st century

Speaking at the launch of his policy plan he said:

“My mission is to ensure that Nigeria’s economy is responsive to the challenges of the 21st century knowledge economy by keeping with the amazingly dynamic technological pace.”

Cashew prices jump nearly 10 pct after Tanzania price hike

Standard Digital

The global price of cashew nuts has jumped nearly 10 percent over the past week, after Tanzania’s government started buying the entire country’s stock at a higher price, a trader said.

Army personnel have been ferrying truckloads of the crop purchased by the government to selected storage areas. The price of the commodity has risen to $3.80 per pound from $3.50 in the last seven to ten days, said Michael Stevens, a commodities trader at Scotland-based Freeworld Trading.

Traders said they were assessing how Tanzania, a top ten global producer, would be able to get its cashews to the main buyers in India and Vietnam before the end of the year, after which harvests from other producers in South and West Africa will start to come into the market. “Between now and then, it’s not clear what the price will be. If buyers think the price will continue to go up then they might come in and buy,” Stevens said.

Harvest Spotlight: Soybean

Binkabi Blog

Soybean is a pod-bearing plant, widely grown for its edible bean and can be grown only in tropical, subtropical and moderate climates. The world soybean consumption is very high, currently estimated as 333 million tons in 2017 and approximately 75% of the consumption of soybean is seen as animal feed..

Despite the growing demand from the poultry and edible oils industries, the production and supply still does not meet the demand in Nigeria. In 2015/2016, Nigeria produced approximately 680,000 tons of soybean, failing to meet the domestic demand estimated at 2.2 million tons in 2016 due to low yields.

Soybean is currently being harvested in Nigeria and other parts of West Africa and Soybean farmers, suppliers and aggregators are encouraged to hop on to use Binkabi commodity marketplace to sell their harvest for more and to use their soybean token safely stored in our accredited warehouses to access financing for next production.

Binkabi — Platform for issuing, trading and financing commodities on the Blockchain

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