The Zimbabwean government, under the guidance of the Ministry of Foreign Affairs and International Trade (MoFAIT) and the Ministry of Lands, Agriculture and Rural Resettlement (MLARR), signed a Memorandum of Understanding (MoU) with the Financial & Commodities Ecosystem (FinComEco) to develop an array of platforms, initiatives and projects meant for the Zimbabwean agricultural markets.

FinComEco is expected to provide services, capacity building, financing and enablement solutions from supply to demand for the agricultural market in Zimbabwe. The partnership is expected to develop into a Memorandum of Agreement (MoA), which will be subject to approval under the new Joint Ventures Act that was established and came into effect in January 2018.

FinComEco is a company that utilises blockchain technology to provide solutions that improve food security and economic diversity that are tailored for different countries. The company is enabled by a scalable, centralised, decentralised and hybrid technology solution that is made possible by its partner, GMEX Group. FinComEco, MLARR and other local partners involved are expected to start a joint venture company that will create high impact initiatives meant to accelerate agricultural value chain effectiveness through the delivery of strategic value-added services that include an electronic Warehouse Receipt System (eWRS), exchanges, trading platforms, electronic banking, training, and capacity building. This will all culminate in the establishment of a blockchain-based commodities exchange.

Creation of Job Opportunities

The directive will also aid in the identification of project opportunities in high growth segments in the agricultural sector to work together with the right partners such as international development agencies and development finance institutions as well as companies in the private sector. Moreover, there will be investments in new and existing warehouses with linked logistics and infrastructure.

It is estimated that FinComEco value-add in Zimbabwe’s agricultural sector will be worth more than $1.5 billion over a period of five years in terms of GDP growth, which will result in a significant economic and social impact for the nation with the GDP per capita of Zimbabwe expected to grow by 1.5 times between 2018 and 2022. The partnership is expected to create close to 90,000 job opportunities in the agricultural industry. According to the Farmers Union, every one job created in the farming industry will create seven more jobs in other similar sectors. The FinComEco is therefore expected to have more benefits with the effects being felt in other industries such as construction and the establishment of both new direct and indirect jobs. Over a five-year period, the country is expected to experience an additional 630,000 jobs across different industries.

FinComEco Benefits to Zimbabwe

The Minister of Foreign Affairs and International Trade, the Rtd Hon Major-General (Rtd) Dr. Sibusiso Moyo, said,

“This collaboration marks the beginning of Zimbabwe’s participation in international trade, which is the backbone of Zimbabwe’s economy.”

Zimbabwe’s Minister of Lands, Agriculture and Rural Resettlement, the Rtd Hon. Perence Shiri, added, “This collaboration sets Zimbabwe on track to becoming the bread basket of Africa and beyond with access to international markets. 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.”

The Co-Chairman of FinComEco and CEO of GMEX Group, Hirander Misra, backed their sentiments by saying, “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.”