The East African community is said to be doing great when it comes to the implementation of blockchain technology. As a result, IBM has decided to develop a blockchain microfinance system for Kenyan food vendors. This would enhance the vending system in the country and ease the operations tracking sales-targets, credit system, and microfinance services for new vendors.
This will be covered by Hyperledger Fabric, which will take care of the financial processes. Popular crypto exchange Binance and mobile money service providers like Airtel will also be contributing and investing in Kenya.
Why the blockchain microfinance system?
Countries like Rwanda and Uganda have invested heavily to bring crypto and blockchain to their day-to-day life uses. Tanzanian president launched DLT(Distributed Technology Ledger) to fight corrupt and illegal activities in the administration. However, this increased use of crypto led to a huge scam which led to a loss of more than $2.7 million.
Blockchain microfinance system is one of many other managing systems based on blockchain which are being used in the EAC region. Rwanda has a similar system that is specifically designed for land and property rights and is very helpful in such disputes.
Enhance Kenyan vendors’ performance sans financial worries
With the introduction of a blockchain microfinance system for the Kenyan food vendors, the food vendors will be able to focus more on the operations part and enhance the overall performance rather than bothering just about finance. As in blockchain, the systems will have a fixed record of everything, including inventory, sales revenue, and profit targets.
As good as the plans are, the African continent still lacks a lot of essential commodities like fluent and sufficient internet connectivity, capital and a standard regulatory framework. While with the coming of blockchain and crypto, the EAC and the African continent as a whole has the power to be one of the major hubs for crypto and blockchain technology.
Featured image from Pixabay
