AB InBev – the mother corporation of beer brand Budweiser – is reportedly adopting a blockchain-based solution, in assisting African farmers to provide evidence for their income.
Specifically, revealed on January 21st, AB InBev has teamed up with BanQu to design a blockchain-powered solution, for digitalizing its local suppliers tracking process, completely canceled out the paper measure.
AB InBev has been using the method of utilizing local suppliers, ultimately earned tax exemptions for their extensive contribution to the growth of that nation’s economy. However, issues have surfaced in Africa, where banking infrastructure is not fully complete, and securing paper documents for local farmers appeared to be a serious challenge.
Partnering with BanQu – a blockchain solution provider for supply chains – AB InBev is looking to roll out a distributed ledger system, handling the tracking process of local suppliers of Barley and malt.
This tool will simplify the task of providing evidence of income for the banks by the farmers, and help them open bank accounts and lines of credit.
“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.” Carlos Brito – head of AB InBev – provided further explanation.
By gaining access to banking, the farmers could obtain farming gears with enhanced quality, boosting their yields and earn more money.
The system will also eliminate corruption issues when middlemen are involved, in the the shipments-breweries consolidation process.