Blockchain-based model to enhance the financing of fairtrade producers
Preliminary study
At a glance
- Project leader : Dr. Beat Affolter
- Project team : Prof. Dr. Harald Bärtschi, Dr. Peter Heinrich, Prof. Dr. Jörg Osterrieder, Andreas Schweizer, Micha Steiner
- Project budget : CHF 15'000
- Project status : completed
- Funding partner : Innosuisse (Innovationsscheck / Projekt Nr. 37010.1 INNO-SBM)
- Project partner : FairCapital SA
- Contact person : Beat Affolter
Description
Problem addressed
Certified Fairtrade producers (e.g. by “Max Havelaar”) in
developing countries (organised as cooperatives) often have very
stable business models and regularly face investment opportunities
(e.g. expansion of production or value chain) for which they need
external financial sources (e.g. credit financing). Unfortunately,
access to financing is often missing due to a lack of financial
infrastructure in the respective countries.
Several investment funds are already addressing this issue in
small-scale agriculture. However, more flexible financing (e.g.
working capital) is often hard to access, especially for
medium-sized organisations.
Project goal
The goal of the project is to enable access to financing for
Fairtrade producers by allowing Fairtrade consumers in Switzerland
to invest directly in loans to these Fairtrade producers. Financial
access is provided by developing a blockchain-based integrated
financial value chain which includes all actors along the value
chain, including Fairtrade consumers, producers, and supply chain
partners.
The project is a interdisciplinary preliminary study including the economic, legal, and technological perspective.