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Blockchain-based model to enhance the financing of fairtrade producers

Preliminary study

At a glance

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.

Further information