Spaceshift Inc. (Head office: Chiyoda-ku, Tokyo; CEO: Shigeo Kanemoto; hereinafter referred to as "Spaceshift"), a developer of satellite data analysis systems, and STANDAGE Inc. (Head office: Minato-ku, Tokyo; CEO: Akinori Adachi; hereinafter referred to as "Standage"), a provider of comprehensive trade platform services using blockchain technology, have begun developing a "microfinance service for small-scale farmers in Nigeria using agricultural satellite information" (hereinafter referred to as "this service").
Furthermore, we are pleased to announce that this service has been selected as a target for the Japan International Cooperation Agency (JICA)'s "Information Collection and Verification Survey on Matching the Needs of Developing Countries with Private Technology" (hereinafter referred to as the "Survey Project*¹").

 

Background
Small-scale farmers in the Federal Republic of Nigeria (hereinafter referred to as Nigeria) have difficulty purchasing agricultural machinery for economic reasons, and are unable to obtain loans from banks due to lack of credit. As a result, they are forced to continue farming using inefficient manual labor, and are caught in a vicious cycle that makes it difficult for them to escape poverty.
To break this vicious cycle, Spaceshift and Standage will jointly develop a service that will enable low-income farmers to receive financial services such as microfinance*² (small loans) and savings, promoting efficient farm work and contributing to poverty alleviation. Going forward, we aim to develop this service by the end of fiscal year 2021, and to introduce the service to 2 million households, or 10% of the 20 million small-scale farming households in Nigeria, by fiscal year 2023.

*²What is microfinance (small loans)?
A system that provides financial services such as small loans and savings to the poor, helping them escape poverty.

 

■ Service Overview
Spaceshift will use AI technology to analyze images obtained from ground observation satellites and digitize the work progress and crop growth status of Nigerian farmers. Standage will create credit scores for farmers from the satellite data analyzed by Spaceshift, manage credit on the blockchain, and build and operate a microfinance system that uses the credit data to conduct credit screening of farmers in which it invests.
To support farmers who pass the credit screening, the plan is to first provide them with agricultural equipment made in Japan, fertilizer to improve harvests, and other materials, and then move on to providing funds to farmers with a proven track record.
Through this world-first initiative that combines satellite data, blockchain and agricultural supplies, Spaceshift and Standage will promote digital transformation in agriculture for African farmers, contributing to improving the efficiency of farm work and increasing yields.

Figure: Business model

 

■ Activities in JICA survey projects
This service was also adopted as a JICA survey project in October 2021 (representative company: Space Shift Co., Ltd., co-proposing company: STANDAGE Co., Ltd.). The JICA survey project is scheduled to carry out the following activities:
The survey project will run from October 2021 to February 2022.
(1) Identify issues in deploying the service and develop hypotheses to resolve those issues.
(2) We will verify hypotheses through on-site surveys and gather local information, and will explain the service content to farmers so that they can understand the service. (However, we will make a decision after fully considering the spread of the COVID-19 infection.)
Based on the results of these on-site surveys and advice from experts, we will prepare for the detailed design and implementation of the service.

*¹In this survey project, JICA calls for submissions of innovative products, technologies and services that contribute to solving local issues in four areas that are becoming increasingly important in developing countries, and provides an opportunity to conduct surveys to assess the suitability of the proposed products, technologies and services to the needs of the target countries and to hold seminars to promote the use of the products, technologies and services.

 

■About Space Shift
Founded in December 2009. With the theme of "Unlocking the world with AI and space," the company develops software that uses AI to analyze data obtained from Earth observation satellites to extract a wealth of information with recognition capabilities that surpass those of humans. The company aims to realize a sustainable society by utilizing satellite data in a variety of fields, including infrastructure management, disaster prevention and mitigation, agricultural monitoring, and environmental conservation.

 

【Company Profile】
Company name: Space Shift, Inc.
Head Office: Otemachi Building 6F, 1-6-1 Otemachi, Chiyoda-ku, Tokyo
Representative Director Shigeo Kanemoto
URL: https://www.spcsft.com/

[Contact Information]
Shiba NA Building 4F, 3-6-10 Shiba, Minato-ku, Tokyo 105-0014
STANDAGE Co., Ltd.
President and CEO: Akinori Adachi
Executive Vice President/COO: Kenta Omori
Press Contact Email: info@standage.org