Demonstration Project Begins for Providing Microfinance Services in Nigeria

 

STANDAGE Co., Ltd. (Minato-ku, Tokyo, CEO: Akinori Adachi, hereinafter referred to as Standage), which develops and provides digital trade platforms, together with Spaceshift Co., Ltd. (Chiyoda-ku, Tokyo, CEO: Shigeo Kanemoto, hereinafter referred to as Spaceshift), have been selected for the FY2023 supplementary budget "Global South Future-oriented Co-creation Project Subsidy (Survey to Promote Overseas Infrastructure Expansion by Japanese Companies)". The two companies will jointly promote the "Nigeria / Demonstration Project for Microfinance Services for Farmers Using Agricultural Land Satellite Information".

 

Background
In Nigeria, where cassava and yams are the staple foods and sesame and cocoa beans are exported to other countries, it is said that roughly half of the population works in the agriculture, forestry and fisheries industries.
However, for financial reasons, small-scale farmers in Nigeria find it difficult to purchase agricultural machinery and equipment, and they also lack credit, meaning they cannot obtain bank loans.
As a result, they are forced to continue inefficient manual farming, and are caught in a vicious cycle that keeps them in poverty.

To address this issue, Spaceshift and Standage have been working together since 2021 to create a service that enables low-income farmers to access financial services such as microfinance and savings, thereby contributing to promoting efficient agricultural work and alleviating poverty.

 

■ Demonstration Overview
In Nigeria, we will conduct a demonstration project to provide microfinance services to small-scale farmers through farm credit management using agricultural satellite information.
The number of agricultural machines handled will be increased to about 10 times that of previous demonstrations, and the usefulness of the system will be confirmed through larger-scale demonstrations.

In addition, while we anticipate providing loans through cash in the future, this time we will help increase yields by providing or renting high-quality agricultural machinery at the time of production, aiming to achieve a cycle of increased yields -- reliable credit -- loans.

 

■ Roles of both companies

Space Shift:Analysis of images obtained from optical satellites and synthetic aperture radar (SAR) satellites using AI technology, and data collection of crop growth conditions

Standage:Manage and supervise the entire supply chain, including procurement, storage, sharing and after-sales maintenance of agricultural machinery and inputs provided to Nigerian farmers.

 

■ Reference Information
FY2023 Supplementary Budget "Subsidy for Global South Future-oriented Co-creation Projects (Survey on Promoting Overseas Infrastructure Expansion by Japanese Companies)"
URL: https://gs-hojo-web.jp/

Selection results for indirectly subsidized businesses under the FY2023 supplementary budget "Subsidies for Global South Future-oriented Co-creation Projects (Survey on promoting overseas infrastructure deployment by Japanese companies)"
URL: https://www.meti.go.jp/information/publicoffer/saitaku/2024/s240628005.html

 

■About Space Shift
Founded in December 2009. With the theme of "Sense the Unseen from Orbit," the company is developing software that uses AI to analyze data obtained from Earth observation satellites to extract a wealth of information with recognition capabilities that exceed 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 name: Space Shift, Inc.
Representative: CEO Naruo Kanemoto
Head office location: Otemachi Building 6F, 1-6-1 Otemachi, Chiyoda-ku, Tokyo
Established: December 11, 2009
Capital: 638 million yen (including capital reserve)
URL:https://www.spcsft.com/

 

■About Standage
Founded in March 2017. With a vision of "creating a world where all countries have equal access to all goods," the company is developing a new trade settlement system that utilizes blockchain and stable coins. Its main market is emerging countries, including Africa, and it has established bases in four African countries, including Nigeria, and is engaged in trade with Africa. In addition to trade settlement, the company develops and provides systems that realize digital transformation for market development, ordering, and international logistics, and also works to support exports by small and medium-sized enterprises.
◇"DigiTrad" service official website:https://standage.co.jp/digitrad
Established: March 2017
Representative: President and CEO Akinori Adachi
Capital: 608,568,500 yen (including capital reserve of 302,782,500 yen)
URLhttps://standage.co.jp/