AB InBev, the company behind the Budweiser brand, has developed a blockchain supply chain system to improve transparency by tracking local African suppliers and prove their income on the blockchain.
Uganda has been named as one of the countries where the blockchain system is being tested.
Budweiser is the most valuable beer brand in the world, according to new rankings from Brand Finance currently worth $7.5 billion.
According to AB InBev, African farmers are sometimes so small that they do not have the necessary paperwork to prove their income even when their yield triples or quadruples.
Speaking during the 2020 World Economic Forum in Davos, Carlos Brito, CEO, AB InBev,
“We need the middlemen to consolidate this cargo to send to our breweries by the truckload. And this middleman was not necessarily passing the money we were paying to him or her to [the farmer].
“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.”
“And now’s she bankable. Now she can open a bank account. And now she can maybe have a line of credit to develop the business.”
“So a lot of these things mushroomed from this idea of ‘we’re local – we need to do what’s good for the local guys.”