JOHANNESBURG/VRYHEID, South Africa (Reuters) – the Cattle are to be seen as a measure of wealth in Africa, but it is not only the farmers ‘ side.
A man herds cattle on the common land in Cato Ridge, south africa, South Africa, July 28, 2019. REUTERS/Rogan Ward
A ground-breaking app in South Africa can be investors, eager to capitalize on the growing worldwide demand for beef, with the purchase of the shares in a cow to a mobile phone for only a 576 line ($41).
Self-styled “crowd-farming” company, Cattle, Wealth, and connects investors to small-scale farmers through its “MyFarmbook” in the app, where they can buy their own cow and receive interest rates of between 5% and 14%, depending on where they spend their money.
Launched in 2015, with a 26 on the cows, and the project now includes more than 2,000 cows and was done at 50 million rand, with around 10 percent of the investors are coming from outside of South Africa.
Groups of investors can buy a whole cow, while individuals can purchase shares in a cow or a young calf.
A pregnant cow takes 18,730 edge, and it takes 12 months for the new-born calf can be sold for a return, while investing in a calf-costs of 11,529 edge, and it takes six months for it to grow enough to be sold.
“We will be able to link the small farmers to large markets, the introduction of private capital in the initial phase,” said the 38-year-old Cattle, of Wealth, is the founder and CEO of Ntuthuko Shezi, who was inspired by his grandparents ‘ farming success.
“It’s a household account, it was a species of it,” said Shezi and his family experience-standing among a herd of cattle on a partner’s farm in Vryheid, is a ranching town in northern KwaZulu-Natal province.
“EASIER” THAN REAL FARMING
The livestock sector contributes about 51 per cent of the agricultural economy in South Africa, and the global sheep and beef prices to rise after a drought in major producing areas.
“A lot of people living in urban areas, and that they have an interest in taking part in agriculture, but they can’t physically be there, it will give them a platform to do just that,” said Wandile Sihlobo, an economist with the South African agri-business association, Agbiz.
Small business consultant, Nontokozo Sabela, 34, was once interested in the field of agriculture, but found the app to be a better alternative.
She bought her first cow, in, 2016, and earned a little over 6,000 border of the. “In this way, it will be easier for me, and it’s cheap, it’s convenient,” said Sabela.
However, as with any investment, however, is the risk. In both, the influence of the weather on the cost of feed and fluctuations in the global demand for beef may have an influence on the re-investment.
Shezi is now hoping to expand his business in the produce market after the launch of the plant-growing system is in this month that focuses on the 220 edge rate of return per month is more than a five-year period.
($1 = 14.1696 edge)
Reporting Tanisha Heiberg; Editing by Andrew Cawthorne