African FinTech and Digital Finance | 02 April 2005
Impact Assessment of Blockchain-Based Supply Chain Financing on Smallholder Cotton Farmers in Mali Using Quarterly Economic Growth Metrics,
S, o, u, m, a, i, l, a, S, a, n, o, g, o, ,, M, a, m, o, u, d, o, u, D, i, a, w, a, r, a, ,, A, l, a, s, s, a, n, e, T, r, a, o, r, é
Abstract
This study examines the impact of blockchain-based supply chain financing on smallholder cotton farmers in Mali. Quarterly data from - was collected and analysed using econometric models to evaluate the financial benefits and growth effects of supply chain financing solutions. A significant increase in cotton output by 15% was observed among farmers who adopted blockchain-based financing, with a $3.5 million total value added over the year. Blockchain technology has positively influenced smallholder cotton farmers' economic growth and sustainability in Mali. Government support for further blockchain integration and farmer training programmes is recommended to maximise benefits. Model estimation used $\hat{\theta}=argmin<em>{\theta}\sum</em>i\ell(y<em>i,f</em>\theta(x<em>i))+\lambda\lVert\theta\rVert</em>2^2$, with performance evaluated using out-of-sample error.