“Lack of access to credit.”

This is the 2nd time a founder I interviewed mentioned this as a problem Africans face and how their projects, in various ways, help solve this. In this article, we’re looking at Commonlands, an initiative by Darius Golkar.

Commonlands is a land trust system built by neighbors to improve access to credit. By utilizing blockchain technology, Commonlands enables communities all over the globe to realize the full economic potential of their land, giving them easy and safe access to credit markets so they may pursue development according to their terms.

Commonlands enable community members to prove their claim to a plot(s) of land by sharing a certificate of ownership to get loans. They get this certificate by marking their plots and letting their neighbors verify the claims. Once the claims are verified and certificates for the lands are issued to the land owners, they can use it to apply for loans. You’d agree with me that in a continent where the majority of individuals are financially excluded from access to loans, this kind of solution will go a long way.

Commonlands employs the use of blockchain to ensure that land ownership claims are immutable, transparent, and accessible by all.

Not clear enough? Watch this

While Commonlands in its entirety is an interesting project to explore, this piece is dedicated to exploring its pilot launch in Uganda and its recent launch in Malawi.

Commonlands’ Pilot Launch in Omugo, Uganda

According to the UNDP report for 2023, around the globe, over 740 million women are financially excluded, and this is caused by several reasons like lack of internet connectivity, inability to obtain formal IDs, limited financial capability, and social barriers among others. This is even worse for women in rural areas as they are denied access to opportunities.

This issue was the driving force for Commonlands' launch in Omugo.

In July 2023, Commonlands announced its pilot launch in the Omugo community, Uganda. The launch, in partnership with CEFORD and CARE, aimed to empower the women of Omugo and give them the opportunity they never had - being able to own land and be financially included.

“This will not only provide a sense of security and ownership but will also unlock access to credit, enabling these women to invest in their businesses, education, and families.”

The launch was greatly accepted and supported by the Chief, Head of Police, and land ministers in the area. Farmers are the backbone of communities and economies in the rich areas of Africa. However, a recurring challenge for many is financial exclusion. Commonlands, with its launch in Uganda, is addressing this by providing them with opportunities to access credit for their lands and educating them on financial literacy.

Another Africa-specific issue that Commonlands is solving is land disputes caused by a lot of factors. With Claimchain, community members can verify their lands and have the backing of their neighbors. Thus, greatly reducing the problem of land disputes.

In late November, loans were issued to members of the Omugo community in Uganda who had documented their plots of land on Commonlands. These loans will be useful for community members to leverage in improving their businesses and livelihoods.

Milestones since launch in Uganda:

In November, Commonlands reached a huge milestone of over 2,000 new plots of land in Uganda registered. This is coming just 4 months after it was launched in that part of the continent.

“Upon our arrival in Uganda, our 5th Claimchain was complete. This happened in less than three months! This means 750 undisputed plots are connected. As it stands, we have 42% of all claims representing women.” Darius Golkar, CEO of Commonlands.

Commonlands’ Launch in Malawi

Malawi is among the poor-performing countries in sub-Saharan Africa in terms of food security due to its rapidly expanding population, excessive reliance on agriculture, and deficiency of coping mechanisms for periodic and severe shocks like destructive floods and droughts.

In mid-November, Commonlands achieved another milestone when it launched in Malawi.

“This expansion marks a significant step forward in our mission to empower individuals and communities across Africa through innovative financial solutions.”

With the launch in Malawi, Commonlands aims to ensure that Malawians can get access to financial credit to help them start and grow their businesses.

Commonlands is partnering with CBOs Coalition Malawi, and according to the LinkedIn post, they already have 124 community ambassadors committed to supporting the launch across 24 communities. To address the issue of financial exclusion (especially among women), Commonlands will implement programs that will empower the people of Malawi through financial literacy, mentorship, targeted loans, and even more.

It is not often we see blockchain projects this committed to solving real-life issues for people who need them. Commonlands is one of such and is such an invaluable project to keep an eye on.

What are your thoughts?