An app that lets investors buy shares in a cow from their mobile phone has been developed in South Africa.
The app called “MyFarmbook” app, developed by Livestock Wealth company, which helps small-scale farmers connect with investor, was launched in 2015. It enables investors to buy their own cows and receive interest rates of between 5% and 14% depending on where they put their money.
“We can link small scale farmers to big markets by introducing private capital into the growing phase,” said 38 year-old Livestock Wealth founder and CEO Ntuthuko Shezi, who was inspired by his grandparents’ farming success.
The project which began with 26 cows now includes more than 2000 cows.It also has investors from outside South Africa.
Group of investors can come together and purchase a whole cow; individuals buy shares in a pregnant cow or young calf.
A pregnant cow costs 18,730 rand and takes 12 months before the newborn calf can be sold for a return, while investing in a calf costs 11,529 rand and takes 6 months for it to grow enough to be sold.
Just like any other business, the cow investment is also affected by some risk factors such as weather and market demand for beef.