The Executive Director, Leadway Assurance, Adetola Adegbayi, stated this during an interactive session organised by the company with the theme, ‘Using crowdfunding platforms to invest in agribusiness,’ in Lagos.
Adegbayi noted that such measures would also stimulate the economy by reducing importation.
She said with conventional banking institutions increasingly finding it difficult to grant business-friendly credit facilities to agribusinesses, the need for crowd-funding as a strategy for attracting investments to the sector had continued to achieve greater importance.
Adegbayi stated that the session would help participants to see how and why crowdfunding was different from gambling, multi-marketing investments entities and money-multiplying networks, which had eroded people’s investments over the years.
The executive, in a statement, said, “Insurance companies like Leadway only insure the underlined risks on farms that your money has been invested, not the money.
“Always ask them of their formal setups, insurance policy numbers for all the farms, locations and owners of the farms, how long they have existed, whether they get grants from international organisations, and their books on accounting and repayments of capital and interest.
“These are the things you should verify before investing your money in agricultural crowdfunding platforms.”
These are the things you should verify before investing your money in agricultural crowdfunding platforms.”
The company’s Head, Agric and Micro Insurance, Mr Ayoola Fatona, stated that the firm was always available to provide insurance covers for the risks associated with farm investments of some of the crowdfunding firms found to be real.