In countries with high inflation like Zimbabwe, local currencies quickly lose value and people lack confidence in conventional finances. Therefore, some companies provide unique pensions denominated in cows rather than local currencies. Cows represent a tangible asset that increases in value, serves as an inflation-proof store of wealth, and is trusted by local people. This innovative approach formalizes cattle trading while cutting out middlemen.
Cows as an inflation-proof, trusted asset
In Zimbabwe, horrible inflation exceeding 231 million percent wiped out people’s savings in local currency. So an actuary named Kelvin Chamunorwa started a company selling pensions in cows rather than volatile local currency or hard-to-obtain USD. For Zimbabweans who have used cattle as a long-term store of wealth, this provides a tangible asset they trust that breeds and grows. By both updating an old idea Zimbabweans believe in and providing livestock insurance, the cows gain value while avoiding inflation that destroys savings in local currency.
Formalizing cattle trade while empowering farmers
Startups like Animall have created a cattle trading platform that cuts out expensive middlemen while empowering farmers through more information and options. Farmers can save money previously paid for transport, lodging, and middlemen fees while opening up a wider market beyond local livestock fairs. Details on factors like breed, pregnancies, milk production, and temperament provide transparency for buyers. Once largely limited by geography, farmers now access a transparent online cattle market with lower fees and fraud.
Cows pension as a model for rebuilding financial trust
When countries undergo severe financial crises, citizens often lose all confidence in local currency and traditional finances. To rebuild trust, companies need to provide assets people “can touch and see.” An inflation-proof pension in cows represents one model for alternative finance in countries lacking trust. It formalizes a valuable asset people already believe in while circumventing crises in conventional finances. Though unorthodox, using cows as a savings vehicle and payment method may fill a unique niche.
In countries like Zimbabwe with highly unstable local currency and financial systems, cows represent a tangible inflation-proof asset that retains value. Innovative startups are leveraging lack of trust in conventional finance and long-held cultural belief in cows as a store of wealth. Their online cattle trading platforms and cow pensions provide alternative financial models that empower farmers and savers alike.