What is the problem the social business is solving?
In Colombia, recycling is not a common practice, especially in rural and poor areas. Farmers dispose their waste by burning it or throwing the trash in brooks and pastures. Moreover, rural people suffer from the constant food shortage, leading to malnutrition and migration to the cities.
How does the social business solve this problem?
Bancalimentos encourages a change of habits regarding waste disposal in rural communities. They change trash for virtual money which is transferred to a mobile bank account. Farmers/recyclers access their bank accounts via their cellphones and can claim the money to buy food, cellphone minutes or pay for public services and/or nutritional insurance. This practice leads to a better inclusion of farmers to the banking system.
How does the social business generate revenue?
Bancalimentos sells the gathered trash as raw material to the recycling industry. The company also receives a percentage of the bank transactions to cover their operational costs and margin.