Enhancing AgriChain management in South Asia: The role of fintech and Islamic social finance in sustainable agribusiness

Abstract

An analysis of the integration of Financial Technology, or FinTech, and Islamic Social Finance, or ISF, for AgriChain management within South Asia. The people in this region significantly rely on agriculture to earn their livelihood like; almost 50% of the workforce in this region depend on agriculture to make a living. Although, the agriculture sector in this region faces many constraints like financial exclusion, supply chain inefficiencies and climate-related vulnerabilities.  We apply a convergent parallel mixed-methods design by combining qualitative survey data (n = 500 stakeholders) with interviews (n = 30) and comparative case studies to assess these issues and prescribe solutions. Digital payment and blockchain for traceability are some of the FinTech tools that enhance efficiency and inclusion. ISF tools like Zakat, Waqf, Mudarabah, and Musharakah ideally use ethical and interest-free financing that aims to the maqasid al-Shariah and maslahah. Main findings are moderate adoption such are 46% use of digital finance and synergies are significant. The use of blockchain and AI improve the effectiveness of ISF (β= 0.230; p= 0.012). There are many gaps that exist that are limiting scalability. Based on supply chain governance theory, we propose an integrated framework (which can be seen in Figure X) that leads to resilient and inclusive AgriChains. The use of regulatory sand boxes, infrastructure investment and public-private partnerships is recommended in policy to achieve SDG 1, 2, 8 and 9 in order to enhance financial inclusion, food security and sustainable development.