They are calling it a cluster project that has taken them four years to develop in the best interest of cane farmers. Today, BSI officially launched its Smart Grow app, a platform designed to improve cane production by connecting farmers to online services like credits and agro-inputs. It is a step towards modernizing the industry and ASR BSI's Cane Farmers Relation Manager explained to us how it works.

Olivia Carballo Avilez, Cane Farmers Relation Manager, BSI
"So at BSI, we developed this community, a digital community that is far more than an app, but it's a platform using blockchain technology. And what this platform or community will do is to help farmers relay to access timely agro credits or timely credits, access farm services farm agro inputs as well as key information leverage, key information that the farmers and BSI and the associations can provide into the system so that they are able to so help the finance and credit people to assess them better and give them a lower interest rate, for example, a better cane payment structure and because there is traceability, accountability in the system and it's verifiable."

"So the whole platform, the whole community will really aid the farmer to increase their productivity. The key issue in the northern sugar industry of Belize is that our cane productivity is far lower than our regional counterparts and we are at around 17 tonnes per acre. When our regional park counterparts are around 34, 35 tonnes per acre. And that's where we want to get."

"But the farmer can't do this on their own. They need assistance from services, inputs, credit and of course the mill."

The project was piloted by 20 harvesting group leaders and a group of 50 cane farmers. Now they are in the process of onboarding the cane farmers with the help of farmer associations who will assist in teaching their members how to use the app.

Olivia Carballo Avilez, Cane Farmers Relation Manager, BSI
"It's taken that amount of years. What is it, four years to build and two different service providers plus more and a whole lot of effort from the whole cluster because this is not a BSI only project, it's a cluster project where the participants are BSI's, as well the three farmer associations Corozal Sugar Cane Producers. Progressive Sugar Cane Farmers Association, Northern Sugar Cane Producers Association. LICU La Inmaculada Credit Union was very supportive. Development Finance Cooperation as well. Very supportive and Bel-Agro as the agro inputs providers and of course a lot of reviews by the farmers and harvesting."

And once they've registered onto the app, they will now have access to service providers like Milagro, who joined in with BSI to expand their customer Intel.

Shajid Osorio, Sales Representative, BELAGRO
"We believe this is a very, very interesting platform due that farmers will have at their fingertips any access to any inputs they may require in the field right. And at the end of the day, since farmers won't need cash on hand, they will basically will be using credits via points that the mill will offer them. They will be able to access inputs at any given time, at their desire at the fingertips, whereby we will we expect better productions in the field right."

"It means more sugar and the northern and entire country."

And though some may prefer to stand by tradition and don't necessarily welcome modernization and technologies, Avilez says that for now they will work with those who are interested in the app, in the hope that others will follow for personal and industry benefit.

Olivia Carballo Avilez, Cane Farmers Relation Manager, BSI
"Well, with any any innovation, any technology, there is an S-curve to the adoption, right. And it will take time for our whole population to get on board. We want to start with what we call the early adopters, and we have that group and it really is not about age. It's it's about interest in in what the app and the platform is providing the benefits."

"So we really have to increase the benefits, look at the barriers, what's causing them not to use it or things like that. And that's one of the key things that we have done from the onset. We've looked at the barriers, increased the benefits and looked at our key and early adopters. So we're going to get the adoption hopefully to all 5000 farmers but we have to start with those that really want."

Lawsuit Against Financial Services Commission Could Have Sweeping Implications

Our next story is about a lawsuit that could have far reaching effects. It's brought by a company owned by Anwar Barrow against the Financial Services Commission. That's the body which supervises the corporate services market in Belize through the Companies and Corporate Affairs Registry. Basically it's where every business has to get registered.

Barrow took out the suit after he was involved in the merger of 13 companies into one. The company owners were forced to pay fees as if it was 13 transactions that were taking place when really it was just one merger of 13 companies, which resulted in a new company called Acuity Holdings. The fees amount to 500 US dollars per company which isn't exactly a King's ransom - but the lawsuit could have far reaching implications.

First, the companies complain that they were illegally forced to pay for services in US dollars - and that this is discriminatory. The powers to levy these charges comes from the Companies Act - which was brought into effect in 2022.

It was controversial then and remains so now. Hector Guerra of Marine Parade law chambers told us why:

Hector Guerra, Attorney- Acuity Holdings
"When it was enacted. It introduced a number of new requirements. At the time, existing companies had to reregister, failing which they would have been struck off from the register and would have to pay a restoration fee."

"Domestic companies with foreign shareholders, including Caricom shareholders, had to now do filings through a registered agent. These domestic companies with foreign shareholders, also had to settle transactions with the Financial Services Commission and the Companies Registry in US dollars. So the companies are saying that those requirements are discriminatory in that their requirements that domestic companies with purely Belizean shareholders and directors aren't required to meet."

"The companies are also saying that the Central Bank Act of Belize mandates that Belize dollars, is to be the currency accepted throughout the land and to now require that you settle transactions in US dollars, is against the law in essence. "

"There were certain protections under the Constitution which were also violated by these requirements."

"Indeed. So two immediately come to mind, the fact that all persons, including corporate entities, are protected from discrimination under the Belize Constitution. And number two, we're all entitled to the benefit of what's called protection of the law so that state agencies or state bodies aren't free to arbitrarily apply the law. It must be applied in accordance to what the plan reading of the law is."

"You can't impose on a domestic company with foreign shareholders additional requirements that other companies aren't required to meet. In this case, the shareholders are Caricom members. And so we're saying that it's in breach of the Treaty of Chaguaramas, which is incorporated into Belizean law under what's called a Caribbean community Act."

Did The Companies Act Illegally Apply Charges?

And apart from seeking protection for CARICOM company owners, the suit also alleges that the Financial Services Commission imposed unfair re-registratIon charges on existing companies. Guerra explained:

Hector Guerra, Attorney- Acuity Holdings
"Once the New Companies Act was enacted in 2022, existing companies on the register were required to participate in a reregistration exercise. Our interpretation of the law is that that was never a requirement."

"Thousands of dollars were paid not just by our clients, but by a lot of other companies in Belize. And so that is one of the sticking points in the claim. We're challenging that that was not required."

Jules Vasquez:
"Now, this suit, if successful, could have broad implications across the economy of Belize because so many companies went through that, that very same procedure."

"A number of companies could launch a class action suit saying that we were similarly defrauded and if not induced, enforced to pay these onerous reregistration fees when we should have been grandfathered in."

Hector Guerra, Attorney- Acuity Holdings
"It is a possibility. Yes."

We'll let you know when the case goes to court.