AMG, SA firm in coin deal

Harare Bureau
African Medallion Group (AMG) owned by South Africa-based local businessman Frank Buyanga, has signed a coin dealership agreement with the South African Mint Company, a subsidiary of the South African Reserve Bank for reselling and redistributing some of its products.

The South African Mint is one of the preferred manufacturers of coins and coin blanks in the world and has been the leading African mint, with over 120 years’ experience in supplying coins to Africa and the world.

During the signing ceremony, AMG was represented by the company’s chief financial officer, Constantine Itai Maunganidze while the SA Mint Company was represented by it’s general manager Christine Roux.

“The appointment of the Coin Dealer as an official re-seller and re-distributor in terms of this agreement takes effect on the commencement date and continues for the initial term, immediately after which the agreement shall automatically continue for successive periods of 12 months each,” reads part of the agreement.

AMG is expected at its own cost, to promote sales of the products; provide and maintain adequate facilities and personnel for warehousing, merchandising, marketing, reselling and redistributing the products in the territory, among others, as part of the agreement.

“Should any dispute, disagreement or claim arise between the parties concerning this agreement, the parties shall try to resolve the dispute by negotiation. This entails that the one party invites the other in writing to a meeting and to attempt to resolve the dispute within five days from date of written invitation.

“If the dispute has not been resolved by such negotiation, the parties shall submit the dispute to the Arbitration Foundation of Southern Africa (AFSA) administered mediation, upon the terms set by the AFSA Secretariat,” according to part of the agreement.

The developments also come after in 2017 Mr Buyanga wrote to African presidents informing them about the African Medallion Dollar (AMD), a physical coin, which takes the form of a hybrid crypto currency that can be used as a store of wealth with the aim of opening up continental trade.

“I don’t believe there’s any currency in Africa that has more value than the medallion. I have started writing to all African presidents telling them about the medallion,” Mr Buyanga said in a statement.

“My calling is to make this world a better place. I exist to solve problems; I don’t exist to make money,” he said.

Following the growing shift towards digital currencies and gold medallions as stable alternative stores of value, compared to fiat money, the Africa Medallion Group — which is headed by Mr Buyanga — on May 25 2017 launched a $5 African Medallion Dollar.

Only 100 of the $5 AMD were put in circulation, and holders got certificates that serve as confirmation and guarantee that they possess the genuine exchange and store of value articles.

By June 2017 the bid price for the $5 African Medallion Dollar had jumped by more than 2 000 percent in two weeks and had since broken past the $100 dollar psychological barrier.

As global financial markets become increasingly volatile, investors have been shifting their portfolios and investments towards more stable securities and havens.
And most investors have unsurprisingly hedged in gold.

The AMDs are specially crafted with bronze and engineered as a symbol to commemorate the 54th anniversary of the African Union (former Organisation of African Unity), founded on May 25, 1963.

Though the guaranteed buy-back amount was fixed at US$5 for each $5 AMD, the future value will be determined by value of trades.

“I see these medallions as the future global currency; you might have seen how well Bitcoin has been doing for the past few years. The only challenge with Bitcoin, which is a crypto currency is that it’s traded online,” said Mr Buyanga then.

In May last year, African Medallion Group took control of South Africa-based, Pagliari Group, a subsidiary of Rand Refinery, which manufactures and supplies high quality minted products.

The AMG deal with Rand Refinery came on top of Mr Buyanga’s other investments in financial services, mining and property.