A Moroccan fertilizer company has carried out a $400 million transaction using blockchain technology. This is the first time in intra-African trade.
Blockchain Technology Eases Covid-19 Slowdown
Companies are using blockchain technology to open logistics routes that have been closed for COVID-19.
With the support of the Trade and Development Bank for Eastern and Southern Africa, the OCP Group sold phosphate fertilizer exports to Ethiopia, originally valued at $270 million, using blockchain technology. According to Global Trade Review, the remaining transactions will be executed over the next few months, bringing the value of all transactions to $400 million.
According to the OCP Group, trade finance transactions that can normally be executed within a few weeks can be completed in a matter of hours using the blockchain. TDB previously used distributed ledger technology to facilitate the export of $22 million worth of sugar from India to Ethiopia. The two companies stated that the use of blockchain technology simplifies the supply chain process, makes it easier to review documents and increases transparency.
Admassu Tadesse, CEO of TDB, said the bank had been focused on maintaining liquidity and cross-border trading had slowed due to the COVID-19 pandemic.
Tadesse said, “As part of our response to the pandemic, we have been providing liquidity to our clients to curtail cross-border trade and supply chains disruptions, and ultimately, to help our member states continue working towards their development objectives.”
Tadesse said that during the slowdown in logistics, the usefulness of blockchain technology has become widely known. He said, “With the slowdown in transportation logistics, blockchain has played an important role in achieving that goal.”