A Moroccan state-owned fertilizer company has completed a $ 400 million transaction using blockchain technology. This is a first for intra-African trade.
Under a contract supported by the East and South African Trade and Development Bank, the OCP Group sold phosphate fertilizer exports to Ethiopia using blockchain technology for an initial value of USD 270 million. The remaining deals will be completed in the coming months, bringing the full deal value to $ 400 million, reports Global Trade Review.
Trade finance transactions, which are usually settled over a few weeks, can be completed in hours using the blockchain, according to the OCP Group. TDB previously used distributed ledger technology to facilitate the export of $ 22 million worth of sugar from India to Ethiopia. The companies say that using blockchain technology simplifies the supply chain process, makes it easier to validate documentation, and improves transparency.
Admassu Tadesse, CEO of TDB, said the bank was focused on maintaining liquidity while cross-border trading slowed due to the COVID-19 pandemic.
“As part of our response to the pandemic, we have provided liquidity to our customers to contain cross-border trade and supply chain disruptions and ultimately to help our member states continue to work towards their development goals,” said Tadesse.
Tadesse said the benefits of blockchain technology were felt during the slowdown in logistics. “As transport logistics slows down, blockchain has made a significant contribution,” he said.