The state-owned Moroccan fertilizer company has completed a $ 400 million deal using blockchain technology that is said to be the first for intra-African trade.
Under an agreement reached by the East South African Trade and Development Bank, OCP Group sold exports of phosphate fertilizers to Ethiopia using blockchain technology for $ 270 million. The rest of the deals will be implemented in the coming months, and the deal will total $ 400 million, according to Global Trade Review.
According to the OCP Group, trade finance proposals, usually completed in a few weeks, can be completed within hours using the blockchain. TDB used a previously distributed general ledger technology to facilitate $ 22 million in sugar exports from India to Ethiopia. The companies said using blockchain technology simplifies the supply chain process by making documentation verification easier and increasing transparency.
Admassu Tadesse, CEO of TDB, said the bank is focusing on maintaining liquidity while cross-border trade has been slowed by the COVID-19 pandemic.
“As part of our response to the pandemic, we have provided cash to our clients to reduce disruptions in cross-border trade and supply chains, and ultimately to help member states continue to work towards achieving their development goals,” Tadesse said.
Tadesse said the use of blockchain technology has become known during a logistics gap. “With the decline in transportation logistics, the blockchain has played an important role in this,” he said.