A Moroccan state-owned fertilizer company executed a $ 400 million transaction using blockchain technology, in what it says is the first in intra-African trade.
In a deal facilitated by the Bank of Commerce and Development for East and Southern Africa, the OCP Group sold phosphate fertilizer exports to Ethiopia, using blockchain technology, in a deal worth an initial $ 270 million. The remaining business will be completed in the coming months, bringing the total transaction amount to $ 400 million, report the Global Trade Review.
Commercial finance deals that typically run in a matter of weeks can be completed in hours using the blockchain, according to the OCP Group. TDB previously used distributed reason technology to facilitate the export of $ 22 million worth of sugar from India to Ethiopia. The companies said the use of blockchain technology simplifies the supply chain process, making it easier to validate documentation and improve transparency.
TDB CEO Admassu Tadesse said the bank has been focusing on maintaining liquidity, while international trade has slowed due to the COVID-19 pandemic.
“As part of our response to the pandemic, we have provided liquidity to our customers to reduce cross-border trade and supply chain disruptions and, ultimately, to help our member states continue to work to achieve their development goals. ”Said Tadesse.
Tadesse stated that the utility of blockchain technology became known during the slowdown in logistics. “With transportation logistics slowing down, blockchain was instrumental in making that happen,” he said.
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