The Moroccan state-owned fertilizer company has entered into a $ 400 million deal using blockchain technology in what it says is the first trade agreement between African countries.
As part of an agreement reached by the Trade and Development Bank for East and South Africa, the OCP Group sold phosphate fertilizer exports to Ethiopia using blockchain technology for $ 270 million. According to the Global Trade Review report, the rest of the agreements will be closed in the coming months, and the total amount of the agreement will reach $ 400 million.
According to the OCP group, trade finance agreements, which are usually closed within a few weeks, can be concluded within a few hours using blockchain. TDB used previously distributed ledger technology to facilitate $ 22 million in sugar exports from India to Ethiopia. The companies said that the use of blockchain technology simplifies the supply chain process by making it easier to verify documents and increase transparency.
Admassu Tadesse, CEO of TDB, said that the bank is focused on maintaining liquidity while the COVID-19 pandemic has slowed cross-border trade.
“As part of our response to the pandemic, we provide liquidity to our customers to reduce disruption in cross-border trade and supply chains and ultimately to help Member States continue to achieve their development goals,” Tadesse said.
Tadesse said the usefulness of blockchain technology became known during the logistical downturn. “With the slowdown in transportation logistics, blockchain has played a key role in this,” he said.