Commentaries | Jan 26,2019
March 31 , 2021
The transaction amount is part of a 400 million dollar deal the OCP Group, a phosphate mining and fertilizer company, has entered with Ethiopia.
A groundbreaking transaction involving 270 million dollars through blockchain involves the shipments of fertilizer from Morocco to Ethiopia.
The transaction amount is part of a 400 million dollar deal the OCP Group, a phosphate mining and fertilizer company, has entered with Ethiopia. Financed with a loan from the Eastern & Southern African Trade and Development Bank (TDB), these transactions are praised as the first intra-African trade transaction using blockchain.
Blockchain is a digital database form of record-keeping that provides secure, private and efficient ledgers for transactions.
A Singapore-based digital platform, dltledgers, is used by OCP Group to deliver phosphate fertilizers to Ethiopia, a country whose 31pc of GDP comes from agriculture and offers 66pc of its population livelihood. The transaction took only two hours, according to a press statement issued by PTA. The Bank has facilitated over half a billion dollars worth of trade finance in Ethiopia last year and supported close to one billion dollars of fertilizer imports from OCP Group to Ethiopia, in the past three years.
Unlike traditional transactions that need to move physical documents from suppliers, through the banking system, to the buyer, transactions in blockchains are instant. The Bank used dtledger’s blockchain technology to let parties in contracts carry out these import-export trades digitally, under two hours, compared to the three weeks it takes to complete. Parties in the transactions can upload, view, edit, and validate the documentation in one private blockchain, simultaneously and in real-time.
The lengthy process was disrupted further by the COVID-19 pandemic, taking up to six weeks to complete, as border and airport closures continue to create additional delays, says the statement.
"This innovative transaction served as an example for the trade finance industry globally, as well as a template, which TDB has since then been able to replicate for further transactions such as this intra-African trade," said a press statement the Bank issued.
Commentaries | Jan 26,2019
Viewpoints | Nov 30,2019
Radar | Apr 25,2020
Advertorials | Jul 03,2019
Fortune News | Aug 22,2020
Covid-19 | May 31,2020
Films Review | Jul 13,2019
Exclusive Interviews | Nov 21,2018
Agenda | Aug 17,2019
Commentaries | Jan 09,2021
Fortune News | 36957 Views | Jul 18,2020
Fortune News | 16420 Views | Oct 12,2019
Fortune News | 15210 Views | Mar 19,2020
Exclusive Interviews | 15199 Views | Aug 10,2019
Economic and political development go hand in hand with a good educational system. Th...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...
April 10 , 2021
It is not often the case for regional states' leaders to swallow their vanity and dec...
April 3 , 2021
As an Auditor General, he was not the most conspicous of officials in the mainstream...
March 27 , 2021
In an unprecedented turn of irony, just as Ethiopia began an attempt to open up to th...
March 20 , 2021
There is never a dull moment in the tense and combative relationship between regulato...
PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize
May 6 , 2019
Do not judge a book by its cover, we say. But we still judge all the same. It is much worse when it comes to a living, breathing person. We...
Or see contact page