Africa is currently tackling the challenges of technology and innovation. In the journey towards technology adoption, ICT plays a very vital role in addressing the challenges. One of the most obvious changes is blockchain , a technology that allows people to transact without the need for an intermediary.
Various developments on the African continent show growing interest in blockchain . We are witnessing impressive breakthroughs in the use of this technology in various countries to counter many economic and political problems that exist on the continent today.
The trade sector in Africa could greatly benefit from the introduction of new technologies including Blockchain . This groundbreaking technology is considered both innovative and disruptive, as blockchain changes existing business processes with streamlined efficiency, reliability, and security.
Blockchain , which is a secure system for recording transactions thanks to its transparent, decentralized and almost fraud-proof structure, is therefore positioned as one of the innovations that can help improve trade infrastructure in Africa and is increasingly adopted by many African countries to achieve economic development.
Despite its apparent complexity, blockchain has clear real-world relevance for improving trade facilitation, especially commercial ones.
Here are some ways blockchain can boost trade flows with and within African markets:
- Traceability
The ability to accurately track cross-border shipments is crucial for verifiability of standards and certifications, as well as reliability and speed of delivery.
While various standards exist to help ensure quality control and compliance, traditional methods of tracing are opaque, lack standardization, and are susceptible to interference and fraud. Blockchain enables transparent tracking and tracing of goods and services throughout the supply chain. It has shown great promise in increasing transparency to overcome these obstacles.
Apart from trade, technology will also make it easier for African governments to fight corruption and collect taxes. This is because the technology stores data in a way that allows auditors to easily cross-reference transactions.
- Clearance.
Ports have their own procedures which can involve hundreds of documents, information exchanges and supply chain actors. This bureaucracy of traditional customs systems is a major obstacle for small and medium-sized businesses.
Blockchains can indeed digitize this complex process by ensuring more efficient tracking of shipments, reducing administrative tasks by automating the formality ; which saves a lot of time and money and extends the economic benefits of trade to a larger part of society, increasing sales and revenue.
- Financial Benefits of Using Cryptocurrencies
Blockchain technology ensures that the money you send will go directly to the recipient’s wallet within minutes. No more delays due to public holidays, overworked staff, wars, epidemics or trips to the bank.
- Electronic payments and trade finance.
Blockchain facilitates international and inter-institutional money transfers, while reducing middleman costs. In any given trade transaction, exporters, importers and banks engage in a complex wave of financial assurances and legal documents. This paper-based system delays both the movement of goods and the payment cycle for these transactions. Blockchain technologies are streamlining the means by which organizations can track and verify the authenticity of these documents, reducing the time and cost of transactions.
To conclude, African countries have everything to gain from this decentralized ecosystem to respond to efforts for efficiency and positive impact. It is clear that new technologies such as blockchains hold enormous promise to help achieve inclusive growth in economies such as those in Africa.
Blockchain is still at a relatively early stage in its development, but it has enormous potential for Africa’s economy, commodities and connectivity. It can give Africans financial control over their own wealth.
Blockchain should be considered a key part of any trade facilitation toolkit. To achieve widespread adoption of blockchains, it is essential to inform all players in the sector, regardless of their size, about the advantages of this technology and to highlight its relatively low cost.
Africa is currently tackling the challenges of technology and innovation. In the journey towards technology adoption, ICT plays a very vital role in addressing the challenges. One of the most obvious changes is blockchain , a technology that allows people to transact without the need for an intermediary.
Various developments on the African continent show growing interest in blockchain . We are witnessing impressive breakthroughs in the use of this technology in various countries to counter many economic and political problems that exist on the continent today.
The trade sector in Africa could greatly benefit from the introduction of new technologies including Blockchain . This groundbreaking technology is considered both innovative and disruptive, as blockchain changes existing business processes with streamlined efficiency, reliability, and security.
Blockchain , which is a secure system for recording transactions thanks to its transparent, decentralized and almost fraud-proof structure, is therefore positioned as one of the innovations that can help improve trade infrastructure in Africa and is increasingly adopted by many African countries to achieve economic development.
Despite its apparent complexity, blockchain has clear real-world relevance for improving trade facilitation, especially commercial ones.
Here are some ways blockchain can boost trade flows with and within African markets:
- Traceability
The ability to accurately track cross-border shipments is crucial for verifiability of standards and certifications, as well as reliability and speed of delivery.
While various standards exist to help ensure quality control and compliance, traditional methods of tracing are opaque, lack standardization, and are susceptible to interference and fraud. Blockchain enables transparent tracking and tracing of goods and services throughout the supply chain. It has shown great promise in increasing transparency to overcome these obstacles.
Apart from trade, technology will also make it easier for African governments to fight corruption and collect taxes. This is because the technology stores data in a way that allows auditors to easily cross-reference transactions.
- Clearance.
Ports have their own procedures which can involve hundreds of documents, information exchanges and supply chain actors. This bureaucracy of traditional customs systems is a major obstacle for small and medium-sized businesses.
Blockchains can indeed digitize this complex process by ensuring more efficient tracking of shipments, reducing administrative tasks by automating the formality ; which saves a lot of time and money and extends the economic benefits of trade to a larger part of society, increasing sales and revenue.
- Financial Benefits of Using Cryptocurrencies
Blockchain technology ensures that the money you send will go directly to the recipient’s wallet within minutes. No more delays due to public holidays, overworked staff, wars, epidemics or trips to the bank.
- Electronic payments and trade finance.
Blockchain facilitates international and inter-institutional money transfers, while reducing middleman costs. In any given trade transaction, exporters, importers and banks engage in a complex wave of financial assurances and legal documents. This paper-based system delays both the movement of goods and the payment cycle for these transactions. Blockchain technologies are streamlining the means by which organizations can track and verify the authenticity of these documents, reducing the time and cost of transactions.
To conclude, African countries have everything to gain from this decentralized ecosystem to respond to efforts for efficiency and positive impact. It is clear that new technologies such as blockchains hold enormous promise to help achieve inclusive growth in economies such as those in Africa.
Blockchain is still at a relatively early stage in its development, but it has enormous potential for Africa’s economy, commodities and connectivity. It can give Africans financial control over their own wealth.
Blockchain should be considered a key part of any trade facilitation toolkit. To achieve widespread adoption of blockchains, it is essential to inform all players in the sector, regardless of their size, about the advantages of this technology and to highlight its relatively low cost.
Mediator Nkurunziza
