Moroccan OCP Fertilizer group and African TDB bank use Blockchain for trade finance transaction

The Eastern and Southern African Trade and Development Bank (TDB) and Moroccan OCP Group, the world’s largest phosphate mining and leading fertilizer company, have incorporated DltLedger's Blockchain technology in  USD 400 million-worth of fertilizer trade finance transactions.  USD 270 million of which have already been completed, and the remainder to be executed in upcoming months.

These transactions make OCP Group the first African company to execute an intra-African trade transaction using blockchain. Through dltledgers’ blockchain platform, OCP Group delivered phosphate fertilizers from Morocco to Ethiopia. The intra-African transaction initiative, as part of OCP’s digitalization strategy, aims to reduce the trade finance gap in Africa and boost trade between African countries, particularly in the fertilizer sector, through digital inclusion.

dtledger’s blockchain technology makes it possible for all parties to carry out these import-export trades digitally and in under two hours. Traditional transactions typically take over three weeks to complete due to the need to move physical documents from suppliers, through the banking system, to the buyer. This 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.

Through the blockchain platform, stakeholders are able to upload, view, edit, and validate the documentation in one private blockchain, simultaneously and in real time. Moreover, blockchain transactions have a lower carbon footprint, and are more secure due to encryption and verification technologies. They also allow for greater transparency and traceability, and reduce risks by eliminating potential errors and ambiguities in the exchange and amendment of documents.