Integrating Blockchain Technology into Trade Processes: A Case Study
In 2021, Misr Technology Services (Egypt) entered into a partnership with Cargox, a service provider based in Slovenia, with the aim of integrating blockchain technology into trade-related document transmission processes. This strategic initiative was designed to enhance trade efficiency by leveraging the transparency and security features offered by blockchain technology.
The integration process involved incorporating Cargox’s blockchain application with the Customs Single Window (Nafeeza), a comprehensive platform developed for the Egyptian customs. Through this integration, trade-related documents are transmitted securely and efficiently, streamlining import, export, and transit processes.
The adoption of blockchain technology in trade has yielded several notable outcomes, demonstrating its potential to revolutionize the Egyptian trade ecosystem. One significant outcome is the reduction in cargo release times. Prior to the adoption of blockchain technology, cargo release processes took an average of 29 days. However, post-adoption, this timeframe has been significantly reduced to just 9 days. This reduction signifies a substantial improvement in trade efficiency and has several cost-saving implications for businesses.
Another notable outcome is the reduction in compliance costs for shippers. Traditionally, navigating trade regulations incurred substantial expenses for shippers, with compliance costs often exceeding USD $600. However, with the transition to blockchain technology, these costs have been significantly reduced to approximately USD $165 or even less. This reduction in compliance costs presents a tangible benefit for businesses operating within the Egyptian trade ecosystem.
The success of this case study provides valuable insight into how blockchain technology can boost productivity and enhance efficiency in the Egyptian economy. There are many other applications in a variety of sectors that would lead to comparable results. From enhancing land titling and property rights through secure and transparent record-keeping to facilitating financial inclusion by providing secure transactions and banking services access, blockchain is reshaping traditional paradigms. Additionally, its role in improving supply chain management, healthcare data security, and identity management cannot be overstated.
