IOTA could make it big in East Africa. A pilot project in which the supply chain for cut flowers is mapped on the tangle has already been launched.
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A new cooperation between the IOTA Foundation and Trademark East Africa (TMEA), a private organization that advocates for the economic interests of Eastern Africa, is in this notch. Together with TMEA, IOTA wants to reduce trade barriers such as excessive bureaucracy and paperwork. Should help, you guessed it, Tangle.
Now reported IOTA is launching a pilot project called the Trade Logistics Information Pipeline (TLIP), which is to test the technology using the example of cut flower export from Kenya. The export of tulips and co. Is therefore so well suited as a litmus test, since timing is particularly critical with this type of goods. Delays, for example due to lost paperwork, can ruin entire shipments. At 180,000 tons, cut flowers are also one of the country’s most important export goods.
Flowers have to be in the right place at the right time. Any small delay in the supply chain means anything can go wrong.
Elizabeth Kimani
says Elizabeth Kimani of Maasai Flowers, a leading exporter of Kenyan cut flowers.
Now the entire supply chain of the colorful freight is to be deposited on the Tangle. In this way, the data can be viewed by all stakeholders in the supply chain and is always available – without any paper forms. It is obvious that such an idea is not very easy to implement. In addition to the various companies in the supply chain, IOTA also had to get government agencies such as the Kenyan Revenue Authorities (KRA) and Kenya Plant Health Inspectorate Services (KEPHIS) on board.
Soon also tea and fish on the tangle?
“Distributed ledger technology is about giving all actors confidence in data integrity at the critical point where they are sharing the data. The cost of cross-border trade also has a huge impact on the cost of goods. This in turn affects employment and consumer markets, ”says Jens Munch Lund-Nielsen, Head of Global Trade & Supply Chains, IOTA Foundation.
The Trade Logistics Information Pipeline project will have a huge impact on all traders in Kenya. It cuts the time it takes for goods to cross borders. It also eliminates failures and makes the products much cheaper overseas.
Jens Munch Lund-Nielsen
But TradeMark East Africa does not stand still. While the cut flower test phase is just getting started, TradeMark East Africa is already thinking outside the box. Next, tea to the UK, fish to Belgium, and clothes to the US will be packed on the tangle.
And who knows, the next Valentine’s rose could have been flown in via Tangle.
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