Using Blockchain to simplify the supply chain & logistics industry in Africa

Make it Kenya (Flickr)

Lulu, a motorcycle rider in Sub-Saharan Africa, has been advised by a doctor to take at least a month’s break from work. This is as a result of a road clash with another motorcycle which left her with several bruises and significant blood loss. What this means is that there is no grain of hope that her family would have food to eat for the one month that she’ll be off work, because they live hand-to-mouth. What if she had gotten a means to transport herself to the hospital before things got worse?

Somewhere in Eastern Nigeria, Nduka, a worker in the cargo logistics industry, is struggling with his roles as a freight forwarder. The major issue is due to lack of effective tracking of goods, low payment, shipping inefficiencies, excess paperwork and other problems facing the African cargo logistics industry.

One Thing Connects Both Lulu and Nduka– The Problem of Logistics in Africa.

In Africa, there are so many Lulus, countless Ndukas, and others, who reflect what majority of African lives experience. A fierce revolution is being awakened to transform the way humans and goods are transported within the region. Behind the wheel of this revolution is the big technology– blockchain.

In 2018, Asiimwe Benson Mugisha, founder and CEO of RideSafe, set out to change the state of the healthcare system for motorcycle riders in Nairobi. His solution, RideSafe, built on a blockchain application, is an emergency response solution that allows riders to get prompt access to affordable and quality first aid at the spot of an accident.

READ ALSO: Meet The Blockchain Startup Helping Remote Areas in Africa To Access Clean Energy

In a city like Nairobi, where motorcycles are the dominant means of transportation, when riders are safe, people can also be easily and safely transported within the region. RideSafe uses smart contracts to ensure that health centres only get paid when quality medical care is provided to the riders. With a cost of $0.38 weekly, riders in a city like Nairobi, via RideSafe, can get sufficient health insurance and quality health-care services to ensure that the road transportation industry in the city is kept blossoming.

The movement of goods is just as important as that of humans. Sadly, the transportation of goods, within Africa, suffers a lot of inefficiencies that adversely affect several African nations.

TMX Global Coin is improving the state of cargo logistics in Africa. The company is harnessing blockchain to address the challenges of both the local and global logistics industry. According to the CEO, Anthony Njoroge , the company uses blockchain technology to enhance the cargo logistics business by providing an open, transparent and democratic process using a decentralised system where users are able to communicate to each other through an open platform.

READ MORE: Using Blockchain for Crowdfunding African Startups. A Decentralized Approach

This blockchain-powered solution is helping so many Africans to track their shipments. It equally eliminates the need for people to supervise dispatches and goods, which increases what the carriers of these goods get paid and improves shipping efficiency. Additionally, people along the supply chain, who make use of TMX’s platform, experience  improved transparency due to the provision of accurate data and the facilitation of effective communication between all users on the platform.

Africa Needs More Blockchain-Based Logistics Platform

Africa needs more innovative interventions across the supply chain sector. The launch of Kobo360’s blockchain-enabled Global Logistics Operating System (GLOS), which received a lot of attention and multimillion dollar funding, has presented a solution to disrupt the supply chain across emerging markets in Africa. Kobo360’s GLOS will revolutionise the supply chain across various markets within Africa by providing instant updates on delivery processes and simplifying the entire supply chain.

As more innovative Africans begin to launch blockchain-powered solutions to the supply chain and logistics industry in Africa, many more Lulus and Ndukas, all across several African cities, will continue to experience a better Africa. The rise in the number of blockchain solutions will facilitate more improved performance within the African logistics industry. Africa is on the move already, and blockchain is fuelling this movement. 

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