In 2015, TradeMark Africa (TMA) presented the Trade Logistics Information Pipeline (TLIP) idea during the World Trade Organisation MC10 forum in Nairobi and in 2019, TMA and IOTA foundation partnered to build a secure and trustworthy international trade system that removed bottlenecks associated with paperwork, access to information and slow approvals, to reduce the time and costs taken to trade.
With TMA funding of $4 million, IOTA developed TLIP, a system built on the distributed ledger technology providing a transparent and secure electronic exchange of trade information in international supply chains.
TMA and IOTA have showcased the TLIP’s proof of concept across various scenarios, highlighting its scalability and efficiency in documenting diverse trade flows. From the conducted pilots, this initiative has demonstrated outcomes such as an 80% decrease in trade costs and a reduction in cross-border processing times from 25 days to just one day.
Traders benefit from greater predictability of access to customs facilities while crossing borders, which in-turn reduces their administration costs and effort.
The average cross-border transaction requires the exchange of 36 documents and 240 copies involving up to 30 actors. TLIP received acclaim from government agencies and supply chain organisations for its ability to promote transparency, enhance data sharing and snowball cost savings. The infrastructure has already been used in Kenya and been tested in the UK.
Building on this success, at the WTO’s 13th Ministerial Conference in Abu Dhabi on Tuesday, TMA is collaborating with IOTA, the World Economic Forum, the Tony Blair Institute for Global Change, the Institute of Export and International Trade, and the Global Alliance for Trade Facilitation to sign an agreement to establish a neutral governance framework for TLIP.
With the new framework, the institutions will work with like-minded public and private sector actors around the world to prioritise the common good with TLIP serving as a catalyst for creating a vibrant ecosystem, where innovation thrives, and barriers dismantled.
TradeMark Africa CEO David Beer expressed enthusiasm for the partnership, stating, “Our collaboration with leading organisations underscores our commitment to sustainable and inclusive trade. We are proud of the development of platforms such as the Trade Logistics Information Pipeline (TLIP), through which we aim to dismantle barriers and foster innovation in global trade, empowering all stakeholders to actively participate in shaping the future of trade facilitation,”
Mr. Beer emphasised the value of open dialogue and collaboration within the coalition, stating that such collaboration will enable partners achieve remarkable feats with emerging technologies and joining forces with innovators and great collaborators,”
Over the next six months, the partners will continue implementing Proof of Concepts in Africa and Europe using the TLIP framework, with the goal of onboarding more actors and building the necessary ecosystems for the future.
“The Collaborative Agreement is this coalition’s promise to be a responsive institute focused on the needs of every stakeholder in the supply chain. We are ready to transform international e-commerce, but we need all public and private entities in the global trade space to help us craft the policies and frameworks of the future,” said Dominik Schiener, Chairman of the Board of Directors & Co-Founder of the IOTA Foundation
“Exchanging information along the trade supply chain remains a real challenge. Trust and structured collaboration will be key to scaling systems and approaches that work across many countries,” said Tim Stekkinger, Head, TradeTech Global Initiative at the World Economic Forum.
“With the Trade Logistics Information Pipeline (TLIP) framework, we expect promising outcomes, including up to 80% cost reduction, processing times cut to one day, and a 35% increase in SME efficiency. Through collaboration, we are committed to shaping a future where trade facilitation benefits societies worldwide, through the creation of a more equitable and sustainable global trade ecosystem and infrastructure,” said Marco Forgione, The Institute of Export, and International Trade Director General.
“Re-imaging trade in the information age is imperative in making global trade work for all. Innovating a public global digital infrastructure for trade that is inclusive and green, that this partnership aims to achieve, resonates with TBI’s core goal of reimagining how governments and states deliver services in the 21st Century” said Frank Matsaert, Global Lead – Trade & Infrastructure, Tony Blair Institute for Global Change.
“As a community, we keep promoting the pivotal role of technology in overcoming frictions to trade. Yet the reality remains that international trade continues to rely heavily on paper-based transactions. The introduction of TLIP marks a paradigm shift, utilising distributed ledger technology within a collaborative, non-commercial framework aimed solely at easing the process of conducting trade in a secure and efficient environment,” said Philippe Isler, Director, Global Alliance for Trade Facilitation.
