Tackling Paperwork Overload: Africa's Blockchain Initiative Lowers Expenses and Enhances Trade

The African Continental Free Trade Area (AfCFTA) and the

Foundation have introduced an innovative project to digitize cross-border trade through the use of stablecoins, with the goal of unlocking $70 billion in economic potential and doubling intra-African trade by 2035. The Africa Digital Access and Public Infrastructure for Trade (ADAPT) initiative, backed by the Tony Blair Institute and the World Economic Forum, utilizes blockchain technology and stablecoins such as to upgrade trade operations across all 55 member nations . By shifting from paper-based processes to secure digital documentation and real-time payments, the program and generate $23.6 billion in yearly economic benefits.

The ADAPT framework is built to tackle persistent inefficiencies in African trade, where outdated manual systems lead to $25 billion in yearly transaction costs and widespread document fraud. Early trials in Kenya and Rwanda have already shown measurable improvements, including a 60% drop in paperwork for freight handlers and a reduction in border wait times from six hours to just 30 minutes

. Exporters in Kenya are saving about $400 each month on paperwork expenses, and the IOTA network in the country now handles 100,000 trade transactions every day .

This initiative positions stablecoins as the core mechanism for cross-border payments, with USDT enabling fast and affordable transactions. IOTA’s founder Dominik Schiener pointed out that the project’s impact extends beyond payments, allowing for the tokenization of physical goods such as commodities and essential minerals, thereby broadening access to trade financing. “We can enable a miner in Rwanda to obtain onchain funding at half the usual cost, with near-instant payment via USDT,” he explained,

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Recent regulatory shifts in major markets like the U.S. and Hong Kong have paved the way for stablecoin growth, encouraging African countries to leapfrog outdated financial systems. The ADAPT rollout will start in Kenya, Ghana, and a North African nation, with plans to expand to all 55 AfCFTA members by 2035

. The open-source system incorporates digital ID, AI-powered compliance, and IoT-based cargo monitoring, and is designed to work seamlessly with existing national platforms such as Kenya’s eCitizen portal.

While the outlook is positive, there are still hurdles to overcome. Aligning regulations across all 55 countries and ensuring robust digital infrastructure are essential for success. The IOTA blog

, with the foundation planning to recruit 40 African experts and expand training programs to strengthen local expertise.

AfCFTA estimates that full deployment could double trade within Africa, but reaching this target will require addressing resistance from established businesses and guaranteeing fair access for small and medium-sized enterprises. As Schiener remarked, “This is how we move beyond crypto’s cycles of hype and downturns to anchor genuine value in tangible assets”

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