In today’s rapidly evolving global landscape, the Global South stands at a critical juncture. While geopolitical and economic shifts are reshaping global trade, digital innovation offers a powerful opportunity for emerging economies to redefine their role in global and regional supply chains. Among these technologies, blockchain stands out as a transformative tool to enhance transparency, resilience and inclusion – cornerstones of sustainable economic growth. This will help emerging countries ‘consolidate and sustain’ their digitalisation, which is needed for better coordination throughout different stages of these value chains.
We advocate for a decentralised, blockchain-enabled framework designed to strengthen regional supply chains in the Global South. This system leverages blockchain to foster real-time tracking of goods, reduce fraud, lower transaction costs and increase trust among diverse stakeholders. These elements are crucial for trade facilitation which, in turn, is essential for a deeper integration into global value chains. Most importantly, it enables micro, small and medium-sized enterprises (MSMEs) – often the lifeblood of emerging economies – to access new markets and financing channels, fairer trading conditions and lower transaction costs.
Why blockchain – and why now?
Traditional supply chains are heavily reliant on intermediaries, often characterised by inefficiencies, lack of transparency and limited access for smaller players. This fragmented landscape stifles growth and reinforces exclusion. Blockchain technology, with its capacity to provide a secure, transparent and tamper-proof ledger, offers a compelling alternative. It allows real-time verification of transactions, seamless tracking of goods and the automation of processes through smart contracts.
For countries in the Global South, adopting such a framework is more than a technological upgrade – it’s a development imperative. By integrating blockchain across regional supply chains, countries can align their trade systems with the digital economy, improve regulatory compliance and foster inclusive participation. This approach aligns with the G20’s priorities, which emphasise digital transformation, regulatory innovation and inclusive trade systems to support sustainable development.
Building a regional blockchain-enabled ecosystem
Our proposal is grounded in empirical analysis using datasets from the World Bank’s World Integrated Trade Solution (WITS) and the WTO’s Integrated Trade Intelligence Portal (I-TIP). These datasets provide insights into existing intra- and inter-regional trade dynamics, revealing gaps and opportunities for digital transformation.
We envision a system where blockchain serves as the backbone of regional integration efforts, particularly in Africa, the Middle East and parts of Asia and Latin America. Through decentralised finance (DeFi) tools and digital identity solutions, previously marginalised businesses – especially MSMEs – can gain access to credit, insurance and logistics services that were once out of reach.
Smart contracts, which automatically enforce trade terms and sustainability criteria, can further ensure that supply chains adhere to environmental and social standards. This is crucial for building climate-aligned supply chains that support the global green transition.
Lessons from the private sector: The TradeLens experience
One prominent example of blockchain’s potential in logistics is the TradeLens platform, developed by Maersk and IBM. By digitising and sharing supply chain data across stakeholders, TradeLens demonstrated improved transparency and operational efficiency in global shipping. Although the platform was eventually sunset due to limited market adoption, it provides valuable lessons on scalability, stakeholder coordination and regulatory alignment – lessons that can guide the development of regional systems tailored to the Global South’s specific needs.
A blueprint for the G20: Aligning with global priorities
The G20 has long emphasised the need for inclusive growth, digital transformation and resilient supply chains. Our framework directly supports these priorities by:
- enhancing economic resilience through improved cross-border trade efficiency and reduced transaction costs;
- promoting fair trade by embedding ethical standards and sustainable practices into supply chain operations;
- supporting digital inclusion by providing MSMEs and informal workers with tools to participate in formal trade ecosystems; and
- fostering green transitions by integrating climate-resilient criteria into smart contracts and verifying environmental compliance through transparent, tamper-proof data.
Our proposal also complements South Africa’s leadership in the African Continental Free Trade Area, which seeks to unlock intra-African trade and deepen regional cooperation. By embedding blockchain in regional trade systems, we can accelerate these ambitions and provide a scalable model for other Global South regions.
Policy recommendations for action
To realise the vision of blockchain-enabled regional supply chains, we propose the following key steps:
- Public–private collaboration: Governments, development banks and tech innovators must co-create digital and physical infrastructure tailored to regional needs.
- Capacity building: Invest in digital literacy and blockchain training programmes to empower local actors, particularly MSMEs, youth and women entrepreneurs.
- Regulatory harmonisation: Develop cross-border regulatory frameworks (with the required legislative infrastructure) that support digital trade and ensure interoperability of blockchain systems.
- Pilot projects: Launch region-specific pilot initiatives to test blockchain solutions in specific sectors such as transport, agriculture, textiles and pharmaceuticals.
- Inclusive financing: Expand access to DeFi and blended finance tools to bridge the financing gap for MSMEs and informal sector players.
A fairer, more connected Global South
By embracing blockchain-enabled supply chains, the Global South can take a bold step toward a more inclusive, resilient and sustainable economic future. This is not just about catching up with the digital revolution – it is about leading it on terms that prioritise equity, sustainability and local empowerment. The G20, through the T20, offers a timely platform to drive this transformation. With the right policies and partnerships, we can turn this vision into reality, one block at a time.
Commentary
Harnessing blockchain for resilient and inclusive supply chains in the Global South
By embedding blockchain in regional trade systems, we can accelerate these ambitions and provide a scalable model for other Global South regions.
In today’s rapidly evolving global landscape, the Global South stands at a critical juncture. While geopolitical and economic shifts are reshaping global trade, digital innovation offers a powerful opportunity for emerging economies to redefine their role in global and regional supply chains. Among these technologies, blockchain stands out as a transformative tool to enhance transparency, resilience and inclusion – cornerstones of sustainable economic growth. This will help emerging countries ‘consolidate and sustain’ their digitalisation, which is needed for better coordination throughout different stages of these value chains.
We advocate for a decentralised, blockchain-enabled framework designed to strengthen regional supply chains in the Global South. This system leverages blockchain to foster real-time tracking of goods, reduce fraud, lower transaction costs and increase trust among diverse stakeholders. These elements are crucial for trade facilitation which, in turn, is essential for a deeper integration into global value chains. Most importantly, it enables micro, small and medium-sized enterprises (MSMEs) – often the lifeblood of emerging economies – to access new markets and financing channels, fairer trading conditions and lower transaction costs.
Why blockchain – and why now?
Traditional supply chains are heavily reliant on intermediaries, often characterised by inefficiencies, lack of transparency and limited access for smaller players. This fragmented landscape stifles growth and reinforces exclusion. Blockchain technology, with its capacity to provide a secure, transparent and tamper-proof ledger, offers a compelling alternative. It allows real-time verification of transactions, seamless tracking of goods and the automation of processes through smart contracts.
For countries in the Global South, adopting such a framework is more than a technological upgrade – it’s a development imperative. By integrating blockchain across regional supply chains, countries can align their trade systems with the digital economy, improve regulatory compliance and foster inclusive participation. This approach aligns with the G20’s priorities, which emphasise digital transformation, regulatory innovation and inclusive trade systems to support sustainable development.
Building a regional blockchain-enabled ecosystem
Our proposal is grounded in empirical analysis using datasets from the World Bank’s World Integrated Trade Solution (WITS) and the WTO’s Integrated Trade Intelligence Portal (I-TIP). These datasets provide insights into existing intra- and inter-regional trade dynamics, revealing gaps and opportunities for digital transformation.
We envision a system where blockchain serves as the backbone of regional integration efforts, particularly in Africa, the Middle East and parts of Asia and Latin America. Through decentralised finance (DeFi) tools and digital identity solutions, previously marginalised businesses – especially MSMEs – can gain access to credit, insurance and logistics services that were once out of reach.
Smart contracts, which automatically enforce trade terms and sustainability criteria, can further ensure that supply chains adhere to environmental and social standards. This is crucial for building climate-aligned supply chains that support the global green transition.
Lessons from the private sector: The TradeLens experience
One prominent example of blockchain’s potential in logistics is the TradeLens platform, developed by Maersk and IBM. By digitising and sharing supply chain data across stakeholders, TradeLens demonstrated improved transparency and operational efficiency in global shipping. Although the platform was eventually sunset due to limited market adoption, it provides valuable lessons on scalability, stakeholder coordination and regulatory alignment – lessons that can guide the development of regional systems tailored to the Global South’s specific needs.
A blueprint for the G20: Aligning with global priorities
The G20 has long emphasised the need for inclusive growth, digital transformation and resilient supply chains. Our framework directly supports these priorities by:
Our proposal also complements South Africa’s leadership in the African Continental Free Trade Area, which seeks to unlock intra-African trade and deepen regional cooperation. By embedding blockchain in regional trade systems, we can accelerate these ambitions and provide a scalable model for other Global South regions.
Policy recommendations for action
To realise the vision of blockchain-enabled regional supply chains, we propose the following key steps:
A fairer, more connected Global South
By embracing blockchain-enabled supply chains, the Global South can take a bold step toward a more inclusive, resilient and sustainable economic future. This is not just about catching up with the digital revolution – it is about leading it on terms that prioritise equity, sustainability and local empowerment. The G20, through the T20, offers a timely platform to drive this transformation. With the right policies and partnerships, we can turn this vision into reality, one block at a time.
4 Jul 2025
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