By Anthon Garcia and Emmy Borromeo
Blockchain is usually associated with cryptocurrency. However, it’s more than just about digital money. In the Middle East and Africa, this technology has the potential to redefine supply chains, substantially improving authenticity, traceability, and efficiency. Blockchain-powered platforms are emerging to facilitate this welcome development.
In 2017, “blockchain” was crowned Buzzword of the Year by supply chain publication Supply Chain Dive. At the time, blockchain had taken over corporate boardrooms, where stakeholders discussed how this emerging technology could enhance their strategies.
Industry reports abounded. Many companies were eager to explore its potential.
Fast forward to today, blockchain has become more than just a mere buzzword. Globally, the blockchain market is expected to hit $248.9 billion by 2029. This is according to a 2024 industry report from Markets and Markets. From last year till 2029, the market is poised to achieve a 65.5 compound annual growth rate.
From being a potential driver of growth — especially in terms of transparency, security, and operational efficiency — it has emerged as a key component of decentralised finance, occupying an indelibly important spot in the financial world. However, its applications are well beyond that.
Not just about digital money
When we think of blockchain, we typically associate it with cryptocurrency. After all, when it was officially introduced in 2009, its first application was the Bitcoin cryptocurrency.
Nonetheless, blockchain is more than just about digital money.
At its core, this technology is a decentralised, secure digital ledger that records transactions in a way that can’t be altered or tampered with. Because of its inherent security, it has become widely linked with financial applications like banking and payments.
Today, where many industries are digitising outdated systems in favour of efficiency, blockchain is playing a pivotal role that goes beyond financial applications.
For Angus O’Callaghan, Head of Trading and Markets at XDC Network, global trade and supply chains are industries that reap substantial benefits from this technology. In such industries, companies still heavily rely on physical documents to process shipments. It won’t be unusual for huge companies, in particular, to have an inch-thick stack of documents for each container at every port.
As a result, delays, errors, and fraud risks are rampant.
“Blockchain solves that,” Angus shares in an interview for The European Business Review. “When you get there, it’s already verified. You can see all the signatures. You can see everyone that’s approved for this container to arrive, for example,” he adds.
Companies like XDC Network — a hybrid blockchain designed for enterprise use — offer scalability, interoperability, and military-grade security. With features like high transaction speeds, low costs, and compliance with global standards such as ISO 20022 (a financial messaging standard for seamless integration with banking systems) and MLETR (Model Law on Electronic Transferable Records, which enables the legal recognition of digital trade documents), these networks help drive blockchain adoption across various industries beyond finance.
Reducing errors, fighting counterfeits
With blockchain redefining how logistics operate, many other industries stand to benefit. One such example is the global pharmaceutical industry.
For companies like Chekkit, a leading blockchain-powered authentication and traceability platform for FMCG and pharmaceuticals in Africa, the Middle East and Africa (MEA) region presents opportunities for blockchain adoption. The region, with Saudi Arabia leading the pack, has been embracing blockchain and other advanced technology to enhance transparency, security, and efficiency across various sectors, including healthcare and pharmaceutics.
“We have the ambition to scale the use of our patented cryptographic GS1 product codes and AI-powered embedded API across the developing region and into the Middle East following the prevailing number of deaths caused by counterfeits and substandard drugs and food in the region,” Dare Odumade shares in an email interview.
With GS1 product codes — global standards for uniquely identifying and tracking products — combined with blockchain and cryptographic verification, pharmaceutical supply chains in the MEA region can substantially improve.
“[The World Health Organisation] reports an average of 500,000 people die every year in Africa as a result of this issue. And this issue is a direct product of supply chain fragmentation, especially in the healthcare sector, where the growth of digital healthcare solutions remains siloed. However, there is hope, as leading governments in Africa and the Middle East have begun mandating product serialisation and traceability for drugs and food following global standards (GS1). This is a game-changer, enforcing product and supply chain data to be shared with local FDAs in real time,” Dare adds.
Egypt, Algeria, Ethiopia, and recently Nigeria have adopted this policy, while the Gulf FDA has also approved it, with Saudi Arabia leading since 2017. Full adoption in the country is expected by this year, Dare states.
In Saudi Arabia, this push for serialisation has already led to widespread adoption, with thousands of pharmacies, wholesalers, and suppliers actively leveraging product serial codes for inventory management, shipping, and receiving.
All this signals a more mature opportunity for utilising blockchain-driven solutions.
An expanding role
The expanding role of blockchain cannot be ignored. As discussed, this technology is now considered a critical, game-changing tool for securing supply chain data integrity — especially in regions like MEA where traditional systems continue to pose verification challenges.
Many consumers, wholesalers, and even customs officials struggle to validate the true origin of products, as they often rely on hard-copy documents that can be easily manipulated.
“Blockchain today can be perceived as a competitive advantage but with rapid adoption in government and private industry operations, there will be a market pull increasing the demand for standardisation of supply chain operation data sharing and physical product (asset) digitisation,” Dare remarks, further noting the growing importance of deploying top-tier security.
Meanwhile, for Angus, blockchain’s potential is poised to expand well beyond finance and supply chains. In an interview, he mentions that insurance is another industry that deals with large volumes of documents. As with other sectors with this issue, it can be costly, slow, and prone to errors. With blockchain, insurance companies can benefit from accessing authentic data instantly via digitally verified records.
Additionally, blockchain-based platforms can also help address inefficiencies in raising capital, especially for small and mid-sized enterprises (SMEs).
“Whether you’re looking at multibillion-dollar companies, startups, or SMEs, the process of raising capital is inefficient. And that inefficiency exists on both sides. Companies struggle to access funding, while investors don’t have enough opportunities to invest and gain exposure to businesses like these,” Angus notes.
“This process is generally run by banks, and they will continue to control it. But there are a lot of platforms coming out now that will give retail and smaller investors access to these opportunities — something they haven’t had to date. It looks like an excellent technology,” he says.
But whether it’s about blockchain’s role in the supply chain, insurance, or capital access, one thing remains: the digitisation of physical assets is on the rise. As Dare concludes, “As demand for physical asset digitisation into on-chain assets continues to rise, so too will the growth and evolution of blockchain use in non-financial applications.”
About the Authors
Anthon Garcia is an award-winning journalist and book editor based in Dubai, United Arab Emirates. He currently writes freelance for Economy Middle East, Energy and Utilities, Inc. Arabia and Cityscape Intelligence. He graduated with an AB English degree from the University of the Philippines and an MBA from Western Global University.
Emmy Borromeo is a writer and digital content strategist based in the Philippines. With a background in Economics from the University of the Philippines, she has written freelance for publications across the Middle East and the UK, covering business, economy, technology, and energy.
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