First interoperable digital trade finance project for bulk commodities launched by Africa, Singapore, and China

The first end-to-end interoperable digital trade cooperation project for bulk commodity imports between Africa, Singapore, and China has been successfully completed. This initiative, jointly promoted by the Beijing Two-Zone Office and Singapore’s Infocomm Media Development Authority (IMDA), is a significant advancement in digital trade facilitation and cross-border financial collaboration.

Overview of the Africa-Singapore-China digital trade cooperation project

The project was implemented by CNMC New Bridge Logistics & Trading Pte. Ltd, a subsidiary of CNMC International Trading Co., Ltd, and Jiangxi Copper Company Limited. The Singapore-based shipping company Pacific International Lines (PIL) managed the shipment of Anode Copper valued at USD 5 million in two consignments from Durban Port, South Africa, to Ningbo Port, China.

DBS Bank and OCBC Bank handled remittances, while Bank of China’s Jiangxi Branch acted as the collecting bank. The Beijing Two-Zone Office and IMDA oversaw the process to align it with digital economy objectives and international cooperation efforts.

The integration of Trusted Trade Collaboration Network (“AEOTradeChain”) and TradeTrust platforms enabled the issuance of electronic Bills of Lading (eBL) by PIL. This digital document management facilitated secure transmission and real-time tracking of title documents, streamlining the entire trade finance process.

The collaboration between remitting and collecting banks through an electronic document-based workflow showcased the practical viability of interoperable digital trade finance across borders.

Technological innovations driving trade efficiency

The project introduced three major innovations.

First end-to-end interoperable digital trade in bulk commodities. Utilising blockchain technology, the project established a secure, real-time digital process for document circulation and payment settlement tailored to high-value commodities like Anode Copper.

Cross-regional integration model. The cooperation created a “China-Singapore Cooperation + South African Scenario” framework, enabling secure data sharing across different national digital trade systems.

Cross-border digital settlement. OCBC Bank in Singapore and the Bank of China’s Jiangxi Branch successfully carried out cross-border payments using an electronic document system. This shows that digital trade finance can work well across different systems.

Measurable benefits: Time savings and cost reductions

The digital Documents against Payment (D/P) system significantly improved trade efficiency by reducing processing times and costs. 

Title transfer time was cut down from 20 days under traditional paper-based processes to just 5 days, while Bill of Lading (BL) processing time was dramatically shortened from 5-10 days to only 5 minutes.  

Mailing costs were reduced by about 350-400 RMB for each transaction, and document errors dropped by 93%. The error rate went from around 15% to less than 1%.

The Bank of China’s Jiangxi Branch improved security and efficiency by directly verifying documents on the platform. 

OCBC Bank emphasised that blockchain-enabled eBLs help reduce fraud risk, lower the operational carbon footprint, and decrease verification costs. DBS Bank observed that interoperable digital trade instruments are becoming increasingly common and are essential for fostering a connected global trade ecosystem.

Future directions for digital trade collaboration

This project, backed by the Fengtai District Government, sets a standard for trade facilitation and digital transformation in the region.  It shows how China and Singapore are committed to collaborating in the digital economy as part of the Belt and Road Initiative.

The Beijing Two-Zone Office and IMDA plan to increase digital cooperation among different countries and industries with the aim of creating a collaborative system for cargo owners, financial institutions, and logistics providers.