Consultancy for an assessment of the conditions essential for the deployment of blockchain technology in trade facilitation in the Republic of Kenya

Result of ServiceThe objective of this assignment is to assess the conditions essential for the deployment of blockchain technology in trade facilitation in the Republic of Kenya to improve trade performance and enhance competitiveness. It also aims to identify challenges and conditions in adopting the blockchain technology in the context of the broader national legal and regulatory frameworks. The major outcome of this project is to assist the Republic of Kenya in developing a practical strategy to facilitate and promote the application of blockchain technology in international trade operations. Through a dedicated package of technical assistance activities, Kenya will be able to undertake the required policy and regulatory reforms to ease the process of digitalizing trade, to boost the role of SMEs in export promotion, and ensure that blockchain can effectively support sustainable and inclusive development. The following deliverables are expected: i) An inception report containing the Consultant’s understanding of the terms of reference and how they intend to deliver on the assignment, including a detailed description of the methodology to be followed with a timeline for each output, and a provisional outline of the Assessment Report. ii) Situational Analysis Report – which shall include Reports of the national stakeholder consultation process. iii) An Assessment Report on the deployment of blockchain technology in trade facilitation in the Republic of Kenya. iv) Validation Report: A national validation workshop involving all relevant stakeholders should be held to validate the Assessment Report. Power point presentation of the Assessment Report should be made by the consultant. The outcome of the validation workshop should form the basis of the report. v) A final version of the Assessment report in English in both electronic form and printed versions should be provided together with excel files used in developing graphs, figures and tables in the document. Work LocationNairobi Expected duration3 months Duties and ResponsibilitiesBackground Blockchain has the potential to significantly change trade facilitation processes in Africa by improving transparency, reducing costs, and speeding up cross-border transactions. With the African Continental Free Trade Area (AfCFTA) aiming to boost intra-African trade, blockchain can play a key role in streamlining processes, reducing fraud, and enhancing trust among trading partners. Blockchain is quickly transforming the way data is stored and managed. The technology is considered to be an essential aspect in several sectors, including cross-border trade and the global supply chain. Several challenges exist along the supply chain, impacting logistics functions. Difficulties often emerge from the lack of transparency, trust, speed, and traceability. The blockchain technology is believed to solve some of these key challenges by providing a set of records that can be tracked and evaluated at all levels of the supply chain by all parties. Its main objective is to create a distributed and secure automated and efficient information sharing process, reducing the use of paperwork and supporting traceability. It enables participants to digitally connect, share information and collaborate across the shipping supply chain ecosystem. Governments, and regional and international organisations can play a key role in building the necessary ecosystem for engaging all stakeholders, addressing actual or perceived risks, and ensuring that blockchain can effectively support sustainable and inclusive development. The cost of moving goods across continents could drop dramatically, adding fresh energy to relocate manufacturing or source materials and goods from overseas. In Africa, Kenya is emerging as a leader in blockchain adoption, leveraging the technology to enhance trade, finance, governance, and digital identity. The country’s vibrant tech ecosystem and regulatory environment make it a hotspot for blockchain innovation if the right incentives and policies are put into place. Various startups and projects in Kenya have applied the technology in facilitating cross-border payments, tracking Agri-supply chains, digital identity, government procurement transparency and SME trade finance. In international trade, blockchain technology in Kenya is being used to address the critical challenge of a lack of efficient digital information exchange between stakeholders by connecting all parties through a seamless and secure data-sharing network. The technology is modernizing and streamlining operations, and addressing challenges linked to traditional methods of data exchange. The following are key features of blockchain that can be used in logistics: Transparency: - Integrate all data by all parties into one source - History of clients or suppliers recorded, making it easier to assess their creditworthiness - Provides accurate information on the status of events for better traceability. Security: - Secure platform to exchange information - Inability to tamper with information since every information is securely recorded in the chain Easing the process: - Using smart contracts to increase the level of automation and combine processes such as payment, settlement of tariffs, or cargo checks. - Removing intermediaries at several stages of the chain, by creating a trustworthy environment. Efficient process: - Reduce costs by avoiding errors and redundancies. - Faster automated process, with less room for human error. As the technology is a relatively new concept, its application is still in the preliminary stage and is expected to spread over the next few years. Some countries have already initiated pilot projects to test the technology in several areas such as the transfer of digital documents, digital bill of lading, and automated customs systems. Nonetheless, most of the efforts that were put in place by governments are still in their experimental phase, with minor projects launched. It is in this context that the ECA, through the African Trade Policy Center (ATPC), is collaborating with KenTrade in supporting a pilot project to assess the conditions essential for the deployment of blockchain technology in trade facilitation in the Republic of Kenya. The Assessment will seek to validate the application of blockchain technology to trade facilitation in the Kenyan context, identify potential technical, regulatory and logistical issues, and gain insights from stakeholders. The outcome of this consultancy will assist the government of Kenya in assessing the usability of blockchain technology to improve the performance of logistics and trade channels and enhance efficiency and competitiveness. Duties & Responsibilities The tasks to be performed by the Consultant include: i) Evaluate the current level of blockchain adoption in Kenya's trade sector, including ongoing projects, pilot initiatives, and regulatory frameworks. ii) Map key stakeholders in Kenyan trade, including government agencies (e.g., customs, trade and ICT ministries, port authorities), financial institutions, logistics providers, importers, exporters, and technology providers to identify their pain points, challenges, existing processes, skill gaps, and technology infrastructure related to trade facilitation with a view to understand their specific needs and expectations for a blockchain solution. iii) Evaluate the current regulatory framework relevant to trade and data exchange, asses the regulatory environment for blockchain technology in Kenya and identify any barriers to adoption. iv) Identify countries in which blockchain technology has been deployed in trade facilitation and outline key success factors. v) Assess the existing technology infrastructure and digital readiness of key stakeholders. vi) Propose appropriate strategies on how existing initiatives on blockchain adoption could be scaled up and recommend new projects and interventions for implementation. Qualifications/special skillsMaster's degree or equivalent in economics, international trade, business administration or technology is required. All candidates must submit a copy of the required educational degree. Incomplete applications will not be reviewed. 10 years of experience in designing or applying technology to trade and trade development strategies is required. Expert knowledge of Kenya’s trade, technology, economic policies, strategies, and priorities is required. Previous experience in Kenya is desirable. Reporting skills and experience are also desirable. LanguagesEnglish and French are the working languages of the United Nations Secretariat. In addition, Arabic is a working language at ESCWA. For this position fluency in English is required. Note: “Fluency” equals a rating of ‘fluent’ in all four areas (speak, read, write, and understand) and “Knowledge of” equals a rating of ‘confident’ in two of the four areas. Additional InformationNot available. No FeeTHE UNITED NATIONS DOES NOT CHARGE A FEE AT ANY STAGE OF THE RECRUITMENT PROCESS (APPLICATION, INTERVIEW MEETING, PROCESSING, OR TRAINING). THE UNITED NATIONS DOES NOT CONCERN ITSELF WITH INFORMATION ON APPLICANTS’ BANK ACCOUNTS.