Background: Tanzania has made significant progress in organizing and licensing gold dealers, but there remain opportunities for bad actors to smuggle gold into the country's supply chains. Investors want to purchase conflict-free gold in Tanzania, but have no way of determining the provenance of the gold parcels. AfroPavo Analytics was approached to find a solution that would offer greater transparency and an audit trail for the provenance of the parcels of gold to the buyers.
Solution: AfroPavo Analytics proposed the use of blockchain technology to track the supply chain of gold from artisanal miners to processing plants, elution plants and eventually to dealers. By digitizing the supply chain and adding geo-location, timestamps, and other key details at each point, the solution would create an immutable record of the gold's origin, authenticity and movement. This would not only ensure that the gold is conflict-free, but also promote the African gold market to compete against foreign markets. The solution also included the use of Non-Fungible Tokens (NFTs) to create an audit trail of gold jewellery in the market that can be tracked from the origin to the owner.
Results: The proposed solution would bring transparency to the gold supply chain, enabling investors to confirm the provenance of the gold parcels they purchase. It would also provide a proof of concept for the use of blockchain to authenticate conflict-free gold parcels in the supply chain to the buyers. The project aims to create an audit trail of gold jewellery in the market that can be tracked from the origin to the owner through NFTs, promoting the African gold market to compete against foreign markets.