Press Release from 2018-12-17 / Group, KfW Development Bank
Blockchain creates more transparency in development cooperation
- KfW tests blockchain application TruBudget in Burkina Faso
- Accenture and BearingPoint advisors for project planning and implementation
- Controlling public funds becomes easier
On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW is testing the use of blockchain technology in the management of public finances in Burkina Faso. The potential of this technology for development cooperation in Africa will be explored during a six-month pilot phase.
The TruBudget software developed by KfW makes it possible to trace all work and approval steps. This includes, for example, drafting contracts or tendering and disbursement processes in the implementation of a project, for example in the field of water supply. Using the platform, all participants can view all processes and changes in real time. Complex manual processes to ensure that funds are used correctly can thus be eliminated.
International donors often set up parallel structures as a response to risks and lack of implementation capacities in partner countries. The associated transaction costs of this strategy are very high for both sides, however.
"The independent development of a country is much easier if investments are implemented through its own budget rather than through donor project budgets. With TruBudget we create transparency for the benefit of all parties involved and enable donors to deploy funds safely and directly via the structures of the partner country," explained Prof. Dr Joachim Nagel, Member of the Executive Board of KfW Group.
Accenture and BearingPoint advisors for project planning and implementation
The Burkinabe Ministry of Finance is supported by the consulting companies BearingPoint and Accenture in the development and testing of a Burkinabe TruBudget platform. The software was developed according to the open source principle and will be available to interested partners free of charge.
“We are delighted to support the transparent use of development funds by applying our expertise in the field of blockchain and financial management. In Burkina Faso, BearingPoint is evaluating the technical requirements set out by the Finance Ministry and donor organisations for typical applications relevant in development cooperation. The project supports administration in Burkina Faso and is a suitable example of best practice for other African countries,” explains Alexander Schmid, a partner at BearingPoint.
“Accenture strives to ensure that blockchain technology can be used to transform business processes so that we can generate the maximum added value for our customers and their communities. This example perfectly demonstrates how to tap into the potential of blockchain,” explains Karsten Ebersbach, managing director at Accenture. “In cooperation with KfW we have designed, tested and implemented a solution that cultivates the transparency that is so urgently needed in development cooperation.”
Another of KfW's close cooperation partners in this innovative project is the French Agence Française de Développement.
Further information about KfW Development Bank can be found at: www.kfw-entwicklungsbank.de/International-financing/KfW-Entwicklungsbank/.
BearingPoint is an independent management and technology consultancy firm rooted in Europe with a global reach. The company is active in three areas: consulting, solutions and ventures. 'Consulting' covers traditional consultancy services; 'solutions' focuses on proprietary technical solutions in the areas of digital transformation, regulatory technology and advanced analytics; 'ventures' addresses the promotion of financing and developing start-ups. BearingPoint's client base includes a number of leading global companies and organisations. BearingPoint has an international consultancy network made up of over 10,000 employees who support customers in over 75 countries and work with them to achieve measurable and long-term corporate success.
Accenture is a leading global service provider, which offers a broad portfolio of services and solutions in the areas of strategy, consulting, digital solutions, technology and operations. Using its extensive experience and specialist skills across 40 sectors and all corporate functions – supported by the world's largest delivery network – Accenture acts as a meeting point between business and technology, helping customers to improve their performance capacity and create sustainable value for their stakeholders. With around 459,000 employees working for clients in over 120 countries, Accenture promotes innovations that improve the way we live and work.