The Potential for Blockchain in Africa
Blockchain has the potential to reduce long-standing inefficiencies and costs within multiple sectors of developing African economies. From banking the unbanked to creating digital applications through smart contracts infrastructure, blockchain-based solutions can leapfrog traditional or nonexistent technology infrastructure in African nations and drive a new era of more inclusive growth.
Furthermore, The Demand Is Here (Africa)
There is a lot of pent-up demand for internet services in sub-Saharan Africa. Today, mobile internet usage in Africa is more widespread than electricity. Per the Economist, less than half the population has access to electricity, two-fifths own a mobile phone.
Furthermore, digital innovations have also taken off quickly in sub-Saharan Africa, partly because the younger demographic is partaking in the rapid adoption of cutting-edge technology. Compared to aging populations (40 years old+) in developed countries, the median age in Africa is 19.2 years old. Also, this youthful African population would account for majority of the world’s population, as the growth of China begins to slowdown (one child policy).
- By 2035, Nigeria alone is expected to be the world’s 3rd largest country (est. population of 400 million +) and the 53 other African countries are expected to experience similar population surges.
Sample Solution & Use Cases
African economies can pilot & adopt blockchain infrustructures similar to Bitcoin, Ethereum, Cardano & Binance (with a combined Market Cap of $1.2 Trillion as of June 10, 2021.)
Bitcoin published anonymously on October 28, 2008 by “Satoshi Nakamoto” during the ’08 financial crisis, uses a simple blockchain network to act as a store of value (limited supply), enabling members of its network to digitally make financial trasfers with extremely low fees, while miners generate cryptocurrencies and maintain the blockchain network.
- Hence, African economies can greatly benefit from “Clean Mining” operations such as solar mining rigs. Which would create a multisided revenue stream; Increase in value of the digital assets, profit rewards & carbon credits for clean mining from global institutions.
- In addition, Smart Contract Blockchains such as Ethereum, Cardano & Binance enable variety of applications to be created. This can enable small to large-scale enterprises to implement blockchain services which can increase operations efficiency and revenue, while lowering business costs.
- For example; in 2018 Walmart implemented a food supply chain application on Ethereuem’s network. Thus, when there are issues with their products (expiry or customs), the time needed to trace products on the supply chain went from 10 days to 2 seconds.
- African Data Registry’s such as the Land’s Commission in Ghana can implement similar applications on their own network to reduce property title search or transfer time’s from an average of 45 Days to 5 minutes.
- The applications of the blockchain can be extended to governance, healthcare, agriculture, transport, finance and artificial intelligence. The internet and blockchain networks can fuel significant growth in Africa’s digital economy and bring rise to new companies and technologies that could go on to dominate the world.
