Long absent from the most significant news related to the use of cryptocurrencies, Africa is slowly participating in this revolution. In fact, it could become a center of interest for specialists in the sector within a few years. The continent is indeed preparing to use blockchain applications much more actively to accelerate its development. Several areas were thus targeted on site to finally harness the potential of blockchain Africa.
A plethora of use cases such as digital identity or the land register
African entrepreneurs keep confirming the idea thata blockchain-led revolution is already underway on the continent. Co-founder of FlexID, a digital identity solution based on blockchain and operating with the Algorand, Victor Mapunga is witnessed in everyday life. “There is still a lot of work to be done, so far P2P exchanges and centralized crypto-exchanges have been the predominant flavor,” he said. The Zimbabwean entrepreneur thus lets it be known thata multitude of use cases for blockchain besides that related to cryptocurrencies were under study.
These comments are also confirmed by Michelle chivunga, CEO and founder of the Global Policy House group serving in blockchain solutions and the digital economy. “Countries in Africa, including Ghana, are consideringuse blockchain for land registry and many countries for digital identity, provenance in supply chains, healthcare and finance. Electronic commerce and financial technologies are the main drivers of the digital economy in Africa. I see it developing and paving the way for more blockchain-related activities »She confessed.
Improved cross-border payments
Co-founder of the company Adhara, a decentralized management box for liquidity and international payments, Peter Munnings meanwhile highlighted the impact of blockchain in the African economy. “Across Africa, settlement is slow and complicated due to lack of liquidity. For example, switching from Kenyan shillings to Tanzanian shillings via USD is always going to be slow and complicated, ”he noted at first. He will then explain that the potential for improving cross-border regulations through blockchain solutions will eventually emerge as the alternative to follow.
For her part, Ms. Chivunga also believes that blockchain could have a major role to play in the wake of the establishment of ZLECA (African Continental Free Trade Area). It would thus allow ensure high transparency, better visibility and integration of all supply chains. Finally, she hopes that the use of blockchain will help reduce wealth inequalities on the continent and facilitate access to finance for local SMEs.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Despite the existence of a local desire to make blockchain a lever for development, there are still some preliminary obstacles to overcome. These include the poor digital connectivity and the lack of appropriate infrastructure to use this technology on the continent.