The internet has completely adjusted how many people interact and has facilitated the creation of an entirely new type of communication and relationship. People make new relationships online in a variety of ways. Regardless of how people connect, the idea that you can connect with opportunities on the other side of the world is an entirely new concept in distributing prosperity. The world is becoming a smaller place. Cryptocurrency has captured the mainstream like no other part of the financial ecosystem. Tech-savvy young people across the globe are seizing the wealth from the internet. With the world’s youngest, fastest-growing population, Africa is also the world’s largest source of untapped talent.
In 2019 it was recorded that almost 60% of Africa’s population is under the age of 25. In 2020, Africa’s population under 35 represents almost a billion people (540.8 million 0-14 year olds and 454.5 million 15-34 year olds), amounting to 22.7% of the world’s total youth population, the second largest after Asia’s (58.0%)
Yet 57% of the continent’s population remains unbanked. The poor educational system and inefficient infrastructure make alternative ventures and remote opportunities more appealing. Financial Services in the continent largely remain underdeveloped and cryptocurrency represents a good alternative to traditional banking in the continent.
Africa thrives on the smartphone, which is a sufficient requirement to access the Blockchain, even as the tech-savvy young population find using smartphone apps over banks more appealing. The adoption of cryptocurrency in Africa is apparent as Africa topped peer-to-peer transaction volume across all regions with $105.6 billion at a 1,200% crypto value growth experienced between July 2020 and June 2021.
Sub-Saharan Africa received $48 billion in 2019. Africans are accustomed to using phones for payments. Nigeria, Africa’s most populous country, leads in crypto adoption and FinTech investments.
Africa could push cryptocurrency utilisation to new levels, particularly in the decentralized finance(DeFi) space.
Infrastructural development with Tokenization
Recently, non-fungible tokens(NFTs) are beginning to demonstrate new ways to connect communities across the globe, chiefly driven by the socially centred experience. NFTs are attracting a new demographic into the cryptocurrency world. These people are driven by their connection with some form of media or collectables, or objects, and want to be able to connect and trade with people they share a connection with.
Africa could leapfrog in this space especially when the tech-savvy population understands the NFT space better. I believe it’s just a matter of time.
Tokenization represents the next generation capital. With cryptocurrency tokens, the continent can benefit from capital flow from cross-regional investors for investment in infrastructure. As entrepreneurs build a seamless cross-border payment platform that is compliant with regulatory laws, the continent will become more attractive for investors.
With an hybrid of DeFI and CeFi, cryptocurrency, investment can be democratized, as opposed to the traditional funding rounds.
The Agricultural sector can receive $30 billion to equip smallholder farmers.
With $20 billion, for instance, the real estate sector can serve the rising remote working middle-class tech talents in the continent.
Investments can be pooled for innovation in the education space. See Opportunities for The African Youth:: The Continent’s Great Asset
Real estate rent, agricultural yields, and education are few good revenue centres that can drive good return on investment for investors. However, managing the challenges in cross-border payment will give room for development across other sectors, as the ability to receive funds is also paramount to the velocity of funding the continent receives.
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TechAssembly is a technology development company that works on digital transformation, tech skill acquisition, and tech talent acquisition. TechAssembly specializes in communication solutions across economic technology, FinTech, commerce for organizations.
Our clientele includes funded start-ups and SMEs, some of which are within and outside Africa.
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Sam is a Solution Architect and Software Engineer with a deep interest in finance, data, community, mental health, and education. Connecting the dot is his superpower. Sam is exploring his curiosity and creativity to match that with what the world needs.