Africa Web3 adoption Front—Overtaking Western Trends
Web3 is reshaping entire economies worldwide, and the changes in Africa are probably the most fundamental you will find anywhere in this current day.
Web3 is rapidly reshaping global economies and nowhere is this more apparent than in Africa. As blockchain technology is being actively utilized by the western nations, Africa seems a lot ahead in terms of Africa Web3 adoption. Africa is the millennials — motivated to create a better standard of living by financial inclusion and one-way street for Blockchain innovation in Africa that drives to set new standards above Western trends.
Proof of Africa as a continent, with Web3 transformations like the African decentralized applications revolutionizing finance or, the African blockchain startups blessing out global capital. But why is Africa the epicenter of this movement and what does that mean for the rest of the world?
Web3 in Africa: A Perfect Storm
Africa has embraced Web3 tech, not by accident but by intention Africa has several uplifting reasons for beating the traditional tech giants on a few levels.
1. Decentralization and the Demands for Financial Inclusion
The financial ecosystem in Africa has been plagued by underdeveloped models for a long time. The unbanked stand at a large part of the population and they use expensive and slow vernacular banking systems. Web3 Africa → powered by blockchain is giving the people No More Access.
On the other hand, Decentralized finance (DeFi) platforms enable people to deposit, save and borrow money without central intermediaries. Cryptocurrencies such as Bitcoin, Ethereum are already being used in remittances on a massive scale and saving millions in fees.
The necessity-driven adoption is in stark contrast with other developed Western economies where blockchain is viewed mostly as an experimental or speculation tool.
2. Under 25% African Population and Digital Savviness
Africa of the 2020s is home to a digitally-literate generation with more than 60% under the age of 25. Digital innovation and Blockchain innovation in Africa by the youth-Young entrepreneurs /developers are working on making African decentralized applications which is debatably sorely needed to solve niche problems across Africa like cross border payments or land registry.
Indeed, the West in which regulation has stalled it at most is starting to see African startups & developers serve innovation at a blistering pace sometimes circumventing bureaucratic red tape.
3. Mobile Economy Leading The Growth Of Web3
In Africa, Africa bypassed the desktop computing era in the internet and went straight ahead with the mobile-first economy (a big contrast to the west where desktop computing was king during the early days of the internet).
Africa too has sold sky-high smartphone penetration, enabling Africans to leverage mobile Web3 apps for banking, trading assets and engaging with the African NFT marker.
The mobile-first approach has created an advantage for Africa Web3 adoption. Countries such as Nigeria, Kenya and South Africa are spearheading the way of showcasing that Blockchain in Africa can indeed be very successful within the decentralized mobile economy.
What Africa’s Blockchain is all about — The African Blockchain Startups
African Blockchain startups leading the charge for Web3 on the continent.These are not people just copying western solutions, they are solving issues Africa definitely has to address in its own context.
1. USD Remittances & cross-Border Transactions
Kenyan startups BitPesa (Kenya) and Yellow card (Nigeria) are using Blockchain in Africa to facilitate cross-border transactions at cheaper rates with real time transfers. Unlike the remittance services we already know, that cost Americans an arm and a leg to send western-union style funds across borders to Africa(Africaremail or Bencreate)
2. Digital Ownership and Addressing Identity Concerns
African decentralised apps also are tackling identity problems. In Zimbabwe, for example there are companies like FlexID which are building Blockchain in Africa based identity solutions for the millions of un-formally documented Africans. It is a basic need for financial inclusion, allowing many more people to tap into banking and loans with the government.
3. The Growth of African NFT market
African NFT market place on African soil has its vibrancy, and artists making the most of Blockchain in Africa technology to market-right their works instead of referring to traditional art markets. Africa has several tech-powerful platforms such as AFEN (Nigeria) and Momint (South Africa) that can enable African artists, musicians and creators to go global levels off on a loop without mediators.
Unlike in the West where NFTs are mostly speculative, African NFT markets are aimed at having actual use-cases which range from digital identity, real estate tokenization, intellectual property protection etc.
Blockchain investment in Africa: Everyone is looking at you
Africa increasingly grabs global attention as Africa Web3 adoption surges ( In lieu of African blockchain focused startups receiving a large influx of investment throughout 2023).
1. Venture Capital — CVCs and AI growth
Venture Capital and Start-up Growth on the African Blockchains
Blockchain investment in Africa has taken off. We see more venture capital funds pouring money in Africa blockchain startups than ever before~ In excess of 1 billion dollars of crypto and blockchain related fundraising were raised exclusively from African projects in 2022 alone.
Africa’s high adoption rates, problem-solving startups and the ability for massive scalability is attractive for global investors. Nigeria, Kenya and South Africa are emerging as blockchain hotspots of investment with monies from firms like Pantera Capital, Alameda Research and also Binance Labs
2. Government and Institutional Support
When it comes to blockchain growth in countries outside of the West, where regulatory uncertainty typically holds it back -many African governments are at the cutting edge of their own innovation.
Nigeria: Central Bank eNaira, the country has maybe got its first CBDC
Crypto transactions in South Africa are perfectly legal.
Kenya is in an experiment with blockchain for land registry / digital voting system.
Though regulatory hurdles aside, the continent is set to lead in Web3 due largely to its embrace of blockchain technology.
Web 3 Education In Africa: Cultivating a Future Workforce
How Africa will remain the world leader in Africa Web3 adoption, through education. Web3 education in Africa is exploding as we speak becoming a new wave of blockchain developers, entrepreneurs and investors.
1. Blockchain Bootcamps and other Learnings
Binance Academy, Web3Bridge (Nigeria) and Africa Blockchain Institute (listed free and low cost blockchain education). The learnings from such programs teach African youth the skills base they need to develop and craft African Decentralized Applications; smart contracts & build things.
2. University Collaborations and Government Support
Ghana, Nigeria & Kenya universities are incorporating Blockchain innovation in Africa courses to their curriculums and gearing students for Web3 jobs. Likewise, governments are introducing Web3 education in Africa to educate their citizens for global blockchain industry competition.
Blockchain education is becoming more mainstream in Africa than in the West, where it is either niche or an elective unlike some other countries across the world making Web3 knowledge critically imperative for long-term adoption and growth.
AFRICA IS BECOMING THE NEW NORMAL OF WEB3 LEADERSHIP WORLD LEARNS ATLANTIC
Need Creates Opportunity: For blockchain, which is typically seen as a need in the West-say, for identity, Africa is creating solutions to solve problems such as financial exclusion and rotten banking systems.
M-PESA is the future, Mobile-first: With Africa already doing this successfully for years, Web3 applications must optimally be mobile for every mass adoption.
Regulation — The Early Adopter: Instead, African governments are looking to adopt the use of blockchain technology.
Africa needs to teach — Web3 education with a higher horizon is the way to empower future ready workforce, world over.
Serving The Call: Charting an Africa Future to Web3
Africa has just dipped its toes in Africa Web3 adoption is the beginning of what is yet to come.
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