- Blockchain technology has the potential to streamline most types of business processes.
- Africa is one of the fastest growing economic regions of the world, and it is expected that blockchain tech will increasingly be adopted by businesses operating on the continent.
Africa to Increasingly Adopt Blockchain Tech
Blockchain is associated with greater transparency, enhanced security, improved traceability, increased efficiency and speed of transactions, and reduced costs. These are the exact factors required in Africa for their financial innovation.
African states are prepared to commit to change, there are investors who want to invest in businesses with a purpose, former technological developments have provided a platform for companies using blockchain to grow and there is a financing structure that will develop and scale SMEs employing blockchain.
Kenya’s Residents Need Access to Modern Financial Services
Kenya is already a hotbed of innovation in Africa. In terms of connectivity and other infrastructure, as well as other factors, such as a high literacy rate, Kenya is well-developed and a natural place to start. The country has already benefited from the adoption of M-PESA, the mobile money services, which was key to solving the problem of someone, say me, needing to send money to my grandmother in the village.
Effective Identity Management Solutions Needed
The areas of immediate focus for us are micro-lending, providing access to credit and energy distribution, particularly smart grids or green energy. The good news is that businesses that want to make a true social impact, such as providing more access to energy or access to loans and credit, are the ones gaining traction. Simultaneously, they are attracting investment and launching quickly.
Identity management and land titling is long standing problems in Africa. Blockchain is the perfect tool to solve these problems. But to solve these problems, we will need governments and the private sector to work together, which will take time.
From enabling micropayment systems to digital identity management to smart contracts, blockchain-based solutions can leapfrog traditional or nonexistent technology infrastructures in African nations and drive a new era of more comprehensive growth.