Shogo Ishida

shogo

Yosuke Yoshida

***By [Shogo Ishida](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/) and [Yosuke Yoshida](https://www.linkedin.com/in/yosuke-yoshida-82754b159/), Co-CEOs, EMURGO Africa***

Kenya has emerged as a hotbed for cryptocurrency and blockchain innovation in Africa, with a growing number of Web3 startups making waves in the country's tech ecosystem. Most of these startups are in the payments and lending sector, where they leverage blockchain technology to address local challenges, promote financial inclusion, and position Kenya at the forefront of the global Web3 revolution. 

**Key Takeaways:**
1.  Pezesha tops Kenya’s Web3 venture capital. 
2.  Kotani Pay gets a crypto license in South Africa.
3.  Melanin Kapital goes big on tokenizing carbon credits. 
4.  Paylend wants to be the top choice for SME lending.
5.  Jia takes crypto lending to emerging markets.

Kenya has [over 40 Web3 startups](https://www.f6s.com/companies/blockchain/kenya/co), but here are the top 5 ones making big impact:

__1. [ **Pezesha** ](https://pezesha.com/)__

![Pezesha](//images.ctfassets.net/vmoowpwj5a39/2YV4jjuKsJF06TNZVTjK9l/427f65314f5bdf0a1e97e19e5082c5c0/TW3C_Startups_That_Transform_Kenya_s_Web3_Landscape_logo_header_01.png)

Founded [in 2017 by Hilda Moraa](https://nation.africa/kenya/life-and-style/saturday-magazine/the-woman-linking-africa-s-micro-businesses-to-finance--3977144), Pezesha is a Web3-based digital lending marketplace that connects small and medium-sized enterprises (SMEs) with investors or lenders offering accessible working capital.

Operating [on the Celo blockchain,](https://celoecosystem.com/849f16763a9844e78658e1800f430058) Pezesha facilitates loans in Celo stablecoins (cUSD). To access the platform, users download the app, register and undergo a credit score check to determine loan limits for their business. Once a loan is requested, Pezesha automatically matches the user with an investor, delivering funds to the user’s wallet in minutes. However, businesses must be in operation for at least six months.

Pezesha is playing a transformative role in Kenya's Web3 industry by integrating decentralized finance (DeFi) solutions into its lending ecosystem. Through blockchain, Pezesha enhances transparency, security, and accessibility in lending. By utilizing smart contracts and tokenized assets, the fintech enables more efficient and low-cost loan transactions, reducing reliance on traditional financial institutions.

It connects borrowers with decentralized funding sources, such as crypto investors and peer-to-peer networks. This opens up global opportunities for funding, allowing businesses to tap into international markets while maintaining regulatory compliance.

Since its inception, Pezesha has connected over 20,000 youth-led MSMEs to working capital, creating more than 1,000 formal jobs and 5,000 informal jobs. With over 75,000 loans disbursed and financial education provided to more than [200,000 MSMEs in over 100 million transactions](https://pezesha.com/our-stories/pezesha-and-fsd-kenya-partner-to-provide-working-capital-and-tool-financing/) in Kenya, Pezesha has become a significant player in the Web3 space. Operational in Kenya, Ghana, and Nigeria, Pezesha [secured an operating license](https://cioafrica.co/pezesha-licensed-to-operate-fully-in-uganda/) in Uganda in 2023. 

The startup offers [loans of up to $10,000](https://techcrunch.com/2022/08/30/kenyan-fintech-pezesha-raises-11m-backed-by-womens-world-banking-cardano-parent-iog/) with single-digit interest rates and a one-year repayment term. It hopes to generate $100 million in annual financing for businesses by partnering with local and international banks, high-net-worth individuals, and decentralized finance networks.

Since 2021, Pezesha has [partnered with Kotani Pay](https://pezesha.com/our-stories/kotani-pay-teams-up-with-pezesha-to-enable-blockchain-powered-merchant/), a startup offering secure API integrations with Celo, Stellar, and Avalanche blockchain networks, allowing SME lending without internet access. 

The startup has raised the highest amount of Web3 venture capital in Kenya, totalling at least $12 million. After a [seed investment](https://weetracker.com/2018/08/08/kenyas-pezesha-secures-seed-investment-from-consonance-investment-managers/) in 2018, it raised a [7-figure (at least $1 million)](https://disruptafrica.com/2021/09/07/kenyan-fintech-startup-pezesha-raises-7-figure-seed-extension-round-for-african-expansion/) amount from Greeh House Capital in 2021.  

In 2022, it raised an [$11 million](https://disruptafrica.com/2022/08/31/kenyas-pezesha-raises-11m-pre-series-a-to-grow-embedded-finance-platform/) pre-Series A equity-debt round led by Women’s World Banking Capital Partners with participation from Cardano blockchain builder Input Output Global (IOG).

__2.  [**Kotani Pay**](https://kotanipay.com/)__

  ![Kotani Pay ](//images.ctfassets.net/vmoowpwj5a39/3PsThIcS5Wwc5wH5tmLBgs/62dccfe0567566e4d3d93acb23dde4b7/TW3C_Startups_That_Transform_Kenya_s_Web3_Landscape_logo_header_2.png)

Kotani Pay is revolutionizing Kenya's Web3 industry by bridging the gap between blockchain technology and real-world financial services, particularly for the unbanked and underbanked populations. 

[Founded in 2020](https://pitchbook.com/profiles/company/495809-92#overview) by [Felix Macharia,Samuel Kariuki and  Stephen Kiarie](https://expeditions.dcg.co/company/kotani-pay), the startup offers a [seamless on-ramp](https://docs.kotanipay.com/docs/kotani-pay-on-ramp) and off-ramp infrastructure for crypto and decentralized finance (DeFi) transactions, allowing users to convert crypto assets into fiat currency and vice versa. This service is critical in Kenya, where a significant portion of the population suffers through [costly bank transactions](https://www.businessdailyafrica.com/bd/corporate/companies/cbk-reveals-cheapest-and-most-expensive-kenyan-banks--4250118) despite having one of the [biggest mobile money usage in the world.](https://www.businessdailyafrica.com/bd/markets/capital-markets/kenya-s-mobile-money-agent-transactions-hit-sh7-9-trillion--4116826)

By integrating with mobile money platforms such as M-Pesa, Kotani Pay enables users to receive cryptocurrency payments and easily convert them into local currency, creating a user-friendly experience for individuals unfamiliar with blockchain technology. 

Kotani provides its technology as a B2B solution, bridging the gap between crypto platforms' smart contracts and mobile money APIs. Among its key crypto partners are Yellowcard, DCG, Fonbank, Celo’s Valora, UNICEF Crypto Innovation Fund, and Stellar.

This integration enhances financial inclusion by allowing even those without formal bank accounts to participate in the Web3 economy, including remittances, cross-border payments, and DeFi services.

Where lack of internet connectivity limits people's access to vital online financial services, Kotani Pay uses familiar interfaces like USSD, simplifying interactions with blockchain wallets to be as easy as routine tasks like purchasing airtime.

Kotani Pay's platform supports decentralized applications (dApps) by providing them with the [necessary API tools](https://kotanipay.com/apis) to facilitate financial transactions in a mobile-first economy like Kenya’s. This boosts the development and adoption of dApps, fostering innovation and entrepreneurship within the country’s blockchain space.

Kotani Pay is driving social impact by enabling American NGO [Mercy Corps to distribute payments through blockchain](https://www.mercycorps.org/sites/default/files/2022-02/MCV-Pilot-Insights-Report_Stablecoin-and-Digital-Microwork-in-Kenya-Web.pdf), ensuring transparency and reducing inefficiencies in fund distribution. Processing a $5 micro-payment from the US to Kenya may cost up to 111% with traditional payments processors but as low as 2% with stablecoin solutions.  

Mercy Corps [hires Kenyans for gig jobs](https://www.forbes.com/sites/rufaskamau/2022/03/10/how-kenyan-micro-task-workers-are-using-stablecoins-to-make-affordable-cross-border-payments/) who usually transfer their earned USD-pegged stablecoins to a wallet called Valora that runs on the Celo Blockchain at a 0.02% transaction fee. The workers have the option to store and stake their Stablecoins on the wallet for Celo rewards or withdraw. For those that chose to withdraw, they transfer the stablecoins to Kotani Pay, which converts the stablecoins on the Celo network to Kenya shillings on an M-Pesa digital wallet ready for spending.

Kotani Pay has had at least [ten funding rounds](https://www.crunchbase.com/organization/kotani-pay/company_financials?ref=mariblock.com) since its launch but the most notable one was a September 2023 [$2 million](https://techcrunch.com/2023/09/04/kotani-pay/) pre-seed funding round led by P1 Ventures, with participation from Adaverse to expand its crypto solutions to Ghana, Zambia and South Africa.

In July 2024, Kotani Pay became the first blockchain fintech to [secure a Crypto Asset Service Provider (CASP) license](https://techcabal.com/2024/07/09/kotani-pay-obtains-a-casp-licence-in-south-africa/#:~:text=Kotani%20Pay%20is%20a%20seamless,to%20business%20and%20individual%20needs.) from South Africa's Financial Sector Conduct Authority (FSCA). This milestone, along with its SOC II compliance and registration with the Financial Intelligence Centre, strengthened Kotani Pay's reputation as a trusted crypto partner.

The CASP license enables Kotani Pay to act as an intermediary, connecting local payment systems with the global blockchain economy. This service is crucial in Africa, where financial inclusion is a significant challenge.

__3. [Melanin Kapital](https://www.melaninkapital.com/)__

![Melanin Kapital](//images.ctfassets.net/vmoowpwj5a39/5OrcJeCvdtwHpiC7TblPak/2e52f9955210c9a26fa73b6de616fc0a/TW3C_Startups_That_Transform_Kenya_s_Web3_Landscape_logo_header_3.png)

Melanin Kapital is making significant strides in tokenizing carbon credits in Kenya to help small and medium-sized enterprises (SMEs) access affordable climate financing. 

[Co-founded by Melanie Keita and Ian Minjire Kibira](https://www.melaninkapital.com/about-us#:~:text=Our%20Story,and%20affordable%20for%20African%20SMEs.) in 2020, the startup initially focused on connecting African SMEs to financial resources, but pivoted towards climate financing in response to the urgent need for clean energy solutions. 

The startup now operates through three business verticals—solar irrigation, solar-powered retail, and electric mobility—all aimed at supporting the green energy transition in Kenya.

Through its Kijani Farm, Kijani Power, and Kijani Move Green Mobility programs, Melanin Kapital provides SMEs with access to solar equipment, such as solar water pumps and greenhouses, as well as electric buses and motorcycles. The start-up [has been UN-certified](https://simpetgroup.com/ex-kenyan-rugby-star-minjire-living-the-european-dream-4/) to lead green energy transition efforts. 

The financing for these assets is supported by carbon credits, which are tokenized through blockchain. This tokenization allows SMEs to earn tokens for reducing carbon emissions, which can be redeemed for local currency. 

To facilitate carbon credit certification, Melanin Kapital uses AI algorithms and IoT-enabled devices to track the carbon saved by its financed assets. The startup has also created a blockchain-based platform for tokenizing both carbon credits and the assets themselves, allowing individuals and businesses outside Kenya to invest in clean energy equipment. 

Melanin Kapital charges a monthly subscription [fee of $5 to $15](https://nation.africa/resource/blob/4274146/1ff515745103c43dda3547f69df8ed01/wr-issue-no-42-data.pdf) per SME, and charges the financier a revenue share of 30% to access its data and finance its SMEs.

In 2023, Melanin Kapital disbursed $100,000 in SME climate financing and aimed to scale its impact, targeting up to 1,000 SMEs with total disbursements of $3 million. As at 2024, it had onboarded over 500 businesses with $1.5 million green finance applications. 

With [pre-seed financing from Adaverse](https://afrikanheroes.com/2023/08/07/adaverse-accelerator-backs-innovative-kenyan-fintech-melanin-kapital-in-pre-seed-funding-round/), and support from organizations like the African Development Bank, [Absa Bank](https://www.the-star.co.ke/business/kenya/2021-09-24-absa-kenya-melanin-kapital-partner-in-lending-startups/), Verra and the UN, the startup is positioning itself as a key player in the voluntary carbon credit market. It currently operates in Kenya, but it plans to expand to Uganda, Rwanda and Senegal.

__4. [Paylend Africa ](https://paylend.africa/)__

![Paylend Africa](//images.ctfassets.net/vmoowpwj5a39/4aBqYvCMQXofx2hwAV4m1s/dd2afb9fc6ea930dd4cbdd09e79b24be/TW3C_Startups_That_Transform_Kenya_s_Web3_Landscape_logo_header_4.png)

Paylend is revolutionizing the country's Web3 industry by providing access to finance and digitizing Micro, Small and Medium Enterprises (MSMEs). Founded in 2019 by [Eliutherius Juma and Bendon Murgor](https://www.crunchbase.com/organization/paylend), Paylend aims to improve access to financial services for businesses and individuals left underserved by traditional banks and microfinance institutions.

Kenya's MSMEs face [significant challenges](https://www.emurgo.africa/blog/posts/the-web-3-0-connect-sept) in sustaining their operations due to economic downturns that make it difficult to expand and access financing.

The cost of credit in Kenya is high as the central bank raises rates to ease inflationary pressures. This has led to a situation where many SMEs find bank loans and microfinance institutions—which charge annual interest rates of up to 20% on average—too expensive. Some microfinance institutions charge even higher rates, with some lending at 10% per week refundable within a month, which equates to an eye-watering annual interest rate of 520%.

As a result, many businesses have turned to Web3 lending platforms which offer more affordable interest rates—often between 2% and 6% per year. The emergence of Paylend unlocked new ways of lending and borrowing, cutting out intermediaries and the associated costs.

The platform also helps businesses to digitize their supply chain management, enabling them to optimize inventory levels and meet customer demand without compromising their working capital.

Paylend launched a [credit programme for small businesses in 2022.](https://proderp.paylend.africa/blog/inua-biashara/grow-your-business-with-paylend;-inua-biashara-%E2%80%93-business-credit) Termed Inua Biashara (means 'boosting businesses' in Swahili), MSMEs can access credit of up to $1,600 to replenish their stock, at an interest rate of 2.5%.

The company has already digitized over 10,000 SMEs, reflecting its expanding user base and operational scale. Recent substantial growth has brought Paylend's total customer count to an impressive 20,000.

In 2021, Paylend [raised $2 million](https://cioafrica.co/kenyan-fintech-startup-paylend-raises-2-million-seed-investment-for-africa-expansion/) in seed investment to expand its operations within Kenya and enter new markets in Tanzania, Zambia, and Nigeria. This investment was secured from Next Chymia Consulting HK Limited, an Asian-based company that specializes in blockchain applications, consultancy, and training services for global clients.

__5. [Jia](https://www.jia.xyz/)__

![Jia](//images.ctfassets.net/vmoowpwj5a39/5Z9LRwK43UxL0I2xX3tN7R/e72cc49bcf522956e599b084a9a7e1c0/TW3C_Startups_That_Transform_Kenya_s_Web3_Landscape_logo_header_5.png)

[Founded in 2022](https://www.crunchbase.com/organization/jia-88c6) by Zach Marks, Cheng Cheng, Ivan Orone, and Ye (Yuting) Wang founded Jia, Jia's mission is to leverage the transparency, efficiency, and accessibility of blockchain technology to address the persistent challenges faced by small and medium-sized enterprises (SMEs) in gaining access to traditional financial services. 

By providing collateral-free loans and flexible repayment terms, Jia aims to empower these businesses to grow, create jobs, and drive economic development in their local communities.

The startup currently issues tokens in the form of Jia points, which become claimable once the token system is fully established. In the meantime, borrowers can use these tokens as collateral for reduced interest rates, larger loan amounts, and more flexible repayment terms.

Jia aims to mirror the concept of community finance, such as table-banking groups, which are popular in regions like Kenya. In these models, members are both borrowers and shareholders, earning from the group’s pooled resources and financial growth.

The platform has launched its first on-chain pool in collaboration with Huma Finance, a decentralized finance (DeFi) protocol that backs income-based lending. The platform offers [loans of up to $5,000](https://assets-global.website-files.com/64107c8fe58de42c9a80a228/644186e543f81206c240162d_Jia%20Litepaper.pdf) to small businesses, addressing a gap left by traditional digital lenders and loan apps that typically cap credit at $1,000.

The startup is supporting growing businesses by providing the larger, longer-term loans they need to scale—something smaller loans can't accomplish. The repayment period is flexible, tailored to the borrower, and can extend up to six months, with interest rates ranging between 2% and 6% per month, depending on the borrower's profile. Borrowers seeking inventory or invoice financing have a maximum of three months to repay.

Jia secured [$4.3 million in seed funding](https://techcrunch.com/2023/05/17/jia-a-blockchain-based-lender-of-small-businesses-in-emerging-markets-raises-4-3-million-seed/) last year, along with an additional $1 million committed for on-chain liquidity, in a round led by early-stage investor TCG Crypto. The startup plans to use the capital to expand its operations in Kenya and the Philippines, with future plans to enter new markets across West Africa, Latin America, and Asia.

![line](//images.ctfassets.net/vmoowpwj5a39/ZQTyNPg494pGXuUCwgjxI/aa712b0c478bd74c6cfc89603a5725d8/line_copy.png)

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TW3C Startups That Transform Kenya’s Web3 Landscape

5 Startups Transforming Kenya’s Web3 Scene

***By [Shogo Ishida](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/) and [Yosuke Yoshida](https://www.linkedin.com/in/yosuke-yoshida-82754b159/), Co-CEOs, EMURGO Africa***

As blockchain technology continues to disrupt traditional industries and enable new forms of digital interaction, South Africa is positioning itself as a key player in the global Web3 ecosystem. 

As [Africa's largest economy](https://www.visualcapitalist.com/breaking-down-african-economy-by-country/#:~:text=Ranked:%20Africa's%20Economies%20by%20GDP,the%20first%20half%20of%202023.), South Africa has emerged as the continent's second biggest cryptocurrency market, with [around $26 billion](https://www.chainalysis.com/blog/subsaharan-africa-crypto-adoption-2024/#:~:text=Nigeria%20and%20South%20Africa%20are,cryptocurrency%20adoption%20and%20financial%20technology.) worth of crypto transactions over the past year - same as GDP of neighbouring Zimbabwe. The country is experiencing significant growth in licensed companies and a surge in institutional-scale activity.

In this edition, we’re shining a spotlight on five startups that have recorded a huge impact on the growth of the Web3 industry in South Africa. 

[**1\. VALR: Crypto Exchange** ](https://www.valr.com/)

![VALR](//images.ctfassets.net/vmoowpwj5a39/68NAugWqKKvqQSJoWq8XXO/854c8ef98c8784dffd7e8da98dd213a7/5_Influential_Startups_Shaping_South_Africa-s_Web3_Landscape_logo_header_4.png)

VALR is South Africa’s [largest cryptocurrency](https://www.reuters.com/business/finance/south-african-cryptocurrency-exchanage-valr-targets-global-expansion-2024-04-30/) exchange by [spot trading volumes](https://coinmarketcap.com/exchanges/valr/), founded in 2018 by Farzam Ehsani, a former blockchain lead at Rand Merchant Bank (RMB). Since its launch, VALR has become a cornerstone of South Africa’s growing crypto ecosystem, offering a secure, user-friendly platform for buying, selling, and trading a wide range of digital assets.

In  2019, VALR received its first [seed funding of $1.5 million](https://techpoint.africa/2019/03/06/south-african-valr-raises-1-5-million/). This was followed by series A funding of [$3.4 million](https://techpoint.africa/2020/07/21/valr-raises-3-4m/) in 2020 and a series B funding of [$50 million](https://www.coindesk.com/business/2022/03/01/african-crypto-exchange-valr-raises-50m-in-series-b-led-by-pantera-capital/) in 2022. This raised the company's [valuation to $240 million](https://www.coindesk.com/business/2022/03/01/african-crypto-exchange-valr-raises-50m-in-series-b-led-by-pantera-capital/), more than 10 times its valuation in 2020.

VALR's first customers signed up in December 2018, and the exchange launched its first ZAR (Rand) trading pairs in June 2019. Since then, VALR has consistently added trading pairs and coins, and now offers traders more than 75 cryptocurrencies on its platform. 

The exchange has a daily spot trading volume of [$11.5 million.](https://coinmarketcap.com/exchanges/valr/) 

The firm serves [over 600,000 retail customers](https://www.reuters.com/business/finance/south-african-cryptocurrency-exchange-valr-targets-global-expansion-2024-04-30/) and over 1,000 institutional customers globally. About 75% of these customers are from South Africa. It has [partnered with Circle](https://blog.valr.com/blog/valr-strengthens-partnership-with-circle-to-drive-stablecoin-adoption-in-africa) to grow stablecoin adoption in the country.

VALR's liquidity and flexible API have made it an attractive option for other brands looking to enter the crypto space with a white-label offering. It has also prioritized the safety of funds, with security and compliance being top priorities. 

In April 2024, VALR [received regulatory approval from South Africa's financial watchdog](https://www.thestreet.com/crypto/newsroom/valr-south-africas-leading-crypto-exchange-receives-regulatory-license-as-crypto-asset-service-provider-casp), the Financial Sector Conduct Authority (FSCA), as a Crypto Asset Service Provider (CASP). This made VALR one of the first crypto asset platforms to receive regulatory approval in both categories in South Africa.

The platform has competitive fees and advanced features, such as API access for developers and institutional-grade security measures, including multi-signature wallets and encryption. With a focus on both retail and institutional investors, VALR is working to bridge the gap between traditional finance and the burgeoning world of digital assets.

One of VALR’s key innovations is its integration with decentralized finance (DeFi) protocols, allowing users to leverage their crypto holdings for yield generation and other DeFi applications. 

[**2\. Momint: NFTs, RWAs and Clean Energy** ](https://www.momint.so/)

![Momint](//images.ctfassets.net/vmoowpwj5a39/5JQzaMfhcD2MicNHOoCzOC/666c78c4d3c9146f6da18d7a7ae14435/5_Influential_Startups_Shaping_South_Africa-s_Web3_Landscape_logo_header_5.png)

Momint is making waves in the rapidly growing NFT space. Founded in 2021 by Ahren Posthumus, the platform enables creators—such as artists, musicians, and content producers—to tokenize their work and sell it as NFTs. 

The platform allows creators to mint NFTs with low fees, ensuring that even emerging artists can participate in the booming NFT economy. Buyers can purchase and trade these digital assets, with blockchain ensuring provenance and authenticity.

By leveraging blockchain technology, Momint also offers a transparent and decentralized marketplace for Real World Assets where users can connect directly with buyers, bypassing traditional gatekeepers.

Momint is also contributing to the growth of Web3 in South Africa by integrating the Internet Computer Protocol (ICP) blockchain to enhance its business operations. This positions the startup to gain, retain, and expand its market share in the international digital economy.

Momint offers consumers and investors a safe platform for owning and trading energy assets on the blockchain. The ICP's technology provides several advantages that make it [well-suited for Momint's real-world asset tracking applications.](https://www.itweb.co.za/article/momint-accelerates-global-expansion-following-grant/Pero3MZ3b4xqQb6m)

In July this year, Momint secured [a $50,000 grant](https://africabusiness.com/2024/07/16/africas-1-web3-startup-momint-secures-50000-grant-from-dfinity-foundation-local-startup-positions-itself-for-further-global-expansion/) from the DFINITY Foundation, a Swiss non-profit organization known for its focus on blockchain. This followed last year’s seed funding of [$1.25 million](https://tracxn.com/d/companies/momint/__KFUJVNktI8S4_sVFRiRRHPw9bHp6D2-XZi6tGujaBXw/funding-and-investors) from 10 investors.

As at October 2024, Momint had more than 54,000 user wallets and $1.95 million in market volume, according to data on its website.

A key feature of Momint is its commitment to environmental sustainability. The platform utilizes an energy-efficient blockchain to minimize its carbon footprint, addressing one of the primary concerns surrounding NFTs. 

The firm says it uses layer 2 blockchain Gnosis, which offsets 10 times more carbon than it generates. It adds that certificates on Momint are over 300 times more eco-friendly than typical transactions and millions of times more energy-efficient than transactions on Ethereum or Bitcoin blockchains. 

Momint has seen strong traction in its Solar Investment Product for the second quarter of 2024, with 1,770 payouts totalling $7,500 to solar certificate holders, delivering a 12%+ return on their solar investments annually. 

In July last year, the firm started allowing customers to use cryptocurrency in their [Momint wallets to purchase shopping vouchers,](https://www.mariblock.com/momint-integrates-voucher-payment-into-blockchain-wallet/) which are accepted by over 10,000 retailers in South Africa.

The company is also in the process of obtaining a CASP (Crypto Asset Service Provider) license and is exploring the launch of an eZAR (or digital Rand) to provide customers with seamless crypto-to-account withdrawal and everyday spending capabilities.

[**3\. Luno: Crypto Exchange**](https://www.luno.com/en/gb)

![Luno](//images.ctfassets.net/vmoowpwj5a39/6rThPcy8iXr9FruHTzgGb4/29c5bfe2644d6459df15300d5c506765/5_Influential_Startups_Shaping_South_Africa-s_Web3_Landscape_logo_header_3.png)

Luno was the [first crypto exchange in Africa](https://www.un.org/africarenewal/magazine/april-2018-july-2018/africa-could-be-next-frontier-cryptocurrency#:~:text=Darko%20explains.,to%20be%20based%20in%20Africa.) and is often credited with spearheading cryptocurrency adoption in Africa. Founded in 2013 by South Africans Marcus Swanepoel and Timothy Stranex, Luno started as a Bitcoin wallet and exchange but has since expanded to offer a broad range of digital assets and cryptos. 

Luno is contributing to the growth of Web3 in South Africa by allowing South Africans to trade various cryptocurrencies, some of which are directly tied to Web3 projects. This enables them to invest in and participate in the growth of the Web3 space.

Luno has [raised $13.8 million to date](https://techcrunch.com/2017/09/19/luno-raises-9m-bitcoin/), and was the [first crypto firm](https://www.bizcommunity.com/article/luno-first-sa-licensed-crypto-provider-under-new-regulations-564070a) to receive the FSCA crypto license in South Africa.

In 2023, the firm said since inception, it has recorded 388 million digital asset transactions on its platform, [worth $37 billion](https://www.itweb.co.za/article/over-r655bn-crypto-currency-traded-on-luno-in-10-years/mYZRXM9gNRkvOgA8) across more than 40 countries. In South Africa, cities with the highest concentration of users are Johannesburg, Cape Town, Pretoria and Durban.  Luno has a daily spot trading volume of [$4.8 million.](https://coinmarketcap.com/exchanges/luno/)

Luno’s user-friendly platform is designed to cater to both beginners and more experienced traders. The exchange includes features like instant buy/sell options, advanced trading tools, and a secure wallet to store digital assets. 

Luno also focuses on education, offering a suite of resources aimed at helping users understand the intricacies of blockchain technology and crypto investing.

One of Luno’s most significant contributions to the African market is its focus on financial inclusion. The platform allows users to convert local currencies into crypto, providing a hedge against inflation and currency instability—a particularly valuable feature in many African economies. 

[**4\. Carry1st: Web3 Gaming**](https://www.carry1st.com/)

![Carry1st](//images.ctfassets.net/vmoowpwj5a39/lAq6htfnsIj6bODxKwoF5/cf299becbaa7fb772055515f8941cbf5/5_Influential_Startups_Shaping_South_Africa-s_Web3_Landscape_logo_header_01.png)

Carry1st is a game publisher that combines the power of mobile gaming with blockchain technology to create new opportunities for gamers and developers alike. 

Founded in 2018 by Cordel Robbin-Coker, Lucy Hoffman, and Tinotenda Mafurutu, Carry1st has established itself as one of the leading mobile gaming platforms in Africa. The company’s mission is to bring world-class gaming experiences to African audiences while integrating blockchain features such as tokenized assets and NFTs.

Carry1st’s platform enables gamers to own and trade in-game assets, creating a decentralized gaming economy where players can benefit from their time and effort spent in virtual worlds. In 2023, it had [over 2 million](https://www.av.vc/blog/carry1st-driving-growth-in-africas-massive-mobile-gaming-economy) monthly active gamers. It is present in Nigeria, South Africa, Kenya, Ghana, Morocco, Egypt, Algeria and Tunisia.

The company’s focus on mobile gaming is particularly strategic, given that mobile devices are the primary access point to the internet for many Africans. Carry1st also offers developers a way to monetize their games through blockchain-based micropayments, creating new revenue streams in regions where traditional payment methods are limited.

Carry1st’s success is underscored by its flagship game, SpongeBob: Krusty Cook-Off, which has been a significant hit in Africa. The company has also [raised over $60 million](https://www.carry1st.com/press-releases/carry1st-announces-strategic-investment-from-sony-innovation-fund) in venture capital funding and partnered with global gaming studios to bring gaming content to African users. 

[**5\. AnkerPay: Crypto ATMs and PoS Systems**](https://ankerpay.com/network)

![AnkerPay](//images.ctfassets.net/vmoowpwj5a39/2DhyUDMSpSGpjiIxK7b9bK/c3ee4094af238cde8c745790b30e393b/5_Influential_Startups_Shaping_South_Africa-s_AnkerPay_logo_header_6.png)

Founded in 2018, AnkerPay is significantly contributing to the growth of the Web3 industry in South Africa by providing a comprehensive ecosystem that facilitates the adoption and utilization of cryptocurrencies and blockchain technologies.

AnkerPay has established a [network of cryptocurrency ATMs](https://bitcoinafrica.io/2020/05/01/dash-partners-with-ankerpay-to-grow-ecosystem-in-sub-saharan-africa/) across South Africa, enabling users to buy and sell cryptocurrencies using fiat currency. This infrastructure enhances the accessibility of digital assets, allowing more individuals to participate in the crypto economy.

The startup offers payment processing solutions [through the AnkerPay Wallet](https://www.cryptocompare.com/wallets/ankerpay/), a user-friendly, multi-cryptocurrency wallet supporting Bitcoin, Ethereum, Litecoin, Dash, Dogecoin, and Anker's native token. This wallet enables users to securely store, manage, and transact with their digital assets.

AnkerPay [Point of Sale (PoS) Systems](https://www.f6s.com/company/ankerpay/) allow merchants to accept various cryptocurrencies as payment, seamlessly integrating with existing PoS software. This integration facilitates everyday transactions in digital currencies, promoting broader merchant adoption.

Collaborations with [cryptocurrencies like Dash](https://www.f6s.com/company/ankerpay/) have been pivotal in expanding the digital currency's ecosystem within Sub-Saharan Africa. Such partnerships have focused on increasing merchant and user adoption, thereby strengthening the overall Web3 infrastructure in the region.

By offering alternative financial solutions, AnkerPay addresses the [needs of unbanked and underbanked](https://businessday.ng/crypto-and-blockchain/article/dash-partners-with-ankerpay-south-african-cryptocurrency-atm-and-pos-provider-to-grow-ecosystem-in-sub-saharan-africa/) individuals in South Africa. Their services provide access to digital financial systems, fostering financial inclusion and empowering users with greater control over their finances.

Through these initiatives, AnkerPay plays a vital role in nurturing a robust and inclusive Web3 environment in South Africa, driving the adoption of decentralized technologies and contributing to the growth of the digital economy.

![line](//images.ctfassets.net/vmoowpwj5a39/ZQTyNPg494pGXuUCwgjxI/aa712b0c478bd74c6cfc89603a5725d8/line_copy.png)

_DISCLAIMER: The information in this content (website or other form) does not represent an offer or commitment to provide any product or service. The analysis, opinions and estimates expressed in this content are those of the respective authors, and may differ from those of EMURGO Africa and/or other EMURGO Africa employees and affiliates. Copying, re-publishing or using this material or any of its contents for any other purpose is strictly prohibited without prior written consent from EMURGO Africa._

5 Influential Startups Shaping South Africa-s Web3 Landscape

5 Influential Startups Shaping South Africa's Web3 Landscape

***By [Shogo Ishida](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/) and [Yosuke Yoshida](https://www.linkedin.com/in/yosuke-yoshida-82754b159/), Co-CEOs, EMURGO Africa***

Stablecoins, digital money typically pegged to fiat currencies like the US dollar, are rapidly becoming a preferred medium of exchange in Sub-Saharan Africa, a region grappling with volatile local currencies, inflation and limited access to traditional banking services.

There has been a rising demand for stablecoins in this region, especially for crypto trade, US dollar conversions, cross-border remittances, online purchases and savings, as revealed in our analysis below.

**Key Takeaways:**

1. Africa is at the forefront of global stablecoin adoption.
2. Nigeria is planning for a Naira stablecoin.
3. South Africa sets the stage for stablecoin regulation.
4. Mobile money is driving stablecoin-fiat exchanges in Africa.

**Africa Leads Global Stablecoin Boom in 2024**

Despite crypto market downturns in 2022 and 2023, stablecoin volumes have grown consistently across the world, according to a report sponsored by Visa that analyzed five countries - Nigeria, India, Brazil, Turkey and Indonesia.

The study, titled [Stablecoins: The Emerging Market Story](https://castleisland.vc/wp-content/uploads/2024/09/stablecoins_the_emerging_market_story_091224.pdf), reveals that more than 20 million wallet addresses in the world conduct stablecoin transactions on public blockchains every month.

In the first half of 2024 alone, stablecoins settled an estimated $2.6 trillion in value, projecting that to double by the end of the year. That slightly surpusses Itlay’s 2024 GDP ($2.3 trillion) while almost nears Africa’s 2023 GDP [($3.1 trillion).](https://www.csis.org/analysis/african-union-evolving-right-direction#:~:text=As%20of%202023%2C%20Africa's%20GDP,similar%20to%20China%20and%20India.) 

More than 20 million wallet addresses, the report found out, conduct stablecoin transactions on public blockchains every month. 

At a combined market capitalization of $155 billion, USDT (Tether) and USDC (USD Coin) are still the [top stablecoins globally](https://coinmarketcap.com/view/stablecoin/), with Coinmarketcap listing a total of 183 stablecoins with a combined market capitalization of $173 billion. Cardano’s stablecoin Anzens USDA is [resuming launch](https://www.emurgo.io/press-news/cardano-stablecoin-usda-to-resume-launch-under-new-ownership/), following partnership with crypto trading platform Encryptus.

One major reason for this rise is the fact that unlike cryptocurrencies, which are volatile, stablecoins are pegged to stable assets which reduce the risk of sudden value fluctuations, making them more attractive for everyday transactions, savings, and remittances.

![Stablecoins: The Emerging Market Story 2024 Report](//images.ctfassets.net/vmoowpwj5a39/DZLrdkWJ0NLGl9m4Dd7qI/1080f7808ac574cbfdd51161bff46849/Screenshot_2024-09-30_at_2.52.23_PM.png)

_SOURCE: Stablecoins: The Emerging Market Story 2024 Report_

While there’s a general rise in the use of stablecoins across the globe as shown in the chart above, Africa is leading the way in the adoption of stablecoins, which have emerged as powerful tools in [reshaping the continent's economic landscape](https://adaverseaccelerator.medium.com/stablecoins-africas-gateway-to-economic-growth-and-global-integration-4301ee58e6d6) and unlocking new opportunities for Web3 growth.

According to a [report by FSD Kenya](https://www.fsdkenya.org/wp-content/uploads/2024/07/Dynamics-and-future-potential-of-crypto-asset-markets-in-Africa.pdf), stablecoin volume in Africa hit more than $30 billion, which is 50% of the total crypto volume attributed to Africa between June 2022 and July 2023.

Africa's unique economic challenges, such as dollar scarcity, inflation and currency depreciation coupled with its vibrant fintech ecosystem, relatively high smartphone and internet penetration, have driven the mass adoption of stablecoins. 

This has bridged the gap in expensive dollar conversions and loss of value of local currencies, with stablecoins offering a digital alternative to traditional banking which takes days to complete cross-border transactions.

Mobile money services such as Kenya’s M-Pesa have integrated with platforms offering stablecoin-fiat exchanges such as Binance, offering financial services to individuals in underserved areas. 

Stablecoins also reduce transaction costs, particularly for cross-border remittances. Traditional remittance services charge high fees, often exceeding 6% of transaction value, while stablecoins enable near-instant transfers at a fraction of the cost.

Due to these factors, as seen in the chart below, the value of stablecoin transactions in Africa, on average,  surpasses the combined transactions of Bitcoin, Ether and altoins. This means African users find more utility while trading stablecoins than cryptocurrencies.

![Chainalysis 2023 Report](//images.ctfassets.net/vmoowpwj5a39/7n1EDrpmddeF2xhjCLEIFA/0a30139a6109a039b69c53875b6e027b/Screenshot_2024-09-30_at_2.52.44_PM.png)

_SOURCE: Chainalysis 2023 Report_ 

Countries with significant stablecoin adoption and use cases in Africa are Nigeria, South Africa, Kenya, Ghana, Mozambique and Uganda.

**Nigeria Tops in Stablecoin Adoption**

Africa’s most populous nation is leading the charge in stablecoin adoption in Africa, driven by a dynamic fintech sector and significant economic hurdles.  Nigeria’s high affinity for stablecoins means it leads the five markets studied by the Visa-sponsored report.

Nigeria’s economy has been dealing with a series of shocks in recent years. Depressed oil prices, a staple of the nation’s export economy, combined with the impact of Covid-19 and supply chain disruptions, have led to prolonged economic uncertainty.

![Chainalysis Report](//images.ctfassets.net/vmoowpwj5a39/4st3hH7YBJOG2hde7mStnb/78891cd968b55291a3e8ffc33551f567/Screenshot_2024-09-30_at_2.53.00_PM.png)

_SOURCE: Chainalysis Report_

The country suffers [one of the highest inflation rates](https://www.voanews.com/a/nigerian-inflation-rises-in-may-to-28-year-high-/7657517.html) in Africa, worse than in the whole of Francophone Africa, plaguing the nation’s economy, stablecoins have become a vital tool for Nigerian consumers, businesses, and investors seeking financial stability and flexibility. 

Additionally, the naira has experienced [significant depreciation](https://www.bloomberg.com/news/articles/2024-06-28/naira-drop-makes-it-the-worst-performing-currency-in-first-half) against major world currencies, forcing Nigerian consumers and businesses to seek more reliable alternatives for preserving wealth and transacting across borders. 

Stablecoins provide Nigerian users with an easy-to-access financial instrument that holds value better than the naira while allowing for seamless cross-border transactions.

As seen in the chart below, Nigerian users stand out for their frequent transactions, with stablecoins making up the largest portion of their portfolios. They also report the highest percentage of non-trading uses for stablecoins and demonstrate the strongest self-reported understanding of them.

![Stablecoins: The Emerging Market Story 2024 Report](//images.ctfassets.net/vmoowpwj5a39/4oinC8e2Eoxo7OInZ8aoJN/c9265200e62cc98f81ac0393dc657a96/Screenshot_2024-09-30_at_2.53.24_PM.png)

_SOURCE: Stablecoins: The Emerging Market Story 2024 Report_

For Nigerians, saving in dollars is the primary use of stablecoins, followed by trading crypto and securing better currency conversion rates.

Major startups driving stablecoin adoption in Africa are Yellowcard, Bitmama, Canza Finance and Busha.

In January, the Nigerian government [announced it would introduce](https://www.forbes.com/sites/digital-assets/2024/01/08/central-bank-of-nigeria-approves-naira-stablecoin-for-2024-launch/) its first regulated Naira stablecoin, cNGN, which is already interoperable with the Binance Smart Chain and Bantu network. However, regulatory challenges remain. 

**Why Is South Africa So Keen on Stablecoins?**

As we have previously analyzed, South Africa has by far the [most conducive Web3 regulatory environment](https://www.emurgo.africa/blog/posts/south-africas-crypto-regulations-set-stage-for-more-web3-adoption) in Africa.  

The country has been making inroads to regulate stablecoins, so as to attract more investment into the sector while protecting users against cybercrime and giving them more options for affordable and secure digital asset payments and transactions.

There are two stablecoins in the country - ZARP and ZARC - pegged to the South African Rand (ZAR). ZARP went live in 2021 on the OVEX crypto exchange while ZARC was launched in Q1 2023 and is available on the non-custodial crypto app SentiPay.

South Africa has already classified cryptos as financial products, having [approved 59](https://www.reuters.com/world/africa/south-africas-financial-conduct-regulator-approves-59-crypto-licences-2024-03-13/) operating licenses for crypto currency businesses in March. This proactive approach sets the stage for a supportive environment for more stablecoin adoption, with startups like VALR, Luno and Altify helping South Africans diversify their investment portfolios and helping them settle retail bills using stablecoins.

South Africa's Intergovernmental Fintech Working Group plans to [publish additions to include "stablecoins" as a particular type of crypto asset.](https://www.coindesk.com/policy/2024/02/22/south-africa-to-start-work-on-stablecoin-regime-will-start-by-considering-use-cases/) The working group published a crypto regulation paper in June 2021, which will be amended to include stablecoins into the crypto asset class in addition to finalizing a diagnostic of the domestic stablecoin landscape.

The country's [2024 budget review](https://www.treasury.gov.za/documents/National%20Budget/2024/review/FullBR.pdf) highlighted the need for structural reforms and a focus on improving public financial management. While detailing its plan to promote digital payments, the National Treasury announced an upcoming policy change on crypto assets, [specifically for stablecoins.](https://cointelegraph.com/news/south-africa-stablecoins-blockchain-digital-payments) There are also plans for [bank stablecoins.](https://www.ledgerinsights.com/south-africa-wholesale-cbdc-trials-bank-stablecoins/)

If it achieves all these plans, South Africa will become the first nation to regulate stablecoins in Africa.

![line](//images.ctfassets.net/vmoowpwj5a39/ZQTyNPg494pGXuUCwgjxI/aa712b0c478bd74c6cfc89603a5725d8/line_copy.png)

_DISCLAIMER: The information in this content (website or other form) does not represent an offer or commitment to provide any product or service. The analysis, opinions and estimates expressed in this content are those of the respective authors, and may differ from those of EMURGO Africa and/or other EMURGO Africa employees and affiliates. Copying, re-publishing or using this material or any of its contents for any other purpose is strictly prohibited without prior written consent from EMURGO Africa._

Stablecoin Boom And Its Powerhouse: Africa

***By [Shogo Ishida](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/) and [Yosuke Yoshida](https://www.linkedin.com/in/yosuke-yoshida-82754b159/), Co-CEOs, EMURGO Africa***

The Kenyan cryptocurrency landscape has undergone a significant transformation this year, with new trends emerging. In the past 12 months, there has been rising interest in crypto token airdrops, with recent protests momentarily fueling retail demand for crypto. It is also during this period that the Worldcoin crypto project in Kenya was suspended and then allowed to operate again.  

**Key Takeaways:**

1.  Anti-Finance Bill protests boost crypto appeal.
2.  Kenyans rush to cash in on crypto airdrops.
3.  Worldcoin gets banned in Kenya, then allowed to resume operations.
4.  Widespread anticipation of a potential bitcoin bull run in the next 12 months.

**Anti-Government Protests Fuel Crypto Appeal**

![Crypto](//images.ctfassets.net/vmoowpwj5a39/3TM4ctnpPbp4j8HDAHKHjw/699dca488b0cbefd7da89e94a71be5d2/crypto.jpg)

Kenyans staged nationwide anti-finance bill protests in [](https://www.reuters.com/world/africa/kenyas-youth-led-protest-movement-leaves-ruto-fumbling-response-2024-06-26/)[June](https://www.reuters.com/world/africa/kenyas-youth-led-protest-movement-leaves-ruto-fumbling-response-2024-06-26/) and [](https://www.theeastafrican.co.ke/tea/news/east-africa/kenya-rocked-by-protests-4691970)[July this year,](https://www.theeastafrican.co.ke/tea/news/east-africa/kenya-rocked-by-protests-4691970) to voice their concerns over [](https://theconversation.com/kenya-protests-show-citizens-dont-trust-government-with-their-tax-money-can-ruto-make-a-meaningful-new-deal-234008)[overtaxation,](https://theconversation.com/kenya-protests-show-citizens-dont-trust-government-with-their-tax-money-can-ruto-make-a-meaningful-new-deal-234008) [](https://theconversation.com/hotbed-of-corruption-kenyas-elite-have-captured-the-state-unrest-is-inevitable-233562)[corruption](https://theconversation.com/hotbed-of-corruption-kenyas-elite-have-captured-the-state-unrest-is-inevitable-233562), unemployment and poor governance. The social unrest reinforced the view that cryptocurrencies, especially Bitcoin, are a better store of value and a potential hedge against local currency devaluation. 

The Kenyan shilling [](https://www.capitalfm.co.ke/news/2024/07/shilling-slips-against-major-currencies-in-the-wake-of-gen-z-led-protests/)[recorded fluctuations](https://www.capitalfm.co.ke/news/2024/07/shilling-slips-against-major-currencies-in-the-wake-of-gen-z-led-protests/) against the US dollar during the protests and Kenyans now see crypto as a [](https://decrypt.co/237832/kenya-protest-crypto-alternative)[viable alternative](https://decrypt.co/237832/kenya-protest-crypto-alternative) to the traditional financial system, one that offers them [](https://playtoearngames.com/news/kenyas-activists-view-cryptocurrency-as-solution-to-inequitable-system)[financial freedom](https://playtoearngames.com/news/kenyas-activists-view-cryptocurrency-as-solution-to-inequitable-system) and the [](https://playtoearngames.com/news/kenyas-activists-view-cryptocurrency-as-solution-to-inequitable-system)[chance for economic upliftment.](https://playtoearngames.com/news/kenyas-activists-view-cryptocurrency-as-solution-to-inequitable-system)

During the protests, crypto enthusiasts were [active on social platforms educating Kenyans](https://decrypt.co/237832/kenya-protest-crypto-alternative) how to set up digital wallets and invest in cryptocurrencies and help them bypass comparatively high transaction fees of the mobile money platform M-PESA. 

Blockchain’s role to tame the government’s [](https://nation.africa/kenya/news/how-your-tax-billions-are-wasted-by-state-4296384)[wasteful spending](https://nation.africa/kenya/news/how-your-tax-billions-are-wasted-by-state-4296384) and [](https://nation.africa/kenya/newsplex/fact-check-does-kenya-really-lose-sh2-billion-to-graft-daily--3282360)[rampant corruption](https://nation.africa/kenya/newsplex/fact-check-does-kenya-really-lose-sh2-billion-to-graft-daily--3282360) also came to the limelight, with experts rooting for the technology to help instill public accountability on funds allocated to government projects. 

The Fintech Association of Kenya lauded Kenya’s Gen Z protesters for orchestrating [](https://www.linkedin.com/pulse/decentralized-protests-how-kenyas-gen-z-using-d1gyf/)[decentralized and distributed demonstrations](https://www.linkedin.com/pulse/decentralized-protests-how-kenyas-gen-z-using-d1gyf/) across the country, [](https://www.kictanet.or.ke/leaderless-like-the-internet-exploring-gen-z-movement-structure/)[like a blockchain network.](https://www.kictanet.or.ke/leaderless-like-the-internet-exploring-gen-z-movement-structure/) 

In the 2023 Finance Bill, parliament [](https://www.businessdailyafrica.com/bd/opinion-analysis/columnists/-t-is-time-to-remove-barriers-to-trade-in-digital-assets--4268818#google_vignette)[introduced a crypto tax](https://www.businessdailyafrica.com/bd/opinion-analysis/columnists/-t-is-time-to-remove-barriers-to-trade-in-digital-assets--4268818#google_vignette) on income derived from the transfer or exchange of digital assets (such as crypto currency transactions) at a rate of 3%. There was no amendment to this clause in the failed 2024 Finance Bill proposals.

**The Airdrop Rush: Kenyan Youth Chasing New Opportunities**

A notable trend in Kenya's crypto scene is the rush among young investors to participate in various cryptocurrency airdrops. Airdrops, which involve the free distribution of new tokens to existing cryptocurrency holders or participants in specific activities, have become increasingly popular as a way to potentially gain exposure to new projects at no initial cost.

Three airdrops have garnered significant attention among Kenyan youth:

*   [Hamster Kombat Airdrop](https://news.bitcoin.com/hamster-kombat-finally-announces-airdrop-event-date-after-several-delays/): [](https://www.kucoin.com/learn/web3/hamster-kombat-airdrop-task-1-link-your-ton-wallet)[Hamster Kombat](https://www.kucoin.com/learn/web3/hamster-kombat-airdrop-task-1-link-your-ton-wallet), a [](https://www.kucoin.com/learn/web3/hamster-kombat-airdrop-task-1-link-your-ton-wallet)[Telegram](https://www.kucoin.com/learn/web3/hamster-kombat-airdrop-task-1-link-your-ton-wallet)\-based game, is planning for an airdrop on September 26, and has attracted Kenyan participants due to its promise of rewarding early adopters. The enthusiasm stems from the potential for receiving tokens of a project in its early stages, the relatively simple participation requirements and the project's focus on DeFi.  The airdrop is expected to be [](https://www.kucoin.com/learn/web3/hamster-kombat-airdrop-task-1-link-your-ton-wallet)[one of the biggest](https://www.kucoin.com/learn/web3/hamster-kombat-airdrop-task-1-link-your-ton-wallet) in crypto history.

*   [Blum Airdrop:](https://www.coingabbar.com/en/price-prediction/blum-coin-airdrop-listing-date-and-price-prediction-out?srsltid=AfmBOoqADbNmuYBfubJ6UW17gNwrT8E22nc9hESE4PYKw1Gu6NGk4q4s) The Blum airdrop, by [](https://www.cryptotimes.io/2024/09/01/is-blum-crypto-planning-an-airdrop-after-reaching-50m-users/)[Blum Crypto](https://www.cryptotimes.io/2024/09/01/is-blum-crypto-planning-an-airdrop-after-reaching-50m-users/), a [](https://www.cryptotimes.io/2024/09/01/is-blum-crypto-planning-an-airdrop-after-reaching-50m-users/)[Telegram-connected](https://www.cryptotimes.io/2024/09/01/is-blum-crypto-planning-an-airdrop-after-reaching-50m-users/) [](https://medium.com/@airdropgold/blum-airdrop-confirmed-1000-easy-92e4a526e005)[cryptocurrency exchange](https://medium.com/@airdropgold/blum-airdrop-confirmed-1000-easy-92e4a526e005), is scheduled for September 20, and has caught the attention of Kenyan crypto enthusiasts due to its association with the growing field of decentralized social media. Factors driving interest include the potential for early adopters to gain a significant stake in the project.

*   [Optimism Docs Airdrop](https://community.optimism.io/op-token/airdrops/airdrop-4): Airdrop 3, which [](https://community.optimism.io/docs/governance/airdrop-3/)[allocated over 19 million](https://community.optimism.io/docs/governance/airdrop-3/) OP (Optimism) tokens in September 2023, was disbursed directly to eligible wallets with no need for claiming via interaction. Airdrop 4 came in January. This efficiency, along with the [](https://airdrops.io/optimism/)[potential for financial gains](https://airdrops.io/optimism/), is the main reason Kenyans are interested in this airdrop. The previous airdrop, Airdrop 2, [](https://community.optimism.io/op-token/airdrops/airdrop-2)[rewarded users for participating in Optimism governance](https://community.optimism.io/op-token/airdrops/airdrop-2) and using the OP Mainnet. Airdrop 5 will distribute 11.7 million OP tokens on January 20, 2025 to users for their participation in governance and their activity on the Optimism mainnet. 

**Worldcoin in Kenya: On, Off, Then On Again**

In August 2023, the [Kenyan Interior Ministry](https://www.reuters.com/world/africa/kenyan-government-suspends-activities-worldcoin-country-2023-08-02/) [suspended Worldcoin's operations](https://www.reuters.com/world/africa/kenyan-government-suspends-activities-worldcoin-country-2023-08-02/), citing privacy and safety concerns about its method of obtaining user data. The project [required users to scan their irises](https://www.fitchsolutions.com/bmi/telecommunications/kenya-worldcoin-ban-heightens-risks-blockchain-technology-africa-06-10-2023) in exchange for a digital ID and free cryptocurrency tokens. 

Thousands of Kenyans had [queued up to register](https://www.bbc.com/news/world-africa-66383325) for the currency, but the High Court,the Communications Authority of Kenya and the Office of the Data Protection Commissioner (ODPC) raised concerns about how the biometric data was stored, the monetary reward for user data, and the risks of having such data in the hands of a private company. 

There were also concerns about the lack of an age-verification mechanism during the registration process. An investigation by the ministry of the interior and security services was launched.

[In September 2023](https://www.the-star.co.ke/news/realtime/2023-09-07-worldcoin-activities-in-kenya-banned-for-one-year/), a Kenyan parliamentary committee recommended a shutdown of Worldcoin's operations nationwide, which would result in the platform losing a significant portion of its user base. The committee also suggested removing the Worldcoin app, WorldApp, from the Appstore in Kenya. 

Worldcoin stated it was planning to collaborate with the government and abide by local regulations to resume its operations. In March 2024, [reports indicated](https://www.businessdailyafrica.com/bd/economy/us-pushing-kenya-to-lift-worldcoin-suspension-4564196) the US government had been pushing Kenya to lift the suspension, but the Kenyan government remained firm on its decision.

In June, Worldcoin was [cleared by the Director of Criminal Investigations (DCI)](https://www.businessdailyafrica.com/bd/corporate/companies/worldcoin-returns-to-kenya-after-police-drop-investigations--4664218) to resume operations. The [company says](https://digitalfrontier.com/articles/worldcoin-kenya-data-privacy-orbs) it hopes to continue operations in the coming months, but the case in court is yet to be determined.

![line](//images.ctfassets.net/vmoowpwj5a39/ZQTyNPg494pGXuUCwgjxI/aa712b0c478bd74c6cfc89603a5725d8/line_copy.png)

_DISCLAIMER: The information in this content (website or other form) does not represent an offer or commitment to provide any product or service. The analysis, opinions and estimates expressed in this content are those of the respective authors, and may differ from those of EMURGO Africa and/or other EMURGO Africa employees and affiliates. Copying, re-publishing or using this material or any of its contents for any other purpose is strictly prohibited without prior written consent from EMURGO Africa._

Kenya: 3 Major Things That Changed Crypto Landscape in 2024

***By [Shogo Ishida](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/) and [Yosuke Yoshida](https://www.linkedin.com/in/yosuke-yoshida-82754b159/), Co-CEOs, EMURGO Africa***

Nigeria has emerged as one of the most active countries in the world for cryptocurrency usage, ranking among the top in peer-to-peer (P2P) trading volumes. The country tops Africa in Web3 potential, and has been making strides to make crypto and blockchain mainstream in the past two years. However, there are still stumbling blocks along the way.

**Key takeaways:**
1.  Nigeria is one of the few countries in Africa with a state blockchain policy.
2.  Nigeria is laying plans for a homegrown blockchain network.
3.  The government plans to introduce taxes on crypto transactions.
4.  There are a number of hurdles to be overcome for Nigeria to achieve significant progress in blockchain adoption.

![Lagos City in Nigeria](//images.ctfassets.net/vmoowpwj5a39/4fFlMCoZbsDQkRAFYgrBuV/acadd80071a9f4487d35ec71db2e42b3/Lagos.jpg)

**Nigeria’s journey to raise crypto and blockchain adoption**

Nigeria's Securities and Exchange Commission (SEC) [published a 54-page document](https://www.reuters.com/world/africa/nigerias-markets-regulator-publishes-rules-crypto-assets-2022-05-14/) in May last year containing regulations for digital assets. This signaled Africa's most populous country was trying to find a middle ground between an outright ban on crypto assets and their unregulated use.

To capitalize on blockchain’s potential and improve uptake, the government published its [National Blockchain Policy](https://nitda.gov.ng/wp-content/uploads/2023/05/National-Blockchain-Policy.pdf) the same month, aimed at integrating blockchain technology into various sectors of the economy. If executed effectively, this plan could significantly reshape Nigeria's digital landscape.

A pivotal moment in this journey was a decision by the Central Bank of Nigeria (CBN) to [lift restrictions](https://www.reuters.com/world/africa/nigerian-central-bank-lifts-ban-crypto-trading-2023-12-23/) on banks and financial institutions facilitating cryptocurrency transactions in December 2023. This move signaled a shift from resistance to acceptance, recognizing the futility of trying to curb the growing appetite for digital assets among Nigerians.

In July this year, the Nigerian government [announced plans](https://techpoint.africa/2024/07/08/nigeria-plans-develop-blockchain-nigerium/) to create its own blockchain, dubbed ‘Nigerium’ to secure the safety of data. The plan, revealed by the Director General, National Information Technology Development Agency (NITDA), Kachifu Abdullahi, aims to achieve data sovereignty so private data processing won’t be subject to the decisions of foreign co-developers.

On August 14, 2024, Nigeria’s Lagos [state government announced](https://techpoint.africa/2024/08/14/real-estate-tokenisation-in-lagos/) an ambitious plan to tokenize real estate, leveraging blockchain technology to enhance transparency, efficiency and ease of transfer in property transactions. 

Three days later, the government, through the Federal Inland Revenue Service, revealed that it would be seeking the support of parliament to [present a bill](https://punchng.com/firs-plans-law-to-regulate-crypto/) for taxing the crypto industry. This is awaiting approval by parliament by September this year. 

One of the key provisions in the proposed tax law is the introduction of a 7.5% value-added tax (VAT) on cryptocurrency transactions.

![line](//images.ctfassets.net/vmoowpwj5a39/ZQTyNPg494pGXuUCwgjxI/aa712b0c478bd74c6cfc89603a5725d8/line_copy.png)

However, despite this enthusiasm, the broader adoption of blockchain technology and cryptocurrencies in Nigeria has faced significant hurdles. 

**Here are 5 key areas where Nigeria can make substantial changes to boost blockchain and crypto adoption across the nation:**

**1\. Regulatory clarity and consistency**

Nigeria's relationship with cryptocurrencies has been complex. On one hand, the Central Bank of Nigeria (CBN) imposed [a ban on banks](https://www.bloomberg.com/news/articles/2021-02-05/nigerian-central-bank-orders-closure-of-cryptocurrency-accounts) facilitating crypto transactions in February 2021, citing concerns over fraud, money laundering, and other illegal activities. 

On the other, the Nigerian government has shown an interest in blockchain technology for economic development, evidenced by the [introduction of the eNaira](https://african.business/2021/10/finance-services/nigeria-gears-up-for-enaira), the country's central bank digital currency (CBDC). The ban on banks has now been lifted and plans are underway to regulate crypto.

**Needed change**

To improve blockchain and crypto uptake, Nigeria should consider establishing a clear and consistent regulatory framework that distinguishes between legitimate blockchain activities and potential risks. This involves updating existing financial regulations to accommodate new technologies, providing guidelines for crypto businesses, and ensuring that regulations are enforced uniformly across the board. A well-defined legal framework will encourage innovation and investment in the blockchain space while protecting consumers from fraud and exploitation.

This requires the involvement of key stakeholders—including crypto exchanges, blockchain developers, financial institutions, and consumer protection groups—in the regulatory drafting process to ensure that the rules are practical and effective.

Instead of imposing sudden bans or restrictions, the government needs to adopt a phased approach that gradually introduces regulations, allowing businesses and consumers time to adapt.

Collaboration with international bodies and other countries will be key to aligning its regulations with global best practices, making it easier for Nigerian businesses to operate globally.

**2\. More and more financial inclusion**

A significant portion of Nigeria's population remains unbanked or underbanked, lacking access to traditional financial services. In 2023, [only 64% of adults](https://www.bloomberg.com/news/articles/2023-12-15/nigeria-increases-financial-inclusion-but-still-far-from-goal) had a formal financial service compared to a 95% target by 2024.

Cryptocurrencies and blockchain technology offer an alternative means of financial inclusion, enabling individuals to participate in the global economy without relying on traditional banking infrastructure.

**Needed change**

The national blockchain strategic plan is expected to prioritize initiatives that leverage blockchain technology to enhance financial inclusion. This includes supporting decentralized finance (DeFi) platforms, which provide services such as lending, borrowing, and savings without the need for intermediaries. Additionally, blockchain-based identity systems have potential to help the unbanked establish a digital identity, allowing them to access financial services more easily.

The government should think of partnering with fintech startups to develop DeFi platforms tailored to the needs of the unbanked population, ensuring that these platforms are user-friendly and accessible to people with limited digital literacy.

Implementing blockchain-based digital identity programs that allow individuals to securely verify their identity online, enabling them to access a wide range of services, from banking to healthcare, should be a priority.

To maximize the impact of these initiatives, awareness plays a big role. The government should lead from the front on launching educational campaigns to raise awareness about the benefits of blockchain and how to use these technologies safely and effectively.

**3\. Encouraging local innovation** 

Nigeria has a vibrant tech ecosystem, with a growing number of startups and developers exploring blockchain technology. However, the country still faces challenges in terms of access to resources, funding, and mentorship, which has been hindering the development of innovative blockchain solutions.

**Needed change**

To foster local innovation and talent development in the blockchain space, Nigeria's state blockchain plan should focus on creating an enabling environment for startups and developers. This includes providing access to funding, technical resources, and mentorship, as well as fostering collaboration between industry, academia, and government.

More efforts are needed to support blockchain-focused incubators and accelerators that provide startups with the resources they need to grow and succeed. These programs should offer funding, mentorship, technical training, and networking opportunities.

By partnering with universities and tech companies, the government could create research and development (R&D) hubs that focus on blockchain technology. These hubs could serve as centers of excellence, driving innovation and providing a pipeline of skilled talent.

To stimulate creativity and problem-solving, the government should join the private sector in organizing national blockchain hackathons and competitions, offering prizes and recognition to the most promising projects.

**4\. Building a robust blockchain infrastructure**

For blockchain technology to be widely adopted, it requires a robust and scalable infrastructure. Creating the ‘Nigerium’ blockchain network is a step in the right direction but critical infrastructure includes not only the underlying technology stack such as blockchain networks, smart contracts, and consensus mechanisms, but also the physical infrastructure such as electricity, internet connectivity and secure data centers needed to support these systems.

**Needed change**

Nigeria's ‘Nigerium’ blockchain platform could be a robust blockchain infrastructure that can support a wide range of applications, from financial services, land records, education to supply chain management. This involves both improving the country's physical infrastructure, bearing in mind that Nigeria has always [struggled with power blackouts](https://www.voanews.com/a/nigeria-power-shortages-strain-businesses-public-services/7684694.html), and investing in the development of blockchain networks and tools that are tailored to the Nigerian context.

Stronger partnerships with telecom companies and energy providers will be key to improving internet connectivity and electricity access in rural and underserved areas, ensuring that all Nigerians can benefit from blockchain technology.

Local development of local blockchain networks needs more government support. They need to be optimized for the country's needs, such as networks that offer low transaction fees and high scalability.

Encouraging open-source development of blockchain tools and platforms could help drive innovation and ensure that these technologies are accessible to a broad range of users.

**5\. Enhancing consumer protection** 

While blockchain technology offers numerous benefits, it also presents risks, particularly in terms of security and consumer protection. Cyberattacks, scams, and fraud are prevalent in the crypto space, and many Nigerians [have fallen victim to these threats.](https://nairametrics.com/2024/08/21/scammers-dominate-nigerian-crypto-trading-social-media-groups/)

**Needed change**

To build trust in blockchain and crypto, Nigeria could prioritize consumer protection and security. This includes implementing measures to safeguard users' funds, protect their data, and educate them about the risks and best practices for using blockchain technology.

Nigeria needs to establish a regulatory body tasked with overseeing the blockchain and crypto sectors, ensuring that businesses adhere to best practices in terms of security and consumer protection.

Developing and enforcing security standards for blockchain platforms and crypto exchanges could help prevent hacks and fraud, protecting users' assets.

To empower consumers, the government educational initiatives that teach people how to use blockchain technology safely, recognize potential scams, and protect their private keys and digital assets, will be imperative.

![line](//images.ctfassets.net/vmoowpwj5a39/ZQTyNPg494pGXuUCwgjxI/aa712b0c478bd74c6cfc89603a5725d8/line_copy.png)

Nigeria's state blockchain plan represents a significant opportunity to transform the country's digital economy and position it as a leader in the global blockchain space. By focusing on regulatory clarity, financial inclusion, innovation, infrastructure, and consumer protection, Nigeria can create an environment that encourages the adoption of blockchain technology and cryptocurrencies, ultimately driving economic growth and improving the lives of its citizens.

With the right policies and initiatives in place, Nigeria can not only overcome the challenges it currently faces but also unlock the full potential of blockchain technology, creating new opportunities for businesses, consumers, and the country as a whole.

-----

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Nigeria’s Blockchain Plan and Its Impact on 5 Areas of Crypto Landscape

***By [Shogo Ishida](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/) and [Yosuke Yoshida](https://www.linkedin.com/in/yosuke-yoshida-82754b159/), Co-CEOs, EMURGO Africa***

Web3 gaming or GameFi, is experiencing significant growth in Africa, fueled by increasing internet penetration, reducing cost of mobile internet, a young and tech-savvy population, higher access to smartphones and rising investment in the tech sector.

**Key Takeaways:**
*   Nigeria, South Africa, Kenya and Ethiopia are the key GameFi markets in Africa
*   The success of Web3 gaming in Africa hinges on Play-to-Earn models
*   The lack of laws to govern the Web3 industry in Africa is hampering GameFi growth

**What is GameFi?**

![What is GameFi?](//images.ctfassets.net/vmoowpwj5a39/5ph3ACG0cexO7SOUOw76gS/c9b2f8b337efc029ef00cbf868a1fd16/GameFi.jpg)

GameFi, short for gaming finance, blends online gaming with decentralized finance (DeFi) to create an in-game economy with opportunities to earn real-world value. It is also called Web3 gaming. GameFi projects use cryptocurrency wallets to store game assets and distributed ledgers to track those assets as they move from the developer's wallet to a player's wallet (or from one player to another).

Play-to-Earn (P2E) is the core concept. By playing the game, users can earn digital assets, rare items, tokens and cryptocurrencies. These can be used within the game or sold on marketplaces for real money. When a player earns cryptocurrency or NFTs, smart contracts automatically reward them.

Blockchain technology underpins GameFi, allowing for secure ownership of in-game assets. Non-fungible tokens (NFTs) are commonly used to represent unique items like art, music or avatars. Some GameFi games let players stake their tokens or NFTs to earn passive income. Others let players earn weekly rewards based on their in-game rankings.

DeFi is integrated into GameFi to offer additional financial opportunities. For instance, players might be able to stake their earned tokens to generate interest.  

Overall, GameFi aims to revolutionize gaming by giving players more control over their in-game experiences and the potential to earn a profit. 

**The State of Web3 Gaming Africa**

Africa boasts a rapidly growing mobile gaming market, with smartphone gaming accounting for [92% of all gamers](https://www.geopoll.com/blog/gaming-in-africa-2024/). Web3 games, often mobile-friendly, are leveraging this existing user base. At least [63% of gamers](https://www.geopoll.com/blog/gaming-in-africa-2024/) have paid for gaming services, and the continent’s gaming market value is expected to [hit $1 billion](https://gam3s.gg/news/african-gaming-industry-to-surpass-1-billion-in-2024/) by the end of 2024.

Africa is a global leader in crypto adoption, with over [53 million](https://news.bitcoin.com/more-than-a-third-of-africas-53-million-crypto-owners-are-from-nigeria-study-shows/) crypto owners on the continent. This familiarity with crypto is fueling the acceptance of Web3 gaming's play-to-earn model.

Web3 gaming in Africa is showing significant promise, with various countries emerging as key players in this rapidly evolving sector. Nigeria, Kenya and Morocco are at the forefront of this transformation, [ranking high](https://www.coingecko.com/research/publications/web3-gaming-interest-countries) in the global interest in GameFi.  Nigeria ranks [second globally](https://esportsafricanews.com/nigeria-is-2nd-in-top-15-countries-interested-in-web3-gaming/) among countries most interested in Web3 gaming, highlighting its significant market potential. This has attracted game developers and publishers to tap into the enthusiastic and growing user base in the country.

Web3 game development is a booming industry in Africa, with an increasing number of game developers and entrepreneurs exploring this area. Popular blockchain platforms  for GameFi development are Ethereum and Polkadot, which enable features like digital ownership of in-game assets and player-driven economies.

Gaming in Africa is [poised to leverage](https://www.coindesk.com/web3/2023/06/22/its-game-on-for-web3-how-gaming-will-onboard-a-billion-people/) blockchain's promise of true ownership and economic participation, which traditional gaming models lack​.

**Top 10 GameFi Startups in Africa**

![GameFi Startups in Africa](//images.ctfassets.net/vmoowpwj5a39/6RjaZRwId6rGiJkzIYE1Bl/685ed40ad7549074adf37e0bb2ef3fa6/GameFi_Startups_in_Africa.jpg)

1.  **Carry1st** (South Africa): Founded in 2018, Carry1st is the leading [Web3 game publisher](https://www.carry1st.com/) and digital commerce platform in Africa. It focuses on mobile gaming and payment solutions, combining gaming with social and financial tools to engage users in the African market. It partners with African game developers to publish their web3 games, and operates Play1st, a web3 app store specifically designed for the African market.
2.  **Gamic Guild** (Nigeria): Gamic is a prominent Web3 social communication platform with a [strong focus on gaming.](https://techpoint.africa/2022/07/27/gamic-guild-launches-gameathon-africas-first-crypto-gaming-event/) They boast the largest Web3 gaming guild in Africa and offer a suite of tools for gamers, eSports teams, and gaming guilds. Their features include a wallet service, community management tools, and an NFT airdrop program.
3.  **Mara** (Nigeria): Mara is an all-in-one Web3 ecosystem providing a suite of financial and blockchain-based services. It aims to accelerate the adoption of digital finance and decentralized applications across Africa.
4.  **Jambo** (DRC): Aims to democratize access to Web3 opportunities across the continent. The company operates in over 19 regions, and offers a SuperApp that integrates education, play-to-earn gaming, and personal finance functionalities. It also manufactures a smartphone specifically tailored for Web3 industry products including gaming. 
5.  **Zed Run** (South Africa): A digital horse racing game that uses blockchain technology, allowing users to buy, breed, and race digital horses, combining gaming with NFT ownership.
6.  **Eksab** (Egypt): Eksab is a daily fantasy sports platform leveraging blockchain to offer users enhanced security and transparency in fantasy sports gaming.
7.  **Qene Games** (Ethiopia): Develops culturally relevant mobile games and explores the integration of blockchain technology to offer unique in-game asset ownership.
8.  **Usiku Games (Kenya):** Popularized the concept of “play-to-save” among young people to encourage them to pay towards their health insurance premiums.
9.  **EmPawa** (Nigeria): EmPawa integrates gaming with music streaming, using blockchain technology to offer unique, gamified music experiences for African users.
10.  **Bithub Africa (Kenya).** Develops blockchain-based gaming solutions for the African market, such as web3 games. It created a Web3 game that allows players to earn cryptocurrency rewards for completing tasks and challenges within the game.

**GameFi Funding in Africa**

Several major investors and venture capital firms are actively funding Web3 gaming startups in Africa. Some key players include:
*   **BITKRAFT Ventures:** A global investment platform focusing on gaming, Web3, and immersive technology. They led the [$27 million funding](https://peopleofcolorintech.com/founders/web3-startup-raises-27m-to-revolutionize-gaming-in-africa/) round for South African gaming startup Carry1st, which incorporates Web3 elements.
*   **Andreessen Horowitz (a16z):** A prominent American venture capital firm. It [participated](https://peopleofcolorintech.com/founders/web3-startup-raises-27m-to-revolutionize-gaming-in-africa/) in Carry1st's funding round alongside BITKRAFT Ventures.
*   **Google:** Through its various investment arms, Google has shown interest in African tech startups, including Web3 gaming initiatives like Carry1st​, participating in a [$20 million](https://cointelegraph.com/news/a16z-google-lead-20m-investment-in-africa-web3-game-publisher-carry1st) Series A round. 
*   **Riot Games:** The creator of popular games like League of Legends, Riot Games, [has invested](https://www.carry1st.com/press-releases/carry1st-raises-6m-series-a-to-scale-mobile-games-in-africa) in Carry1st to help expand its reach and capabilities within the African market​.
*   **Sony Innovation Fund:** Recently launched by Sony, this fund aims to foster the growth of entertainment businesses, including gaming, across the continent. Carry1st is one of [its first investments](https://bitcoinke.io/2024/02/carry1st-announces-strategic-investment-from-sony-innovation-fund/), highlighting the potential of the African gaming market​.
*   **Mercy Corps:** Through its Crypto for Good fund, [Mercy Corps is investing](https://cointelegraph.com/news/here-s-what-s-happening-in-web3-across-africa) in blockchain-based projects in Africa, which may include Web3 gaming initiatives aimed at promoting financial inclusion​.
*   **Animoca Brands:** Known for its significant investments in Web3 and blockchain gaming in the North African region, where it [has partnered](https://web3oclock.com/farcana-secures-funding-from-animoca-brands/) with Web3 gaming venture Farcana.

**Web3 Regulation Could Boost GameFi Penetration in Africa**

The lack of regulatory frameworks governing the Web3 industry in Africa is significantly hampering the growth of GameFi and other blockchain-based innovations on the continent. While the potential for blockchain technology to revolutionize various sectors in Africa is immense, the absence of clear and supportive laws creates barriers to progress and adoption. Of all countries in the continent, only South Africa has supportive laws to make GameFi thrive.

This regulatory void makes it difficult for companies to plan long-term strategies and secure funding. Investors are often hesitant to fund projects that might face future legal complications or government crackdowns. 

However, many African countries are looking to properly regulate the Web3 sector, with clear regulatory frameworks expected to provide legal certainty, which is crucial for attracting both local and international investors. When these laws are transparent and predictable, investors feel more secure in funding GameFi projects, knowing there is a lower risk of sudden legal changes that could affect their investments.

Regulatory sandboxes, for example, allow startups to test their products in a controlled environment with regulatory oversight, reducing the risk and cost of compliance while encouraging creative solutions. As more GameFi startups emerge and grow, they will require a diverse range of skills, from blockchain development to marketing and community management. This can help build a robust digital economy and generate employment across various sectors.

The Rise of Web3 Games in Africa Is Imminent

***By [Shogo Ishida](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/) and [Yosuke Yoshida](https://www.linkedin.com/in/yosuke-yoshida-82754b159/), Co-CEOs, EMURGO Africa***

Africa relies heavily on agriculture for its economic development. [Up to 70%](https://www.afdb.org/sites/default/files/documents/publications/aeb_volume_8_issue_3.pdf) of the African workforce is in the agricultural sector, but changes in climatic conditions in recent years mean many farmers no longer record as high yields as they did two decades ago. 

Despite agriculture [contributing 23%](https://media.heifer.org/About_Us/Africa-Agriculture-Tech-2021.pdf) to the continent’s GDP, limited access to credit and crop insurance, and inefficient supply chains have led to heightened food insecurity, with the Food and Agriculture Organization (FAO) data showing that [one in every five Africans](https://www.fao.org/documents/card/en/c/CC8743EN) (282 million people) goes to bed hungry everyday. [Only](https://www.financialprotectionforum.org/sites/default/files/Day%203_Session%202_ACRE%20Africa.pdf) [3%](https://www.financialprotectionforum.org/sites/default/files/Day%203_Session%202_ACRE%20Africa.pdf) of smallholder farmers in Africa have access to agricultural insurance, according to the World Bank.

However, African nations are harnessing blockchain to transform the delivery of agricultural insurance, guaranteeing heightened transparency, efficiency, and accessibility for farmers while improving the state of food security in the continent.

**Key Takeaways:**
*   Uptake of agricultural insurance in Africa is low
*   Crop insurance via blockchain is taking off in Kenya 
*   Smart contracts in Ghana and Uganda are facilitating parametric insurance solutions

**Why Farmers are Struggling to Get Agricultural Insurance in Africa**

![Farmer](//images.ctfassets.net/vmoowpwj5a39/5xfu6uUEFBgJKDP4OCchMH/a871cfbd96cdbfd347bb31d76f3500ba/Malawi-Bill-Burke.jpg)

The African continent still lags behind in agricultural insurance. With the largest percentage of farmers being smallholders (about 60% of the population),  only 3% of them in Sub Saharan Africa have access to agricultural insurance cover. 

Many smallholder farmers simply don't know about agricultural insurance or don't understand its benefits. Traditional insurance products are not well-suited for smallholder farmers as they are too complex, charge high premiums, or do not provide the type of coverage farmers need. Little effort is put in creating awareness and education on agricultural insurance.

There is also a lack of transparency in the insurance products offered to farmers. Farmers are therefore hesitant to trust insurance companies, especially if they have had negative experiences with other financial institutions. Insurance companies often overlook rural areas where most smallholder farmers live, making it difficult for them to access and purchase insurance products.

The insurance principle of proximate cause is also a challenge when deploying insurance policies for crop or animal cover. There are possibilities that a farmer experiences a loss but the insurance policy doesn't cover it because the specific trigger wasn't met. 

For instance, the drought wasn't severe enough to claim payment. Insurers require extensive documentation and verification procedures before approving claims, leading to delays and frustrations for farmers who are already facing financial hardship. In some cases, disputes over claims arise, further complicating the claims process and eroding trust in insurance providers. This causes frustration and makes farmers question the value of agricultural insurance.

Many regions in Africa lack the necessary infrastructure and data systems to support effective agricultural insurance programs. Insurers often struggle to access reliable data on factors such as weather patterns, crop yields, and market prices, making it difficult to assess and mitigate risks accurately. Without this data, insurers may be hesitant to offer coverage, leaving farmers unprotected.

**How Insurance on a Blockchain Works**

![Farmer with a Mobile Phone](//images.ctfassets.net/vmoowpwj5a39/3UyAZ6XlpuMaYTqPCosBRp/f73d0a3b0ecbf55957dccb9b5e8997c4/ff16bac54fa14b1c8ee36c1eba4c76d1.jpg)

Such challenges can be mitigated under a blockchain network, helping farmers across Africa reap more from their crop farming and livestock keeping activities.

In modern insurance practices, the insurance company typically uses centralized electronic ledgers in its internal systems to store such data as coverholder’s personal data, information relating to the risk covered such as type of crop grown, location, and loss history, and the policy terms. The insurer then ties this data with that obtained through other technological means such as mobile phones, sensors and satellites to get a real time analysis and insights while ensuring accuracy and confidentiality of clients’ information 

While the process may only be visible to the centrally controlled data system storing the electronic ledger, incorporating blockchain technology means the ledger can be distributed to multiple computers in a network and users can view the entire process while its contents remain intact and unaltered, since the participating computers use algorithms to validate the data. 

One key aspect of blockchain technology is the smart contracts concept. These are self-executing programs that are stored within the system and are triggered when the predetermined conditions are met. The execution of agreements is thus automated, such that participants in the agreement are certain of the outcome in a timely manner without involving an intermediary. For instance timely payments between stakeholders can be made when pre-set conditions have been met. 

The term used here is index insurance, whereby a parameter such as drought levels, severity of floods, crop yields or rainfall intensity is used as a base to make payments without the need for further farm-level verification. A classical example is where payment is triggered if cumulative rainfall during the planting season in the covered location falls below say 200mm.

The use of blockchain for agricultural insurance comes with enormous benefits. First, it enables for timely settlement of claims, since the process is automated through smart contracts, thus minimizing delays and overhead costs. Smart contracts also ensure fairness and accuracy in claims processing, since their execution is triggered by fulfillment of pre-set conditions, thus eliminating the possibility of bias or error resulting from human intervention. 

With blockchain, data collection is automated through integration of weather data from sensors, satellites, mobile phones and other sources, ensuring for real time analysis for insights on risks and claims eligibility. 

With the technology, there is access to quality and incorruptible data. Although decentralized, the ledger folder storing the crucial data is maintained intact within the network. None of those accessing the folder can alter its contents once they are recorded. There is also enhanced traceability of processes and transactions. All these aspects enable data driven innovations for smart index insurance, thus transforming agricultural insurance to benefit both the farmer and the insurer. 

**Kenya is Moving Into the Blockchain to Insure Crops** 

![Farmers](//images.ctfassets.net/vmoowpwj5a39/6vV5cYaCGZTlotdUJuzgcj/90057e829822453a70edb13db60ca197/farmer.v1.jpg)

In Kenya, Agriculture And Climate Risk Enterprise (ACRE Africa), an insurance intermediary providing risk management solutions in agricultural insurance and a beneficiary of the World Bank's One Million Farmers Platform (OMFP) is partnering with Etherisc, a parametric blockchain insurance platform to enhance the uptake of agricultural insurance products by addressing the derailing challenges. The company says it is working with Etherisc “to boost efficiency of existing insurance products with blockchain technology to reduce costs and improve attractiveness, profitability and reach by smallholder farmers.”

The partnership is exploiting the smart contracts concept, using weather as the proxy factor to offer weather index insurance product to farmers to cover them against drought and excessive rainfall. The insurance policies are registered as smart contracts by a user interface on a private blockchain.

The insurance product, known as Bima Pima, is packaged as a scratchcard and distributed at the start of an agricultural season. Partnerships with farm input companies has enabled ACRE Africa to bundle this insurance with farm inputs such as seeds and services like access to credit to increase farmer uptake. The micro insurance product is being offered to smallholder farmers for as little as $0.40 per month to enhance affordability, and farmers can receive up to 15 times of their premiums payment.

Primarily, the insurance is distributed through smallholder farmers who are trained as Village Extension Service Providers, and who also act as change agents to transfer the knowledge to their peer farmers. As of December 2021, the project had served over 12,567 farmers, with at least 511 farmers being able to receive mid-season payouts during the long rains. 

Currently, the company is serving over 70,000 farmers in 15 counties. At a sufficient scale, the platform has the potential to slash the cost of issuing contracts by 41%, enabling reduction in premiums up to 30% and reducing claim cycles from three months to one week. ACRE Africa targets to serve over 1.2 million farmers under the Blockchain Climate Risk Crop Insurance platform.

Another notable project transforming crop insurance in Kenya is the Lemonade Crypto Climate Coalition, a pioneering blockchain-based parametric crop protection for subsistence farmers. Spearheaded by the Lemonade Foundation, this coalition provides vital protection to farmers' livelihoods affected by weather events in Kenya.

Upon the season's conclusion, eligible participants received instant payouts through smart blockchain contracts in 2023. Leveraging smart contracts facilitated swift cash transfers, eliminating the need for claims processing or human adjusters. This approach reduced costs and bypassed the often lengthy timelines associated with traditional procedures.

Joined by esteemed founding partners such as Avalanche, Chainlink, DAOstack, Etherisc, Hannover Re, and Pula, the Lemonade Crypto Climate Coalition introduced its nonprofit, immediate crop protection program to smallholder farmers at the beginning of the planting season. Nearly 7,000 farmers enrolled to safeguard their crops during the recent short rains season spanning from October 2022 to January 2023.

Farmers can easily enroll in the program, conduct transactions, and receive payments through their mobile phones, mirroring familiar banking and payment processes. These transactions generate smart contracts hosted on the blockchain. At the close of a growing season, area yield data is relayed to the application's smart contracts. In the event of adverse weather conditions leading to crop failure, an instant payout is triggered for farmers.

**Smart Contracts in Ghana and Uganda Provide Parametric Insurance Solutions**  

![Farmers](//images.ctfassets.net/vmoowpwj5a39/3eSE5Kfwc4pkVzEwASXgsE/82cbae085c95a361d0d2b5f5d6140387/image.webp)

In Ghana and Uganda, blockchain technology is facilitating the development of parametric insurance solutions tailored to the specific needs of farmers. Parametric insurance relies on predefined triggers, such as rainfall levels or temperature thresholds, to automatically initiate payouts without the need for time-consuming claims assessments. 

In both countries, insurtech startup WorldCover uses blockchain to provide climate risk crop insurance to smallholder farmers to help them mitigate the adverse effects of climate change. Based in New York and Accra, the platform uses satellite imagery, on-ground sensors, mobile phones, and data analytics to create insurance options for farmers whose crops yields are affected adversely by weather events.

With a simple USSD dial or mobile application, farmers can create an account with WorldCover and input their data, select their preferred insurance plan, and use mobile money to make premium payments. This simplifies the process and access for farmers who may be located in areas with less access to insurance service providers. Claims are also filed from mobile phones and payment made through mobile money. The company categorizes smallholder farmers as those farming on 10 to 20 acres of land, and earning around $500 to $5000.

The company is also present in Kenya, serving over 30,000 farmers across the continent, and is looking to expand its operations to other countries.  By combining blockchain with parametric insurance, farmers in these countries are better equipped to cope with the impacts of climate change and other external shocks, strengthening the resilience of the agricultural sector.

---

_DISCLAIMER: The information in this content (website or other form) does not represent an offer or commitment to provide any product or service. The analysis, opinions and estimates expressed in this content are those of the respective authors, and may differ from those of EMURGO Africa and/or other EMURGO Africa employees and affiliates. Copying, re-publishing or using this material or any of its contents for any other purpose is strictly prohibited without prior written consent from EMURGO Africa._

InsurTechs Tap Web3 to Tackle Africa’s Biggest Problem

***By [Yosuke Yoshida](https://www.linkedin.com/in/yosuke-yoshida-82754b159/), Co-CEO of EMURGO Africa***

Africa, the world's youngest and fastest-growing continent, is experiencing a surge in blockchain adoption. This burgeoning ecosystem, driven by a confluence of factors, holds immense potential to revolutionize financial inclusion, identity management, and even environmental solutions.

Africa's embrace of blockchain stems from several key challenges and opportunities. A large portion of the population remains unbanked, lacking access to traditional financial services. Blockchain, with its decentralized nature and low barriers to entry, offers an alternative financial system. Mobile money penetration is already high across Africa, creating a familiar digital infrastructure for integrating crypto and blockchain-based solutions.

![Tech Savvy African Youth ](//images.ctfassets.net/vmoowpwj5a39/15D7KyhSbAF4M8QrsUxloh/c83686c06779de253291850838e4067a/desola-lanre-ologun-kwzWjTnDPLk-unsplash.jpg)

Africa boasts a young, tech-savvy population eager to explore new technologies. This entrepreneurial spirit fuels innovation in the blockchain space, with startups emerging to address local needs. Governments, recognizing the transformative potential, are exploring the use of blockchain for land registry, identity management, and fostering transparency in governance.

Financial inclusion is a major theme in Africa's blockchain narrative. Decentralized finance (DeFi) offers a glimpse into a future where individuals have greater control over their assets. Cryptocurrencies and stablecoins can facilitate remittances, a crucial source of income for many African families, offering faster and potentially cheaper transactions compared to traditional money transfer services. Startups like [Fonbnk](https://fonbnk.com/), [Canza Finance](https://canza.io/), [VALR](https://www.valr.com/), [Bitmama](https://bitmama.io/), and [Kotani Pay](https://kotanipay.com/), supported by EMURGO Africa, are tackling cross-border payments with blockchain-based solutions. 

Blockchain also offers secure and verifiable digital identities, a critical need in a continent where traditional identity documents are often unreliable or inaccessible. In Ethiopia, IOG’s blockchain-based digital identity work is helping a large number of students and teachers eliminate fraud in the education sector, according to IOG’s director of African operations John O'Connor.

**Money and Climate: The Big Headaches**

![Climate Change in Africa ](//images.ctfassets.net/vmoowpwj5a39/3qcreTaDGMUuhtNSpZr3n6/d256a1053d006b711e04d141b5995a7b/ron-dauphin-k-8-eX4Y3no-unsplash.jpg)

Africa is the hardest hit continent by climate change despite contributing the least to the problem. Thousands of Africans have perished as a result of severe drought in the Horn of Africa region, flooding in Nigeria, South Africa and Uganda, and devastating tropical storms in Madagascar and Mozambique. 

The World Meteorological Organization warns that a temperature rise of 4°C relative to pre-industrial levels could reduce Africa’s GDP by up to 12.12%, while the World Health Organization estimates that climate change will claim the lives of 250,000 more Africans per year between 2030 and 2050.

Africa remains disproportionately affected by climate change catastrophes, and urgently needs financing for climate adaptation and resilience. The Climate Policy Initiative projects that Africa needs $2.8 trillion in climate finance between 2020 and 2030, or $250 billion annually. However, the continent has limited climate finance flows, so by 2030, Africa could have a gap of $200–$400 billion per year. 

While carbon credits offer a modest way of climate finance, a multitude of hurdles stand in the way. Complex bureaucratic procedures, lack of transparency, lack of standardized regulations, and difficulties in tracking funds hinder access to crucial resources. 

The current climate finance system relies heavily on intermediaries, leading to delays and inefficiencies. This is where blockchain technology and EMURGO Africa offer a glimmer of hope. Blockchain, with its inherent transparency and immutability, can streamline processes. Imagine a system where project proposals are submitted on a tamper-proof ledger, with real-time tracking of funding allocation and utilization. This would not only enhance transparency but also bolster trust among donors and recipients like governments and nonprofits.

EMURGO Africa’s investment in [Changeblock](https://changeblock.com/), an environmental credit exchange platform that aims to address most of the challenges in climate credit access in Africa, is a testament to its commitment to streamlining verifications for carbon offsets on the continent. 

Africa harbors millions of dollars worth of carbon credits, especially in the Congo Basin which absorbs 1.5 billion tons of carbon each year, holding roughly 8% of the world’s forest-based carbon. Roughly 23% of global emissions are now covered by some form of carbon credit pricing, with the carbon credit market reaching a record $851 billion in 2021. But Africa only gets the smallest share of this money.

To bring Africa on par with the US, Europe and China in terms of carbon credit access, Changeblock plans to work with individual countries such as South Africa, Morocco, Kenya, Malawi, Gabon, Nigeria, Egypt and Togo as well as the Africa Carbon Markets Initiative (ACMI) to help grow the market.

Through EMURGO Labs, we offer educational initiatives and community building efforts that are crucial for blockchain adoption in climate finance. Building capacity within African institutions and local communities is essential for ensuring these solutions are implemented effectively and inclusively.

A Perfect Storm for Africa’s Blockchain Revolution

25 Influential Women to Shape Africa’s Web3

***By [Shogo Ishida](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/) and [Yosuke Yoshida](https://www.linkedin.com/in/yosuke-yoshida-82754b159/), Co-CEOs, EMURGO Africa***

Blockchain education in African universities is gradually developing, with several institutions leading the charge in incorporating this technology into their curriculum. Despite initial slow adoption, there is now a growing interest and implementation of blockchain courses and research initiatives across the continent.

Educating students and professionals about blockchain is set to foster a new generation of tech-savvy individuals who can drive innovation and entrepreneurship. By providing them with the tools to innovate and compete globally, blockchain education is the underlying driver for the growth of startups and small businesses across the continent.

Several universities on the continent have recognized this technology's importance and incorporated blockchain into their curricula. Here are ten of the top universities in Africa teaching blockchain technology:

**1. University of Cape Town (South Africa)**

![University of Cape Town](//images.ctfassets.net/vmoowpwj5a39/5tgdIsbQqJb2Rgmbr6K42k/6100a026df883fd5443797f37e8dc2f2/University_of_Cape_Town.jpg)

Through its School of Economics and the UCT Financial Innovation Lab, the University of Cape Town offers a [master's program](https://commerce.uct.ac.za/school-economics/programmes-postgraduate/mphil-specialising-financial-technology) in Financial Technology where blockchain, crypto, and digital assets are taught as courses. All practicals for this course are project-focused. Students are encouraged to collaborate with fintech and Web3 startups in the vibrant Cape Town ecosystem and work on practical projects for their thesis. The university also offers [short courses](https://commerce.uct.ac.za/applying-commerce-getsmarter-online-short-courses/fintech-online-short-courses) that cover the fundamentals of blockchain technology, cryptocurrency, and their applications in financial systems.

**2. University of Nairobi (Kenya)**

![University of Nairobi](//images.ctfassets.net/vmoowpwj5a39/7nRTDpmpiE5BfL13bY5e72/e24e2caea05ba6069c7e42eac0c0f591/University_of_Nairobi_2.jpg)

The University of Nairobi has integrated blockchain technology into its [Master of Computer Science program](https://computerscience.uonbi.ac.ke/index.php/admission-content-type/master-science-computer-science). The program ensures students acquire deeper and specialized conceptual knowledge and practical skills in developing Web3-based solutions to problems of interest to industries and society. Under the Department of Computing and Informatics, it also offers [specialized workshops](https://computerscience.uonbi.ac.ke/announcements/block-chain-bootcamp) and seminars on blockchain, often in collaboration with industry partners. It has established the University of Nairobi [Blockchain Research and Development Centre](https://uonblockchain.uonbi.ac.ke/), dedicated to advancing the understanding and application of blockchain technology through research and development projects. 

**3. University of Pretoria (South Africa)**

![University of Pretoria](//images.ctfassets.net/vmoowpwj5a39/GcSMzEP3jwwfljym5uyDQ/75f196796170fdbffb549b0a162431d2/University_of_Pretoria.webp)

Known for its robust computer science and information systems departments, the University of Pretoria [has partnered](https://www.up.ac.za/faculty-of-health-sciences-research/article/2623280/opportunity-desk) with the University of California, Berkeley to offer [a course](https://www.edx.org/learn/blockchain/university-of-california-berkeley-blockchain-technology?index=product&queryID=0b86f6af08b6c9c8ac5a7aa4f1dd01df&position=17&results_level=second-level-results&term=&objectID=course-17b2db20-bb6d-4148-ad0b-9b9b99e287c1&campaign=Blockchain+Technology&source=edX&product_category=course&placement_url=https%3A%2F%2Fwww.edx.org%2Fsearch) focusing on blockchain technology and cryptocurrencies, their applications, and their impact on business and finance. The course is designed by Blockchain at Berkeley and faculty from UC Berkeley's premier Computer Science department and focuses on the fundamental applications of bitcoin and blockchain technology, including exploring enterprise blockchain implementations such as JP Morgan’s Quorum, Ripple, Tendermint, and HyperLedger, the challenges and solutions around scaling blockchain adoption, and the measures governments are taking to regulate and control blockchain technology. This course is open to anyone and graduates get a Blockchain Fundamentals Professional Certificate.

**4. Strathmore University (Kenya)**

![Strathmore University](//images.ctfassets.net/vmoowpwj5a39/7rukO8NqEZAhf8vsPI7fGC/af7551bd89a763e8a9fb7b4b6d921397/Strathmore_University.webp)

Strathmore University is known for its focus on future-oriented courses in Kenya. It offers blockchain-related courses through its [iLabAfrica research center](https://ilabafrica.strathmore.edu/cybersecurity-unit/). Advanced courses at the postgraduate level delve deeper into blockchain technology, covering topics like smart contracts, decentralized applications (DApps), and the role of blockchain in fintech. It collaborates with blockchain industry leaders and organizations to enhance its curriculum and provide students with practical insights and real-world applications. These partnerships often lead to guest lectures, collaborative research projects, and internship opportunities.

**5. Stellenbosch University (South Africa)**

![Stellenbosch University](//images.ctfassets.net/vmoowpwj5a39/6re7kzbx3aFAZNhR6ILqJu/36ca7f0a7d0ce02990a04b1489b0819f/Stellenbosch_University.jpeg)

Stellenbosch University [incorporates blockchain](https://shortcourses.sun.ac.za/courses/2021-5765.html) into its postgraduate programs in finance and engineering. The university's Techno-entrepreneurship Centre also provides blockchain education and training. The university's Techno-entrepreneurship Centre plays a crucial role in blockchain education. The center offers courses and workshops focused on the practical applications of blockchain technology in business and entrepreneurship.

**6. University of Johannesburg (South Africa)**

![University of Johannesburg](//images.ctfassets.net/vmoowpwj5a39/1qhJgfcENuuwGQb2yhz4TM/32ba19b9bf88eac224eb37445c083960/University_of_Johannesburg.jpeg)

A pioneer in blockchain education in Africa, the University of Johannesburg introduced a [blockchain certification](https://www.uj.ac.za/university-courses/introduction-to-blockchain/) into its curriculum in 2022. This initiative positioned it as one of the first African universities to offer formal education in blockchain technology. Graduates receive certification upon completing the course, demonstrating their ability to develop blockchain-based projects and promote cryptocurrency awareness in Africa.

**7. Covenant University (Nigeria)**

![Covenant University](//images.ctfassets.net/vmoowpwj5a39/3kW4HZu9uIJobInXuD6g5n/62ed774661ff5cf60979a87ea3571110/Covenant_University.jpeg)

Covenant University offers blockchain and cryptocurrency courses through its Bachelors’ [Degree in Fintech](https://www.myschoolgist.com/ng/covenant-university-bsc-degree-in-fintech/). The university frequently collaborates with blockchain industry players to provide practical training and exposure. Students from the university participate in the National Blockchain Hackathon Competition, with most of the [winning awards](https://covenantuniversity.edu.ng/information/more/covenant-news/702-covenant-university-excels-at-national-blockchain-decahack-competition) during the 2024 competitions. 

**8. University of Lagos (Nigeria)**

![University of Lagos](//images.ctfassets.net/vmoowpwj5a39/5ETzFui2PDFKFEWCrEbEK2/7be92281fc5f928e81cffb743df4b07b/University_of_Lagos.avif)

The University of Lagos has integrated blockchain technology into its curriculum through the computer science department. It also conducts blockchain workshops and seminars for students and professionals. There has been a [proposal](https://www.lidonation.com/en/proposals/establishing-a-blockchain-research-laboratory-at-the-university-of-lagos-empowering-education-and-innovation-through-cardano-technology-f10) for the establishment of a dedicated Blockchain Research Laboratory at the University of Lagos, addressing the limited opportunities for blockchain education and research in Nigeria's higher education system.

**9. Zetech University (Kenya)**

![Zetech University](//images.ctfassets.net/vmoowpwj5a39/4rslZrJB5psFQVBjn26kzd/915b5a3028bfcf28430ebd6dcc23add6/Zetech_University.webp)

Zetech University offers specialized courses in blockchain technology as part of its computer science and information technology programs. These courses cover the fundamentals of blockchain, its architecture, and its applications in various industries. The Bachelor of Science in Computer Science (BScS) includes a course called BCE 413 Blockchain Technology. The existence of the student-led [Zetech Web3 and Blockchain Club](https://ke.linkedin.com/company/zetech-web3-and-blockchain-club) indicates an active student interest in blockchain technology at the university.

**10. Pan-Atlantic University (Nigeria)**

![Pan-Atlantic University](//images.ctfassets.net/vmoowpwj5a39/6mGOjtV9nAB5CfSv9WwTFD/602b387015fc816345b5053ace492350/Pan-Atlantic_University_.jpeg)

This university develops blockchain education material and Web3 training programs. In 2023, it [partnered with EMURGO Africa](https://www.emurgo.io/press-news/emurgo-africa-signs-mou-with-pan-atlantic-university-for-blockchain-collaboration/?trk=article-ssr-frontend-pulse_little-text-block) to ensure students get blockchain technology textbooks as well as Web3 training programs to empower them. Under the agreement, students also gain access to blockchain internships, business mentorship, and professional networking opportunities with EMURGO Africa and its partners. Both entities are exploring joint academic research initiatives.

Top 10 Universities in Africa to Study Blockchain

***By [Shogo Ishida](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/) and [Yosuke Yoshida](https://www.linkedin.com/in/yosuke-yoshida-82754b159/), Co-CEOs, EMURGO Africa***

Cape Town, the southern tip of Africa, is experiencing a surge in Web3 startups, fueled by a growing pool of high-net-worth individuals (HNWIs) interested in Web3. South Africa, now [Africa’s biggest economy](https://www.visualcapitalist.com/breaking-down-african-economy-by-country/#:~:text=At%20first%20place%2C%20South%20Africa,the%20first%20half%20of%202023.), maintains a friendly regulatory approach towards cryptocurrencies and blockchain-based technologies, which is providing a fertile ground for startup-led innovation.

**Key Takeaways**
1. Cape Town has the second highest number of dollar millionaires in Africa
2. HNWIs are investing in Web3 startups in Cape Town
3. Crypto law is driving more Web3 investment in Cape Town

**Cape Town Will Overtake Johannesburg to Become Africa’s Wealthiest City by 2030**

![Cape Town skyline](//images.ctfassets.net/vmoowpwj5a39/4ZzMg1PdatrhicMNYr9Euf/37e572ff1bc5a969d2ec64aeab98ef50/EMURGO_22_11_23-005.jpeg)

Johannesburg, the bustling financial center, has long held the title of Africa's top destination for High-Net-Worth Individuals (HNWIs). However, a recent shift in the wind suggests Cape Town may be poised to steal the crown by the end of this decade.

The latest [African Wealth Report 2024](https://www.henleyglobal.com/publications/africa-wealth-report-2024/insights-africas-wealthiest-cities) by Henley & Partners and New World Wealth shows that South Africa leads Africa with 37,400 high-net-worth individuals (HNWIs) – those with liquid wealth exceeding US$1 million. Johannesburg has 12,300 HNWIs but the report projects that by 2030, Cape Town, which currently has 7,400 HNWIs, will overtake South Africa’s commercial capital, and become Africa’s wealthiest city.

Cape Town boasts several of Africa's most luxurious residential neighborhoods, among them the renowned "Prime 7" identified by New World Wealth. These upscale areas include Clifton, Bantry Bay, Camps Bay, Bishopscourt, Constantia, Llandudno, and St. James. 

The city is currently experiencing a significant influx of affluent individuals relocating from other parts of South Africa, notably Johannesburg and Pretoria, a phenomenon often referred to as "semigration." Additionally, Cape Town is gaining traction as a sought-after retirement destination, attracting migrating millionaires from Europe and other African countries such as Nigeria, Egypt, Morocco, Ghana, Kenya, Zimbabwe and Namibia. 

The report projects that by 2033, Cape Town will have attracted 85% more dollar millionaires. “We expect several major Johannesburg-based companies to move their head offices to Cape Town over the next decade, which should help to drive wealth growth. Lifestyle estates on the outskirts of the city are projected to perform especially well in attracting new HNWIs,” the report states.

While wealth is a crucial factor, Cape Town offers a unique value proposition beyond financial considerations. The city boasts breathtaking scenery, a vibrant cultural scene, and a slower pace of life compared to Johannesburg. This combination is a major draw for HNWIs seeking a luxurious yet balanced lifestyle.

Cape Town's thriving property market and growing tech sector present lucrative investment opportunities for HNWIs looking to diversify their portfolios. As HNWIs settle in Cape Town, they bring with them investment capital, business expertise, and a demand for high-end services. This fuels the growth of luxury real estate, private wealth management firms, and exclusive concierge services, further solidifying Cape Town's position as a premier destination for the affluent.

**HNWIs are Investing in Web3 Startups in Cape Town**

![Cape Town socializing](//images.ctfassets.net/vmoowpwj5a39/12WvCX5FsfgAVTbsZ6W3xZ/e0a2eadb3ad981b410009e875705109c/EMURGO_22_11_23-016.jpeg)

The influx of millionaires interested in Web3 is having a significant impact on the Cape Town startup scene. These HNWIs are providing vital funding for startups, acting as mentors and advisors, and helping to connect them with potential partners and investors.

This growing interest in Web3 is fostering a thriving ecosystem in Cape Town. Incubators and co-working spaces dedicated to blockchain startups are popping up, and there is a growing community of developers, entrepreneurs, and investors collaborating on innovative projects.

Many HNWIs are acting as angel investors, providing not only capital but also valuable mentorship and guidance to Web3 entrepreneurs. Their experience in traditional finance and business is invaluable for navigating the complexities of the blockchain space.

Some HNWIs are even establishing their own venture capital firms dedicated to investing in Web3 startups. This allows them to pool their resources and expertise to identify and support high-growth potential ventures. HNWIs are playing a role in funding and supporting incubators and accelerators that provide Web3 startups with the resources, mentorship, and network connections they need to succeed.

Many HNWIs have experience in sectors that are ripe for disruption by Web3 technologies, such as finance, supply-chain management, and entertainment. This expertise is invaluable for startups developing solutions in these areas.

Cape Town boasts a highly skilled tech talent pool, making it easier for startups to find the necessary expertise to build and develop blockchain-based applications.

This influx of investment from HNWIs is mutually beneficial. Startups gain the resources they need to grow, while HNWIs gain exposure to the potentially high returns of the Web3 space. As Cape Town's Web3 ecosystem continues to mature, this collaboration between HNWIs and entrepreneurs promises to be a key driver of innovation and success.

**Top 10 Web3 Startups in Cape Town**
- [Luno:](https://www.luno.com/en) Founded in Cape Town in 2013 by South Africans Marcus Swanepoel and Timothy Stranex, Luno is a crypto exchange that allows South Africans to trade various cryptocurrencies, some of which may be directly tied to Web3 projects. This enables them to invest in and participate in the growth of the Web3 space.
- [Carry1st:](https://www.carry1st.com/) A leading Web3 game publisher and digital commerce platform founded in 2018. By developing their Pay1st platform, Carry1st is contributing to the infrastructure needed for a thriving Web3 ecosystem in South Africa. Pay1st is designed to power in-game purchases, facilitating seamless digital transactions.
- [Jambo Technology:](https://www.jambo.technology/) Established in 2022, Jambo is dedicated to crafting a Web3 super app aimed at delivering educational resources, banking services, and entertainment options to the African continent. Jambo is building the Web3 mobile infrastructure for the African market, and has designed JamboPhone, a special smartphone for web3 gaming.
- [Web3 Sanctuary:](https://www.web3sanctuary.com/) It offers educational and training resources to help South Africans understand blockchain technology, decentralized applications (dApps), and other aspects of the Web3 space. This is to equip them with the skills necessary to participate in and contribute to the growing Web3 industry. It was founded in 2023.
- [Wilcards.world:](https://wildcards.world/) It's a platform where users can exchange digital collectibles of endangered animals using a groundbreaking economic model known as radical markets. These collectibles combine the concepts of Harberger tax and non-fungible tokens (NFTs), resulting in crypto collectibles that are always available for sale. It was founded in 2019.
- [Altify:](https://www.altify.app/) Offers one of the most extensive range of ETF-style crypto bundles globally, allowing users to access the crypto market with the same ease as with the stock market. With a minimum investment requirement of just $10, Altify's platform simplifies the purchase, sale, and yield generation from a diverse array of assets previously accessible only to the affluent. Founded in 2018, Altify offers access to an extensive selection of investment opportunities, spanning from gold and cryptocurrencies to forthcoming additions like private credit, real estate, and venture capital. 
- [Kee Studios:](https://kee-studios.com/) Founded in 2022, this platform stands at the forefront of web3 game development, innovating immersive gaming experiences for a diverse global clientele. Alongside crafting tailor-made games for clients, we are fervently dedicated to pioneering our own cutting-edge gaming titles.
- [The Sun Exchange:](https://sunexchange.com/) Leverages blockchain technology to allow individuals to purchase and lease solar panels. Since 2014, it has tokenized solar panel ownership down to a single solar cell. Users earn a predictable financial return from their solar panels paid out in cryptocurrency. 
- [AnkerPay:](https://ankerpay.com/) This startup’s point-of-sale API  integrates with pre-existing point-of-sale software, enabling merchants to accept Bitcoin and other cryptocurrencies. Merchants receive payments in their local currency, providing a comprehensive end-to-end solution. Currently, AnkerPay is in the process of integration with 3000 retail stores.  It was founded in 2019.
- [Helixa TCG:](https://www.helixatcg.com/)  A trading card game built on blockchain technology, offering players a rich and immersive world-building experience. Established in 2022, the game follows a free-to-play model and is crafted to empower players with ownership and control over their assets and royalties via a decentralized platform.

**Crypto Regulation is Driving the Web3 Investment Boom in Cape Town**

Unlike some African countries with a more restrictive stance on crypto, South Africa's regulatory framework provides a degree of certainty and clarity for Web3 startups. This allows them to operate with a clearer understanding of the legal landscape, fostering innovation and investment.

South Africa's Financial Sector Conduct Authority (FSCA) regulates cryptocurrency, which the country considers a financial product and taxable asset. In March, FSCA approved 59 operating licenses for cryptocurrency businesses in the country. Regulating the assets also gives the central bank's Financial Surveillance Department explicit powers to require South African crypto asset trading platforms to report transactions involving crypto assets.

Cape Town's position as a hub with a clear, yet adaptable, regulatory environment gives it a significant edge over other African cities with stricter regulations. This makes it a more attractive location for Web3 startups looking to scale their businesses and attract global investment. Web3 startups can test and develop new technologies without the immediate fear of regulatory roadblocks, fostering a more dynamic and innovative ecosystem.

The absence of a heavy-handed regulatory approach reduces the perceived risk for investors venturing into the Web3 space. This  makes Cape Town a more attractive destination for HNWIs and venture capitalists looking to invest in Web3 startups.

DISCLAIMER: The information in this content (website or other form) does not represent an offer or commitment to provide any product or service. The analysis, opinions and estimates expressed in this content are those of the respective authors, and may differ from those of EMURGO Africa and/or other EMURGO Africa employees and affiliates. Copying, re-publishing or using this material or any of its contents for any other purpose is strictly prohibited without prior written consent from EMURGO Africa. 


Cape Town’s Millionaires Grow,  Energizing Web3 

Cape Town’s Millionaires Grow,  Energizing Web3 Startups

EMURGO Africa

emurgoafrica

By [Ahmed Amer](https://www.linkedin.com/in/ahmed-m-amer-69654016/?ref=emurgo-africa-blog.ghost.io)  CEO, EMURGO Labs

Africa bears the brunt of climate change's devastating impacts despite contributing [only 4%](https://www.aljazeera.com/news/2023/9/4/how-much-does-africa-contribute-to-global-carbon-emissions?ref=emurgo-africa-blog.ghost.io#:~:text=Africa%20contributes%20just%204%20percent,the%20most%20from%20climate%20change.) to the crisis, according to the Global Carbon Budget. However, the continent is not a passive victim of climate change. It is actively taking steps to adapt and mitigate its impacts by developing renewable energy sources, building resilience and participating in the global carbon credit export market. 

The continent is witnessing a surge in climate-tech startups that tackle diverse aspects of the climate crisis. Based on current trends, there is strong evidence to suggest that Africa has the potential to become a major player in the global carbon credit market in 2024. For this edition, we are delving into London-based startup Changeblock that’s helping Africa solve the problem of low liquidity on carbon markets, lack of market standardization, complexity, price volatility, regulatory uncertainty, verification quality concerns and inability to access quality data. 

 **Key Takeaways:**

*   Climate change-related startups are increasing in Africa.
*   FOCUS: How Changeblock helps Africa grow its carbon credit market.
*   CEO’s Vision: Creating liquidity in the carbon market using Changeblock.
*   Big picture of Africa’s potential role as a big exporter of carbon credits.
*   How EMURGO Labs is helping Changeblock tokenize carbon credits and grow its business. 

1.  **Climate-smart Startups are Gaining Momentum in Africa**

Across Africa, a wave of ingenuity is rising to meet the challenges of our changing climate. Not through conventional means, but through a surge of vibrant climate-tech startups, tackling diverse aspects of the crisis with cutting-edge solutions. These ventures offer not just a shield against the storm, but the seeds of a resilient and sustainable future for the continent.

**6 Key Areas Where Startups Address Climate Change in Africa**

*   **Renewable Energy:** Startups are developing small-sized solar, wind, and hydro power plants for off-grid communities to alleviate a chronic electricity shortage. For instance, SunCulture in Kenya and Ghana provides solar-powered irrigation systems for farmers. There is also a rise in electric vehicle usage and growth of e-bike startups in Africa.
*   **Carbon Credits and Climate Finance:** Kenya, Zimbabwe, Tanzania, Uganda and Nigeria are among the African nations that have embarked on projects to protect and restore forests, generating carbon credits, while planning to give a part of the credit sales to local communities. 
*   **Carbon Capture and Storage:** Kenyan startups Climeworks and Octavia Carbon utilize DAC (Direct Air Capture) technology to directly capture carbon dioxide from the atmosphere using filters and chemical processes. The captured carbon dioxide can then be stored underground or utilized for various industrial applications. Carbon TerraFix (South Africa) focuses on mineralizing captured carbon dioxide through reactions with rocks, creating stable carbonate minerals for permanent storage. 
*   **Climate-Smart Agriculture:** Technologies like precision farming, drought-resistant crops, and digital platforms are aiding farmers in adapting to changing climates and enhancing food security. Zambia-based startup Zamgrow Farms, a hydroponics venture, provides a sustainable and water-efficient way to grow high-value crops, even in arid regions, offering income opportunities for peri-urban communities.
*   **Waste Management:** Solutions for efficient waste collection, recycling, and upcycling are addressing pollution and creating circular economies. Waste Labs in Rwanda transforms plastic waste into construction materials, creating sustainable alternatives and tackling plastic pollution. Kenya’s Biochar Project converts agricultural waste into biochar (carbon-rich material), enhancing soil fertility, carbon sequestration, and crop yields.
*   **Early Warning Systems (EWS):** AI-powered tools and sensor networks are being developed to predict weather events, floods, and droughts, enabling proactive disaster preparedness. SwiftAlert in Uganda provides mobile apps and SMS alerts to communicate real-time warnings and disaster preparedness information directly to communities, overcoming limited internet access. MeteoBLUE in Senegal, develops comprehensive EWS that integrate data on various hazards like floods, droughts, and storms. Akvo in Kenya Kenya utilizes sensor networks, drones, and AI to monitor weather patterns, predict floods, droughts, and landslides, and disseminate alerts to vulnerable communities.

**STARTUP FOCUS: How Changeblock is Helping Africa Develop A Sustainable Carbon Market** 

[Changeblock](https://changeblock.com/?ref=emurgo-africa-blog.ghost.io), a pioneer in environmental asset creation and exchange, aims to bridge the gap between sustainability initiatives and financial feasibility. Founded in early 2021 by Billy B. Richards and John Palmisano, it works like a green marketplace, connecting project developers who create environmental assets like carbon credits, sustainable fuels, and even responsible oil and gas projects with buyers looking to offset their emissions or invest in sustainability. 

The London-based startup empowers project developers by providing a secure platform to list and trade verified environmental assets like carbon credits, sustainable fuels, and even oil and gas credits. This connects them with buyers seeking to offset their emissions or invest in green solutions, streamlining transactions and fostering transparency. 

**Co-Founder Billy Richards: From Oxford Biochemist to Blockchain Pioneer**

Billy B. Richards, the CEO of Changeblock, is  a computational and molecular biochemistry virtuoso from Oxford. He has transcended the lab to become a tech titan in the realm of blockchain and digital products. This three-time founder, armed with a blend of technical, commercial, and scientific acumen, steers Changeblock towards a groundbreaking future. 

Beyond blockchain, Billy's expertise spans AI, legal tech, genetic diagnostics, and business consulting. He was Oxford's 2020 All Innovate winner, First Class Honors graduate, full scholarship recipient, and holder of the prestigious Titley and Moritz-Heyman Scholarships. A champion of climate finance and sustainable innovation, Billy's vision is to shape a better tomorrow for all.   

**What Challenge is Changeblock Solving? Billy Richards' Interview**

Many environmental projects struggle to attract sufficient funding due to perceived risks and lack of clear revenue streams. Legacy trading mechanisms can be cumbersome and expensive, hindering market participation and increasing transaction costs for both buyers and sellers. “The carbon market is dominated by firms with significant market experience thus putting a very high entry barrier on small businesses and individuals. There are immense regulatory hurdles,” Richards says.

Traditional carbon credit creation often relies on manual processes and limited data analysis, leading to potential inaccuracies and a lack of trust in the market. Changeblock utilizes advanced analytics to convert project data into high-integrity, tradable credits, ensuring transparency and building trust between buyers and sellers.

“When you want to trade the credits or environmental assets, you have a massive liquidity issue. The transactions normally take two to three months. There is also a prevalence of misinformation because accurate data is not available,” he explains. “The cumulative impact is that you have a time intensive process for creating assets and very limited market access and participation.”

The environmental asset market, encompassing carbon credits, sustainable fuels, and other green commodities, is currently fragmented and opaque. Buyers and sellers struggle to find each other and lack transparent information about projects and credit quality.

Differing carbon credit verification and accounting standards across countries and regions can create market fragmentation and complicate cross-border transactions.  Uncertainties about potential harmonization of these standards further complicate market operations and increase transaction costs.

“When it comes to trading, the problem gets even worse. There is a massive lack of market standardisations, there are lots of different standards, methodologies and verification processes in different jurisdictions. This creates unneeded complexity, price volatility and significant market risk exposure,” Richards expounds.

Frequent changes in regulations concerning carbon pricing, credit generation, and trading rules can make investors wary of long-term commitments in carbon credit projects. Uncertainties about future regulatory frameworks make it difficult for investors to assess the risks and potential returns of carbon credit investments, dampening enthusiasm. 

Uneven or lax regulations can create loopholes for projects with questionable environmental benefits (greenwashing) to enter the market, undermining trust in carbon credits as a genuine climate solution.

“There is regulatory uncertainty globally, verification quality concerns and inability to access quality data. So no one trusts the market,” Richards notes. “Most of our supplies come from Africa. There is no consistency on pricing but one plastic credit goes for $100 per tonne, nature-based assets fetch less than $10 a tonne while concrete assets may go up four figures.” 

**How the Changeblock Platform Works**

Built on the Cardano Blockchain protocol, the trading platform specializes in facilitating the exchange, settlement, and custody of environmental assets. Changeblock works with project developers to gather data, assess environmental impact, and tokenize verified credits. It utilizes advanced data analytics and modeling to validate the environmental impact of carbon mitigation projects, ensuring genuine credit generation. 

The blockchain platform functions as a secure marketplace where buyers and sellers can trade these tokenized credits with confidence. All transactions are recorded and immutably stored on the blockchain, providing complete traceability and auditability, eliminating concerns about double counting or fraud. 

Buyers can be confident they're purchasing genuine credits with verified impact, while sellers can ensure proper credit accounting and traceability. Tokenization and fractional ownership expand the pool of potential buyers and sellers, creating a more liquid and efficient market for carbon credits. This also allows for flexible purchase and trading.

Changeblock uses smart contracts to automate key aspects of the trading process. This eliminates paperwork, reduces transaction costs and minimizes fraud risks. By offering smart contracts and structured products, the startup makes it possible for large organizations to hedge their liabilities in the same way that other commodity traders do.

AI-powered risk management and real-time analytics provide crucial insights for trading decisions and support forward selling, thereby enhancing the depth of asset trading. 

Changeblock offers different environmental assets: voluntary carbon credits, compliance carbon credits, tax credits, methane credits. The value of these assets accrues as the sector expands.

Changeblock monitors the global carbon market, considering the current and projected demand for different types of credits from various sectors. They also factor in the availability of similar credits in the market to ensure competitive pricing. They adapt their pricing methods to comply with evolving regulations and regional markets, taking into account carbon pricing policies and emerging regional carbon markets in Africa.

The value of these assets accrues improves especially if credits are bought on discount. As companies keep investing in the market, the value accrues overtime. On the secondary market built on Changeblock, users can stake their assets and benefit by the increasing prices of carbon credits. Eenrst & Young predicts the price of one carbon credit will go up from $20 in 2022 to $150 by 2035.

 **The Big Picture: Africa As a Potential Exporter of Carbon Credits**

A carbon credit is a financial instrument that represents one ton of carbon dioxide removed from the atmosphere. Carbon credits are used in a trading mechanism called carbon offsetting, which allows entities to compensate for their greenhouse gas emissions.

The African continent sequesters vast quantities of carbon through its rainforests, peatlands, mangroves, grasslands and other habitats. The Congo Basin forest is the world's largest carbon sink, absorbing more carbon than the Amazon. It stores around 29 billion tons of carbon, which is equivalent to three years' worth of global greenhouse gas emissions. It also absorbs nearly 1.5 billion tons of carbon dioxide a year. 

While efforts to monetise these nature-based carbon removal services are still very nascent, Africa's vast natural resources and unique challenges position it as a potential powerhouse in the global carbon credit market. Rising carbon prices, increasing market demand, and international support are bolstering Africa's position. 

Touted as a game-changer at COP27, the UN-backed consortium African Carbon Market Initiative (ACMI) envisions a 19-fold increase in carbon credits by 2030, reaching a staggering 300 million credits annually. This translates to over 600,000 jobs and [$600 million](https://www.france24.com/en/africa/20230905-kenya-bets-on-carbon-credits-as-it-hosts-african-climate-summit?ref=emurgo-africa-blog.ghost.io) in yearly revenue for Kenya alone, AFP reported.  But ACMI reckons that Africa uses just 2% of its annual carbon-credit potential. It projects that Africa could sell $100 billion worth of credits a year by 2050. 

ACMI aims to unlock some $6 billion in revenue and create 30 million jobs in Africa by 2030 through carbon credits, and is already working with countries like Kenya, Nigeria, Malawi, Gabon, Togo, Mozambique, Rwanda and Burundi.

Currently, Africa accounts for 13% of global production of carbon credits, according to RippleNami Inc., a California-based data company. While the price of one carbon credit in Europe and the US ranges from $80 to $140, according to the agency, Democratic Republic of Congo president Felix Tshisekedi called for a carbon credit floor price of at least $100 per ton of carbon dioxide last year. The current average price is $5. 

Africa’s renewable energy potential also positions it as the future carbon credit destination. Abundant sunshine, wind, and geothermal resources offer Africa the opportunity to transition away from fossil fuels, further reducing emissions.

African countries are also establishing and regulating their own carbon markets, creating frameworks for carbon credit transactions and attracting international investment.

Technological advancements in the form of carbon tokens on blockchain protocols, remote sensing and monitoring technologies are improving verification of carbon credits, making African projects more attractive to buyers.

**How EMURGO Labs is helping Changeblock Tokenize Carbon Credits**

EMURGO Labs, a blockchain solutions provider within the Cardano ecosystem, is playing a crucial role in aiding Changeblock's efforts to tokenize carbon credits. 

Last August , EMURGO Africa, invested $250,000 in Changeblock to help the company revolutionize the carbon trading landscape by leveraging the power of blockchain technology.  

“Together with ChangeBlock, we hope to bring the world’s regulators, business leaders, and global changemakers to foster and double down on their commitment to a global net zero strategy that is both economically viable and monetizable,” Ahmed M. Amer, CEO of EMURGO Labs said at the time. 

EMURGO Labs leverages its expertise in blockchain technology to tokenize carbon credits onto the Cardano blockchain. This creates fractionalized digital representations of each credit, making them more easily divisible, tradable, and accessible to a wider investor base on the Changeblock platform. Tokenized carbon credits can be traded efficiently on decentralized exchanges (DEX), providing greater liquidity and faster transaction settlement compared to traditional carbon credit markets. 

Changeblock leverages the Cardano blockchain, known for its security, scalability, and commitment to sustainability. The proof-of-stake consensus mechanism minimizes energy consumption while ensuring rapid transaction processing, ideal for high-volume carbon credit trading. 

The startup also benefits from Cardano's robust smart contract capabilities which enable automated credit issuance, verification, and trade settlement. This  reduces operational costs and increases market transparency. These contracts govern the issuance, transfer, and retirement of carbon credits in a secure and auditable manner.

* * *

DISCLAIMER_: The information in this content (website or other form) does not represent an offer or commitment to provide any product or service. The analysis, opinions and estimates expressed in this content are those of the respective authors, and may differ from those of EMURGO Africa and/or other EMURGO Africa employees and affiliates. Copying, re-publishing or using this material or any of its contents for any other purpose is strictly prohibited without prior written consent from EMURGO Africa._

How EMURGO Labs is Navigating Africa into Carbon Credit Tokenization Header 1600 800

STARTUP FOCUS: Africa to Be Big Carbon Credit Exporter - the Case of Changeblock

_By_ [_Shogo Ishida_](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/?ref=blog.emurgo.africa)_,_ [_Yosuke Yoshida_](https://www.linkedin.com/in/yosuke-yoshida-82754b159/?ref=blog.emurgo.africa) _**Co-CEOs, EMURGO Africa**_

<div class="centered">

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</div>

The Web3 business in Morocco is in a state of flux. While the public interest in crypto is surging in Africa’s [fifth biggest economy](https://africa.businessinsider.com/local/markets/african-giants-the-10-largest-economies-on-the-continent/1w6srcq?ref=blog.emurgo.africa), the official stance remains ambiguous, presenting both obstacles and potential opportunities. A proposed draft law offers a glimmer of hope for future development, but its details and implementation timeline will be crucial factors.

**Key Takeaways**

1.  Morocco has made attempts to officially introduce laws to govern crypto trade.
2.  Crypto industry is recording enormous growth despite regulatory hurdles.  

**Morocco is Making Efforts to Regulate its Web3 Industry** 

Morocco was the first North African country to ban cryptocurrency. In 2017, the Moroccan central bank known as the Bank Al-Maghrib (BAM), cited significant risks for users when it placed a permanent ban.  However, in 2022, the Moroccan government exhibited strong efforts at creating a regulatory framework for crypto business in the country. Here’s how the central bank has been warming up to regulation:

**March 2022:** Moroccan officials [reportedly contact](https://news.bitcoin.com/report-morocco-central-bank-discusses-crypto-regulation-best-practices-with-imf-and-world-bank/?ref=blog.emurgo.africa) the International Monetary Fund (IMF) and the World Bank and the central banks of Sweden, France and Switzerland to investigate their experiences and methods used to regulate crypto-related activities. This signals a potential shift from a complete ban to a more nuanced approach.

**June 2022:** BAM [announces plans](https://cryptonews.net/news/legal/8704249/?ref=blog.emurgo.africa) to unveil a Cryptocurrency Regulation Bill. This marks a turnaround from the hardline stance that Morocco had taken against crypto trade. BAM says it will work with the World Bank and IMF to do so.

**August 2022:** Morocco’s capital markets regulator, the Moroccan Capital Authority (AMMC) [announces plans](https://www.ammc.ma/en/actualites/press-release-ammc-launches-its-fintech-portal?ref=blog.emurgo.africa) to launch a fintech portal on its website to “support market players in their projects and promote the development of new technologies that will help transform the financial sector.” This signals the regulator’s willingness to embrace innovations within the financial services industry, including cryptocurrencies.

**December 2022:** During a press conference, central bank governor Abdellatif Jouahiri [announces that](https://www.moroccoworldnews.com/2022/12/353154/moroccos-central-bank-says-crypto-regulating-draft-law-is-ready?ref=blog.emurgo.africa) work on creating a crypto regulatory framework is now complete. A crypto bill is expected to be presented to fintech stakeholders. “For cryptocurrencies, I can assure you that the project is ready. We worked with the World Bank…to make it happen,” he said.

While Morocco still officially bans cryptocurrencies, the government is actively exploring ways to Morocco them. This could create a more open and secure environment for crypto users in the future. However, the exact timeline and specifics of the regulations remain uncertain. 

This North African nation’s journey in the realm of crypto regulation is indicative of a broader global trend, where countries are increasingly acknowledging the importance of integrating and regulating cryptocurrencies. 

Morocco’s approach in 2024 is expected to demonstrate a commitment to harnessing the potential of digital currencies while addressing the associated risks and uncertainties.  This year, Morocco’s cryptocurrency regulation is expected to focus on four key areas:

*   **Official recognition:** Cryptocurrencies could transition from banned assets to legally recognized entities within the financial system.
*   **Consumer safeguards:** Measures to protect users from fraud, scams, and market volatility are likely to be implemented.
*   **Financial security:** Anti-money laundering (AML) protocols will aim to curb illicit activities involving cryptocurrencies.
*   **Innovation hub:** Fostering a supportive environment for fintech companies specializing in digital currencies is anticipated.  

**Morocco’s Crypto Industry Soldiers on Despite Regulation Hurdles**

While there's no formal recognition or regulation, the crypto industry in Morocco is experiencing growth through several channels.

**Indicators of Growth:**

*   **High Adoption Rate:** Despite the ban, Morocco ranks among the top 20 countries globally in cryptocurrency adoption. After Nigeria, Chainalysis ranks Morocco as the second country with the highest crypto adoption rate in Africa in its 2023 report. According to a study by finance website Insider Monkey, Morocco demonstrates a significant interest in cryptocurrencies, [ranking](https://www.insidermonkey.com/blog/20-countries-that-use-crypto-and-bitcoin-the-most-1194194/?ref=blog.emurgo.africa) 13th on the list. As of 2022, 4.9% of the total population (1.9 million people) owned some form of cryptocurrency. This suggests widespread interest and usage despite legal restrictions. 
*   **Peer-to-Peer Trading:** While official exchanges are absent, peer-to-peer (P2P) trading platforms flourish, showcasing ongoing activity and demand for crypto. Morocco’s crypto transaction volumes rose by 120% in 2022, according to Chainalysis. In 2023, Morocco had the highest crypto transaction value in North Africa.

![](//images.ctfassets.net/vmoowpwj5a39/YgJIa4c808LrqfOQdI1lp/18980216ca49ffed9e7293efc00c6b1d/cRqYkhlCT2A3nKMP-q09h_x7t8ZhjkS-mwoYe-Zqv-MXt24a0W46lJkGKCom8dWb8gL6wTqkJOv9Y8kiMAtxj-L4bC3nZAOCRs1LPVC-ycpbY2XChcEcDT2f37IxkOZ-)

*   **Startup Presence:** Morocco boasts a growing number of fintech startups focused on blockchain and crypto-related solutions, indicating entrepreneurial interest in the space in recent years. Some of these startups include: 
*   [**Coineium:**](https://tracxn.com/d/companies/coineium/__Zh1wa7OE5dEdNWLpiWJPwXL_D6mBE_-_LSUVzExiyYE?ref=blog.emurgo.africa) Offers a decentralized payment network and cryptocurrency. It features a hybrid system enabling users to engage in trading, exchanging, and investing in its digital currency, which can also be utilized for online payments. The platform includes a decentralized trading and exchange interface equipped with built-in trading tools.
*   [**Soluna:**](https://www.solunacomputing.com/?ref=blog.emurgo.africa) Integrates blockchain to streamline energy transactions, enhance security, and ensure transparency. It uses smart contracts to facilitate energy transactions between various stakeholders.
*   [**ShellBoxes:**](https://shellboxes.com/?ref=blog.emurgo.africa) It offers blockchain security and development services such as smart contract development and audit, decentralized application (dApp) security and NFT development and integration.
*   [**Riad Money:**](https://tracxn.com/d/companies/riad-money/__vvvYw_Ja3bQsSXyz-Omt4M3clR_2Z8Fe5iryDrp4Tvc?ref=blog.emurgo.africa) This is an online cryptocurrency trading and investment platform. It empowers users to engage in trading and investment activities with various digital assets through connections with diverse financial brokers.
*   [**Cryptazar:**](https://tracxn.com/d/companies/cryptazar/__vynvSVIqHmjfMJQD03k99K_HQyUKY0LYwwjpgMbZxvo?ref=blog.emurgo.africa) An automated cryptocurrency trading platform, enabling users to execute purchase and sale transactions at a bank-level standard through advanced trade algorithms. It facilitates transaction monitoring through graphical representation and assesses performance throughout the trading process.
*   [**Atlas Crypto Trade:**](https://www.cryptoatlas.io/?ref=blog.emurgo.africa) Delivers solutions for digital asset trading, presenting a robot trading platform designed for the automated execution of cryptocurrency asset trades. The platform extends services encompassing training in cryptocurrency asset trading, crypto-crowding, and dropshipping.
*   [**Mimosa:**](https://tracxn.com/d/companies/mimosa/__aMTQPWLbqSzixw8xQJDNHEcvEIqcWJtWEpFONniFq7s?ref=blog.emurgo.africa) Provides a platform for users to mint their own NFTs, allowing them to create and tokenize digital assets like artwork, music, collectibles, and even games. The platform is also a marketplace for users to buy, sell, and trade their NFTs.
*   [**Chari:**](https://chari.io/?ref=blog.emurgo.africa#/) A mobile payment platform that allows users to buy and sell cryptocurrencies. It offers a range of services, including mobile payments, bill payments, and airtime top-ups. 

In 2022, Morocco was chosen as the official annual host of the Gitex Africa tech summit, holding the [first exhibition](https://www.gitexafrica.com/Post.aspx?id=14163&ref=blog.emurgo.africa#:~:text=The%20inaugural%20Gitex%20Africa%20will,in%20its%2042%2Dyear%20history.) in May 2023. At the event, panel discussions were held on general tech and blockchain-based technologies such as cryptocurrencies, NFT and decentralized finance. 

The next gathering is scheduled for May 29-31 in Marrakech, and this further signals the country’s growing interest and commitment to exploring the potential of Web3 technologies. It also elevates its position on matters Web3 in Africa. 

* * *

DISCLAIMER: The information in this content (website or other form) does not represent an offer or commitment to provide any product or service. The analysis, opinions and estimates expressed in this content are those of the respective authors, and may differ from those of EMURGO Africa and/or other EMURGO Africa employees and affiliates. Copying, re-publishing or using this material or any of its contents for any other purpose is strictly prohibited without prior written consent from EMURGO Africa.

moroccos-crypto-thrives-amid-regulation-uncertainty

Morocco’s Crypto Thrives Amid Regulation Uncertainty

major-us-web3-players-tap-africas-payment-space

Major US Web3 Players Tap Africa’s Payment Space

defi-neobanks-exchanges-lure-biggest-vc-money-inside-nigerias-web3

DeFi, Neobanks, Exchanges Lure Biggest VC Money: Inside Nigeria’s Web3

_By_ [_Shogo Ishida_](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/?ref=blog.emurgo.africa)_,_ [_Yosuke Yoshida_](https://www.linkedin.com/in/yosuke-yoshida-82754b159/?ref=blog.emurgo.africa) _**Co-CEOs, EMURGO Africa**_

[![](//images.ctfassets.net/vmoowpwj5a39/2GpfCxNN0FbBm47EzlWqBN/afd3654f02465f5bf3fc3b3e1ef0e325/TIt-rrhZmD71OBLtYKpAylFzMcsp5yZIBGYgvhTA7WyLA-Lia6oKC37RywLJWc9E8rHAzN9GlVhfM0e09NnoaqrPE9c7paoEay8XviVbw5tuWlNanAgzLThfUh7J_Xjt)](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/?ref=blog.emurgo.africa)

[![](//images.ctfassets.net/vmoowpwj5a39/4P3H4FOqqM356ZZRh4bgS3/1d28e0ecfab5cbf428d5ddaf8b4e02cd/dim6giPftcCoIq11D_5csluWJjCOm1LKO7RBSh4bmsBiw9iNWFHcd1cDMVhjSg1ir_kK7c7pFqmz7mNivNmvavcZviHE74cJeQS0L5WXaHfFk7Ig_VBTzgGk5GuGZtSs)](https://www.linkedin.com/in/yosuke-yoshida-82754b159/?ref=blog.emurgo.africa)

Nigeria's Web3 market is brimming with promise. A growing number of Nigerians searching for a new store of value in the unhealthy economy, and a large, young and tech-savvy population position it for significant growth of its crypto market. However, addressing regulatory ambiguity will be crucial for unlocking the full potential of this exciting market in 2024.

**Key Takeaways**

1.  Nigerian policymakers rush to crafting regulations after taking a precautionary stance. 
2.  Nigeria’s crypto market is expanding fastest in Africa.
3.  Young, tech-savvy population totals 60 million, fueling crypto adoption. 
4.  Stablecoin is becoming a dominant store of value for retail investors in Nigeria.

  
**1\. Crypto Regulation in Nigeria is Moving at a Faster Pace**

Crypto regulation in Nigeria is picking up the pace. It's been a dynamic journey with twists and turns, but recent developments signal a potential shift towards a more defined framework.

Previously:

*   2021: The Central Bank of Nigeria (CBN) sent shockwaves through the crypto community by barring commercial banks from facilitating cryptocurrency transactions. This move aimed to curb money laundering and terrorism financing concerns associated with the nascent crypto scene.
*   Uncertainties: The lack of specific regulations left the industry in a gray area, creating challenges for businesses and investors. However, individual crypto ownership and trading remained legal.

Now:

*   Regulatory Framework Taking Shape: The Nigeria Securities and Exchange Commission (SEC) stepped in to fill the regulatory void. In 2022, the commission issued "[Rules on Offering Platforms and Custody of Digital Assets](https://sec.gov.ng/wp-content/uploads/2022/05/Rules-on-Issuance-Offering-and-Custody-of-Digital-Assets.pdf?ref=blog.emurgo.africa) (pdf)," providing guidelines for crypto exchanges and custodians.
*   Taxation: The [Nigerian Finance Act 2023](https://www.pwc.com/ng/en/assets/pdf/nigeria-finance-act-2023.pdf?ref=blog.emurgo.africa) (pdf) further solidified crypto's presence by imposing a 10% capital gains tax on crypto transactions. This move acknowledges crypto as a legitimate asset class for tax purposes.
*   CBN's Softening Stance: While the CBN maintains its cautious approach, it recently [issued guidelines](https://www.reuters.com/world/africa/nigerian-central-bank-lifts-ban-crypto-trading-2023-12-23/?ref=blog.emurgo.africa) allowing licensed fintech companies and banks to provide payment services for digital currency exchanges. This signals a potential thaw in the relationship between regulators and the crypto industry.

Future Outlook:

*   Continued Evolution: We can expect the regulatory framework to evolve further, with the CBN and SEC likely collaborating to establish a comprehensive set of rules.
*   Focus on Innovation and Consumer Protection: Striking a balance between fostering innovation and protecting consumers from financial risks will be a key priority for regulators.
*   Global Trends: Nigeria's approach to crypto regulation will likely be influenced by international developments and best practices in the US, Europe and China. 

Overall, the Nigerian crypto scene is on the cusp of an exciting new chapter. With a more defined regulatory environment on the horizon, the country is poised to attract further investment and drive innovation in the Web3 space. It's important to remember that regulations are still evolving, and staying informed of the latest updates is crucial for anyone involved in the Nigerian crypto market.

2.  **Nigeria’s Crypto Market is Expanding Fastest in Africa**

There's strong evidence to suggest that Nigeria's crypto market is indeed expanding faster than any other in Africa. Here are some key points to support this:

Transaction Volume:

*   Chainalysis Report: A September 2023 [report by Chainalysis](https://www.chainalysis.com/blog/africa-cryptocurrency-adoption/?ref=blog.emurgo.africa), a prominent blockchain research firm, revealed that Nigeria's crypto transaction volume grew by 9% year-over-year, reaching $56.7 billion between July 2022 and June 2023. This impressive growth rate outpaces that of other major African crypto markets like South Africa, Kenya, Mauritius, Ghana and Tanzania.

![](//images.ctfassets.net/vmoowpwj5a39/zbieqg2H2Vm48EWShlztO/7892db56bc2378df9152aacd79cbe08f/qKsbUUrM_VQr1cEX0IJsHXH3gnYt-pjr-rRl_7TtQPfSyX1l5e72lQUTAPWMoudGCM6hirUMCd58FQZF8CGBmZK13vRzGd3jSIrX75n2f91qkRONO7oIbGw7XwE4ApuH)

SOURCE: CHAINALYSIS

*   Paxful Data: Paxful, a peer-to-peer crypto exchange platform, consistently reports Nigeria as its top African market. As of October 2023, Nigeria accounted for over 60% of Paxful's trading volume in Africa, further highlighting its dominance.

Market Drivers:

*   Economic Challenges: Nigeria's struggling economy, with its weakening currency and high inflation, has pushed citizens towards alternative currencies like Bitcoin and US dollar-pegged stablecoins. These offer perceived advantages like inflation-hedging and potential for financial returns.
*   High Web3 Awareness: [Survey results](https://consensys.io/insight-report/web3-and-crypto-global-survey-2023?ref=blog.emurgo.africa) released in September by US blockchain software firm Consensys and British data analytics company YouGov featuring respondents from 15 countries indicate that Nigeria has the [most cryptocurrency-aware population](https://cointelegraph.com/news/99-of-nigerians-are-crypto-aware-consensys-report?ref=blog.emurgo.africa) in the world at 99%. This beats developed economies like the United Kingdom, the United States, Japan and Germany. The global average is 92%.
*   Regulatory Progress: While still evolving, Nigeria's recent regulatory steps like the SEC's digital asset framework and the CBN's Virtual Asset Service Provider (VASP) guidelines offer a degree of clarity and encourage responsible growth within the crypto market.

Comparison with other African markets:

*   While South Africa boasts a more developed financial infrastructure and larger crypto market size, its growth rate lags behind Nigeria's.
*   Kenya still enjoys a significant crypto market presence, but its recent decline in activity, potentially due to regulatory uncertainty, further strengthens Nigeria's position as the fastest-growing market.

It's important to note that the crypto market remains dynamic and volatile, and future growth trajectories could shift. However, based on current trends and available data, Nigeria's claim to the title of Africa's fastest-growing crypto market seems well-founded.

3.  **Nigeria’s young, tech-savvy population is fueling crypto adoption**

Nigeria boasts a young and tech-savvy population which enjoys a high smartphone penetration rate. Nigerian aged between 18 and 34 constitute [26.6% of the population](https://datareportal.com/reports/digital-2022-nigeria?ref=blog.emurgo.africa). For a current population of 226.7 million people, that translates to 60.3 million youths, which is higher than the entire populations of many countries. Even so, the median age in Nigeria is [17.2 years](https://www.worldometers.info/demographics/nigeria-demographics/?ref=blog.emurgo.africa#:~:text=The%20median%20age%20in%20Nigeria%20is%2017.2%20years%20(2023).) compared to a continental median age of [19 years.](https://www.wilsoncenter.org/blog-post/africas-median-age-about-19-median-age-its-leaders-about-63?ref=blog.emurgo.africa) This means Nigeria will keep dominating Africa’s crypto scene in coming decades.

This creates a fertile ground for adoption of mobile-based crypto applications and services. Here’s how:

*   Tech-acquisitiveness: Nigeria has the [highest smartphone penetration rate in Africa](https://www.trustonic.com/opinion/what-are-the-barriers-to-smartphone-expansion-across-africa/?ref=blog.emurgo.africa#:~:text=In%20certain%20regions%20of%20Africa,all%20nations%20on%20the%20continent.), with over 40% of the population owning smartphones. Statista forecasts this will grow to 66% or more than [140 million by 2025.](https://www.statista.com/statistics/467187/forecast-of-smartphone-users-in-nigeria/?ref=blog.emurgo.africa)This tech-savviness makes Nigerians more receptive to new technologies like cryptocurrencies.
*   High internet usage: Nigeria boasts the largest internet user base in Africa, with [over 120 million users.](https://www.statista.com/statistics/1176087/number-of-internet-users-nigeria/?ref=blog.emurgo.africa#:~:text=As%20of%20January%202023%2C%20Nigeria,used%20by%20the%20publisher%20change.) This widespread internet access allows young Nigerians to easily access information about cryptocurrencies and participate in the crypto market.
*   Search for alternative investments: With inflation hovering [around 29%,](https://www.thecable.ng/breaking-rising-food-costs-push-nigerias-inflation-rate-to-28-9?ref=blog.emurgo.africa#:~:text=The%20consumer%20price%20index%20(CPI,percent%20in%20the%20previous%20month.) Nigerians are looking for alternative investments to hedge against inflation and grow their wealth. Cryptocurrencies, despite their volatility, offer the potential for high returns, [attracting young Nigerians.](https://businessday.ng/technology/article/crypto-vs-stock-in-nigeria/?ref=blog.emurgo.africa)
*   Entrepreneurial spirit: Nigerians are known for their entrepreneurial spirit and willingness to take risks. This has made them embrace new technologies like cryptocurrencies and stablecoins as they see them as potential opportunities.

Impact of the young population on crypto adoption:

*   Increased trading volumes: Nigeria has one of the highest cryptocurrency trading volumes in Africa, with young people making up a significant portion of the traders. According to a [CoinMarketCap 2020 report](https://blog.coinmarketcap.com/2020/05/01/crypto-market-trends-user-trends-according-to-coinmarketcap-q1-2020-edition/?ref=blog.emurgo.africa) on cryptocurrency adoption Nigeria recorded 210.6% growth in young crypto users.
*   Rising popularity of DeFi: Decentralized finance (DeFi) applications are gaining traction among young Nigerians, who are attracted to the potential for earning passive income and participating in a permissionless financial system.
*   Growth of crypto startups: The Nigerian crypto space is seeing a boom in startups, catering to the needs of young crypto enthusiasts. These startups are developing innovative products and services, such as crypto wallets, exchanges, and educational platforms.

**4\. Stablecoins are Becoming Dominant a Store of Value for Retail Investors**

In the dynamic Nigerian crypto scene, stablecoins are rapidly emerging as the preferred tokens for retail investors. 

But why are these US dollar-pegged digital currencies stealing the show? 

*   Hedging Against Inflation: Nigeria's inflation rate, currently hitting a [27-year high](https://www.bloomberg.com/news/articles/2024-01-15/nigeria-inflation-rate-climbs-to-27-year-high-on-transport-costs?sref=P6Q0mxvj&ref=blog.emurgo.africa), is a major concern for citizens. Traditional savings accounts offer meager returns that are easily eroded by inflation. Stablecoins provide a safe haven for investors seeking to preserve the value of their savings. With the Naira’s value also [plunging against the US dollar](https://newscentral.africa/naira-plunges-to-%E2%82%A61300-per-dollar-at-parallel-market/?ref=blog.emurgo.africa), losing [47% of its value](https://www.xe.com/currencycharts/?from=NGN&to=USD&ref=blog.emurgo.africa) in the past 12 months, stablecoins are becoming a better alternative. 

![](//images.ctfassets.net/vmoowpwj5a39/5oSZyPpRr7Q6Cvhh7OsBQh/5a23604e45a21e9017933f06edbcd8f4/fuo0N6-7LbPNLmiJCanTH5-YQDXA54dnL8PnfPsGPSe0XG9hlRvstL9E6lCCK5Ki7izndmK0NoCKl7LzefCxA4y2HgE0Sl8fE1fRauvcCT4R92bl9vFUgiPbgDBiRRHN)

SOURCE: Xe Currency Data, Nigeria

*   Lower Transaction Fees: Compared to volatile cryptocurrencies like Bitcoin, stablecoins boast significantly lower transaction fees. This makes them ideal for everyday transactions and micro-payments, attracting retail investors who want to utilize crypto for daily purchases.
*   Gateway to DeFi: Decentralized finance (DeFi) applications are revolutionizing financial services, enabling users to lend, borrow, and earn interest without intermediaries. Stablecoins like Tether (USDT), USD Coin (USDC), and Binance USD (BUSD) act as the lifeblood of DeFi, allowing Niger
*   ians to participate in these innovative financial products.
*   Ease of Use and Stability: Stablecoins offer a familiar experience for users accustomed to traditional fiat currencies. Their price stability makes them less intimidating for new investors compared to the often-volatile world of other cryptocurrencies.
*   Cross-border Payments: Stablecoins can facilitate faster and cheaper cross-border payments compared to traditional money transfers. This is particularly beneficial for Nigerians who receive remittances from abroad or conduct international business.

In accordance with a circular issued by the Central Bank of Nigeria in December, a collaborative effort involving Nigerian banks, fintech firms, and blockchain companies is underway to [create a stablecoin named cNGN](https://www.forbes.com/sites/digital-assets/2023/12/27/nigerian-banks-set-to-launch-compliant-naira-stablecoin-in-2024/?sh=30c202108484&ref=blog.emurgo.africa) for the Naira this year.

Anticipated to uphold the standard features found in prominent stablecoins in Nigeria such as USDT, the cNGN token is designed to possess interoperability features with various public blockchains and compete in the market. This capability will enable it to broaden its functionality beyond Nigeria, facilitating smooth global transactions.

The growing popularity of stablecoins is fueling a wave of innovation in the Nigerian crypto space. Startups are developing:

*   Stablecoin-based payment platforms which  allow users to pay for goods and services using stablecoins, promoting wider crypto adoption.
*   Stablecoin-powered micro-lending platforms that offer small loans to underbanked Nigerians using stablecoins as collateral, fostering financial inclusion.
*   Yield-generating stablecoin investment products that allow investors to earn passive income on their stablecoin holdings, further boosting their appeal.

_DISCLAIMER: The information in this content (website or other form) does not represent an offer or commitment to provide any product or service. The analysis, opinions and estimates expressed in this content are those of the respective authors, and may differ from those of EMURGO Africa and/or other EMURGO Africa employees and affiliates. Copying, re-publishing or using this material or any of its contents for any other purpose is strictly prohibited without prior written consent from EMURGO Africa._

inside-nigerias-web3-market-crypto-outlook-and-regulations

Inside Nigeria’s Web3 Market: Crypto Outlook and Regulations

> _By_ [_Shogo Ishida_](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/?ref=blog.emurgo.africa)_,_ [_Yosuke Yoshida_](https://www.linkedin.com/in/yosuke-yoshida-82754b159/?ref=blog.emurgo.africa) _**Co-CEOs, EMURGO Africa**_

[![](//images.ctfassets.net/vmoowpwj5a39/2GpfCxNN0FbBm47EzlWqBN/afd3654f02465f5bf3fc3b3e1ef0e325/TIt-rrhZmD71OBLtYKpAylFzMcsp5yZIBGYgvhTA7WyLA-Lia6oKC37RywLJWc9E8rHAzN9GlVhfM0e09NnoaqrPE9c7paoEay8XviVbw5tuWlNanAgzLThfUh7J_Xjt)](https://www.linkedin.com/in/shogo-mubarak-oluwasegun/?ref=blog.emurgo.africa)

[![](//images.ctfassets.net/vmoowpwj5a39/4P3H4FOqqM356ZZRh4bgS3/1d28e0ecfab5cbf428d5ddaf8b4e02cd/dim6giPftcCoIq11D_5csluWJjCOm1LKO7RBSh4bmsBiw9iNWFHcd1cDMVhjSg1ir_kK7c7pFqmz7mNivNmvavcZviHE74cJeQS0L5WXaHfFk7Ig_VBTzgGk5GuGZtSs)](https://www.linkedin.com/in/yosuke-yoshida-82754b159/?ref=blog.emurgo.africa)

Africa’s Web3 landscape keeps evolving, and new trends are fast molding its future. As 2024 kicks off, Web3 developments of the past year will have an immense impact on decisions made by all industry players this year. 

_This edition will take you 6 minutes to read._

Key Takeaways

1.  **Nigeria amplifies its crypto adoption rate.**
2.  **African governments step up efforts to regulate crypto.**
3.  **Blockchain began solving some of Africa’s toughest challenges.**
4.  **Web3 startups lure all-time high VC investment before 2023 slowdown.**
5.  **Nigeria finally allows banks to process crypto transactions.**

### Nigeria is No.1 Web 3 Market in Africa

The [Chainalysis 2023 crypto report](https://www.chainalysis.com/blog/2023-global-crypto-adoption-index/?ref=blog.emurgo.africa) released in September revealed that between July 2022 and June 2023, Sub-Saharan Africa received an estimated $117.1 billion in on-chain value. A huge chunk of this amount, over $55 billion, went to Nigeria, Africa’s biggest economy. The survey affirmed that Nigeria continues to be Africa’s leading crypto market and now has the second highest crypto adoption rate in the world after India. Indeed, a [ConsenSys report](https://consensys.io/insight-report/web3-and-crypto-global-survey-2023?ref=blog.emurgo.africa) published in June showed Nigeria [leads the world](https://technext24.com/2023/06/27/consensys-reveals-nigeria-leads-the-way/?ref=blog.emurgo.africa) in crypto awareness. Africa’s most populous nation, Chainalysis said, is one of only six countries in the top 50 globally whose crypto transaction volume grew year-over-year.

![](//images.ctfassets.net/vmoowpwj5a39/5yfLdyWDnwANSfqx9l716Z/fe3cb51d85c5a7247131f706dcfd6896/Sb4hGzlsYCxoK48f3PlFjDu74DFU8SThC0xXf-ST1CiPiPcy4kInlT6-gEp7uC9alCAKFQsTvr--8EhOM8FmFpDWaDwiWDMi3-VH8XFWzSCfWthResQgS1ozUDUtQlIx)

SOURCE: CHAINALYSIS

A higher crypto adoption in Nigeria in 2023 stems from the fact that the local currency, Naira, has been plummeting against the US dollar, encouraging a parallel forex market which further hurts the strength of the Naira. The Central Bank of Nigeria [redesigned the currency](https://africa.businessinsider.com/local/lifestyle/5-interesting-reasons-the-nigerian-currency-was-redesigned-according-to-cbn/2czww16?ref=blog.emurgo.africa) in 2022 to curb counterfeit currency, reduce the number of banknotes in circulation while pushing for a cashless economy, according to Business Insider. However, the AP reported, this created a [cash shortage](https://apnews.com/article/technology-nigeria-government-africa-79af9efa63c7f7d41913f4f8bb63db5f?ref=blog.emurgo.africa) in 2023, in an economy that predominantly is cash-centric. This meant people could not pay for basic goods, opening another opportunity for cryptocurrencies. 

At least [10 business ventures](https://www.nigeriabitcoincommunity.com/nigeria-bitcoin-stores/?ref=blog.emurgo.africa) in Nigeria currently accept bitcoin payments.  In no country in Africa is bitcoin more dominant than in Nigeria, as it makes up the biggest share of transaction volume. Residents in the country are turning to bitcoin and stablecoins as an alternative store of value and a cushion against inflation and a plunging Naira. Trading Economics data shows Nigeria’s inflation rate climbed to 28.9% in November 2023. [Bloomberg reporte](https://www.bnnbloomberg.ca/nigeria-s-naira-slumps-23-to-record-low-amid-dollar-shortage-1.2009765?ref=blog.emurgo.africa#:~:text=Nigeria's%20Naira%20Slumps%2023%25%20to%20Record%20Low%20Amid%20Dollar%20Shortage,-Emele%20Onu%2C%20Bloomberg&text=The%20Nigerian%20naira%20plunged%20to,the%20government%20to%20boost%20supply.)d that the naira plunged by 23% to a historical low of 1,099 naira per dollar in December 2023 as dollar shortage persists. 

### Governments Rush for Lawmaking to Govern Crypto Trade

In 2023, Namibia, Kenya, Ghana and South Africa embarked on legislation to govern crypto trade in their jurisdictions, paving the way for more Web3 investment.

Namibia in July officially approved [the licensing of crypto platforms](https://techcabal.com/2023/07/26/namibia-crypto-law/?utm_source=techcabal.beehiiv.com&utm_medium=newsletter&utm_campaign=coup). Though this doesn’t mean crypto is legal tender just yet, but the Namibia Virtual Assets Act of 2023 now mandates all crypto platforms in the country to hold a license before they can operate.

In August, Kenya’s parliament asked the Blockchain Association of Kenya to [come up with](https://cointelegraph.com/news/kenyan-lawmakers-blockchain-association-crypto-bill?ref=blog.emurgo.africa) a crypto bill to regulate the industry. Now a [$20 billion](https://techcabal.com/2023/11/07/blockchain-association-of-kenya-to-draft-crypto-laws/?ref=blog.emurgo.africa) crypto market, in December, parliament [advanced efforts](https://www.businessdailyafrica.com/bd/economy/mps-launch-law-changes-for-cryptocurrencies-taxation--4453042?ref=blog.emurgo.africa) to set up a crypto law in 2024.  This followed Kenya’s [suspension](https://www.thecitizen.co.tz/tanzania/news/east-africa-news/kenya-suspends-worldcoin-crypto-over-privacy-concerns-4324246?ref=blog.emurgo.africa) of Sam Altman-founded crypto startup Worldcoin over data privacy concerns.

In October, the Ghanaian central bank, also known as Bank of Ghana (BOG) hosted a [12-week hackathon](https://news.bitcoin.com/bank-of-ghana-launches-hackathon-to-explore-various-use-cases-of-cbdc/?ref=blog.emurgo.africa), allowing fintech startups, developers and innovators to develop solutions that explore various use cases of a Central Bank Digital Currency (CBDC) - the eCedi - in financial inclusion. Ghana has the highest inflation rate in Africa and believes crypto offers a path towards alternative ways towards currency fluctuation.

The South Africa Financial Sector Conduct Authority (FSCA) [finally declared](https://www.africanlawbusiness.com/news/18291-south-africa-regulates-crypto?ref=blog.emurgo.africa) that crypto assets are financial products. Effective October 19, 2023, all crypto was subject to FSCA regulation, under section 1(h) of the Financial Advisory and Intermediary Services Act (FAIS) Act.  This followed a draft legislation published on November 20, 2020 to bring crypto-asset-related financial services providers under the regulator’s radar. 

### Ethiopia, Rwanda, Uganda Tap Blockchain As Remedy

Five countries - Ethiopia, Rwanda, Nigeria, Uganda and Egypt - found blockchain a vital technology in addressing their socio-economic problems.

In March,  research and engineering firm [Input Output Global (IOG)](https://iog.io/?ref=blog.emurgo.africa) revealed that the Ethiopian government is deploying blockchain [across over 3,600 schools](https://nodo.xyz/post/cardanos-john-oconnor-our-digital-id-project-targets-3600-schools?ref=blog.emurgo.africa) to help 5 million students and 750,000 teachers eliminate fraud in education. In April 2022 alone, it was reported that the government identified over 200,000 fake degree certificates, hence the need for blockchain to restore honesty in the education sector.

In April, Rwanda announced the [use of blockchain](https://www.rba.co.rw/post/Rwanda-to-Use-Blockchain-Technology-to-Track-Origin-of-Natural-Minerals?ref=blog.emurgo.africa#google_vignette) technology to track the origin of natural minerals that are imported and exported from the country.  The mineral business in the country is often accused of failing to comply with trade regulations but the government believes the use of blockchain in the extraction and trade of natural minerals will end the doubts whether Rwanda has minerals and help minimize the conflicts and insecurity that arise due to mining activity in the region.

In September, Cross River State in Nigeria [partnered](https://www.premiumtimesng.com/news/top-news/629295-nigerian-state-partners-firm-to-protect-students-data.html?ref=blog.emurgo.africa) with OmniIndex, a web3 data platform, to secure the data of students in the state. Accuracy, privacy and security of data is a big challenge in Nigeria’s schools. The partnership will see the OmniIndex help the Federal Ministry of Education upgrade Nigeria’s educational data management infrastructure and introduce fully encrypted analytics and a single source of truth for the data of 500,000 students.

Uganda’s government [partnered with](https://www.porttechnology.org/news/uganda-ta-cargox-partner-to-develop-blockchain-trade-facilitation/?ref=blog.emurgo.africa) the Technology Associates & CargoX consortium (TA-CargoX) to establish a blockchain-based national trade facilitation platform called TradeXchange in October. Uganda is confident the technology will assist exporters alleviate trade bottlenecks, enhance compliance to international trade laws and boost its export volumes.

In the same month, the government of Egypt [introduced a blockchain](https://sponsored.bloomberg.com/article/nafeza/Egypt-Launches-New-Trade-Technology?ref=blog.emurgo.africa) trade facilitation technology—the Advance Cargo Information (ACI) system— to fully automate customs processes and improve import processing time and reduce costs. Early data shows the technology has improved processing time by 55%. 

### VC Money Poured in Africa’s Web3 Hits All-time High

Before a slowdown in 2023, Africa’s Web3 startups attracted a record amount of venture capital investments. In 2024, VC money flowing into Africa may rise, thanks to more regulation in the industry. 

The 2023 [Africa Blockchain Report](http://www.cvvc.com/africanreport?ref=blog.emurgo.africa) compiled by Swiss venture capital company CV VC and South Africa’s Standard Bank last April showed web3 startups in Africa raised a total of $474 million in 2022, compared to $89.6 million a year earlier. That means investment in Web3 rose by five times.

![](//images.ctfassets.net/vmoowpwj5a39/4hga3CQtXms6QT2n5zZ8tp/fd4b128e9d37dd8da3eeafe72f10a495/ELAWpjHPQYoYa4CLjX99eC72wOEnmLp69C-gxL8w1OZxZ2SADHneC2vTlFB6HV7Bm5DTll4LlzZeXoqElfTRN7SlQzVIls7FbhL_nHibYi3xzRjY9uyzGj9CClZ2H8bM)

SOURCE: CV VC 

Venture rounds accounted for the vast majority of funds raised in Africa, obtaining 91.4% of the funding from 12 deals, up from 43% from six deals in 2021. Custody and exchanges was the highest performing industry category in 2022, raising $250 million, and accounting for more than 50% of all blockchain funding. This was followed by fintech ($115.3 million), infrastructure and development ($67.8 million), NFTs, gaming and metaverse ($32.2 million), with decentralized finance (DeFi) closing the top five categories at $3.9 million. 

Blockchain venture funding, as a percentage of all venture funding, achieved a record 15% share of all sector-agnostic venture financing in Africa. This was more than double the global average, highlighting the continent’s continued emergence as a vital blockchain-startup investment destination. 

According to the Africa: The Big Deal report, startups throughout Africa collectively [garnered $2.9 billion](https://businessday.ng/technology/article/startup-funding-across-africa-declined-by-39-in-2023/?ref=blog.emurgo.africa) in funding in 2023, a decrease from the $4.8 billion raised in 2022, Business Day reported. Despite this decline, the results surpassed expectations, especially considering the global downturn in venture capital activity during that period.

The survey revealed that 500 startups secured a minimum of $100,000 in funding in 2023, marking a 39%  reduction compared to the 821 startups that achieved this in 2022. Nevertheless, the report highlighted that the average deal size remained consistent between 2022 and 2023, providing a ray of optimism amid the challenging global economic conditions.

### Nigeria Allows Banks to Go Crypto, Approves State Blockchain Policy

As crypto demand keeps soaring in Africa’s most populous nation Nigeria, regulation is fast taking shape. This is set to create investor confidence as venture capitalists from across the world keep monitoring the web3 space in Lagos.

In Nigeria, a [December 22 circular](https://www.cbn.gov.ng/Out/2024/FPRD/GUIDELINES%20ON%20OPERATIONS%20OF%20BANK%20ACCOUNTS%20FOR%20VIRTUAL%20Asset%20Providers.pdf?ref=blog.emurgo.africa) to commercial banks  [removed curbs](https://cointelegraph.com/news/nigeria-central-bank-rules-crypto-transactions?ref=blog.emurgo.africa) on banks against facilitating crypto transactions, CoinTelegraph reported. This set up a fierce battle between crypto exchanges and peer-to-peer merchants. However, experts opined that the move would propel the growth of the crypto industry in the country. “So, right now, it’s going to be the survival of the fittest as crypto-fiat exchanges and P2P merchants battle for the largest crypto P2P market in the world,” Nathaniel Luz, co-founder and chief marketing officer of Flincap, [told CoinTelegraph.](https://cointelegraph.com/news/nigerian-crypto-exchanges-and-p2p-merchants-brace-for-battle-post-ban-lift?ref=blog.emurgo.africa)

But on Jan 4, 2024, the central bank [issued new guidelines](https://www.coindesk.com/policy/2024/01/04/nigerias-central-bank-fleshes-out-new-rule-allowing-crypto-firms-access-to-bank-accounts/?ref=blog.emurgo.africa) stating that crypto providers can open bank accounts but no cash withdrawal is allowed.  The restrictions also bar clearing third-party checks through crypto accounts. It further clarified that banks are still banned from holding, trading crypto for themselves. 

As crypto adoption rises in the country, the Nigerian joins other African nations in extending oversight of cryptocurrencies, spurred by a string of corporate crypto collapses capped by the bankruptcy of Bahamas-based exchange FTX in April. 

On May 3, the Nigerian government under former president Muhammadu Buhari approved a  [national blockchain policy](https://nitda.gov.ng/wp-content/uploads/2023/05/National-Blockchain-Policy.pdf?ref=blog.emurgo.africa) (pdf), setting the pace for greater transparency, increased efficiency, enhanced trust and more secure transactions in both the public and private sectors. Being Africa’s biggest digital economy, Nigeria became the first country in the continent to come up with an implementation structure of blockchain in sectors like finance, government services, digital identity, land registration and supply chain management services.

Before it was approved, current president Bola Tinubu [said in March](https://cointelegraph.com/news/nigerian-president-elect-aims-to-use-blockchain-technology-in-the-banking-sector?ref=blog.emurgo.africa) that his government would “reform the policy to encourage the prudent use of blockchain technology in banking and finance, identity management, revenue collection and use of crypto assets.” The policy identifies three focus areas for the implementation strategy: talent development, innovation and blockchain adoption.  Over [30,000 Nigerians](https://sskohn.com/wp-content/uploads/2023/06/BLOCKCHAIN-POLICY-FOR-NIGERIA.pdf?ref=blog.emurgo.africa) have already been trained on blockchain technology. 

_DISCLAIMER: The information in this content (website or other form) does not represent an offer or commitment to provide any product or service. The analysis, opinions and estimates expressed in this content are those of the respective authors, and may differ from those of EMURGO Africa and/or other EMURGO Africa employees and affiliates. Copying, re-publishing or using this material or any of its contents for any other purpose is strictly prohibited without prior written consent from EMURGO Africa._

5-things-about-africas-web3-you-should-know-before-market-entry

5 Things About Africa’s Web3 You Should Know Before Market Entry

Newsletter for Web3 Investment in Africa

**Key Takeaways** 

1.  Crypto cross-border payments in Africa will likely record more demand, while crypto startups are expected to expand their businesses in 2024.
2.  Web3 payment services are set to mount pressure on traditional banks and remittance firms to lower transaction fees in Africa.

**High Transaction Costs Fuel Demand for Crypto Remittances**

The cost of sending money in Africa is the highest in the world, with an [average cost of 8%](https://remittanceprices.worldbank.org/sites/default/files/rpw_main_report_and_annex_q422_final.pdf?ref=blog.emurgo.africa) (pdf),  compared to the global average of 6.8% according to the World Bank’s December 2022 data. In some countries, according to the bank’s 2021 extensive data,  the cost is even higher. The average cost of sending $200 from Tanzania was 27%, Nigeria 19%, South Africa 14.7% and Kenya 13.9%. 

More into this is a [2022 Chainalysis report](https://www.chainalysis.com/blog/sub-saharan-africa-cryptocurrency-geography-report-2022-preview/?ref=blog.emurgo.africa) that suggests that payment fees for remittances could reach €200 for a Kenyan residing in Europe who wishes to remit €1,000 to his home country. Another 2022 r[eport by the Zagreb International Review of Economics & Business](https://hrcak.srce.hr/file/414855?ref=blog.emurgo.africa#:~:text=The%20worldwide%20median%20difference%20between,amounts%2C%20which%20hinders%20financial%20inclusion.) (pdf), shows sending $1,000 across borders via a blockchain network costs three times lower than transferring the same amount via banks in Croatia. 

The Chainalysis report highlights that the use of crypto assets, such as Bitcoin and M-Pesa, could offer a more cost-effective solution, without the 20% fee and even generating a 4% profit, hence the seismic drift from the use of banks and remittances firms to crypto platforms.

![](//images.ctfassets.net/vmoowpwj5a39/6odxJRKyozi9WAM6h9uwYu/91f907673aa25d510e97fbe79edebf86/UGo2dQdpbt1hheiNvPEFJB7WvpGPKLON5XP3J2J0pZg-dC48K4kH2FY6LjAiegDKdzpwt5aJzu8anXcS3zbeminG0Tuz70Rg-uYtxkm493NyKS3qvlo94STT6--RMOVq)

High transaction fees are attributed in part to the lack of competition, high operational costs, currency conversion fees, and compliance costs. 

To send money via these two ways requires the sender to travel to a bank or remittance shop physically and queue to wait for their turn to be served. Yet, despite this time waste and high transaction fees, the amount being transacted is subject to further reduction through low foreign currency exchange rates at the banks or remittance bureaus. Up to 5% of transaction value is lost during currency conversions. 

**Why Africa Relies Heavily on Remittances**

The Sub-Saharan African region has experienced a substantial impact from the weakening economy triggered by the COVID-19 pandemic, coupled with its limited economic resilience in comparison to other global regions. Additionally, the surge in grain prices, influenced by Russia's invasion of Ukraine, has exacerbated the challenges faced by the Least Developed Countries in Sub-Saharan Africa. 

Given that Sub-Saharan Africa relies on imports for 85% of its wheat, with 28% originating from Ukraine and Russia, the repercussions of these events have been particularly significant. The economic downturn in the region has heightened the reliance on remittances from African-born migrants residing abroad, directed towards their families and relatives in Sub-Saharan Africa. 

Over the past three decades, there has been a remarkable increase in the number of African immigrants to the US, rising from 560,000 in 2000 to 1.9 million in 2019, as reported by the [Pew Research Center (pdf).](https://www.pewresearch.org/race-ethnicity/wp-content/uploads/sites/18/2022/01/RE_2022.01.20_Black-Immigrants_FINAL.pdf?ref=blog.emurgo.africa)  This surge in immigration has resulted in a substantial rise in remittances to Sub-Saharan Africa, soaring from $4.6 billion in 2000 to $49 billion in 2021. 

In 2022, remittance inflows into the whole of Africa totalled an estimated [$100 billion](https://www.un.org/osaa/news/africa-can-effectively-leverage-remittances-if-we-shift-stock-control-flow-control?ref=blog.emurgo.africa), accounting for nearly 6% of the continent’s total GDP, according to the UN. This is approximately twice the level of overseas development assistance. Remittances as a share of GDP are significant in the Gambia (28%), Lesotho (21%), and Comoros (20%). Remittances have also become a major source of foreign exchange for many African governments.

As the number of immigrants from Africa residing outside the continent is expected to rise (9.5m by 2060), along with a continued demand for remittances, the adoption of crypto assets is likely to persist. The appeal lies in their ability to maintain low remittance fees and facilitate quicker transactions compared to traditional methods

**Cross-border transaction charges by major banks in Africa**

![](//images.ctfassets.net/vmoowpwj5a39/2pPmDjg2DmFgA6bW5Uqyw8/8d2fbff8b089d3eb7f980d203f36a59e/dQmegM4X3Urur2umv29aMN9_YAwBj6jgKkgGoITLkLgprDLJB4RnHvv_U_2ntm3TeOeEJhw_x68s2jwDJOaimd9O-YOQlhxw_7ON5yS536kxuB5KOU9vG3QlFSzLOp7l)

  

**Why Web3 Payment Platforms are the Solution**

There’s a shift towards crypto transactions, as they are faster, consumes less time to send because there is no paperwork required for identity as compared to banks and remittance firms. Of the $48 billion remitted to sub-Saharan Africa in 2019, Chainalysis estimates that up to $562 million worth of payments were facilitated by cryptocurrencies. 

With global remittances totaling [$626 billion](https://www.worldbank.org/en/news/press-release/2022/11/30/remittances-grow-5-percent-2022?ref=blog.emurgo.africa) in 2022, even a 1% reduction in fees could put more than $6 billion into the pockets of those who need it.

According to the Brookings Institution’s 2022 [Foresight Africa report](https://www.brookings.edu/events/foresight-africa-top-priorities-for-africa-in-2022/?ref=blog.emurgo.africa), cryptocurrencies have had a great potential to improve remittance payment systems. While international wire transfer fees cost an average of 7% of the total amount sent and could take several days to clear, some cryptocurrencies support foreign exchange and money transfers for less than a dollar and process payments in seconds. 

Cryptocurrency transfers associated with remittance payments have experienced rapid growth, both in terms of value and volume, since the start of the Covid-19 pandemic. 

Since cryptocurrency platforms bypass traditional banking services by introducing decentralized peer-to-peer lending services, they can help level the economic playing field and are well-positioned to address a number of economic challenges in the region. 

**Cross-border charges by Africa’s popular money transfer platforms** 

![](//images.ctfassets.net/vmoowpwj5a39/13kYsJdpnNb62UF7hrbDJM/4e505d97af269d7db935de7827e3f30d/RV7c0e4Qz6jx_QC9FW9g7prvbo-aYIBoSax4Qujw-blvDzQPiVh7KVCMi6Hzoix592SlX7RGDdHJJvKvZAW4qgj-WP_MATZoMCgUiyMvKgqx8IQCsBPQm22nacI6rC_Q)

_NOTES: Money can be transferred from these platforms to be withdrawn via the same platform, bank, cash out agent or mobile money agent. Every transaction fee is inclusive of foreign currency conversion costs._ 

_Some platforms such as World Remit indicate a transaction fee of as low as $0.99 but the forex conversion rate is low compared to competitors e.g 141 vs 146 (Moneygram) for USD to KES conversion._ 

_Sending from a credit card to for cash collection attracts even higher rates. For the case of Moneygram, the cost is $11.99. Xoom is a PayPal service and was therefore not included in this list. Some platforms have hidden fees that are embedded in the transfer fees as service fees and receiver fees._

_\*Chipper Cash started charging a fee for transactions that fail to get processed due to insufficient funds in Nigeria and Uganda in May and July 2023, respectively.  While transactions are mostly free, its video selfie verification process hardly works and even when it does, the cashout process never works most of the time._

_Sendwave is a fee-free service, but it charges  3% for currency conversion_

Due to their near-instant transaction speed, remittances done via crypto platforms come in handy for individuals and businesses relying on timely release of funds to pay for emergent needs such as health, evacuation, school fees or food.

**Cross-border payment fees on Africa’s popular crypto trading platforms** 

![](//images.ctfassets.net/vmoowpwj5a39/5ay6e4YBVyDbHun56JJLoq/c1e27372f2874f6104cb22e1c373f045/QdJ-Q5N7FaQo3cBYHWc2QX1Je_Y8wcO5BA0g4thfvwjPyEuBI8EIyT28HxAwbeb16490y5CUU-6yWDKwdq289a-32vt-rJn0Iy3G7xPl2xWYO-AYa2EKYhlmBUGYlMAR)

  
  
  

**Cross border remittance cost comparison in Africa**

![](//images.ctfassets.net/vmoowpwj5a39/4uWyfBHcAW5e9UfREUsp0z/9f40744fc6b0389ffbeb1d6352c2b0ee/mrtuJS1tWs65W1Ow5-Ue2MuL_ZXnWofyWYNHG0HDlRzDW8kr0mZ5v_LI80mt1O4JP5oHcZVX1Cxf5wI3ajTb1zHDa9hSklCuQu8JFk7vV7AK4GWuWc3TQ3RiTuS2ZLOG)

**Mitigating Currency Plunge and Fraud Risk**

African countries are experiencing significant currency volatility, which in turn is negatively impacting the value of remittances. Countries such as Nigeria, Zimbabwe, Kenya, Sudan, Ghana have dismally performing currencies. Currency volatility has a wide range of effects including inflation, loss of purchasing power and overall reduction in standard of living.

Cryptocurrencies, especially bitcoin and stablecoins like USDT, are offering a potential solution by providing a stable digital asset that is not tied to any specific national currency. Stablecoins such as USDT and USDC, which are crypto tokens pegged to the US dollar, are already offering a reliable alternative for remittance transfers. By utilizing stablecoins, senders can protect the value of their remittances, mitigating the impact of currency fluctuations on their families’ financial well-being.

Additionally, blockchain technology, the underlying infrastructure of cryptocurrencies, provides transparency by recording all transactions on a public ledger. This transparency helps to reduce fraudulent activities and ensure the security and accountability of remittance transfers, benefiting both senders and recipients.

![](//images.ctfassets.net/vmoowpwj5a39/3l4Pvb1QZ92iWXWg7kj5TS/b30b3cdc1321b02910bb761752a7e1a4/xWt8Z_cQav2-4BXtrN-aF9wcv05FovTmebHk2y6ytaOYeNy3FoqlptZWUfyerh1fF8PjO5dqewPcdARD95pkyhlK-EP6SDvt_FKipPyWcteaak6DFVvlFWXVzqI37yCt)

The emergence of cryptocurrency-based remittance platforms tailored specifically for African markets has further accelerated the transformation of remittance practices. These platforms leverage blockchain technology to provide secure and efficient remittance services. They often incorporate user-friendly mobile applications and mobile money platforms, allowing individuals to send and receive funds with ease. 

Some platforms even offer additional features like instant bill payments and access to other financial services, further enhancing the value proposition of cryptocurrency-based remittance.

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