Danny Oyekan, a specialist in blockchain technology, has pointed out that this innovative technology is becoming more and more recognized as a powerful tool for change in Africa. It has the potential to completely change how financial systems work, affect trade, and improve governance across the continent.
In a statement shared with DANDALI, Oyekan emphasized that with the right government policies and investments, blockchain can help close economic divides, provide better access to financial services, and increase transparency throughout Africa.
He highlighted that Africa’s financial system is a bit scattered, which means that many people don’t have access to traditional banking services. The World Bank reports that more than 66% of people in Sub-Saharan Africa do not have bank accounts. This lack of access means they miss out on important financial services that many people in other parts of the world take for granted.
Although mobile money services, like Kenya’s M-Pesa, have made it easier for some people to access financial services, there are still issues like high transaction fees and slow cross-border payments that need to be addressed.
Blockchain technology is now emerging as a possible solution to these challenges. For example, platforms like BitPesa allow businesses and individuals to carry out quick and affordable cross-border transactions by cutting out middlemen. This means that financial transactions can happen directly between parties, which helps to lower costs and make processes more efficient. This could greatly benefit traders and small businesses across Africa, leading to economic growth.
Oyekan also explained how blockchain is being used to bring about transparency and efficiency in sectors like agriculture and entertainment. For instance, a company in Ghana called Agrocenta uses blockchain to connect small farmers directly with buyers. This helps ensure that farmers get fair prices for their goods and limits the exploitation they might face from middlemen.
In the creative sector, people like musicians, filmmakers, and digital artists in Nigeria often struggle with issues like piracy and unfair payment distribution. Blockchain technology, especially through what are called “smart contracts,” can help. These contracts make the process of distributing revenue more transparent, ensuring that creators are paid fairly for their work. This innovation can empower artists and give them more control over their intellectual property.
Addressing some flaws he sees in Nigeria’s digital currency, eNaira, Oyekan mentioned issues related to security and user-friendliness that have hindered its success.
Oyekan also highlighted the importance of blockchain in providing job opportunities and skills development for Africa’s rapidly growing youth population. He believes that blockchain could be a valuable tool in fighting corruption as well.
However, despite its bright potential, Oyekan acknowledged that there are significant obstacles to adopting blockchain technology in Africa. These include lack of clear regulations, limited access to the internet, and general public awareness about how blockchain works.
He urged governments to create policies that support blockchain innovation while also protecting consumers. Additionally, there is a need for educational programs to help people better understand blockchain and its advantages.
As blockchain continues to become more popular, its significance in changing Africa’s economy is becoming clearer. If implemented strategically, blockchain could enhance financial access, improve governance, and create a more unified African economy. Although challenges exist, the potential for blockchain to transform the continent’s future is clear, according to Oyekan.
