Blockchain and Cryptocurrency in Africa have evolved from just a buzz word to a revolution!! and we at www.cryptopreneurng.com our job is to chronicle this revolution and make it simple for you our readers to understand and take full advantage of this tide.
Blockchain Technology will do Africa well because its disruptive nature makes it suitable for Africa’s economic climate. In this post we will love to share about the use case of blockchain in Africa. For so long Africa has been on the receiving end of most innovation and technological advancement but with blockchain technology, Africa gets to change these narratives. There is no gain saying that cryptocurrencies likes bitcoin is one of the major reasons why technology like blockchain is main stream today but beyond that, there are so many other use cases for blockchain technology.
Africa is perturbed by numerous developmental issues that include extreme poverty, lack of access to modern technology, poor infrastructure, corruption among many others. We believe blockchain technology is best suited in combating these problems. In other words blockchain technology is a match made in heaven for Africa’s problems.
We will be focusing on how blockchain can be used to solve developmental issues affecting Africa. We will be looking at some particular problems and how there can be solved.
Here are some of the major Blockchain Use Cases in Africa
Young Africans are among the most immigrated sets of persons In the world, with the most of them migrating for greener pastures and sending money back home to their friends and families the cost of remittance to Africa is the highest around the world according to world bank data
In 2018, about $40 billion will be sent to Sub-Saharan African countries from people working abroad. They will be charged exorbitantly. It doesn’t have to be this way.
A recently released World Bank report shows that the cost of sending remittances to Sub-Saharan Africa continues to be far higher than any other region in the world. On average, to send $200 to and from a country in the region will cost almost $19 in the first quarter of 2018. This is more than 20% higher than the charge for a remittance to any other region. (Globally, about over $600 billion in remittances were sent in 2017.)
The alarming truth is that these remittances make up 2.5% of the region’s GDP. Remittances are particularly important to certain countries. In Liberia, Comoros, and the Gambia, remittances make up over 20% of GDP. Even in Nigeria, Africa’s largest economy, remittances were worth 5.6% of GDP in 2017. In fact Nigeria’s oil revenues in 2017 of around $20 billion were lower than the $22 billion it received in remittances. These estimates are conservative, says the World Bank, as they don’t include remittances using informal channels.
Blockchain technology is a match made in heaven for Africa's problems.
Sending money to Sub-Sahara Africa using traditionally accepted remittance is quite is very expensive with transaction fees averaging 10 % for Africa. If we put some factors in considerations like exchange rates and banking fees, the costs increases significantly. This has been one of the major reason that limits people from sending more money to their loved homes back home because it drastically reduces the money the beneficiary receive. for instance, USD 40 billion will sent with transaction fees of 10% that apparently will mean that over USD 4 Billion will be spent on fees alone. imagine what this amount of money will do for the fight of corruption, better health care or even the fight against poverty.
In order to tackle these menace, Cryptocurrencies like bitcoin can be used in place of sending fiat currencies. this won’t only safe time, cost and can will drastically reduce high transaction fees the African diaspora can change the money they want to send to cryptocurrencies like bitcoin and then send the bitcoins to the intended beneficiary in home country. The recipient will then change the bitcoins to local fiat using local bitcoin exchanges.
Related: 5 Trusted Exchanges To Buy And Sell Bitcoin In Nigeria 2018
However, one of the challenges cryptocurrency still faces is volatility and lack of internet access, the government should ensure that more person have access to internet, currently over 4 Billion people do not have access to the internet and Africa has 50% of this statistic.
Health Care Management
Most people in Africa are conversant with the problems facing health care and data management in several healthcare facilities across the continent. These problems, coupled with inadequate public sector spending on health, have pushed the private sector to the front in the development of the African health sector.