Ghana, Nigeria and Kenya: Insight in to the future economies of Africa

Ghana, Nigeria and Kenya are on the spotlight of this weeks’s round of crypto-related news with some pretty solid perspectives for the future of their economies. Not differently than many other weekly digests, Nigeria keeps securing its position in the highlights of our posts. Following the adoption of new digital asset trading regulations recently issued by the Nigerian Securities and Exchange Commission, Nigerian Exchange Ltd. recently announced its plan to create a new blockchain-based platform to attract more traders and investors to the country's national market. Temi Popoola, the chief executive of the institution, recognizes the importance of opening new possibilities in the blockchain market for young professionals in the country to explore and get a glimpse of what they can do in this new era of e-based transactions. The Nigerian bourse hopes this new exchange scheme can attract more citizens to the stock market and has solid plans with partners to put the new framework online before the beginning of next year.

And as Nigeria keeps investing in new technology that can positively affect the crypto market, it is no surprise that the use of cryptocurrencies in the country keeps surging. This rapid growing flow goes against the many attempts of national regulators to limit access to crypto transactions and many banning regulations that have been implemented in the country in the past two years. According to the Global Crypto Adoption Index, Nigeria is in the top 6 countries with the fastest and most promising crypto uptake. The speed of growth of Nigeria’s crypto bubble is particularly surprising because it’s been less than two years since the country’s central bank completely banned national banks from adopting crypto-based solutions. The Central Bank of Nigeria (CBN) warned that cryptocurrencies are extremely risky for investors and can contribute to a surge in cases of financial terrorism and money laundering. In May 2021, some new official guidelines were issued to soften the ban on any crypto-related activity and, since then, Nigeria has been an omnipresent name in many news headlines and events that are directly related to the progress of the crypto market and the blockchain community.

Following last week’s events about Kenya’s KenGen and its plan to link the geothermal energy market and the crypto community, the company announced that several companies abroad have contacted their representatives to discuss possibilities of setting up their mining farms in Kenya’s central geothermal power station located in Olkaria, in the south of the country, 120km away from the capital Nairobi. This is great news for Kenya’s plan to become Africa’s first crypto mining hub, and KenGen claims that they are more than ready to receive these partners as they have a vast area to offer and have enough structure to accommodate the rather complex needs of crypto miners. Currently, KenGen is responsible for producing over 860 megawatts of geothermal power per year, making it the largest producer in the African continent. This initiative also guarantees Kenya a place on the list of countries that are putting efforts into promoting a more sustainable framework for crypto mining.

In Ethiopia, the ongoing Tigray war seems to have faded from the news since new, similar conflicts emerged in Europe, but the reality is that the country has been under a severe humanitarian crisis for over 17 months. Ethiopian central authorities have stopped any sort of humanitarian aid from accessing the Tigray region, resulting in a series of shortcomings for the population in the area, including a lack of access to electricity and telecommunication services and overall financial constraints due to frozen banking services. An opinion article published by Bitcoin Magazine raised the possibility of getting the crypto community involved to raise awareness and gather more attention to the ongoing conflict. Considering many influencers and public figures are already part of the crypto community, this space can be a vital channel to give an opportunity for these influential voices to speak up. Furthermore, it is inside this community that new solutions can be discussed, for instance, the use of offline bitcoins that only require satellite technology.

Ghana is currenty home for over 32 million people and its economy bumps in aspects that are not that different from the ones we have been discussing here for a while. Despite the wealthy groups that spread to the urban areas of some major cities like the capital Acra, the majority of households in Ghana are still low-income ones. On top of that, the country also has a great percentage of unbankes citizens, a phenomenon that is directly associated with the lack of financial resources and education. A recent article published by Cointelegraph raised the point that  blockchain technology might help developing economies make good progress in terms of financial inclusion. Taking into consideration that financial services in Ghana are still struggling to stabilize to the volatility of the country’s overall economy, it is expected that a closer look into the potential of cryptocurrencies and what they can bring to a fragile national market can really help the country take a leap towards the right direction. How Ghana will pop on the crypto-related news of the overall market in Africa in the future is yet to be discovered. Make sure to follow our social platforms to keep yourself informed about Ghana’s market and other major events that surround the constantly growing crypto economy in the promising African continent.