Why I Don't Invest In Blockchain in Africa

Read time: 3 minutes.

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Blockchain, the buzzword of the century.

But why am I holding off on investing in Africa's blockchain scene for now?

Here's my deep dive into the potential and the pitfalls:

First, let's explore the potential.

The African continent has a large unbanked population with limited access to financial services.

Blockchain technology could change that.

It can provide a more secure and accessible financial system, without the need for a middleman.

The potential use cases for blockchain in Africa are vast:

• Cross-border payments

• Remittances

• Microfinance

• Identity verification

• Land ownership records

• Supply chain management

• Healthcare data management

Some African countries have implemented blockchain-based initiatives.

For example, Kenya's BitPesa allows for cross-border payments using Bitcoin.

Ghana's Land Administration Project aims to use blockchain to improve land ownership records.

However, there are still several pitfalls in the African blockchain scene.

First, there is a lack of regulatory clarity.

Governments are struggling to keep up with the rapid pace of technology, which leads to uncertainty for investors.

Second, there is a lack of technological infrastructure.

Many African countries are still struggling with basic technological infrastructure, which makes it difficult to support blockchain technology.

Third, there is a lack of widespread awareness and education about blockchain technology.

This makes it difficult for the general public to understand and adopt it.

Lastly, there is a high level of risk associated with investing in blockchain startups.

The vast majority of startups fail, and the African blockchain scene is still very new and untested.

While blockchain has massive potential in Africa, several challenges still need to be addressed before investing.

Many African countries lack the regulatory clarity to support blockchain, and the high risk associated with investing in startups means that caution is advised.

It's essential to watch the African blockchain scene, but investors should be cautious for now.

I obviously made a video where I explain why I don't invest in blockchain technology in Africa right now.

Let’s take a look at the podcast episodes:

Why I Don't Invest In Blockchain in Africa

In this episode, Eunice Ajim discusses why she doesn't invest in blockchain technology companies in Africa. She highlights the lack of painkiller solutions and the absence of successful use cases outside of cryptocurrencies. Eunice also mentions the challenges of fraudulent activity and unpredictable regulations in Africa. She emphasizes the importance of timing and specific use cases for blockchain technology. Additionally, she explains her investment focus on early-stage tech companies in Africa and the need to stick to her investment strategy.

Takeaways

• There is a lack of painkiller solutions and successful use cases for blockchain technology companies in Africa.

• Fraudulent activity and unpredictable regulations pose challenges for blockchain companies in Africa.

• Timing and specific use cases are crucial for considering investments in blockchain technology.

• Eunice Ajim focuses her investments on early-stage tech companies in Africa and sticks to her investment strategy.

If you enjoy the podcast episode, please consider subscribing, liking, and sharing them with your network. You never know who might find this information helpful. 

That’s it!

See you next Wednesday (or Thursday 🙏😁).

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What are your thoughts on the podcast episode?

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