Latest News Editor's Choice

News / Africa

What the African crypto ecosystem looks like today

by Gibdon Nyathi
06 Jun 2019 at 13:00hrs | Views
Image credit: MyBroadband
Out of the many places that you would not expect to have a strong relationship with Blockchain and cryptocurrencies, African countries are probably some of the most unexpected. The expectations of most people are that cryptos are more relevant to high-income countries where financial assets can be expected to be easily traded. As explained by the thing with cryptocurrencies is that they are relatively easy to access for the majority of people. All you need is an internet connection and some base capital in order to be able to start working with cryptos. African countries have both, compounded with the strong desire of the local citizens to strike it rich. As a result, Africa has developed a well-connected and strong ecosystem of cryptocurrency exchanges and cryptocurrency mining. In this article, we are going to attempt a general overview of what the crypto industry ecosystem looks like in Africa. In this exploration of the industry, we hope to understand and discover how African countries look at cryptos and what their relationship with blockchain is.

Top countries

Africa is a big continent, and just like you would expect, there are countries that participate in the crypto industry a lot more than others do. In order to be able to understand the industry better than we would otherwise, it is important to know which are the countries that seem to participate the most, through different means, in the industry.

Ghana, Kenya, Nigeria, South Africa, Botswana, and Zimbabwe are some of the countries that express the most involvement in the industry. The involvement is expressed through many different means, including the level of investment into cryptocurrencies that the locals make as well as the number of startups and companies that have been created in order to build crypto related products. The population of these countries is especially interested in cryptocurrencies, simply because they are relatively developed (some of them more than others) in terms of their economies, which means they have disposable income that can be used in order to try and make more income. As a result, there has been an increase in the investment rates into cryptocurrencies within these countries and an increase in the number of blockchain startups.

The companies coming from these countries are showing a lot of promise, in terms of where they might end up if allowed the time and space to properly grow and develop.
Companies such as BTCGhana and PayPlux allow easier and faster access to cryptocurrencies for those users that end up with them. They allow users to receive cryptos easily onto their mobile financial accounts, in the form of Ghanian Cedis, cheapening the cost and time of transaction. PayPlux, on the other hand, allows for easy access to exchanges and purchase of digital currencies using different payment methods. Meanwhile, the Kenyan BitPesa is a company concentrating on B2B cryptocurrency transfers, simplifying and speeding up the transaction speed between businesses.

Although, most of the organizations and startups across these countries devote their time to the promotion of cryptocurrencies as a viable and important resource for the development of said countries. Non-governmental and governmental organizations alike that try to facilitate the founding of new startups and provide certain amounts of financing for the encouragement of these companies. It is important for these countries to develop working blockchain and cryptocurrency system frameworks, as this new technology promises to be the cheapest and the easiest tool for the assistance in development that they need.


Although, startups are not the only ones that are operating through these markets. The markets and the industry, in general, are enabled by a number of exchanges that are currently operating within Africa. The most established exchanges out of all these are Luno, Ie3X, Golix, and NairaEx. These have been around for a long time and have created a respectable platform for themselves to operate on. Although, there have been some new entrants to the market more recently, with Remitano, Belfrics and Coindirect, as well as LocalBitcoins coming into the market. The African cryptocurrency market is only going to keep growing over the coming years, as more and more countries and citizens start getting involved in the industry. The ecosystem is only going to get more intricate and complex, something to definitely look forward to.

More information you can read in this article on the Norwegian websites.

Source - Byo24News