In the latest CoinGeek Roundtable on November 16, Rebecca Liggero hosted a roundtable discussion on the opportunities and challenges related to emerging technology in Africa. It was a lively discussion involving some of the continent’s leading entrepreneurs, which cast light on where Africa is today and where it’s headed in the future.
Who are the CoinGeek Roundtable guests?
Rebecca Liggero is the CoinGeek Roundtable host. She’s a well-known personality to all regular CoinGeek readers and viewers. She asked the questions and drove the discussion forward.
Patrick Prinz is the CEO of Monetix. He’s been involved in the financial industry for a decade and began focusing on East Africa two to three years ago. He’s passionate about introducing the latest financial technology and leveling the playing field. He believes fintech can enable entrepreneurs and young people in particular.
Holger Vogt is the Managing Director at AMENA, a pan-African market advisory firm based in Nairobi, Kenya. He’s a serial entrepreneur with a history in cell phones, real estate, and even human hair. He’s now focused on helping others do business in Africa.
Geoffrey Weli-Wosu is the Founder and CEO at Domineum. He has been involved in African Fintech since 2012. Around 2017, he transitioned into the blockchain space. He spotted a gap and formed a fund to invest in early-stage tech companies in Africa.
What are the myths surrounding the investment landscape in Africa?
Prinz tackles this question first. He highlights how massive Africa is, saying it’s bigger than most people can conceive. It’s very diverse in terms of religion, cultural values, etc. Traditional investment managers tend to be intimidated because of issues like child labor, corrupt dictatorships, civil wars, etc. While these things exist, they’re only in small pockets. He points out that the risk has also increased dramatically in the ‘Global North.’
Weli-Wosu focuses on debunking myths about Nigeria. He says there’s a lack of understanding about the country in the investment world. Some have come in and failed because they tried to do things their way. His advice is to empower locals and let them work how they see fit. He says the pace of local investment needs to grow.
Holger says there’s so much money to be made in Africa. The continent has held summits with Russia, China, and Saudi Arabia in recent years. “If you don’t do business in Africa in 20 years, you won’t exist,” he says. Yes, there are some risks, but all business is risky. Those who come to Africa and crack the code are there to stay.
On African risk
The conversation then delves deeper into the risks and perceives the risks of doing business in Africa. Liggero asks each panelist to give their thoughts on the matter.
Prinz says there are some intercultural issues. He finds that regular trips to Africa help with this, as it’s easy to slip back into a European perspective after leaving. Other risks he mentions are related to foreign exchange, inflation, and young unemployment. Despite some of these risks, he says that many Western-educated Africans are returning due to the massive opportunities in what he calls the “century of Africa.”
Weli-Wosu picks up on the returning Africans’ point and says that studying in a developed nation definitely gives them an advantage. However, Africa is a different ballgame; things are more chaotic and aren’t streamlined. However, problems are opportunities, and more people are beginning to realize this.
Holger emphasizes the point that risk is opportunity. The best approach is to understand the risks as best as possible and try to solve problems. He warns that most Western “risk metrics” don’t apply. For example, the power in some parts of Africa is unstable, and many machines aren’t built to deal with that. The main point is that the risks aren’t the same in Africa as they are in the Western world.
On African technology, growth, and startups
Prinz comes at the question from a financial perspective. He says payments are still a problem. Mobile money has been adopted on a massive scale to deal with this. This proves that if there’s a solution, people will adopt it. He’s convinced that stablecoins will take off in Africa.
Prinz’s company, Monetix, has digitized lending. He says the market is wide open, and no competitor matches his firm’s capabilities. He points out that, in Africa, certain things like cybersecurity are only emerging now, so ventures in these areas can have trouble securing funding.
The Monetix CEO says there’s little reliable data to go on, and so investors and businesses lack a way to get into the African markets. He sees a huge opportunity in digitizing processes and collecting information; business intelligence is a huge opportunity.
Weli-Wosu says his firm, Domineum, works closely with the government to advise young entrepreneurs on what to focus on. One of those is blockchain technology, and they’re now involved in training Nigerians on how to use it. There were 90,000 registrations showing interest in this training. He believes Nigeria is today where China was 20 years ago in terms of opportunity.
Holger says that, depending on where you are in Africa, ecosystems vary widely. Some places struggle with funding, and banks are “largely useless,” but tokenization and processes like it can overcome the dysfunctional financial system. He says to look at East Africa for the best examples of thriving, emerging economies.
Looking to the future, each panelist gives their thoughts. Prinz says the first stablecoin will take off in Africa. Weli-Wosu predicts that the first blockchain-powered government infrastructure will be in Africa. Holger believes Africa is not the future but is very much now.
Don’t forget to watch the CoinGeek Roundtable for more detailed answers. It was a discussion well worth checking out!
Watch: AlphaDAPP: Revolutionizing blockchain adoption in Africa
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