Blockchain adoption in Africa is on the rise. From transportation to the gaming and lottery industries, reports of companies utilizing decentralized ledger engineering (DLT) across the continent are emerging. Several stakeholders in the African blockchain scene say DLT is the key to solving the developmental issues plaguing the continent as a whole. They likewise believe the technology provides a platform for Africa to elevate itself to a position of greater relevance in global diplomacy.

While the general attending of governments notwithstanding appears minimal, some countries are reportedly taking steps to promote increased blockchain adoption. Nations such equally Kenya and Nigeria have announced plans in recent months to pursue regulation and greater cooperation with the private sector to leverage the benefits accruable from blockchain utilization.

Comparison of Africa to top fintech countries

The Nigeria Union of Route Transport Workers (NURTW) and a group of partners in the private sector have already launched a blockchain-based scheme targeted at improving interstate route transportation. Stakeholders of the project say the program will improve safety, record keeping and insurance for route travelers.

However, some effort within the technological implementation needs to be defended to ensuring blockchain protocols are easy to apply. Some commentators point to the steps taken by telecommunication service providers that take resulted in the pregnant penetration of mobile services across the African continent.

Related: Young Africa Looks to Crypto for Payment

The Nigerian regime sets its sights on decentralized engineering

Every bit previously reported past Cointelegraph, Femi Gbajabiamila, the speaker of Nigeria'due south House of Representatives, said a concrete legislative framework should be in place for crypto and blockchain regulation.

The Honorable Solomon Adaelu, a member of the House, is one of the about song proponents for blockchain and crypto regulations in Nigeria. The legislator is the current chairman of the bipartisan committee on blockchain engineering. For Adaelu, failure to movement quickly on creating an environment conducive to digital technology will see the land autumn even further behind in terms of technological advocacy.

In a series of motions brought up earlier the House, Adaelu espoused the idea that blockchain technology will form a major function of the Fourth Industrial Revolution. An excerpt from one of these motions reads:

"Africa was non part of the first, second, and the third industrial revolution & these group of lawmakers believe that the 4th industrial revolution, driven by digital transformation should not pass us by. Hence, the need to appoint all stakeholders to initiate the process of blockchain and internet discussions at this time."

According to Adaelu, blockchain applied science also presents some other useful solution for Nigeria — and Africa as a whole — in creating trustless protocols in a country said to be aggress by institutionalized abuse. Speaking during one of the sessions of the blockchain committee back in July, Adaelu declared:

"Blockchain is for Africa and Africa must take advantage of it to shut the gap in the industrial and economic advancement between the African continent and the rest of the world. On the African continent, Nigeria must accept the lead every bit the 'Behemothic of Africa.' The blockchain has the potential to accommodate a smooth transition from the current web systems to a distributed ledger technology for all spheres of any nation'due south economy. It is notable that it tin can extend other currently existing technologies to enhance their data security and efficiency."

In the last few years, African nations accept seemingly looked to China every bit a model of how a country can ascent from poverty to become a global economic power. Even though industrialization has played a pivotal function in China's growth, several technological constraints besides equally shortages of skills seriously hamper Africa'due south progress in this regard.

For the likes of Adaelu, blockchain technology offers a means past which can Nigeria and other African nations can quickly bridge the developmental gap. Such a trend could even follow from the contempo nail seen in the fintech arena in several parts of the continent.

Percentage spread of fintech companies in Africa

Adaelu also identified how blockchain tin can help to eradicate decadent practices in both the public and private sectors of the country. The House member opined to Cointelegraph:

"A trustless society, where the power to determine is taken abroad from few individuals operating in a primal system to a decentralized organization, where such decisions are no longer taken past some decadent individuals to the detriment of the citizens, Such society is evolving through the blockchain technology. Our greatest problem as a people is abuse.  I believe that Africa can completely foreclose this if blockchain protocols are implemented in various aspects of our lives."

Additionally, Kenya is as well making efforts to atomic number 82 the style in blockchain adoption in Africa. Since mid-2018, there have been reports of the government looking to enact regulations for cryptocurrency and blockchain engineering science in the land.

Recently, a task force on blockchain and artificial intelligence in Kenya submitted a study to the government to consider creating a national digital currency. Additionally, Kenya's key bank is reportedly in favor of drafting laws to govern initial coin offerings, or ICOs, in the land.

This emerging favorable disposition toward crypto and blockchain engineering science does not, still, extend to Facebook'due south Libra project. The Central Bank of Kenya has previously issued warnings most the dangers of the proposed Libra cryptocurrency.

Blockchain-based PAMs in Nigeria

In July 2022, Nigeria'due south road ship matrimony partnered with digital technology business firm Blackblock Express every bit well as companies involved in insurance and health care to launch a blockchain-based passenger manifest system (PAM). Traveling by route arguably dominates the interstate shuttling scene in Nigeria, as the cheapest interstate airfare in Nigeria frequently costs more than than double the most expensive interstate autobus ticket in the country.

A omnibus ticket from Lagos to Kano (a altitude of nigh 980 kilometers) usually costs between seven,000 to ten,000 Nigerian naira ($twenty-$thirty). Notwithstanding, a plane ticket from Lagos to Benin (a distance of nigh 320 kilometers) tin can go for equally much equally 30,000 naira (almost $80).

Average prices of plane/bus journeys in Nigeria

Despite the popularity of route transportation in the state, a large portion of the available infrastructure leaves much to be desired. Apart from the poor condition of the nation's interstate highway arrangement, several other important aspects of traveling by road have suffered fail.

For one, travelers involved in route traffic accidents along the nation's interstate highways often find information technology difficult to receive prompt medical intendance. Hospitals have been known to refuse albeit victims of accidents because of a lack of proper identification and insurance documents. This trend is despite the fact that in that location is a law that mandates emergency handling for automobile accident and gunshot victims.

There is as well the matter of the rampant kidnappings that have become a scourge to road travelers in the country. Law enforcement ends upwards having a difficult time locating the next-of-kin of the victims.

The current newspaper-based manifest system exacerbates the problems caused by these areas of neglect. The common denominator in many of these cases is the absence of consummate passenger information that could prove useful to hospitals and the police.

Blackblock, in collaboration with Universal Insurance and the NURTW, has devised a system to improve PAM using blockchain technology. One of the legacies of government neglect in Nigeria is the disorganization ane can ofttimes find in double-decker parks across the land.

The partnership seeks to digitize the PAM system in the country equally a way of obtaining accurate rider information for people traveling by route. The plan is to replace the paper manifest maintained by travel operators with a fully digital system that ensures proper tape keeping.

For Najeem Yasin, president of NURTW, blockchain-based PAMs volition also help to provide prompt care to blow victims on the highway. The system will as well comprise hospitals and other emergency wellness care services into the network. Speaking during the official unveiling of the program in Lagos, Yasin declared:

"Equally you lot would recall, our desire to ensure a compatible manifest scheme for our members and passengers, specially interstate operators started 10 years ago and we have been working tirelessly with our project consultants and partners to ensure we drift our electric current rider manifest to a more robust, innovative and efficient organization."

In an email to Cointelegraph, Blackblock CEO Ukeme Okuku said the NURTW has been able to take control of more than 2,000 motor parks in Nigeria with the aid of his company'south technical infrastructure. According to Okuku, PAM already has operational coverage for close to half dozen.2 million trips per month.

Given the digital nature of PAMs, the question of providing assist for the less tech-savvy route traveler is still relevant. When asked about the steps existence taken to simplify the burden for passengers who may non be able to interface with the new technology, Okuku replied:

"Data is being nerveless via our web awarding for users that have access to smartphones. While we take short lawmaking service that allows users to also apply SMS, we also have personnel in every motor park to assist with uploading the information collected from the commuters."

Abroad from the lofty promises ascribed to blockchain adoption, there are still issues revolving effectually technological literacy and technical skills shortages in Nigeria and Africa every bit a whole. Blackblock's Okuku identified these issues:

"As businesses look at blockchain solutions, they struggle to get started due to the shortage of proficient blockchain developers in Africa. The demand for software engineers worldwide is growing and the western globe is currently taking advantage of the few talents Africa has to offering, making it difficult for local companies to compete."

Okuku also went further, highlighting the likely problems on the opposite terminate of the engineering spectrum — i.east., the finish-users — past writing:

"One of the significant barriers to mainstream adoption in Africa is convenience. 'If y'all build it, they will come' may work in the western world, merely information technology'southward an unreliable strategy for deploying solutions in Africa. As Africans we are actually attracted to convenience, so a better arroyo will be to provide a great user experience to promote user adoption to blockchain solutions."

To this end, some commentators believe that blockchain developers can accept a cue from the methods employed by telecommunication service providers in Africa to make DLT-based solutions easy to use for as much of the population as possible.

This is role i of a two-function series on blockchain efforts taking identify across Africa.