ICOs in Africa for funding startups in the region
ICOs could be the solution to overcome difficulty in traditional funding in Africa
The value of the rank 1 cryptocurrency is well above the pay grade of many in Africa. One bitcoin is equal to 3.96 million Nigerian Naira as of 29th November 2017. This was when Bitcoin value went over 11,000 USD. The value is way off the reach of many Africans where over 220 million people in the African continent earn less than 800 Naira (2 USD) a day. ICOs in Africa could be the solution for investments to reach the region.
According to the Multidimensional Poverty Index (MPI) of the United Nations Development Programme (UNDP), 50.9% of the total population in Nigeria is multidimensionally poor. Ghana is another country below the poverty line with a minimum wage of 9.68 Cedis (2.2 USD).
This makes it harder for Africans to compete with people in 1st world countries like US and UK for Bitcoins. But it does not stop them from getting involved in the world of cryptocurrencies.
Paving way for ICOs in Africa
Many are looking towards Initial Coin Offerings to lend a helping hand for the startups in Africa. There is a threat from various scams prevailing connected to ICOs, so one needs to be extra careful. ICOs allows people in Africa to initiate startups and to invest on them. This is more affordable and practical than investing in Bitcoin right away. ICOs will allow Africans to be included in dealing with digital currencies.
Views of ICO founders
Cryptogene is a company to facilitate Blockchain Solutions in Africa. The founder of Cryptogene, Bashir Aminu points out the need of ICOs for blockchain startups in Nigeria. Most people mistake ICOs to be some sort of scams and it is difficult to get funding from Nigerian banks;
I think ICOs are crucial for the success of start-ups especially in places like Africa where access to traditional funding is extremely difficult. ICOs give startups the much-needed head start to carry out and implement their products.
Co-founder of Potentiam, Marcus Adetola mentions ICOs will require more time to get connected to people in Nigeria. Once the people are familiar with the concept ICOs will be a user-friendly and convenient fundraising mechanism within the country;
So, the advice would be for people to educate themselves about ICOs and how they can use this new method to raise funds like never before, especially in Africa.
Co-founder of Sandfox Studio, Mounir Belaid mentions the public interest in Morocco for ICOs. He believes ICOs can give the boost to create blockchain based projects and allow global community to invest in local projects;
ICOs will help us to realize our projects more quickly. But with or without an ICO, we would realize them. It may just take more time.
These investments through ICOs in Africa will ultimately create a space for the local community to create their own solutions for ongoing problems within the region.