In a statement released to PUNCH Online on Saturday, Oyekan noted that blockchain could help close economic disparities, promote financial inclusion, and improve transparency across the continent, provided that appropriate policies and investments are implemented.
Oyekan posits that blockchain technology offers a potential solution to the financial inclusion gap. Africa's financial sector exhibits significant fragmentation, resulting in the exclusion of millions from traditional banking. World Bank data indicates that over 66% of Sub-Saharan Africa's population lacks access to banking services, thereby restricting access to crucial financial tools.
“While mobile money platforms like Kenya’s M-Pesa have improved financial inclusion, challenges persist, particularly with high transaction fees and delays in cross-border payments.
“Blockchain-based financial solutions are emerging as an alternative to conventional banking. Platforms like BitPesa enable businesses and individuals to conduct seamless, cost-effective cross-border transactions. By eliminating intermediaries, blockchain allows direct financial interactions, reducing costs and enhancing efficiency. This innovation could empower traders and SMEs across the continent, fostering economic growth,” he said.
He articulated how blockchain technology is improving transparency and efficiency within the agricultural and entertainment sectors. Agrocenta, a Ghanaian company, utilizes blockchain to directly connect smallholder farmers with buyers, thereby ensuring equitable pricing and mitigating exploitation by intermediaries. Similarly, the creative industries are undergoing a transformation.
Nigerian musicians, filmmakers, and digital artists, among others, face challenges related to piracy and inequitable royalty distribution. Blockchain-based smart contracts provide a solution by guaranteeing transparent revenue distribution, enabling content creators to receive appropriate compensation. This innovation is reshaping Africa's creative economy, empowering artists with greater control over their intellectual property.
Oyekan voiced concerns regarding the shortcomings of the eNaira, which was introduced by the Federal Government several years ago, emphasizing that security and usability are critical issues impacting the initiative.
Regarding youth empowerment and blockchain education, he pointed out that Africa's rapidly expanding youth demographic presents significant opportunities for job creation and skill enhancement through blockchain technology.
He further noted that blockchain can serve as an effective instrument in the fight against corruption.
Addressing the challenges, Oyekan acknowledged that despite its promise, the adoption of blockchain in Africa encounters numerous hurdles, such as regulatory ambiguity, inadequate internet connectivity, and a lack of public understanding.
“Governments must develop clear policies that encourage blockchain innovation while protecting consumers. Additionally, educational initiatives are needed to demystify blockchain technology and promote its benefits.
“As blockchain continues to gain traction, its role in Africa’s economic transformation is becoming increasingly evident. With strategic adoption, the technology could drive financial inclusion, improve governance, and foster a more integrated African economy. While challenges remain, blockchain’s potential to reshape the continent’s future is undeniable,” he urged.