Africa is making significant strides to streamline trade and increase revenue through cryptocurrency technology and digitalization. The continent aims to open borders in a manner similar to the EU while drastically reducing cross-border trade costs.
What is Africa Planning? #
Chido Munyati, Head of Africa at the World Economic Forum (WEF), stated at the forum that payment systems and documentation in Africa are outdated. These systems hinder African trade, and he hopes digitalization can solve this problem.
A collective including the Iota Foundation, the Tony Blair Institute, WEF, and the AfCFTA (African Continental Free Trade Area) secretariat are working together to develop a digital platform in Africa to digitize trade across the continent.
On Monday, the Africa Digital Access and Public Infrastructure for Trade (ADAPT) was announced. This is an open-source digital public network that enables cross-border payments using stablecoins.
The goal of ADAPT is to generate an additional $70 billion in annual trade, reduce customs clearance times from fourteen to three days, and lower the costs of cross-border payments, which currently range between six and nine percent.
Africa’s Challenge #
ADAPT will first launch in Kenya in the first quarter of 2026, followed by Ghana. A third country is expected to join afterward. The full launch of ADAPT is planned for 2027 and will continue until 2035, according to Dominik Schiener, director of the Iota Foundation.
Trade inefficiencies have become one of the major obstacles for African countries, making it difficult for many African businesses to grow.
By converting paper documentation to digital formats, significant time and money can be saved.
Africa’s Strength #
Africa is already significant in crypto. According to online data platform Statista, there are expected to be 75 million crypto users in Africa by 2026. Total revenue in this sector on the continent will reach around $5 billion by 2026.
Stablecoins in the Sub-Saharan region already account for 43% of transaction volume, with countries like Nigeria, South Africa, Ghana, Kenya, and Zambia representing the top five.
Crypto also means a lot to large groups in Africa. Where it was previously difficult or impossible to access financial services like bank accounts, many can now participate financially through crypto.
Africa is particularly seeking new opportunities in blockchain and crypto to enable economic growth and innovation while solving existing problems.