The existence of the Web3 economy in Africa began with cryptocurrency. Using blockchain technology in Africa came with a lot of transformation in terms of transparency and control over finances. The Web3 economy in Africa is still gaining more traction with a DeFi-based financial inclusion.
Fonbnk, the Web3 on-ramp that allows Africans to obtain cryptocurrency assets by exchanging their airtime credits, has partnered with Tanda, a merchant network platform in East Africa, to launch an airtime trading marketplace across Tanda’s network of agents.
The partnership between Tanda agents and vendors in East Africa will bring about an increase in liquidity to the marketplace through the buying and selling of prepaid airtime for profit. This, in turn, will create opportunities for agents to earn revenue and also allow them to store their profits in dollarized stablecoins.
The partnership not only provides African micro-entrepreneurs with more earning opportunities but also creates a growth flywheel effect through improved liquidity and marketplace efficiency. This cycle builds trust and generates even more liquidity. Moreover, this partnership enables more African users to participate in the Web3 economy, without requiring bank accounts or cards, by using only their airtime.
Although Fonbnk operates throughout Africa, its partnership with Tanda is specifically concentrated in East Africa. Fonbnk plans to expand earning opportunities for African micro-entrepreneurs and bring decentralized finance (DeFi)-based financial inclusion to the masses across Africa.
During the first episode of Cointelegraph’s new podcast, Hashing It Out, the co-founder of Fonbnk identified the rise in crypto adoption as due to several factors such as the chance to earn money, inflation, currency devaluation and the ease of doing business on a global scale.
Web3 can open up an intra-African exchange economy, it can be used for purchases and transportation between African nations thanks to the ability to be used between borders. It will assist Africans to generate more economic value in the wider market.
According to BitcoinAfrica.io, the top 5 African countries whose communities are adopting Web3 and crypto are South Africa, Nigeria, Zimbabwe, Kenya, and Ghana. They have the most demand for digital currency as well as the most active local cryptocurrency communities.