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How NFTs Have Empowered Artists in African Art Scenes

The global increase of NFTs has been tremendous, but in Africa, especially in nations with booming art ecosystems, the rise has been explosive. After Beeple’s $69.3 million sale at Christie’s in New York, NFTs, like much of the greater art world, began to permeate Africa in early 2021. As a result, artists working in African cities flocked to NFTs to sell their work, tell fresh tales, and promote African greatness, ranging from established painters to young digital artists. A year on, NFTs have opened the door for new artists to earn revenue on marketplaces like Opensea, Foundation, SuperRare, Mintable, Wax, and many others.

Nigeria’s foremost digital artist Osinachi started making blockchain-enabled art in 2017. However, “Opportunities weren’t in the traditional art space for digital artists like myself,” Osinachi explained, “because traditional artists didn’t take digital art seriously until recently when NFTs started.”

After discovering crypto art on his own, Osinachi joined the now-defunct platform Rare Art Lab. The team taught him how to mint NFTs, a process he picked up with ease. Osinachi admired the way the crypto art space gave him a sense of belonging as a digital artist, something that the traditional art space lacked.

“Before, artists waited on companies to employ them to produce a particular work,” Osinachi said of the circumstances he and his peers in Nigeria had grown accustomed to. “That has changed now. Digital artists are able to make what they want to make and believe someone is willing to buy their works on the blockchain,” He added.

Across several African countries’ art scenes, there is already an established digital art community composed of artists, collectors, and enthusiasts all of whom are propelling the industry’s growth.

South Africa’s NFT scene, unlike Nigeria’s, is still gaining its footing. Several artists, though, are leading the way. “You can feel the unified consciousness of thinking about our tales in South Africa,” said Terence Ntsako, a South African digital artist.

Ntsako started making NFTs in 2021, curious to tap into the new technology. Though he had mostly been painting, creating NFTs didn’t feel like a major leap because he got his start working in animation. “NFTs offered me a platform that allowed me to keep track of and stay in charge of my artworks,” Ntsako said.

Ntsako has been witnessing more and more fellow artists becoming interested in NFTs in order to make money. Working at Johannesburg’s communal art studio August House, Ntsako said that his artist peers constantly come to him, asking him about the medium. “I hear someone telling me, ‘Yo! Show me the ropes,’ and we set up a time, sit down, and I send them all the details on how to get involved in NFTs,” he said.

This excitement has sometimes proven difficult to maintain. Ntsako’s limited time and resources prevent him from assisting the many other artists who want to use the NFT space. Furthermore, he has had to devote time to his collectors, who are accustomed to purchasing his paintings but are wary of NFTs. These problems, however, pale in comparison to those of his peers who are still on the rise in the industry. The expensive gas fees associated with minting NFTs are a more significant concern. The high costs of making this work jeopardize artists’ goals and originality, and limit the number of rising artists who can afford to make NFTs.

Artists aren’t the only ones venturing into NFTs;  African galleries and fairs are also venturing into the new territory. In November 2021, ART X Lagos, West Africa’s first and largest art event, teamed up with NFT marketplace SuperRare to promote young digital artists in Africa. ART X Lagos is West Africa’s first and largest art fair, bringing together thousands of creatives and lovers from around the world. Osinachi, Niyi Okeowo, Linda Dounia, MoonsunDiamond, and Idris Veitch were among the artists included in an NFT sale held at the event. 

In addition, as part of the fair’s talks program, Osinachi, Dounia, and Ade Adekola participated in a discussion titled “Art X NFTs: Speculative Futures,” which was conducted by entrepreneur and curator, Maurice Chapot and featured Osinachi, Dounia, and Ade Adekola.

Such discussions have also taken place at the Art-Tech District in Abuja, Nigeria’s tech-driven arts powerhouse. The company began researching NFTs in order to provide a unique way of empowering young Nigerian artists.

“We embraced NFTs as soon as they emerged,” said Mosope Olaosebikan, founder of Art Tech District. “We were among the first to start having serious conversations about the new technology, hosting a series of NFT panel discussions.”

In contrast to Nigeria’s growing NFT infrastructure, Ethiopia’s art scene is thriving, though the emergence of NFTs is new. You wouldn’t know it from looking at the work of Kiya Tadele, an Ethiopian model and artist who founded the Yatreda art collective with family members in 2021. The organization aims to conserve Ethiopian cultural history by utilizing blockchain technology.

“The NFT space is new for Ethiopia,” Tadele told Artsy. “Though there are some other powerful Ethiopian artists who have entered the space, like our friend Fanuel Leul, we see this as a fair chance for everyone with a curious and open mind.”

In Kenya, there is an NFT community known as Mbogi, which is derived from the Swahili word “crew.” Though the group is modest, according to Young Kev, a renowned Digital artist,  it has grown tremendously as more artists in the community are tasked with bringing others into the fold, educating new artists, and sharing their experiences with NFTs. Artists have also been concerned with raising cash to assist young artists in covering their minting fees, according to him.

“The growing popularity of NFTs has given acceptance to digital art in traditional galleries,” Kev added, noting that he would exhibit his work in The Affordable Art Show in conjunction with the Kenya Museum Society this month at the Nairobi National Museum.

Just like the global art world, these local art scenes in Africa are poised to keep growing, welcoming new artists, and yielding significant sales through blockchain, while also offering new artists greater reach and representation. “We are here to stay, but it still feels like we are just getting started,” Tadele said. “Everything up until this point has been a big experiment. The future looks good.”

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Opinions

The time is ripe for Uganda to have a CBDC, CTDR-U says

Central bank digital currencies popularly known as CBDCs, are starting to gain prevalence all over the world. A Central Bank Digital Currency (CBDC) is a digital variation of money available to the general public regulated by the Central Bank i.e a virtual version of a currency. You can send, transfer and even carry out cross-border payments using a CBDC. 

There are several African countries currently looking to implement CBDCs soon. These countries are in the research and testing stage. Some countries, on the other hand, have already launched their versions and are looking to increase adoption. Nigeria for example officially launched its E-Naira last year in October. South Africa currently has two CBDC projects: Project Khoka 2 and Project Dunbar. 

It was recently announced in March this year that the Bank of Uganda is also exploring the idea of implementing a digital currency but is still studying and revising the financial laws. 

Sourced from CGTN Africa

The Centre for Technology Disputes Resolution-Uganda (CTDR-U), a nonprofit organization, has just written a proposed CBDC paper to the Bank of Uganda as a way of motivating Uganda to explore the option of digital currencies (E-sente). We talked to Ivy Mapfaira, a Legal and Policy Associate at the organization and she shared more about what inspired this and how Uganda can benefit from this.

Ivy N Mapfaira, Legal and Policy Associate at The Centre for Technology Disputes Resolution-Uganda.

1. Please give us a brief introduction to the Centre for Technology Disputes Resolution-Uganda

Centre for Technology Disputes Resolution-Uganda (CTDR-U) is a not-for-profit organization whose objective is to be the leading choice for legal technologists that connects and empowers ecosystem players in a manner that is inclusive, sustainable, and fair to all.

2.     What has motivated the CBDC proposal for BOU?

This was motivated by the potential benefits that a Ugandan CBDC could offer which include: an increase in cross-border payments. CBDCs have the potential to ensure cheaper/lower transaction and storage costs, and more transparent and resilient payment solutions. They further have the potential to ensure security as it would be much easier for payments and transfers to be traced to their original source drastically reducing fraud and money laundering risks and also bringing about financial inclusion.

3.    Is Uganda ready for CBDCs?

Many Ugandans have adopted e-payments and many more are expected to do the same thanks to the invention of mobile money and other third-party services. According to statistics, 30 million mobile money accounts have been created as of February 2021, with the value of mobile money transactions in Uganda amounting to 5.2 billion US dollars in the first quarter of 2019. With the advent of Covid-19 and the imposition of limits on physical touch, e-payments have gained an even more widespread acceptance. With all this happening it is quite evident that Uganda is already moving towards the use of digital money.

4.    Will BOU be receptive to the proposal?

Well, BOU is already taking positive steps towards the issuance of a CBDC. BOU recently announced that it had commenced its research on the viability of a CBDC in Uganda both retail and wholesale, and is looking at other Central Banks including Jamaica, Ghana, Nigeria, etc. as case studies.

5.     What measures have been set up in Uganda to accommodate CBDCs?

As of now, there are no measures that have been put in place, but in order to be able to accommodate a CBDC a revision of the financial laws is necessary, and the CBDC design choice that BOU will adopt is crucial. To any design choice, two elements are constant, the first one being the CBDC itself (i.e., access to a new form of central bank money) and the second being the CBDC infrastructure which allows CBDC to be transferred and utilized for payments. Three major factors within the CBDC infrastructure alongside Uganda’s current situation would need to be addressed and these include:
a) Provision, which entails the necessary stakeholders, their responsibilities, and functions.
b) Functional Design, which will concern the type of payments that will be made and how users will interact with CBDC.
c) Economic Design, which will have an impact on the rate at which CBDC would be adopted by the general population as it concerns aspects such as accessibility.

6.    Are there enough people using the internet in Uganda that have the literacy to use the CBDC or are we just following a global trend with no practicality here?

According to a survey conducted by Uganda Communications Commission (UCC) in the 2020 report, at least 50% of Uganda’s population is connected to the internet, meaning nearly one in every two Ugandans has internet access and this number is expected to grow. It is also important to note that access to the CBDC does not only have to be through the internet.  To ensure accessibility, BOU would need to put into consideration the population that does not have access to bank accounts or the internet and adopts either  Unstructured Supplementary Service Data (USSD) or Qr Codes for those with a smartphone but no bank account. BOU would have to consider picking a leaf from the Eastern Caribbean Currency Union and create a CBDC that allows users without bank accounts to download an app and make payments via a Qr Code to avoid the predicament that Nigeria has found itself in as only those with bank accounts have been able to access its CBDC.

7.     A lot of countries adopt CBDCs to cover the unbanked. In Uganda, the unbanked are mostly there due to poverty/illiteracy. Does the motive of appealing to the unbanked really apply?

Yes, it does apply, the aim is to ensure that the CBDC is used as a tool for financial inclusion with the potential of offering lower costs of transferring money among many other benefits. However, covering the unbanked is not the only reason why Central Banks are adopting CBDCs, the adoption has been motivated by a number of reasons which include, more resilience, more safety, greater availability, and lower costs.

For more information, download the CBDC paper here.

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Business

Ethereum crash reveals grass not as green on Yuga Labs’ Otherside.

Over the past week, Twitter has been going bananas with speculation that Yuga Labs, the multi-billion dollar company behind the Bored Ape NFTs, was launching its metaverse called Otherside, at the end of April. 

The Bored Ape Yacht Club is one of the most popular and arguably highly coveted NFT collections available since it launched in April 2021. The collection features 10,000 unique digital collectables that reside on the Ethereum blockchain and a single Bored Ape has a floor price of 152.4 Ethereum coins, or ETH (about $431,000).

The recent launch involved the sale of Bored Ape Yacht Club’s latest tokens that represented deeds to plots of land in their forthcoming multiplayer metaverse game known as Otherside. On Sunday 30th April, a total of 55,000 plots were sold, at a flat price of 305 ApeCoin (a currency created by Yuga), which is worth about $4,500 at current exchange rates.

However, it was not all smooth sailing for the Bored Ape Yacht Club and as users raced to become one of the lucky few to secure an “Otherdeed” (the deeds to land in Otherside), demand for the plots rose so high that it overwhelmed the Ethereum blockchain.

The Ethereum blockchain saw transaction fees on the network rise higher and higher until an individual NFT purchase cost more than £2,500 in fees alone. One user, who successfully secured two Otherdeeds, paid a transaction fee of over 5 ETH (£11,000) on top of the £9,000 to buy the land itself. 

A total of more than $100 million was spent on transaction fees to buy Otherside NFTs and when the sale was over, the company apologised for the chaos it had caused. “We know that the Otherdeed mint was unprecedented in its size as a high-demand NFT collection, and that would bring with it unique challenges.”

In a more problematic twist, part of these transaction fees were incurred as losses by users who unsuccessfully tried to secure tokens while having insufficient funds. The deducted transaction fees were not refunded. 

Business outside the Otherside NFT sale was also greatly affected as people incurred serious losses as pointed out by Molly White, a crypto expert running a site that is documenting the crypto sector. 

Molly White tracked multiple examples over the day of NFT sales worth less than £500 being hit with transaction fees of more than £2,000 including a $25 NFT that attracted fees worth a whopping $3,300 transaction fee. On the most popular marketplace for NFTs, OpenSea, most sales were for Otherdeeds but such other sales were affected too. 

“Gas fees, which increase based on network congestion, spiked to shocking levels as some people continued to buy and sell cheaper NFTs,” White wrote. 

Molly White highlights a $25 NFT with a $3,300 fee. 

While addressing the crash of Etherscan, the cryptocurrency analytics website for Ethereum, Yuga Labs emphasized that, 

“This has been the largest NFT mint in history by several multiples, and yet the gas used during the mint shows that demand far exceeded anyone’s wildest expectations.” Adding that they were sorry for turning off the lights on Ethereum for a while.

In the short term, it looks like those who secured these Yuga tokens can wipe away the tears from the high transaction fees paid with all the paper from their resale earnings. Tokens that sold for £4,500 are already reselling for more than £9,000 while Yuga Labs took another $300 million in payments.

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Opinions

deVere Group CEO predicts an increase in crypto adoption in Africa

While crypto investors are becoming more skeptical and fearful because of the current depreciating levels of crypto, Nigel Green, CEO, and Founder of one of the world’s largest independent financial advisory, asset management, and fintech organizations, deVere Group is confident that the future of money is becoming a global changing venture. 

He remarks that the adoption of bitcoin as legal tender in the Central African Republic is exciting and a good sign for Africa’s development. As a man who has already dipped his toes into the crypto industry, he emphasizes that crypto has the power to change a better tomorrow.

Nigel Green comments: “We can expect an increasing number of countries to follow the example of El Salvador and now the Central African Republic and adopt Bitcoin as legal tender. In January I predicted that at least another three nations, besides El Salvador, would declare the world’s largest cryptocurrency legal tender in 2022. One now has already done so. I’m doubling down on this prediction. There’s a real sense that momentum is picking up. I expect Bitcoin will be adopted as legal tender in at least one more African and one Central or Latin American country before the end of the year,” he said.

“In Africa, we believe Tanzania could be one of those countries. Its central bank said last year it was working on a presidential directive to prepare for cryptocurrencies. In Latin and Central America, it could potentially be Paraguay or Mexico next,” he added.

This has the potential to improve situations where low-income countries have long suffered because their currencies are weak and particularly exposed to market fluctuations, resulting in high inflation.

This is why most poor countries rely on big ‘first-world’ currencies to execute transactions, such as the US dollar. However, relying on another country’s currency has its own set of issues, which can be quite costly. Because developing countries have taken on so much dollar and euro-denominated debt in recent decades, a stronger dollar or euro will weigh on emerging-market economic prospects.

“Adopting bitcoin is currently more tempting to those countries with a track record of financial instability. These countries will have a currency that is not influenced by market conditions within their own economy, nor by the economy of just one other country if they accept bitcoin as legal money.” The deVere CEO continues.

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Opinions

South Africans are adopting cryptocurrencies at a faster rate, says REVIX and VALR

Although Bitcoin, the number one cryptocurrency in the decentralized market, has lost value in recent weeks, it has not stopped South African citizens from buying it. According to reports, South Africans are getting more involved in the crypto market to avoid the effects of the devaluation of the Rand. 

A 2019 Hootsuite report noted that South Africa ranks first in the world for the highest percentage of internet users who own cryptocurrencies with 10.7 percent of internet users in South Africa owning crypto. This was the highest ratio globally, with Thailand and Indonesia following suit at 9.7 and 9.3 percent respectively. South Africa ranked above some of the renowned crypto powerhouses including Switzerland at 7 percent, South Korea at 6.3 percent, the U.S at 5.3 percent, and Japan at 4.3 percent. Additionally, according to the Finder Cryptocurrency Adoption Index,  South Africa ranks 17th out of 27 countries for cryptocurrency ownership. This is 4 places higher than its January 2022 rank.

Revix, a crypto platform in South Africa, has reported that there has been a 500% increase in operations this year. The firm clarifies that its funds reached over $70M by 2021 and have further increased. 

The Revix CEO clarifies that early this year a drop in crypto adoptions was detected. Sanders Sean, who holds a senior position at Revix, believes that South Africa is one of the biggest markets for crypto and most especially for the Revix platform. To date, it is reported that at least 3 out of 10 South African citizens use crypto, while a vast majority of the population knows the virtual market.

South Africa has not only helped Revix expand its business, but it has also backed the VALR Exchange. According to Ehsani Farzam, the company’s CEO, its subscribers increased from 85000 in 2021 to 270000 in 2022.

The crypto market has offered its investors thousands of opportunities to earn money and make international operations. Mass adoption could also be motivated by the rise in demand within the global market.

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Business

Former Visa Exec. joins Crypto.com.

One of the leading cryptocurrency exchange and trading platforms around the world, Crypto.com, has hired a former Visa regulatory head as its new Vice President. The announcement was made by Roeland Van der Stappen himself on LinkedIn on Monday.  

Roeland Van der Stappen, who headed Visa’s European regulatory affairs team, reportedly stepped down and accepted an offer at the cryptocurrency company as its new Vice President, Policy and Engagement for Europe, the Middle East and Africa (EMEA).

“I’m happy to share that I’m starting in a new position as Vice President, Policy and Engagement, EMEA at Crypto.com! I look forward to diving into the #crypto and #Web3 policy issues and start sharing all the great stuff my colleagues are working on,” he wrote in his announcement.

Since it was founded in 2016, Crypto.com has grown to have a customer base of over 10 million users in 90 countries worldwide and is looking to improve the quality and reach of its services with the intention of giving everyone access to their money, identity and data. 

Through active involvement in policy decisions affecting the industry, the company hopes to widen Web3’s reach in a system that is more fair and equitable while owned by the builders, creators and users. 

Van der Stappen comes as a glowing candidate following over 3 years at the helm of the regulatory Affairs division for Europe while at Visa. Prior to this, he had served as Vice President of Government Policy and Public Relations at Barclays Bank and as a Policy Advisor for the European Round Table of Industrialists. 

Van der Stappen will be in charge of developing and driving public policy strategies and identifying future risk areas and opportunities in the growing markets of Europe, Africa and the Middle East for Crypto.com. 

The hiring is part of the company’s accelerated synchronized policy tactics following a ban of two of Crypto.com’s advertisements by the UK’s advertising regulator in January, along with a major move into federal lobbying in the USA at the start of the year.

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Business

36% of Africans Plan to Buy Crypto for the First Time in 2022, Says Gemini Report

According to a survey performed among people in Nigeria, South Africa, and Kenya, more Africans want to buy cryptocurrency for the first time this year.

The Gemini Survey reports one out of every five persons in these nations has crypto (22 percent), but 36 percent of those who do not hold crypto plan to do so this year.

Furthermore, hundreds of respondents in the chosen countries believed that cryptocurrency was the way of the future; 63% in Nigeria, 57% in South Africa and 54% in Kenya.

The Gemini survey also indicated that Africans trust cryptocurrency, despite the fact that lack of information was the main factor for people not owning cryptocurrencies:

Trust: There is a lot of trust in Africa, with only 14% of non-owners indicating they haven’t bought cryptocurrency because they don’t trust it, compared to 27% overall. 

Education: More instructional tools would help individuals become more comfortable acquiring cryptocurrencies, according to 56 percent of respondents, compared to 40 percent overall.

Access: 59 percent of respondents believe cryptocurrency is accessible to everyone, compared to 43 percent globally.

More crypto owners in Africa reported holding for the long term rather than actively trading, similar to the rest of the world. Despite this, African owners stand out, with at least half (53 percent) claiming to be regularly trading their cryptocurrency. Nearly half (46%) of respondents in Latin America and Africa feel that certain cryptocurrencies are a wonderful method to protect against inflation,’ according to the report.

“Respondents in countries with 50% or more devaluation against the dollar over the last 10 years were more than 5 times as likely to say they plan to purchase crypto in the coming year, compared to those who experienced less than 50% inflation over the same time period.” according to the Gemini report.

The survey involved 1, 217 in Kenya, 1214 in Nigeria and 1234 in South Africa.

Sourced from BiTKE

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Opinions

IMF Sends Strong Message On Bitcoins

The International Monetary Fund (IMF) has made a strong case against the adoption of Bitcoin as legal tender by countries.

Abebe Selassie, Director of IMF’s African Department, made this warning at a media briefing on the organization’s economic outlook for Sub-Saharan Africa.

His remarks came after the Central African Republic became the first country in Africa and second in the world after El Salvador to adopt bitcoin as a legal tender.

Selassie emphasized Bitcoin is not a remedy for the economic troubles in African countries.

Meanwhile, President Faustin Archange Touadera’s Chief of Staff, Obed Namsio, highlighted that the decision “puts the Central African Republic on the map of the world’s boldest and most visionary governments.”

The Central African Republic is a thinly populated country with 5.4 million people, according to the World Bank. Despite its natural resources, it is one of the poorest and most vulnerable countries on the planet.

“It is absolutely crucial not to consider such things as a cure for the economic issues our countries confront,” Selassie said.

He said, “You have to make sure that the legislative framework, in terms of the transparency of financial flows, the governance framework around it is all robustly in place.”

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Business Social Good

Raining NFTs from the Stars for a Good Cause.

On 8th April 2022, the SpaceX Falcon took the first-ever private mission to the International Space Station (ISS) on a trip that had some precious cargo on it. A collection of 30 super rare House of Legends NFTs also went along for the ride and these assets will drop from space into an auction, with all proceeds going towards charity.

House of Legends (HOL) is a unique NFT collection of 9,993 hand-drawn artworks by award-winning Forbes 30-under-30 artist, Amit Shimoni. In a mission to help 1 million people from disadvantaged communities get access to clean water for life, the series includes some of the most influential men and women in history. 

In 2021, HOL’s initial collection sold out in less than 2 days in which time it raised $4.8 million. With each NFT sold, HOL donated towards building water wells for 50,000 people in communities across India and Africa.

The HOL NFT collection features unique representations of historical leaders, such as Mahatma Gandhi, Barack Obama and Nelson Mandela. Collectors will also find famous artists and present-day celebrities like Oprah and Elon Musk also making an appearance in the collection.

Creation of the HOL collections. 

In a remarkable initiative, House of Legends (HOL) made a partnership with Israeli impact investor and philanthropist Eytan Stibbe, who just flew to the International Space Station via Ax-1, the first-ever private space mission.

House of Legends and Eytan Stibbe teamed up for this historical event to help improve the lives of a million people worldwide. During his stay in space, Stibbe showcased the HOL honorary “Wish Upon a Star” NFT series (WUAS) that can be found here

For this project, HOL invited children around the world to draw their hopes and dreams for humanity. Then, the team selected 30 of these portrayals and transformed them into unique NFT artworks. 

While Stibbe will display the NFTs through a tablet in space, the super rare assets will “drop” from the stars straight into an auction on Earth, which will begin once the crew returns from the ISS. All the proceeds from this auction will go towards HOL’s charity initiative to help communities in India and Africa access clean drinking water.

On a global scale, the House of Legends team noticed a scarce presence of NFT projects with tangible impact. While many NFT and crypto initiatives publicize their intent of driving some of their proceeds to charity, their actual effect is rarely visible. House of Legends CEO, Tamara Yannay and her team want to disrupt this negative trend by making a long-lasting change in the world through every NFT sale.

Through a team up with renowned global NGO, Drop4Drop, HOL is helping communities in need across India and Africa access clean water sources. HOL directs all the proceeds from the NFTs’ launch sale towards building water wells in remote African and Indian villages. Thanks to this partnership, 80,000 people obtained lifelong access to potable water.

The initiative will impact the communities both directly and indirectly where on top of the access to clean, reliable and safe water, it cuts on the long duration times associated with fetching water in these communities. 

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Business

South African SMEs use Solar and Blockchain to Power Decarbonization.

A London-based sustainable power startup is looking to enable small and medium-sized enterprises (SMEs) to reduce their emissions by aggregating SME decarbonisation projects on a blockchain platform.  

As the world tries to reduce its carbon footprint, large corporations can direct a part of their finances or even be able to get funding from banks and other lenders to transform their energy sources to a point of earning profit. 

On the other hand, SMEs generally have a harder time attracting funding because lenders consider them a risky venture. 

The trap for SMEs that supply large enterprises is that if they do not reduce their emissions, they could lose contracts on account of not meeting the green requirements of their clients. 

This is where Decarb.Earth comes in. Decarb.Earth is working with SMEs to reduce their reliance on fossil fuels and carbon derived energy while still keeping them in business. 

With an international team of subject matter experts and thought leaders, the company is using blockchain technology to underpin transparent, accurate and verifiable smart contracts in a mission to show the value of carbon avoidance to accelerate decarbonisation worldwide.

According to Decarb.Earth’s calculations, if all SMEs in South Africa switched to solar electricity, the country could cut up to 30% of its yearly CO2 emissions and exceed its 2030 emissions target. 

For its first project, Decarb.Earth aided the Hout Bay Gallery in securing a solar PV installation and the program solves a number of problems simultaneously. Decarb.Earth’s South African founder Marco Funk says,

“Issues with stability and the price of power in South Africa are well known. In the past 15 years, the price of electricity from Eskom has shot up by more than 500% in real terms. Solar energy, in the sunshine-rich environment of this country, provides a stable and predictable source of power and the platform significantly reduces both up-front costs and running costs for the SME,” 

This move allows everyone in the value chain from the customers of the SMEs to the financiers to use the verified carbon-avoidance and emissions data to highlight the role they are playing in reducing global carbon dioxide (CO2) emissions. 

The further we go on the journey to a green energy future, the more organisations will compete for carbon-avoidance credentials. Because of the security and transparency features of blockchain, this solution makes the platform fully accountable.

“The lack of verifiable emissions data and all the risk in smaller businesses paying for their own renewable energy installations significantly reduces access to funding,” Funk says. “On average, these projects can achieve more than a 15% return a year in a sunny country like South Africa, which is attractive to potential funders if their concerns are dealt with.”

The project could see SMEs reach a position of being supplied with cheaper, followed by free energy with a more regular supply while matching long-term green sustainability objectives.