Commerce thrives on security and stability in business and monetary exchange systems. There are powerful blockchain tech trends that help African businesses work around many of the systemic challenges and weaknesses they have traditionally faced in entering the global marketplace. In this article, IT expert and tech investor Hiruy Amanuel discusses how blockchain tech can assist African startups.
How African Tech Companies Can Use Blockchain in International Commerce
Blockchain technology is essentially a database technology designed for incredible security and resiliency. Unlike a traditional database housed on a single server, blockchain data is distributed across a large network of participating servers located around the world. Security and transparency are the hallmarks of data stored using blockchain tech.
Blockchain technology can be highly valuable to African tech companies by providing security and clear title to assets of all types. Without reliable governmental systems for authenticating and protecting property rights, blockchain tech can provide reliable methods for establishing ownership of assets with financial institutions and credit rating agencies around the world.
Blockchain Can Support Domestic Human Resource Development
Record keeping across Africa is often deficient in documenting educational and health records both for adults and for children. These deficiencies and others affect the willingness of investors to bring assets to the African commercial market, as a stable and documented workforce is critical to the success of business infrastructure.
Blockchain tech can establish greater accountability in building a reliable and documentable workforce. Security is also enhanced, and potential investors are attracted to database solutions that reliably protect sensitive identifying information while ensuring labor force information that is transparent and subject to accurate audits.
Opportunities for the Domestic Tech Industry
African tech startups also are finding ample growth opportunities in industries across the continent that have traditionally been weak or non-existent due to the developmental blocks put in place by colonization.
Healthcare is expecting explosive growth in the developing world and all across Africa, and blockchain tech is in the center of that process. Blockchain is expected to lead in developing renewable energy to power hospitals and health clinics and to provide secure and reliable platforms for maintaining accurate health records.
Many parts of Africa are notoriously underbanked as a result of the post-colonial weaknesses previously discussed. Blockchain technology will present a safe alternative to unstable national currencies and banking systems during the upcoming period of commercial development.
About Hiruy Amanuel
Hiruy Amanuel is an innovative technology investor who works tirelessly to develop the technological marketplace in Ethiopia and across the African continent.
He has spent his professional life developing strategies and opportunities for tech professionals and entrepreneurs. Mr. Amanuel is the co-founder of Gebeya, Inc., an online marketplace that trains Africa’s IT professionals and matches them with businesses and participants in the global business market.