Hello friends, hope everyone is pretty ok. In this article, I spelt out and simultaneously underscored the need for Web3, given the inconsequential pace at which many African nations embrace borrowing.
Introduction
Currently, there is an approximated figure of 7.96 billion people in the world, and Africa being the second most populated continent in the universe has absorbed an approximate headcount of about 1.4 billion people making it the second most populated continent after Asia which has a total population of 4.7 billion people. This is according to data streamlined by
Consequent to the observation above, Africa as a continent has currently absorbed over 50% of people living below $1.9 per day which are people living in abject poverty globally. This is also according to data provided by statista
Nonetheless, given this increasing rate of population and the conglomeration of depleting standard of living in the continent of Africa, the countries in this jurisdiction have been forced to go in for borrowing to complement their domestic budgets and related financial and social upheavals.
The continent of Africa is rich in both human and mineral resources but expressed rigidity in new inventions and Innovations in technologies like the current trend of the web3 protocol which is revolutionizing the prosaic orientation and phase of the internet, and this has further kept the region on the debt list of different global financial bodies.
I strongly believe that the adoption of the web3 invention within the strata of Africa will vehemently revamp its economy and cause the region to experience the true beauty of the world as expounded below.
Ways Through Which Web3 Would Put Checks To The Borrowing Menace In Africa With Its Simultaneous Benefits.
Adoption of the Web3 innovation.
No one owns anything until it gets to his hands, which validates the saying that a bird in the hand worth millions in the bush. So also, no dollar value in one's post is his' until it drops in his wallet.
Going by these sayings, The respective governments in Africa have to make the adoption of this protocol an open engagement. This will help to counteract the skepticism and fear that has been instilled in people for holding the tokens which is the protocol that powers the blockchain. In this way, it will be easier for them to regulate the trading of crypto and other engagement in the web3 protocol.
After the governments in this region has achieved this milestone through open engagement, it will further be a means of adding to their respective gross domestic income (GDP)
Consequently, let's make some valid assertions using a few African countries for instance; The North African country Morocco for instance in 2022 had a total GDP of $134.18 according to data from world bank but they are currently owing 1.4 billion to IMF according to their credit ledger. Moreover, My country Nigeria which is also a member nation situated in west African had a total GDP in 2022 stipulated at $477.39 billion, this is according to data by world bank and contrarily, they are indebted to the IMF with a total sum of $2.1 billion, this is also according to data provided by IMF
Digging further, the southern region of Africa (South Africa) had a total GDP of $405.87 billion and one of the Easter regions (Burundi) had an estimated GDP in 2022 at $3.07 billion this also according ntị daya by world bank but currently, both countries are indebted to IMF the sum of $3 billiion for South Africa, and $105m for Burundi. The financial indebtedness of these African countries are just recent values dated 8th of August just to IMF alone as I believe they are also owing other financial bodies if we should make further review. This further indicates that all the four cardinal regions in Africa are fully represented in debt accumulation and servicing.
I believe that if these countries and other regions in Africa should fully adopt the Web3 invention, it will definitely help them to curb the rate of borrowing that is malignantly affecting their estimated domestic earnings yearly
Engagement in The Protocol.
After the adoption of the Web3 invention, the next thing the African nations need is to fully engage in the protocol by putting proper measures in place to help them increase the rate of their incomes.
Assuming that the Nigerian government invest into Hive and employ capable personnels who are willing and ready to work in this ecosystem, first they've reduced the rate of unemployment, next the income per Capita (PI) of those employed has increased thereby increasing the nation's national income since it may not be just Nigerians that will contribute to the growth of such community.
Current data from statista indicates that about 5.76 percent of Nigerian as a case study where unemployed in 2022 but I strongly object to this figure because of the inaccuracy of most speculation and data from my country given to the rate of job insecurity and insincerity of those providing certain information.
All being said, the web3 invention using hive for instance, has the capacity to accommodate this percentage of unemployed persons and also help them to improve their standard of living which will finally generate revenue for the country.
Investing in the invention.
This is where the African nations would undoubtedly amass their wealth outside of whatever mineral resources they have. Let's also use the Hive ecosystem for instance, assuming these African nations should invest a ration of their national income in HBD savings platform in hive which is very secure, at the end of the day, they are having a return of 20% APY.
Contrarily, assuming these countries wish to create their respective country communities on hive, they can buy some hive, power it up and start making reasonable returns each day rather than just hoping on their mineral deposits which will unequivocally drain one day.
Finally, they can also create their country tokens, sponsor it and also give it good tokenomics that would attract other investors. At this point, they are also creating wealth.
Investment in crypto is actually what the Slovenian government is using to improve its local economy. Currently, they have one of their shopping malls called BTC. I believe that this is a good modus-operandi in embracing this great invention.
Comparatively, one the north African country Morocco's debt to the world bank has risen to 51.2% while Slovenian has no debt to settle with the world bank this is according to data by world bank. Well it's not only the above mentioned name in Africa that is indebted to the world bank but this is just in juxtaposition for a clearer evidence of the benefits associated with the adoption of Web3 invention.
Conclusion
I believe that the underscored context has been well emphasized and properly harangued. I may not be unriddling all of the benefits associated with Web3 just in this publication alone as I have more to elucidate in my next article if time permits.
The different regional governments in Africa have a whole lot to gain if they should give heed to this invention. There wouldn't be the need to always run to the World Bank, IMF or other organizations to borrow money especially to finance their respective national budgets as they stand the chance to replicate wealth overtime in Web3 invention.
These nations have to remember that mineral deposits aren't meant to last forever, if that's actually all they have to spend but there is no end to the benefits derivable in web3 if they should adopt and also invest into the underscored invention.
I wish to use this medium to invite you to the platform where the concept of web3 is fully expressed, that is Hive, after joining, also pop up on leofinance to see how things are done there. I believe you really learnt something from this article, permit me to draw the curtain at this point. Thank you for going through, hope to see you in my next publication bye.
References:
https://twitter.com/okorodavid19/status/1688932285033377792?s=20
- okorodavid19
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