The African continent is a marketplace for over 1.2 billion consumers and is a fast growing developing economies. Still, there are hundred of millions of people who do not have access to banking. With this scenario, there is a huge potential and plenty of opportunity for new crypto ventures in Africa and Binance wants to tap this market before any one else.
The Director of Binance Labs, Benjamin Rameau has published on 31st Aug 2018 an explanation about the commitment by binance to invest in African continent and called on supporters to help them to connect to African projects with Genuine founders and enthusiastic start up founders. He mentioned, “We have no headquarters, no offices and no geographical boundaries. We are just as African as we are Asian, European or American. The blockchain revolution will be a global one and not limited to any geographical region and Binance Labs will consider investments in all non-sanctioned countries. In Africa, we feel very much at home and we want to deploy our capital there”.
The company is not turing to Africa for charity nor for its diversification, but purely for the motive of profit. He also mentioned that in 2018 it looks like the 21st century belongs to Asia; yet it may happen that Africa is the dark horse and may give a surprise. Investing today in Africa may be the best trade of the century.
There are many factors that support the prediction that the African continent will be a great investment opportunity of our time. For example, in an era when many developed economies are suffering from an aging population and shrinking labour poools, Africa enjoys a large and growing young population. Additionally, there are many reasons that the crypto projects are uniquely suited to take part in these developments. The main amongst it is that while an entrenched banking sector in developed countries can try to block new technologies which they feel that its threat to their profit, Africa doesn’t have this impediment and can thus give leap to the crypto based financial infrastructure.
There are many countries in Africa which has competitive ages and under used labour pool that are very appealing for expense sensitive crowd sourcing projects. As Rameau noted, if screening through scams on Twitter and registering fake accounts pay $3 per hour, developed market contributors will face high opportunity costs and be pushed out of the labour pool, but this rate could be a handsome reward for someone working out of Somalia.