The African-based Aquarius team is delving deeply into the industry to comprehend the state of Web 3.0 in the continent.Their goal is to identify and support blockchain and entrepreneurs in the African web3 incubation space. They’ve forged deep strategic partnerships with prominent African KOLs and communities, enabling high-quality projects from Asia and North America to enter the African continent. In this article, we will take a macro perspective to analyze the significance of venturing into the African continent.

1. Global Inflation

First and foremost, a significant factor is the impact of global inflation. According to data from the International Monetary Fund, in August 2022, the global inflation rate rose from an average of 2.1% before the COVID-19 pandemic to 7.5%. This trend of global inflation has far-reaching effects on the economy, especially during the early stages of the pandemic when reduced demand led to a decrease in inflation. However, with the strong economic recovery, consumer price increases have surged once again. Vaccine-driven economic activities have rebounded rapidly, and the widespread adoption of unlocking and virtual work has exerted upward pressure on consumer price inflation. Additionally, supply chain disruptions have contributed to the rising inflation of consumer prices, impacting global economic stability.

1. Sharp Rise in Unemployment

Simultaneously, there has been a sharp increase in unemployment rates, with many countries experiencing widespread job losses. The latest assessment from the International Labor Organization indicates that the damage caused by this pandemic will take several years to repair, and unemployment levels are expected to remain above 2019 levels, exerting sustained pressure on the economy. While high-income countries have seen faster recoveries in their labor markets, middle and low-income countries have suffered more severe impacts during the pandemic.

1. Global Trade Decline

Furthermore, global trade has also suffered a severe decline. The drop in global trade in 2020 was comparable to the global financial crisis of 2008–2009, and it was more severe than the decline experienced in 2015. By 2020, global trade had decreased by approximately $2.5 trillion (a 9% decrease compared to 2019). According to data from the World Trade Organization, there was a strong rebound in the value of global trade in 2021, reaching a historical high of approximately $28.5 trillion as economic conditions improved, representing a roughly 13% increase compared to the pre-pandemic levels.

This trend of global inflation and economic fluctuations has significantly influenced the decision-making at Aquarius, motivating them to seek support for Web 3.0 projects in Africa and to provide opportunities for projects from Asia and North America on the African continent. This endeavor not only aids in addressing the challenges faced by the global economy but also brings new opportunities and development prospects to Africa.

2、Challenges yielding opportunities : Venturing into Africa

1.Market Background:

a. Overview of the African Market: Africa is a continent with a vast and diverse population, making it a significant market on a global scale. It is the second most populous continent, with approximately 1.5 billion people, and is known for its youthful demographic, with a large proportion of the population under the age of 25. This demographic trend suggests the potential for a burgeoning consumer market with growing digital literacy and adoption.

b. Currency Depreciation: Examples include Nigeria and Kenya. The fluctuations in Nigeria’s Naira have driven increased demand for cryptocurrencies as users believe they can better preserve their savings through stablecoins like Tether. Many everyday traders engage in cryptocurrency transactions to balance their incomes.

c. Remittance Restrictions: Due to challenging living and working conditions in Africa, many people from the continent must leave their homes to work in Europe and the United States while leaving their families behind in Africa. These individuals send remittances to Africa on a regular monthly basis. According to Chainalysis reports, before the pandemic, international remittances to Africa reached $48 billion annually. Traditional financial methods for international remittances incur fees of over 5%, with many countries imposing corresponding restrictions. Consequently, Africans working abroad have to seek faster and cheaper cross-border remittance methods.

d. Trade: Insufficient foreign exchange reserves and currency controls are prevalent issues in Africa. Many local companies in Africa opt to use cryptocurrencies for cross-border payments due to the inefficiency and bureaucracy of traditional banks, which require copious documentation and have low efficiency. Furthermore, many countries in Africa lack sufficient foreign exchange reserves and impose currency controls, which means numerous companies cannot access enough U.S. dollars or other international currencies for procurement and imports.

The core characteristics of blockchain technology, such as transparency and decentralization, grant it the potential to address widespread issues and challenges across the entire African continent. These challenges encompass the high costs of international remittances, the enhancement of financial inclusion, and the improvement of land registration. Blockchain technology offers a new solution to address these problems and is poised to have a positive impact on the economic and social development of Africa.

1. Growth Trends in African User Base:

Currently, there are 320 million cryptocurrency holders worldwide. In terms of cryptocurrency ownership, the top five countries are the United States (with 46.02 million people, accounting for 13.74% of the population), India (with 27.41 million people, accounting for 2.00% of the population), Pakistan (with 26.45 million people, accounting for 11.50% of the population), Nigeria (with 22.33 million people, accounting for 10.34% of the population), and Vietnam (with 20.21 million people, accounting for 20.27% of the population).

In the African continent, blockchain and cryptocurrency assets are gaining increasing popularity. From 2020 to 2023, the cryptocurrency market in Africa has experienced a growth of over 1200%. This upward trend has led countries such as Kenya, Nigeria, South Africa, and Tanzania to enter the list of the top 20 global cryptocurrency applications.

3、 Seeking a Breakthrough: Changing the Narrative

The African blockchain market presents a vast and relatively untapped opportunity. Aquarius recognizes this potential and is strategically positioned to make a significant impact on the continent’s digital landscape. With a youthful and growing demographic that has increasing access to digital technology, Africa is ripe for transformative change.

Encouraging Blockchain Adoption: Aquarius is taking the lead in driving blockchain adoption in Africa. Through its various projects, the organization is actively addressing critical challenges and paving the way for more users to embrace blockchain technology for gaming, finance, and other applications. This approach is not only beneficial for the blockchain ecosystem but also for African communities seeking innovative solutions to age-old problems.

Community Building as a Core Focus: One of our primary focuses at Aquarius is community building. We understand that the African continent comprises diverse and unique communities, each with its distinct pain points and needs. Our mission is to create a unified and inclusive community that addresses the specific requirements of the people in Africa. By doing so, we aim to empower these communities by providing tailored solutions, supporting local initiatives, and fostering collaboration among different regions.

Supporting Quality Projects Aligned with Local Needs: We are committed to creating a clear path for businesses and projects to thrive in the African market. This entails identifying key pain points within African communities and facilitating the development of projects that directly address these challenges. By aligning with local needs, Aquarius ensures that its projects are not only relevant but also sustainable and impactful. This approach promotes economic growth, job creation, and social development within the region.

4、 Strong Alliance: Powerful Community Matrix Recently, Aquarius has been actively engaged in fostering and strengthening Nigeria’s Web3 community. Each event they organize attracts active participation from numerous partners and sponsors and brings together many renowned African Key Opinion Leaders (KOLs), rapidly establishing itself as a focal point in the African Web3 domain. Our commitment to increasing blockchain adoption in this region and beyond is reflected in our tangible contributions and initiatives. Here’s a closer look at our recent endeavors:

1. Hosting a Web3 Summit in Lagos:

Aquarius took a significant step by hosting a Web3 Summit on the vibrant Island of Lagos. This summit served as a platform for collaboration with other sponsors and stakeholders in the Web3 space. It aimed to explore opportunities for various projects and highlight the value that our initiatives bring to communities, individuals, and businesses.

1. BChain Event (Blockchain for Financial Freedom):

At the BChain event, focused on Blockchain for Financial Freedom, Aquarius made noteworthy contributions to promote Web3 adoption and education:

Facilitating Student Participation:

Aquarius facilitated the transportation of students from three different universities to and from the event venue. This not only ensured broader participation but also encouraged young minds to engage with the concepts of Web3 and blockchain.

Airdrop Distribution:

As part of our educational efforts, we distributed airdrops to individuals who provided accurate responses regarding Biking and its transformative impact on the financial landscape. This incentivized learning and rewarded those who actively engaged with the technology.

Volunteer Engagement and Education:

Aquarius actively recruited volunteers for the event, providing them with valuable insights and knowledge about Web3 technologies. These volunteers served as ambassadors of Web3, further propagating the understanding and adoption of blockchain principles.

Our contributions to the Web3 community in Nigeria extend beyond the boundaries of education and awareness. Aquarius is committed to taking practical steps to support and drive the adoption of Web3 technologies, ultimately enriching the digital landscape of Africa. As we continue to host events, facilitate education, and engage with local communities, we aspire to create a lasting and positive impact in the African Web3 ecosystem.

Conclusion

Aquarius and its projects serve as a catalyst for positive change in Africa, leveraging blockchain technology to create solutions that empower individuals, businesses, and communities. By building a strong and inclusive network, addressing pressing issues, and fostering innovation, we are contributing to the ongoing transformation of the African market and helping shape a brighter future for the continent.

Disclaimer: This post is for general informational purposes only and does not constitute investment advice, recommendations, or a solicitation to buy or sell any securities. It should not be used as the basis for making any investment decision and should not be relied upon for accounting, legal, tax advice, or investment recommendations. You are encouraged to consult your own advisers regarding legal, business, tax, or other related matters concerning any investment decisions. Certain information included here may have been obtained from third-party sources, including portfolio companies of funds managed by Aquarius. The opinions expressed in this post are those of the authors and do not necessarily reflect the views of Aquarius or its affiliates. These opinions are subject to change without notice and may not be updated.