Then I bought this weaving business — Fatima I recently caught up with Fatima, who operates a small but growing textile enterprise in Lagos. When we exchanged ideas on payments, her face darkened. She exports colourful Ankara fabrics to the UK. “These fees are killing us,” she admitted, “and the wait!” She explained how it sometimes takes days for the money to arrive, delaying her next shipment. It seems like we’re living in a time warp. Fatima’s experience isn’t an outlier; it’s the agonizing reality for many African businesses involved in cross-border trade. At last, we may have more than a flicker of hope on the horizon. JPMorgan's move to include GBP accounts on its Kinexys blockchain platform isn't just another tech announcement. It's a potential game-changer for African entrepreneurs.

Faster Payments, Real Growth Potential

Imagine this: Fatima gets paid almost instantly. No more torturous delays, no more capricious holdups stalling her enterprise. This is the promise of Kinexys.

In the absence of a level playing field, for years African businesses have not had the chance to compete. They’ve faced an incredibly slow, expensive and confusing cross-border payment system. These inefficiencies are a drag on profits, a choke on growth, and a barrier to global markets. The traditional banking system, with its reliance on intermediaries and legacy technology, simply isn't built for the speed and agility required in today's global economy.

Kinexys offers a stark contrast. With the power of blockchain technology, it enables settlement in near real-time, 24/7 access and the ability to offer lower transaction fees. In doing so, African businesses are able to get paid more quickly and better manage their cash flow. That increases the chances they’ll be more competitive on the global stage. Consider the impacts on industries such as agriculture, where food products that go bad need fast transaction settlement. Or for the in-demand tech sector, where rapid access to capital is essential for fostering their innovation and growth.

Have you ever wondered if global finance is stacked against the short end of the stick? African entrepreneurs deal with systemic discrimination and costs 20 to 25 times greater than their peers in developed economies. It’s a low-key injustice that holds back both social and economic advancement.

Fairer Trade, Level Playing Field

The beauty of blockchain is its transparency and decentralization. By removing middlemen and simplifying operations, Kinexys is making it possible for smaller firms to compete. It equips African firms to compete in world markets on more equal terms. This increases their access to much-needed financial services while reducing their reliance on exploitative banking networks, avoiding hidden fees and predatory practices.

Consider companies involved in commodity trading. Futurists and early adopters Giants such as Trafigura are already using Kinexys for real-time payments. Imagine if smaller African commodity traders could use the same technology, going around banking bottlenecks and allowing them to unlock better deals.

This isn’t only an issue of earning more, but rather one of retaining more of what they’ve earned.

Is JPMorgan making a bid to capture market share? Or is the bank really serious about strengthening private sector firms in developing countries? The answer probably lies somewhere in between. Whether their motives are altruistic or not, what delights me are the benefits African businesses stand to gain from this.

Africa's Future, Blockchain Enabled?

Let's be realistic. Kinexys is not a silver bullet. Adoption will be the biggest challenge. These range from navigating the complex maze of regulatory hurdles to ensuring internet access even in the most remote areas to enhancing awareness and education around blockchain technology itself.

African governments, financial institutions and businesses need to get on board with this technology. Combined, they can adopt a more favorable environment for its adoption. This includes:

The potential is enormous. Picture a future where African businesses have equal and easy access to global trade. Imagine them leveraging cutting-edge, secure, transparent, efficient blockchain-based payment systems to do so. A future where Fatima doesn’t have to worry about what potential clients think about the quality of her work, only that she’ll be paid quickly and fairly.

  • Developing clear and consistent regulatory frameworks for blockchain-based payments.
  • Investing in infrastructure to improve internet access and digital literacy.
  • Promoting education and awareness about the benefits of blockchain technology for businesses.

This is not merely a question of access to technology — it’s an issue of economic empowerment. It’s about building a fairer, more inclusive international economic system. Now is Africa’s moment to take advantage of this opportunity and create their future, one blockchain transaction at a time. To that end, here’s our new ask of you and what we hope you’ll do to help us make it happen…

This isn't just about technology; it's about economic empowerment. It's about creating a more just and equitable global economy. It's time for Africa to seize this opportunity and build a brighter future, one blockchain transaction at a time. What are you going to do to help make it happen?