Guest post HodlX Submit your message
Location
Stunning views of the hills of Rwanda provide the perfect setting for an in-depth conversation about the future of African trade.
In front of me is Briggette Harrington, who represents the bold ambitions of the AfCFTA (African Continental Free Trade Area) and its potential to transform Africa’s economic landscape.
Eldridge Cooke: “Briggette, it is a pleasure to sit down with you here in Rwanda, a country that represents so much progress across Africa. To begin, can you share your journey with the AfCFTA and what motivates your work? »
Briggette Harrington: “Thank you, Eldridge. The AfCFTA is a remarkable opportunity for Africa. It brings together 54 countries in one of the world’s largest free trade zones, with access to more than 1.3 billion people and a collective GDP (gross domestic product) of $3.4 trillion.
“For me, the AfCFTA is not limited to trade. it’s about transforming the way African businesses interact with the world. Instead of exporting raw materials, the AfCFTA gives us the opportunity to add value to our resources here in Africa.
“It’s about empowering African entrepreneurs to process, package and trade goods across the continent, while preserving their profits and jobs in Africa. »
Eldridge Cooke: “This is exactly what I find exciting about the AfCFTA. The idea that Africa can retain the value of its own resources by moving away from exporting raw materials and focusing instead on finished products it’s a powerful vision.
“But how did it go in practice?
Briggette Harrington: “The AfCFTA is undoubtedly a game-changer, but it also has its challenges. My company, Igire Coffee, works directly with women farmers in Rwanda, many of whom are genocide survivors.
“Thanks to the AfCFTA, we have been able to export our coffee to countries like Ghana, which is a huge step forward for us. But we face significant obstacles.
“Logistics are complex and expensive, customs procedures between countries can be inconsistent, and foreign exchange is another major problem.
“Transportation of goods across African borders is not as smooth as it could be, and currency conversion between African countries often reduces our profits.”
Eldridge Cooke: “This is exactly why I think technology specifically blockchain and Bitcoin could be essential to the success of the AfCFTA. The AfCFTA is a bold framework, but without modern technological solutions, we risk failing to realize its full potential.
“Let’s explore how blockchain could help solve logistical challenges and how Bitcoin could overcome financial barriers.”
Briggette Harrington: “I’m very interested to know how you think these technologies can make a difference.”
Eldridge Cooke: “Blockchain can address many of the logistical challenges you mentioned by providing transparency and trust. Imagine using blockchain to track your coffee beans from the farm in Rwanda to the coffee shop in Ghana.
“Each step of the process would be recorded in a public and immutable register, verifying the origin, quality and fair trade certification of the product.
“It would also facilitate customs procedures, making it easier to meet standards across borders by having all relevant data available in real time.
“Smart contracts, a feature of blockchain, may also play a role. They could automate the customs clearance process, reducing delays and opportunities for corruption.
“With smart contracts, the terms of trade agreements are automatically executed when previously agreed conditions are met. eliminate much of the manual paperwork that slows down cross-border trade.
Briggette Harrington: “This could be revolutionary. We waste a lot of time and money dealing with customs inconsistencies and cross-border transportation costs. Streamlining these processes would be a huge benefit.
Eldridge Cooke: “Exactly. Blockchain solves many logistical challenges, but when it comes to financial barriers, that’s where Bitcoin could come in. With 42 currencies across Africa, the cost of converting money between country constitutes an enormous burden.
“And it’s not just about transaction fees Currency volatility and inflation can quickly wipe out profits.
Briggette Harrington: “Absolutely. Currency conversion has been one of our biggest frustrations. The amount we lose in transaction fees really adds up.
Eldridge Cooke: “This is where Bitcoin shines. Bitcoin is decentralized, meaning it does not depend on banks or governments. By using Bitcoin, you could eliminate the need to convert between different African currencies.
“Payments could be sent instantly and at a fraction of the cost compared to traditional methods. Additionally, the Lightning Network enables almost instantaneous and low-cost transactions, even across borders.
“Imagine receiving payments from Ghana or Kenya in minutes rather than days.”
Briggette Harrington: “This looks like it could make a significant difference, especially for small businesses like mine.
“But what about CBDCs (Central Bank Digital Currencies)? We’ve heard a lot about it lately in Africa.
Eldridge Cooke: “CBDCs are an interesting development, but they still carry some of the same risks as traditional fiat currencies. Since they are centralized, they remain susceptible to inflation and government control.
“Bitcoin, on the other hand, is decentralized and operates independently of central banks. Its fixed supply means it is a hedge against inflation something that is particularly important in economies where currency values can be unpredictable.
“So while CBDCs can improve the efficiency of local markets, Bitcoin offers true financial sovereignty and a global currency that can be used anywhere.”
Briggette Harrington: “I see. So Bitcoin not only reduces transaction costs, but also protects businesses from monetary instability?”
Eldridge Cooke: “Exactly. This is why I think the real success of the AfCFTA will depend on the integration of these digital technologies.
“Blockchain can bring transparency and accountability to the supply chain, while Bitcoin can solve the financial obstacles of cross-border trade.
“Together, these technologies could revolutionize African trade enabling businesses to grow and prosper without being limited by logistical or financial obstacles.
Briggette Harrington: “It’s an exciting vision for the future. The AfCFTA opens new doors for African businesses, but it is clear that technology will be key to realizing its full potential.
“I think you’re right. the future of African trade lies at the intersection of policy and innovation.
Eldridge Cooke: “Exactly. The next frontier for Africa is not just about removing trade barriers it’s about building the digital infrastructure that will allow businesses to thrive.
“AfCFTA combined with blockchain and Bitcoin has the potential to empower millions of African entrepreneurs, lift people out of poverty and transform Africa’s role in the global economy.
“It’s an exciting time for the continent and I can’t wait to see how it all plays out.” »
Final Thoughts
The AfCFTA has the potential to transform African trade, but its success depends on the integration of blockchain and Bitcoin.
Blockchain provides the transparency and efficiency needed to streamline commerce, while Bitcoin offers a decentralized and cost-effective solution to Africa’s fragmented monetary system.
Together, these technologies could create a more prosperous and interconnected Africa.
Stay tuned as we continue to explore how Africa can lead the world into a new era of trade, technology and innovation.
Eldridge Cooke is a thought leader on blockchain for African commerce. It focuses on how technology, particularly Bitcoin and AI (artificial intelligence), can create access to knowledge, break down class barriers, and empower emerging entrepreneurs. Eldridge shares his insights not only on the mechanics of Bitcoin and cryptography, but also on how these innovations can shape a better, more inclusive world.
Follow us on Twitter Facebook Telegram
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/zeber
