Web3 technology has brought about significant transformations in Africa, particularly in the realm of finance. Blockchain technology and cryptocurrency have facilitated greater transparency and control over finances, leading to the growth of the Web3 economy in Africa. The trend continues to gain traction with the emergence of decentralized finance-based financial inclusion. One of the prominent players in this space is Fonbnk, which operates as a Web3 on-ramp, allowing Africans to obtain cryptocurrency assets by exchanging their airtime credits.
Fonbnk has recently partnered with Tanda, a merchant network platform in East Africa, to launch an airtime trading marketplace across Tanda’s network of agents. The partnership is expected to increase liquidity in the marketplace through the buying and selling of prepaid airtime for profit. The collaboration between Tanda agents and vendors in East Africa is expected to create more earning opportunities for micro-entrepreneurs while allowing them to store their profits in dollarized stablecoins.
The partnership between Fonbnk and Tanda creates a growth flywheel effect through improved liquidity and marketplace efficiency. It builds trust and generates even more liquidity, creating a cycle that enhances marketplace efficiency. Additionally, the partnership enables more African users to participate in the Web3 economy, even without bank accounts or cards, by using only their airtime credits.
Although Fonbnk operates throughout Africa, its partnership with Tanda is concentrated in East Africa. The company plans to expand earning opportunities for African micro-entrepreneurs and bring decentralized finance-based financial inclusion to the masses across Africa. The partnership is expected to provide more earning opportunities for micro-entrepreneurs, thereby creating a growth flywheel effect through improved liquidity and marketplace efficiency.
The Web3 technology can facilitate an intra-African exchange economy, and it can be used for purchases and transportation between African nations thanks to its ability to be used across borders. Web3 technology can help Africans generate more economic value in the wider market, thereby contributing to Africa’s economic growth.
According to BitcoinAfrica.io, the top five African countries that have embraced Web3 and cryptocurrency are South Africa, Nigeria, Zimbabwe, Kenya, and Ghana. These countries have witnessed increased demand for digital currency, and they have the most active local cryptocurrency communities.
The partnership between Fonbnk and Tanda is expected to create significant opportunities for micro-entrepreneurs in East Africa. It will increase liquidity in the marketplace, allowing for the buying and selling of prepaid airtime for profit. Additionally, it will provide more earning opportunities for micro-entrepreneurs while enabling them to store their profits in dollarized stablecoins. The partnership is also expected to create a growth flywheel effect through improved liquidity and marketplace efficiency, building trust and generating even more liquidity. Fonbnk plans to expand its reach to other parts of Africa, thereby increasing earning opportunities for micro-entrepreneurs and promoting decentralized finance-based financial inclusion across the continent.