A Game Changer in Non-Profit Financing: Blockchain Technology

Meet Nasimiyu, a 24-year-old Kenyan girl studying at a university located in Gisenyi, Rwanda. It's two o'clock in the morning. After a long week of study, she decides to feed her craving for ice cream. She places an order from her favorite food joint. In the 15 minutes it takes for her meal to be ready, she logs on to her BitLipa App. She pays her rent, sends her sister money, and renews her internet subscription. Subsequently, she goes to her school portal and casts her vote in the student association elections.

During her free time, Nasimuyu volunteers in the Partnerships and Fundraising department at an elderly care home in Gome, Democratic Republic of the Congo (DRC). In the 3 minutes remaining, she counterchecks the Ethereum donations received within the week so that she can combine her trip to pick up her food and pass by the bank to convert some of it to fiat. As she approaches the fast food joint, she realizes she forgot her purse. Her worry is put to rest as she is met with a neon red sign flashing "Cryptocurrencies accepted here". Her digital wallet on her phone is all she needs. The year is 2030.

How does blockchain work?

Blockchain enthusiast, Linda Masanja gave a simple definition, "the technology that allows peer-to-peer transactions of assets over the internet". It is essentially a distributed ledger or database chain of transactions that is owned and maintained by all users of the system. It is not privately owned or operated by anyone. Linda was involved in shaping the land banking industry in Kenya where she explored how blockchain can solve land corruption through a campaign dubbed Blockchain-IT.

Kenya's Vision 2030 and Africa's Agenda 2063 present a promise of unmatched efficiency and limitless possibilities of what mainstreaming breakthrough technologies can do. From Information Communication Technology (ICT) infrastructure, economic structure, political atmosphere as well as social space. This explains why Nasimiyu can navigate with great ease.

She is guaranteed high-speed connectivity & effortless access to information. The organization she works for receives daily donations. Why? The economic structures are set to ensure financial & monetary prosperity. As such, philanthropists have much more platforms to give. Grantmakers can track the projects as well as get ‘proof of impact’ and goals realized in real time. Due diligence & reporting costs are taken care of by the nature of this transparent, decentralized, immutable system. Blockchain technology has finally put the minds of innocent change-makers and community leaders at ease. The institutional trust crisis has been solved. 

Nasimiyu can afford to go out anytime in a 24-hour economy where there is safety due to political stability. Voter systems are online eliminating election disputes. The transport rails allow her a fast commute to DRC while studying in Rwanda. These advancements guarantee her education anywhere in Africa since there is regional integration. She has no anxiety about any form of remittances since Africa has adopted groundbreaking payment gateway(s) that allow her to send & receive money from anywhere in the world for free with cash-out points even in rural areas. 

Is Africa Prepared? Or Sufficiently Preparing?

Speaking on market penetration, Charles Kijana, a brand strategist in the crypto space says that the adoption at the grassroots is largely dependent on the technological literacy and technical skills of the users. "The penetration of knowledge & skill is still below targets", he exclaims. This can be tied to a talent deficit existing in grantmaking organizations that may need private networks. Another factor that may curtail growth is the language barrier. Developers have a burden to place translation buttons that facilitate languages spoken across African communities.

Lending weight to this vision, Apollo, CEO of BitLipa affirms that "Africa has the resources  & brains to compete globally. Many of the resources are underutilized. Solar, geothermal & wind energy can be harnessed to be able to cater to the massive energy consumption needed for the crypto-mining process". He adds, "By doing this, philanthropists in the environmental space will be able to endorse this technology as a sustainable move."

The good news echoed by both Apollo & Charles is that the current challenges facing these emerging technologies are opportunities to leverage. Also, owing to the prior willingness and acceptance to explore alternative technologies along with the enthusiasm of a youthful population, Africa is the perfect breeding ground for blockchain fruition. Kenya, Sierra  Leone, South Africa & Nigeria are already leading the way in the world of distributed ledgers and virtual currencies.

The big question that remains now is;

Will the Social Sector ride the tide?

Non-profit financing has countlessly grabbed the headlines with scandals and much of the public no longer views charities as the social impact drivers they once were. Statistically, less than 40% of charity money reaches the intended beneficiary in African countries. Also,  the use and distribution of medicines and food by many NGOs is far from optimal. 

My leaning on breakthrough technologies is founded on creating peer-to-peer secure platforms that eliminate intermediaries in a continent said to be beset by institutionalized corruption. However, Apollo holds the opinion that "it is hard to predict the long-term future of hard-to-fathom technologies". Notwithstanding, by implementing systems that depend on blockchain and cryptocurrencies for the completion of philanthropic ventures, foreign aid, charity donations, disaster response, medicine & food distribution, Africa has a better chance at mitigating the fees associated with international transfers, providing immediate financial support to communities and for automated track & trace purposes. 

Unanimity is growing that feasibly Africa will consider full adoption of blockchain and crypto across every industry, systematically; each identifying their areas of operation that can benefit from the deployment of certain elements of blockchain. 

In the year 2024, Nasimiyu is 18 years old living amidst an economy recovering from the Covid-19 pandemic that accelerated the demand for alternative technologies in a desperate bid to adapt. She is counting on You and me to ensure that the blockchain tech is secure and user-friendly.  Far beyond our call of duty, as industry leaders, she expects us to be at the forefront to lobby for a concrete legislative framework for crypto & blockchain regulation for her to be dexterous in 2030 & beyond.

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