A Conversation at Eagle View Lodge – The Future of AfCFTA With Blockchain and Bitcoin
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Location
A stunning view of Rwanda’s hills provides the perfect setting for a deep conversation about the future of African trade.
Sitting across from me is Briggette Harrington, representing the bold ambitions of the AfCFTA (African Continental Free Trade Area) and its potential to transform Africa’s economic landscape.
Eldridge Cooke: “Briggette, it’s a pleasure to sit with you here in Rwanda, a country that represents so much progress across Africa. To start, can you share your journey with AfCFTA and what motivates your work?”
Briggette Harrington: “Thank you, Eldridge. AfCFTA is a remarkable opportunity for Africa. It unites 54 countries into one of the largest free trade areas in the world, with access to over 1.3 billion people and a collective GDP (gross domestic product) of $3.4 trillion.
“For me, AfCFTA is about more than just trade it’s about transforming how African businesses engage with the world. Instead of exporting raw materials, AfCFTA gives us the chance to add value to our resources here in Africa.
“It’s about empowering African entrepreneurs to process, package and trade goods across the continent, keeping profits and jobs within Africa.”
Eldridge Cooke: “That’s exactly what I find exciting about AfCFTA. The idea that Africa can keep the value of its own resources by moving away from exporting raw materials and instead focusing on finished goods it’s a powerful vision.
“But how has it been working out in practice?”
Briggette Harrington: “AfCFTA is a game-changer, no doubt, but it also comes with its challenges. My company, Igire Coffee, works directly with women farmers in Rwanda, many of whom are genocide survivors.
“Through AfCFTA, we’ve been able to export our coffee to places like Ghana, which is a huge step forward for us. But we face significant obstacles.
“Logistics are complex and costly, customs procedures between countries can be inconsistent and currency exchange is another big issue.
“Moving goods across African borders isn’t as seamless as it could be, and converting currency between African nations often cuts into our profits.”
Eldridge Cooke: “This is exactly why I think technology specifically blockchain and Bitcoin could be critical to AfCFTA’s success. AfCFTA is a bold framework, but without modern tech solutions, we risk not fully realizing its potential.
“Let’s explore how blockchain could help solve the logistical challenges and how Bitcoin could address the financial barriers.”
Briggette Harrington: “I’m very interested to hear how you think these technologies can make a difference.”
Eldridge Cooke: “Blockchain can address many of the logistical challenges you’ve mentioned by offering transparency and trust. Imagine using blockchain to track your coffee beans from the farm in Rwanda all the way to the café in Ghana.
“Every step of the process would be recorded on a public, unchangeable ledger, verifying the origin, quality and fair-trade certification of the product.
“This would also help with customs procedures, making it easier to comply with standards across borders by having all relevant data available in real time.
“Smart contracts, a feature of blockchain, can also play a role. They could automate the customs clearance process, reducing delays and cutting down on opportunities for corruption.
“With smart contracts, the terms of trade agreements are automatically executed when pre-agreed conditions are met eliminating much of the manual paperwork that slows down cross-border trade.”
Briggette Harrington: “That could be revolutionary. We lose so much time and money dealing with customs inconsistencies and transport costs across borders. Streamlining these processes would be a huge benefit.”
Eldridge Cooke: “Exactly. Blockchain solves many of the logistical challenges, but when it comes to financial barriers, that’s where Bitcoin could step in. With 42 currencies across Africa, the cost of converting money between countries is a huge burden.
“And it’s not just the transaction fees currency volatility and inflation can wipe out profits quickly.”
Briggette Harrington: “Absolutely. Currency conversion has been one of our biggest frustrations. The amount we lose in transaction fees really adds up.”
Eldridge Cooke: “That’s where Bitcoin shines. Bitcoin is decentralized, meaning it doesn’t rely 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. Moreover, the Lightning Network allows for almost instant, low-cost transactions, even across borders.
“Imagine receiving payments from Ghana or Kenya in minutes rather than days.”
Briggette Harrington: “That sounds like it could make a significant difference, especially for smaller businesses like mine.
“But what about CBDCs (Central Bank Digital Currencies)? We’ve heard a lot of talk about those 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’re 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’s a hedge against inflation something that’s particularly important in economies where currency values can be unpredictable.
“So, while CBDCs might improve efficiency in 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 currency instability?”
Eldridge Cooke: “Exactly. That’s why I believe that the true success of AfCFTA will depend on integrating these digital technologies.
“Blockchain can bring transparency and accountability to the supply chain, while Bitcoin can solve the financial hurdles of cross-border trade.
“Together, these technologies could revolutionize African trade empowering businesses to scale and thrive without being limited by logistical or financial obstacles.”
Briggette Harrington: “It’s an exciting vision for the future. AfCFTA is opening new doors for African businesses, but it’s clear that technology will be the key to fully realizing its 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 isn’t just about removing trade barriers it’s about building the digital infrastructure that will allow businesses to flourish.
“AfCFTA combined with blockchain and Bitcoin has the potential to empower millions of African entrepreneurs, lifting people out of poverty and transforming Africa’s role in the global economy.
“It’s an exciting time for the continent, and I look forward to seeing how it all unfolds.”
Final thoughts
AfCFTA has the potential to transform African trade, but its success hinges on the integration of blockchain and Bitcoin.
Blockchain offers the transparency and efficiency needed to streamline trade, while Bitcoin provides a decentralized, cost-effective solution to Africa’s fragmented currency 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 in blockchain for African trade. He focuses on how technology, specifically Bitcoin and AI (artificial intelligence), can create access to knowledge, break down class barriers and empower emerging entrepreneurs. Eldridge shares insights not only on the mechanics of Bitcoin and crypto but on how these innovations can shape a better, more inclusive world.
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Author: Eldridge Cooke
