The promise of decentralized finance (DeFi) was always grand: a borderless, permissionless, and equitable financial system for everyone. Let’s face it, who has really benefited from it. Meanwhile, Silicon Valley and the rest of the Western world are reaping all the spoils from these breakthroughs. Most of the world’s population is left out or worse off — pushed to the margins by cumbersome, expensive legacy systems. What if the future of DeFi isn’t based on Wall Street at all? Now, picture it building on that success in the dynamic markets of Lagos, Nairobi and Johannesburg! I believe it is!

I've spent the last few years immersed in the African crypto landscape, and what I've seen is nothing short of revolutionary. Skip the old-stale story of Africa only as a tech aid case or as the global late adopter to technology. Indeed, Africa is positioned to be at the forefront of the next wave of DeFi innovation. And it’s not merely about making up lost ground. It’s high time to leapfrog the ivory tower systems and build something entirely new—something that really addresses equity.

Quite honestly, if you’re not tuned in, you’re asleep at the wheel because something really, really momentous is shifting.

Mobile DeFi: Africa's First Advantage

Think about this: in many parts of Africa, mobile phones aren't just a convenience. They're everything. They’re the bank, they’re the marketplace, they’re the school and the connection to the world. While traditional banking infrastructure may be scarce and even nonexistent, mobile penetration is through the roof. All of this in turn creates a massive opportunity for mobile-first DeFi solutions to emerge and flourish.

We’re referring to emerging micro-lending platforms that have moved past the traditional banking infrastructure and let individuals receive small loans directly through their mobile devices. We’re not discussing the new mobile wallets being used to help people send remittances across borders while avoiding high fees. We’re referring to insurance products designed in a decentralized manner that protect farmers in the event of a crop failure.

These aren’t theoretical examples – they’re all underway right now. Xend Finance has been building decentralized finance (DeFi) platforms optimized for African mobile users. These platform economies present exciting opportunities for savings, access to responsible lending, and investment. The potential is enormous. Now imagine a connected Africa, where anyone, anywhere can pull out their smartphone and seamlessly connect with equitable, transparent financial services. Nor should it matter where they live or their socioeconomic status. This is not merely a matter of financial inclusion — it’s economic empowerment on a truly global scale. The West might have its glamorous trading platforms, but right — Africa is creating the next iteration of finance for the rest of us.

Community Lending: Ubuntu Powered DeFi

The essence of ubuntu – “I am because we are” – is synonymous with African culture. It emphasizes community, collaboration, and mutual support. This spirit could not be more in tune with the tenets of decentralized finance.

Imagine the possibilities of a community-based lending and borrowing platform. Now, picture a world in which you can lend directly to your neighbors and other community members. Rather than relying on opaque centralized institutions with opaque lending processes, decentralized protocols allow for this! These new companies leverage social capital and reputation to determine a borrower’s creditworthiness. This approach not only reduces the risk of default on day one but creates trust and accountability.

Think back to the 2008 financial crisis. Now, picture that same system but with communities doing more to support each other. What if, instead of bailing out big banks, we decided to just help each other. This is the promise of community-based DeFi. It’s time to build a financial system based on human relationships, not faceless algorithms. This is an inspiring story of taking back control, and it’s playing out on the mid-continental wilds of Africa.

NFTs Empowering African Creators Now

For too long these gatekeepers and intermediaries have reigned over the art world. As it stands, countless African artists never get their due credit nor their fair share of payment for their art. NFTs are shaking up this whole model, giving African artists a new opportunity to reach a global audience directly.

NFTs represent an exciting new revenue stream for artists that allows them to sell their work directly to buyers without the involvement of auction houses and galleries. They give artists more avenues to ensure they own and control their intellectual property. Perhaps most importantly, they provide a platform for African artists to tell their stories, share their culture, and connect with collectors around the world.

Take the example of Nigerian artist Osinachi, who achieved worldwide fame and success this past year after selling his digital artworks as NFTs. Or the other many African artists who have been leveraging the technology of NFTs to express their art and sustain themselves with prosperous careers. It isn’t merely about art, it’s about reclaiming these cultural narratives and larger narratives as well to challenge the Western-centric view of creativity.

Africa’s burgeoning NFT space is proving that the future of art is decentralized. It speaks to the democratization and diversity that’s happening in the creative space.

The future of DeFi Today, it may seem like the future of DeFi is an abstract idea being discussed in corporate boardrooms. It’s being constructed, on the ground, in the cradle of innovation that is Africa’s dynamic, varied communities. So let’s change that narrative and start listening to these often buried voices. We have to begin to appreciate the amazing opportunity before us on the African continent! Invest in African projects. Support African innovators. Be an evangelist for policy that supports crypto adoption on the continent. The future is here, and it's African.