Opinion: Women-led SMEs harness blockchain to connect MENA and Sub-Saharan Africa
Disclaimer: The author’s views and opinions expressed in this article are solely their own and do not reflect the views and opinions of crypto.news’ editorial team.
Over the past ten years, there has been a global increase in interest towards women-led/owned businesses, leading to the formation of strong community-building movements and the development of innovative solutions for this expanding market.
In the Middle East and North Africa (MENA) region, as well as sub-Saharan Africa, cross-border trade remains a significant challenge for small and medium-sized enterprises (SMEs) led by women. Despite the existence of solutions, these challenges greatly restrict their ability to engage in transactions with each other and the rest of the world, despite the many cultural values they share.
Blockchain technology is an emerging infrastructure that holds immense potential for women entrepreneurs who are geographically close to one another but economically disconnected. Women entrepreneurs in both the MENA region and sub-Saharan Africa are among those who stand to benefit the most from emerging technologies. However, they face economic obstacles that hinder their empowerment and impede their access to international markets. Inefficiencies, limited access to finance, high costs, lack of transparency, unfavorable regulations, and cultural barriers all pose challenges for women-led SMEs in the region.
Blockchain technology can foster inclusivity and bring about significant changes in the financial sector, enabling women who engage in cross-border transactions to overcome trade barriers. By utilizing blockchain-based payment systems, businesses can access new markets and customers, which allows them to repatriate their earnings instantly.
This technology empowers women-led enterprises to convert real-world assets into on-chain assets that they have full control over and can trade as they wish. This solution grants them financial independence, a privilege often denied to many in this part of the world. This economic freedom serves as a crucial catalyst for positive socio-economic changes in the future.
One of the most innovative applications of blockchain technology is its combination with artificial intelligence (AI) to address real-world problems. At Boom, we exemplify this integration by utilizing decentralized AI to provide businesses with access to credit through the generation of credit scores. These credit scores are then shared with financial institutions, enabling women-led SMEs to obtain the loans and capital they need to grow and expand their businesses.
Blockchain technology is regarded as an infrastructural technology, and its integration into the global economic model is now beyond question. With the introduction of Bitcoin ETFs and central bank digital currencies (CBDCs), it is evident that this technology is here to stay. Blockchain-based ecosystems are spearheading significant changes in the commercial landscape between the MENA and sub-Saharan regions, providing comprehensive solutions to the daily challenges faced in cross-border trade and unbanked situations.
Addressing the high costs of information and communication technology (ICT), the lack of reliable internet access, and the gender gap in technology is crucial to ensure the full inclusion and participation of women entrepreneurs in the blockchain ecosystem. Providing digital literacy and ICT training can help women entrepreneurs develop the necessary skills to overcome these challenges and thrive in the digital world. Furthermore, these difficulties can also create opportunities for collaboration and innovation to support small and medium-sized enterprises led by women.
To facilitate the successful implementation of blockchain among women entrepreneurs, tech companies must collaborate closely with various stakeholders such as governments, financial institutions, and non-governmental organizations (NGOs). They must create a favorable regulatory environment and directly support SMEs by offering training and educational programs, as well as financial resources for hardware.
Blockchain technology is vital for the future success of women-led SMEs in the MENA and African regions. The relationship between blockchain and women is growing stronger and more promising each day, and it is crucial for both parties to work together to achieve success. Women play a crucial role in driving technology adoption within households and will undoubtedly be instrumental in bringing blockchain to the masses.
