Can Blockchain Unlock the Investment Africa Needs?

and final frontier for capital, investment allocation to the continent continues to lag. Although democratization, rising income levels, vast natural resources, and increasing market connectivity could present a differentiated and compelling opportunity for global investors, these variables have not yet translated into large-scale capital flow. African foreign direct investment inflows in 2017 were $42 billion, just 2.9 percent of the global total.2. Despite its raw potential, Africa is not yet competing successfully in the global capital markets. Investors seek opportunities in regions that have clear market infrastructure, competitive workforces, and stable public institutions, all of which are underpinned by data that many African countries lack. Every year, banks package and sell upwards of $13 trillion in new debt and equity securities in the global capital markets, and behind each dollar raised in these offerings are data that allow investors to price risks and returns, compare opportunities, and ultimately justify their decisions. Considering that fewer than 15 percent of African countries use the UN System of National Accounts to measure macroeconomic indicators, and that almost 50 percent of the African population resides in countries where ownership of agricultural land is unknown, what these markets ultimately lack is an evidence base.3. Indeed, there is a vicious cycle in which perceived risk limits deal flow, which in turn limits building a more CAN BLOCKCHAIN UNLOCK THE INVESTMENT AFRICA NEEDS?