In his opening statement at the African DeFi Infrastructure Ecosystem podcast live on CoinMarketCap, lead editor for Mariblock Oluwaseun Adeyanju spotlighted the failure of traditional financial systems to fill financing gaps in the continent; an inefficiency that has resulted in over $416 billion in funding gaps. He goes on to connect the rise in stable coin adoption to Africa's inflation and currency devaluation problems. And he couldn't be more right. In this case, the transformation of Africa's landscape depends on a single factor which is the integration of solutions that thoroughly address financial challenges. As of writing, these solutions can be provided by Web 3 innovations. However African governments play a role in how fast these innovations spread to effect desired economic growth. Today, we see decentralized finance changing the way Africans transact on the continent and beyond its borders.This article will showcase three of Africa's biggest minds when it comes to DeFi acceleration in Africa. The third is a lesson in consistency and determination.

Let's have it.

THREE EXCEPTIONAL CONTRIBUTORS TO DEFI IN AFRICA

1. HAM SERUNJOGI

My personal experience comes to the fore here. The first time I ran an international transaction that involved transferring funds to a recipient in Dublin, it was because of Chipper Cash's USD virtual card which enables cross-border payments. The app interface was easy to navigate, the transaction was executed in minutes and I had an overall smooth, experience.It's easy to see why Chipper Cash is one of the most used payment solutions in Africa. Co-founded by Ham Serunjogi, a leading advocate for blockchain innovation in Africa, the back story of one of Africa's biggest DeFi solutions is both simple and charming.During his course of studying at Grinnell College in 2012 in the U.S., the Ugandan CEO met co-founder Maijid Moujaled and the two went on to build Chipper Cash. A passion for solving Africa's biggest financial issues led Serunjogi to an annual startup contest Stellar Build Challenge in 2018 where venture capital investor Designs Capital laid down a $2.4 million seed investment for Chipper Cash. Today, the company is worth $2.2 billion with a community of 5 million users.

2. HILDA MORAA

From winning the 2011 top prize for Mobile Bootcamp with Weza Tele to turning down a slot at Oxford just to pursue her start-up ideas, Pezesha CEO Hilda Moraa is an entrepreneur worth her medals. After selling the mobile solution firm Weza Tele for Ksh 166 million, the talented blockchain innovator joined Google before founding Pezesha in 2017. The blockchain-centered DeFi company achieved a monthly streak of 50% customer growth within 18 months of launch, enforcing Moraa's mission to empower African businesses.

3. ATSU DAVOH

The story of CEO, Atsu Davoh's Bitsika has an interesting twist to it. Not only did he not complete his University education, but he dived into the industry with zero intentions of being a blockchain innovator. As an entrepreneur with a coding background, Davoh's basic plan was to set up a tech company.However, his bumpy journey was dotted with project failures rounding up to a solid ten in number. Without a doubt, many would have seen these failures as a wake-up call. Yet, the CEO forged ahead, eventually discovering blockchain technology, a space where he would go on to come up with the idea for a platform that enables Bitcoin purchases with USD.This was during the Bitcoin rush of 2018 so the momentum was a bonus for the company. Just as the talented founder did not set out to dive into blockchain, Bitsika was established as a startup magnet for investors. Its big break came in the form of Nestcoin CEO, Yele Bademosi who invested $15000 to enable Davoh to develop his startup idea. Without a doubt, Africa has crossed several milestones where decentralized finance is concerned, bringing the continent closer and closer to the overall goal of increased security, financial sovereignty, efficiency, access to financial services, and avenues for wealth building.

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In the Africa Money &DeFi Summit alone, a solid line-up of nine ventures was selected for a showcase of what each venture had to offer industry leaders and investors as a business. Their niches ranged from DeFi and Web3 to Blockchain and Fintech.

They included:

1. PAL

2. BluePay

3. PayBox

4. HuruPay

5. Coinazer

6. VerifiBuy

7. SaveApp

8. Safi Protocol

9. One Chain Africa

And these were some of the movers and shakers of the entire DeFi, Web 3, and blockchain movement in Africa. The Summit is just a drop in the ocean of efforts to drive DeFi adoption in Africa. This begs the question of what challenges the continent has faced in the march to tip economic scales through decentralized finance.For this article, one major challenge we will explore is the challenge of misconception. As basic as it sounds, misconceptions surrounding the idea of decentralized finance have played a huge role in the reluctance of African governments to adopt and implement it.

THREE MAJOR MISCONCEPTIONS ABOUT DECENTRALIZED FINANCE

1. IT'S LIMITED TO TECHIES

My tech journey began in 2020 and interestingly, I didn't get on board earlier because the entire concept of industries built on virtual foundations seemed complex and too intricate. The further I explored, the easier it became to understand basic concepts of blockchain technology, DeFi, and Web 3.This initial obstacle affects most people curious about blockchain. Hence, the widespread misconstruction around DeFi. While it seems complex at first It is however not restricted to tech-savvy individuals and is built for general access regardless of demographic.To debunk this misconception, a lot of DeFi apps and platforms are designed with basic, user-friendly interfaces for easy participation and navigation. DeFi companies have also been known to provide informative, educational resources to onboard new users and help them get familiar with DeFi tech.

2. IT POSES HIGH RISK

The argument behind this misconception is often based on collective ignorance about DeFi and the technologies that power it. Though financial activities are often associated with risks whether big or small, decentralized finance incorporates measures to cushion or protect users from any such risks.Some of these measures include:

. Decentralization

. User ownership

. Transparency

. Smart contract audits

3. IT'S POSSESSES ZERO REGULATION

The open, non-custodial nature of DeFi plays a role in this misconception. Because decentralized finance operates outside the auspices of conventional financial stipulations, it is often assumed that DeFi is illegal and thus independent of state regulations.This is simply not the case. The mission of multiple DeFi startups within and outside Africa is to provide sustainable solutions to the problem of traditional financial methods. That is why we see several of these startups cooperating with regulators to foster compliance; all for the greater good.Compared to popular opinion, DeFi protocols are not above common regulations like Know-Your-Customer (KYC) and Anti-Money Laundering (AML). These misconceptions are why all hands must remain on deck in the mass orientation and education of decentralized finance and its potential.

OPPORTUNITIES IN DEFI FOR AFRICA

The scope of opportunities in DeFi for Africa is not only wide but huge game changer if these opportunities can be leveraged. Africans can finally enjoy access to crowdfunding opportunities as well as loans through DeFi lending. In remote areas, under-banked individuals who don't have access to quality financial services can have these same services at their fingertips. Not only is it more affordable, DeFi banking is transparent and more secure thanks to blockchain.With DeFi, the list simply goes on when it comes to what Africans can decide to do with their assets: hodl it, invest it, lend it; DeFi puts no limit on users' financial freedom. All with zero third-party involvement and charges. It's amazing stuff. Under the DeFi umbrella, vibrant, talented Africans from all walks of life can bring innovations to life without the hindrance of inaccessible financial services. When there are no limits, Africans can easily be pioneers and front-liners in the move to transform global finance.Finally, the rich diversity on geographical and cultural levels, makes Africa a prime spot to improve the efficiency of DeFi systems. This is because the continent is brimming with needs which DeFi solutions can attempt to tackle.

CONCLUSION

In the finance sector, Africa's reality is one of grappling with failing infrastructures and the unanswered question of what can be done. As a solution, DeFi is a rising prospect that needs an open mind from African governments to thrive. Courtesy of relentless efforts by bright minds in the continent to push the DeFi cause, we now see a more positive outlook, more achievement, widespread incorporation, and awareness when it comes to DeFi.Though DeFi in Africa has also had its fair share of setbacks and obstacles, the future is promising when weighed against the opportunities and benefits open to Africa when at last, DeFi becomes more naturalized in her financial system.