The NFT market is expected to grow unimaginably to $703 billion by 2034. That’s a staggering number. But before we start imagining Lamborghinis parked outside every cyber cafe in Lagos, let's inject a dose of reality, specifically an African reality. But is it really a golden ticket or rather a gilded cage for the continent?

Digital Gold Rush or Fool's Gold

Think back to the California Gold Rush. Fortunes were made, sure, but at what expense? Environmental disaster, national crisis, and a great deal of dashed hopes. Taking the plunge into the NFT space, where scams abound and the market is currently crashing, is just as spooky. The prospect of financial freedom is tempting, especially in areas where established ones are shut off.

Second, Africa—home to some of the world’s most vibrant artistic communities and a burgeoning tech scene—stands to benefit tremendously from NFTs. Picture this — Kenyan crafts people are now able to sell their products directly to a worldwide audience while avoiding harmful middlemen. Imagine Nigerian creators earning royalties from their compositions in ways they never could through the traditional record label ecosystem. This is the ‘freedom’ that Emily Nkrumah is right to place at the core of her vision.

The digital divide is an even bigger chasm in Africa. How can you join the new digital gold rush when you don’t even have enough broadband to go online? When digital literacy is low? When smartphones are a luxury, not a requirement? First, we can no longer assume the same level of access is available to all. That’s a dangerous lie.

Bridging The Digital Divide Gap

Strong and well-designed regulations are necessary to shield American consumers from corporate scams and fraud. However, overly burdensome regulations might rein in innovation and push the activity into the shadows. It’s a challenging balancing act, requiring a sophisticated comprehension of both the promise and the peril. Weighing required ‘needs’ against possible, but currently undefined ‘freedoms’ that NFTs could bring.

The U.S. NFT market is projected to reach $190.90 billion by 2034. That's one country. What if just a small portion of that money could be invested into closing the digital divide on the African continent? Imagine if NFT projects were created with social impact baked in, not as an afterthought.

Let's be blunt: The NFT space is rife with scams. Remember the Bored Ape Yacht Club fiasco? The rug pulls? The pump-and-dump schemes? These are not abstract concerns. But they are very real threats, especially to the most vulnerable among us who often have the lowest levels of financial literacy.

Scams, Volatility, And Environmental Cost

Additionally, the unpredictability of the NFT market is enough to make anyone’s head spin. One day you have all that information—definitely a digital goldmine. The next day, your company is now worth less than a bag of peanuts. Can African economies, already facing multi-faceted crises, really bear this level of instability?

And then we come to the environmental elephant in the room. And while not all NFTs are energy-intensive, it’s true that some of the leading platforms use enough electricity to power entire countries. In a continent plagued by energy poverty, is it fair to put digital collectibles above the basic needs of citizens?

The future of NFTs in Africa depends largely on how conscious innovators develop them today. We’re going to need business, policymakers, and people to come together to imagine the world we want and responsibly and inclusively build the new ecosystem. This means:

This $703 billion projection isn’t only a matter of dollars and cents. It’s about people. It’s not just about the ability to empower marginalized communities, to unlock creative potential though, to build a more equitable future. This is a recipe for deepening today’s inequities. Second, it creates opportunities for fraud and prioritizes companies’ profits over what’s best for individuals.

A Call For Conscious Innovation

Africa’s balancing act is a high wire act between tremendous opportunity and great peril. Here’s to making it through that boom with wisdom, foresight—and a good measure of skepticism. The world is watching.

  • Investing in digital literacy programs: Equip people with the knowledge and skills they need to navigate the NFT space safely and effectively.
  • Developing clear and effective regulations: Protect consumers without stifling innovation.
  • Promoting sustainable NFT platforms: Prioritize energy-efficient technologies.
  • Supporting NFT projects with social impact: Focus on projects that address pressing social and economic challenges.

List of possible support initiatives:

  • Microloans for African artists to create and market NFTs
  • Grants for community-based NFT projects
  • Incubator programs for African NFT startups

The $703 billion projection isn’t just about numbers. It’s about people. It's about the potential to empower marginalized communities, to unlock creative potential, and to build a more equitable future. But it’s also about the risk of exacerbating existing inequalities, of falling prey to scams, and of prioritizing profit over people.

Africa's balancing act is a tightrope walk between opportunity and peril. Let's hope we can navigate it with wisdom, foresight, and a healthy dose of skepticism. The world is watching.