The African stablecoins market is growing. In a region that suffers trade deficits and struggles with efficient foreign exchange remittance channels, the stablecoin boom is a welcome development.

Stablecoins are cryptocurrencies pegged to another variable. For the most part, they are pegged to the US dollar, commodities, and sometimes algorithms, giving the coin a 1:1 value. Most stablecoins are pegged to the US dollar. If stablecoins are pegged to the value of the dollar, which has almost zero volatility, why do people hold them? To have access to critical foreign exchange.

The world thrives on trade. Economic systems are based on the intricate balance between local production and trade with other nations. Since everyone has different comparative advantages, there will always be a need for trade, as each country focuses on its strengths. However, trading often faces limitations. For a region like Africa, foreign exchange is one of the greatest risk factors for efficient trading.

How Do Stablecoins Work?

Stablecoins maintain their pegs via four popular methods: Fiat collateralization, crypto collateralization, algorithmic collateralization, and hybrid collateralization.

Fiat-Collateralized Stablecoins are achieved by maintaining a reserve of fiat currency (like USD or EUR).

Each stablecoin issued is backed by an equivalent amount of the fiat currency held in reserve. Many times, stablecoin companies maintain over-collateralization to ensure maximum stability in case of increased volatility. Tether (USDT) is a good example of a fiat-collateralized stablecoin.

Crypto-Collateralized Stablecoins are stablecoins whose value is pegged to another cryptocurrency. The collateral usually exceeds the value of the stablecoins in circulation to account for crypto volatility.

The peg is maintained by automated systems. If the collateral’s value drops, the system automatically liquidates or requires more collateral to maintain the peg. If the price of the stablecoin rises above the peg, users might borrow against their collateral to buy and burn the stablecoin, reducing supply. Dai (DAI) is an example of a crypto-backed stablecoin that maintains its peg through a system of smart contracts within the MakerDAO protocol.

Algorithmic Stablecoins do not have “tangible” collateral but use algorithms to control supply. They maintain the peg by constantly adjusting the total supply of the stablecoin. When the stablecoin’s price is above the peg, new tokens are minted and sold, increasing supply. When below, tokens are bought back and burned, reducing supply. They are the riskiest type of stablecoin because their effectiveness relies on an algorithm, which could fail or be exploited. Terra Luna is an example of an algorithmic stablecoin. It, however, crashed in 2023, sending the crypto market into a free fall.

Commodity-Pegged Stablecoins are backed by the price of commodities. A good example is PAX Gold (PAXG), a stablecoin issued by Paxos and backed by physical gold.

Hybrid Stablecoins use a combination of the above to maintain the peg. These stablecoins are well-collateralized and also use algorithms to maintain the peg. TrueUSD is an example of a hybrid stablecoin.

How Stablecoins Can Help Ease Africa’s Cross-Border Challenges

If anything is critical in cross-border transactions, it’s speed. Speed is important when sourcing liquidity to meet user needs. A businessman might need to move money urgently to pay his suppliers in China, but delays associated with existing transfer methods might be a stumbling block. This is often a challenge with traditional foreign exchange methods, with many users having to wait hours, if not days, for money to reach their counterparties, sometimes missing deadlines.

Stablecoins, on the other hand, enable faster cross-border payments by eliminating intermediaries and facilitating instant value transfers across countries. For instance, remittance done via the Lightning Network takes seconds to reach the counterparty, while most other networks provide value within a few minutes.

Foreign exchange in Africa does not come cheap. The number of intermediaries required to facilitate a conventional money transfer from country A to B means higher charges. Stablecoins provide a low-cost alternative for remittances and trade by bypassing high transaction fees and costly currency conversions.

Stablecoin transfers mostly cost a few cents to $1 for any amount. This is because middlemen are eliminated, and the only payment made is the network fee. Stablecoins also reduce costs by storing transaction records on a single platform, which is replicated across multiple nodes, thereby streamlining processes. For example, sending $5,000 to a Nigerian account on Wise costs $33.56 in fees. Sending this same money from a Binance USDT wallet only costs $1. The disparity in stablecoin-enabled transfers is enormous.

Although financial inclusion in Africa has improved in countries like Nigeria, Kenya, South Africa, and Senegal in recent years, many African countries still have low financial inclusion levels. For these countries, stablecoins have proven to be an excellent tool for bridging the gap between the banked and the unbanked. Their popularity means people can access foreign exchange even in remote areas with little to no financial infrastructure.

No lengthy processes are needed to transfer money from one jurisdiction to another. This opens up financial integration and fosters economic growth. Businesses in these regions can now sell via exports, import needed raw materials and expertise to add value to goods and services, creating a positive spiral effect on economic development. Businesses like Ledig makes access to liquidity possible for companies with foreign exchange exposure to Africa.

Finally, one of the salient uses of foreign exchange, which is the tool used for cross-border remittances, is its use as an inflationary hedge. Many times, people open domiciliary accounts, not because they want to pay business partners abroad, receive money for imports, or carry out foreign exchange tasks, but because they want to protect their local currencies from inflation.

According to data, the Nigerian Naira was N899 against one dollar on 1st January 2024, but closed the year at N1,538, losing 71% of its value during the year. People often convert their local currencies to avoid these kinds of situations. Businesses, large organizations, and even individuals often convert local currencies to stable ones like the dollar to mitigate value erosion.

With stablecoins, this is not just accessible to those able to undergo the stringent rules for opening domiciliary accounts, but also accessible to everyone with basic means of ID and adulthood. Stablecoins have democratized foreign exchange access in Africa.

With Stablecoins businesses can now tap into the vast global market by curating services and offering them to businesses around the world, without challenges in processing payments. It simplifies cross-border trade for SMEs, freelancers, and businesses by enabling seamless trade settlements and access to global markets without traditional banking barriers.

By Philip Odiakose

As a public relations measurement and evaluation expert with more than a decade of experience advocating the integration of measurement and evaluation into communications and PR engagements, I have witnessed firsthand the knowledge gaps that exist in the field.

These gaps are particularly evident in how PR professionals and agencies approach measurement and evaluation. The reality is that the acceptance and best practices of PR measurement and evaluation must start from the classroom.

This is why I strongly believe that measurement and evaluation education must be integrated into the curriculum of Mass Communications, Public Relations, and Media departments in tertiary institutions. It is only through this structured education that we can begin to produce PR professionals who are future-ready, and equipped with the technical know-how to design, measure, and evaluate campaigns effectively.

The absence of measurement and evaluation in the traditional curriculum of many institutions has created a disconnect between the theoretical knowledge taught in schools and the practical realities of the PR profession. Most PR graduates enter the field with a strong understanding of communication strategies but little to no knowledge of how to measure the success of those strategies or how to leverage data for impactful decision-making.

Measurement and evaluation are not just add-ons; they are integral to ensuring accountability, transparency, and effectiveness in PR and communication efforts. Without a foundational understanding of how to measure impact, PR practitioners are left to rely on outdated metrics or superficial indicators that do not reflect true campaign performance.

In this regard, I must commend institutions that have made deliberate efforts to bring real-life and practical measurement experiences into the classroom. One standout example is Covenant University in Ota, Ogun State, Nigeria. Over the years, I have had the privilege of working with the Communications and Media Studies Department, thanks to Dr. Kehinde Oyesomi, who has consistently provided opportunities for her students to learn the basics of measurement and evaluation. This hands-on approach equips students with the analytical mindset required to thrive in the PR and communications industry. By exposing students to real-world applications of measurement, institutions like Covenant University are raising a generation of practitioners who will be better prepared to navigate the complexities of the industry.

Another commendable example is the initiative by the NIGERIAN INSTITUTE OF PUBLIC RELATIONS, LAGOS (Lagos NIPR), which integrated measurement and evaluation education into its curriculum in 2017. This forward-thinking move was driven by a partnership between P+ Measurement Services and the NIPR Lagos leadership at the time, under the chairmanship of Segun Mcmedal.

It is encouraging to see that this initiative has been sustained by the current chairperson, Madam Comfort Obot Nwankwo, reflecting a commitment to continuous learning and professional development. However, this effort must go beyond the Lagos chapter; it is my hope that the Nigerian Institute of Public Relations, under the leadership of Dr. Ike Neliaku, will recognize the importance of adopting measurement and evaluation as an integral part of the institute’s curriculum nationwide.

Education is the foundation of knowledge and practice. In the same vein, it is the starting point for the usage, integration, and acceptance of PR measurement and evaluation as a core function within the industry. Without education, we risk perpetuating the cycle of ignorance, where PR professionals fail to understand the value of data-driven insights and fall back on outdated or ineffective practices. To address this, the measurement community must actively champion education as a means to bridge the gap between theory and practice. This is why global initiatives like AMEC Measurement and Evaluation Education Hub under the leadership of Johna Burke are so vital.

As a founding member of #AMECLabInitiative, I am proud to be part of a mission that focuses on skill development, career progression, and knowledge sharing within the global measurement community. AMEC’s efforts to promote education in measurement and evaluation for public relations and communications are critical to ensuring that best practices are not only adopted but also sustained across the industry.

The value of measurement cannot be overstated. It is both the science and the art of public relations, providing a framework for accountability and a pathway to continuous improvement. However, to achieve this, we must first address the root of the problem: the lack of formal education in measurement and evaluation.

By integrating it into the curriculum of universities and professional bodies, we are not only equipping students with the skills they need to succeed but also ensuring that the industry as a whole evolves to meet the demands of a data-driven world. As I often say, “Education is the beginning, the middle, and the end of the acceptance and best practices of measurement.”

In conclusion, I call on tertiary institutions across Nigeria to embrace the integration of measurement and evaluation into their Mass Communications, PR, and Media curriculums. This is not just about equipping students with technical knowledge; it is about shaping the future of the PR profession. Measurement and evaluation are not static; they are dynamic, evolving with trends, tools, and technologies.

By embedding this education into the classroom, we are creating a pipeline of professionals who are not only skilled but also adaptable, innovative, and ready to lead. The future of PR measurement and evaluation lies in education, and it is up to us as practitioners, educators, and industry leaders to ensure that this foundation is built strong and sustained for generations to come.

Philip Odiakose is a leader and advocate of PR measurement, evaluation and media monitoring in Nigeria. He is also the Chief Media Analyst at P+ Measurement Services, a member of AMEC, NIPR and AMCRON

By Kingsley Omose

Sharp conflicts have always indicated transformation points to the consciousness of the world and provided pivots. Pivot is a point of articulation, a point at which things balance.

Sharp conflicts, whether it is a world war or (war in) Iraq, has always indicated transformation points to the consciousness of the world and provided pivots to a new design of human actions.

Things change after the world is traumatised or the world has sharp military conflict or collision of the human will in the earth has always provided pivot points or transformation points to the world’s consciousness.

We look at these events, look at the terrible things that are taking place, but behind that we recognise the fact that things are shifting to new positions.” Dr. Noel Woodroffe on Core Imperatives for Successful Nation Development

Gandhi used the principle of embracing personal suffering from your oppressor without retaliation to wake the conscience of your oppressor and make him stop the oppression to free India from British colonial rule.

In doing this, Gandhi had pointed to Jesus Christ as showing the way to embracing the principle of embracing unjust personal suffering visited on him by those he came to save to awaken the conscience of humanity to the path of reconciliation with its Creator, God.

Gandhi set up unarmed Indian protesters to defy unjust British laws and policies and then for these Indians to resort with non-violence when the British Army made up principally of Indians visited them with violence in return.

While Gandhi used the principle from a majority population perspective, Martin Luther King Jr. took the same principle and applied it from a Black minority population perspective to awake the conscience of the dominant white population in the US to the evils of segregation.

He simply organised Black protesters to defy the segregation policy and not to respond with violence when the police in the South came to enforce segregation with brutality and unwarranted violence before the American media who were on hand to record it.

This was what gave birth to the Civil Rights Act in the US ending segregation and legal racial discrimination, amongst others. Hamas deviated substantially from Gandhi and Martin Lutther King Jr. in that its application of the principle was triggered through violence and killing of over 1,200 Israelis during its border invasion on October 7, 2023.

The issue before Hamas was how a minority population brings the attention of the world to Israel’s biggest open air fenced prison in the world with over 2.5 million Palestinians, and by extension, the issue of a Palestinian state.

First, without the knowledge of the 2.5 million Palestinians in Gaza, Hamas dug tens of thousands of kilometres of tunnels deep underneath Gaza.

Then, on October 7, 2023, Hamas and its allies broke through reinforced concrete walls separating Gaza from Israel, invaded some neighbouring communities, killed over 1,200 people, and forcefully took over 200 Israeli captive back with them into the tunnels underneath Gaza.

An enraged Israel with its Western allies reacting to what they regarded as a massacre swallowed the bait, and what the world has witnessed live on all media platforms in the last 13 months has been a morden defining of what constitutes genocide as the full military might of Israel and its Western allies was visited on an unarmed nonviolent Palestinian population in Gaza.

Make no mistake, implementing this strategy came at great cost to Hamas and its leaders, but what has shaken a watching world to its core has been the resulting violence and suffering visited on over 2.5 million unarmed Palestinians, mostly women and children, by the Israeli government and military with the support of its Western allies.

A peace deal has now been brokered between Israel and Hamas facilitated by Donald Trump using a 3-stage peace plan earlier put forward by the Biden administration, starting with the exchange of prisoners between both sides.

But be assured that just as happened in India gaining independence from the British with the help of Gandhi, and with the civil rights movement in the US spearheaded by Martin Luther King Jr., the Palestinian cause is now a global issue thanks to the actions of Israel and its Western allies in the last 13 months.