Africa: The Continent of Growth and Opportunity – Here’s Why You Should Look Again

Africa – the second-largest continent in the world – is teeming with potential. The continent is rapidly emerging as a major player in the global economy, and its collective GDP is estimated to grow by an impressive 4.1% this year alone.

Africa presents itself as a vast source of untapped investment potential across a range of sectors. From land and property investments to agribusiness, financial services, and energy production, investors recognize the incredible opportunity in the continent's many diverse economies.

A perfect example of this opportunity is Direct Property Africa Token (DPAT) with its innovative real estate investment platform powered by blockchain technology. DPAT allows users to purchase tokenized real-estate investments in select land, property and infrastructure projects in cities with high growth potential and provides transparent access to trillion-dollar markets across the vast continent.

The Launch of Direct Property Africa Token (DPAT)

Due to urbanization, rapid population growth, and participation in the global economy, African cities are feeling both pressure and potential for accelerated infrastructure development.

DPAT ushers in a new era of Web3 real estate investment by being the first to construct an international fundraising, investment and trading platform focused exclusively on the best real estate markets on this vast continent. Whether it is homes, hotels, office buildings or schools, the DPAT marketplace allows developers to raise funding for their projects directly from the global investor community. 

DPAT mints and represents each development project with a Non-fungible token (NFT) that is then fractionalised and broken down so more investors can buy a stake in a project they like or see ROI value. The fractions can then be sold, exchanged and traded on any NFT platform. Blockchain technology underpins the whole project and makes all investments transparent and traceable.

Investors with an interest in Web3 and cryptocurrencies can now access the African property market through DPAT. Fractional models such as Real Estate Investment Trusts (REITs) make it possible for multiple people to benefit from profits generated by high-value assets while minimizing risks at the same time.

In comparison to REITs, fractional NFTs not only offer investors the opportunity to earn royalties and tokens but also provide them with a sense of autonomy on what is created – who creates it, for whom, and where.

DPAT is creating an interconnected system whose value originates from the community. It will grant early bird and presale investors who hold onto their DPAT long-term exclusive access to new projects, discounts on fees, as well as tangible assets – all while passively rewarding them!

Shifting patterns and alternative financing models

It is now more important than ever to identify and leverage novel sources of financing, in addition to traditional lenders and international partners, that can fulfill the continent's demand for infrastructure development. This includes the need for transportation networks, energy provision, access to internet services and data centers, educational establishments, and healthcare facilities. Unfortunately, many global banking institutions have been forced away from commodity-based lending due to their preoccupation with managing their liquidity positions along with repayment of existing debt levels.

The use of blockchain-based tokens, such as DPAT, has the potential to offer a new paradigm for funding. Connecting investors from both public and private sectors will provide an outlet for them to participate in financing projects that can bring about positive change in the region. 

Global interest

According to China's Ministry of Commerce, trade between China and Africa has skyrocketed 20-fold in the past two decades. This makes it clear that Beijing is now firmly entrenched as Africa's leading bilateral trading partner. Unfortunately, this remarkable trend may not continue due to a projected decrease in Chinese infrastructure financing projects.

As the US renews its commitment to developing and financing long-term projects in Africa, the Export-Import Bank of the United States is supporting infrastructure growth across the continent. Projects that do take place will be more advanced with more sophisticated structures than ever before, and new finance options, like supply chain finance models, are being used to drive finances into this region.

Consistently, the European Union has declared its pledge to nurture long-term connections with African nations. Recently, prominent US and European Development Financial Institutions collaborated on a noteworthy transaction in Africa's healthcare sector. Amidst Brexit negotiations, the United Kingdom also accentuated its investment across Africa through trade and diplomacy initiatives. Additionally, since 2020 we've noticed several summits redirecting finance back into the continent.

The Bottom Line

The continent is no longer emerging and is now a major international player with opportunities for savvy investors. With the help of blockchain-based tokens such as DPAT, there is potential to create a new funding structure and benefit from global investment opportunities. 

There are now more chances than ever before to finance infrastructure projects in Africa, with numerous public and private sector entities redirecting funds into the region. Whether through China's trade initiatives or Europe's renewed commitment to African nations, there is no doubt that Africa will continue its growth trajectory and success in the coming years!

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Written by Michael Ibadan