Ethereum Founder Is Backing Zambia’s Bid to be Africa’s Tech Hub
Zambia is more known for copper mining than cryptocurrency, but a group of young entrepreneurs is hoping to rebrand the country as an African technological hub, with the help of Ethereum co-founder Vitalik Buterin.
Startup entrepreneurs from all over the world are meeting with the government to discuss how to create a regulatory and business environment that will attract more digital enterprises and finance. The organisation is planning a summit in May in Lusaka, to produce comprehensive policy suggestions that they believe can help Zambia thrive where other African tech centres have failed.
“Ultimately it comes down to being welcoming,” said Mwiya Musokotwane, an early champion of the project and the son of Finance Minister Situmbeko Musokotwane. “If the policy doesn’t really live up to people’s expectations, noone’s going to be there.”
Buterin, who helped establish the world's second largest cryptocurrency in 2013, showed his support earlier this year at a virtual meeting with President Hakainde Hichilema. This came after a visit to the nation in 2019 as a guest of Mwiya, who wanted him to see a new charter city outside of Lusaka that is similarly positioning itself to attract investors.
“I was impressed by everyone I met’s willingness to go and do big things,” the crypto pioneer said in an interview.
The discussions are yet another indicator of Africa's growing position as a startup hotspot, notably in the financial and e-commerce industries. Businesses that provide financial services to Africa's millions of unbanked yet online individuals are drawing international investors, mainly from the United States, and African companies raised a record $5 billion in 2021.
Employment Drive
For Hichilema, attracting tech firms could be a means of delivering on one of his key election pledges - boosting employment. According to data from the International Labour Organization, more than one in every four Zambians under the age of 24 has no income, and the ratio has been worsening since 2013. The President's vow to address the issue was a key factor in his election victory in August.
Since then, he has established the Ministry of Technology and Science as part of an effort to strengthen the industry and reduce reliance on copper, which accounts for 75% of export revenues. According to Jito Kayumba, Hichilema's special assistant for economic and development issues, the government is keen to discuss with entrepreneurs on appealing policies for the IT industry, including tax breaks.
“We want to have a much more open-minded approach,” Kayumba said in an interview from Lusaka. “You can’t milk a cow that isn’t fully developed.”