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Why Umoja Coin reflects Africa’s new crypto business model

By  Rosemary Mirondo

Business Reporter

Mwananchi Communications Ltd

Dar es Salaam. As Bitcoin crossed the $100,000 mark this week, a quieter but more significant shift is unfolding in Africa’s digital finance sector.

Instead of chasing hype around crypto tokens and NFTs, African innovators are using blockchain to fix real business issues especially in areas like payments and cross-border trade.

While much of the tech world focuses on crypto prices, African developers are using blockchain to solve day-to-day financial problems. In many places, banks are unreliable, expensive, or hard to access. Umoja Coin aims to bridge that gap.

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Currently, globally, Web3 platforms handled over $3.4 trillion in transactions in 2024. A growing share of that is now coming from Africa, through real-world use like peer-to-peer payments.

Umoja Coin was launched to make it cheaper to send money within Africa. For example, sending money from Nairobi to Arusha can still cost 15–20 percent in fees. That’s a big burden for small traders.

 "Through Umoja Coin I can pay a supplier in Kenya instantly,” says Favour John, a small business owner in Dar es Salaam. “No bank needed, and no delays.”

Mobile money is widely used in Africa, but it still faces issues when it comes to cross-border transactions. Umoja Coin helps fill that gap.

Umoja’s success also comes from its network of local agents like boda boda drivers or teachers who help people convert digital coins into cash. These agents earn a commission, creating jobs while expanding access.

“It’s like opening a bank branch, but without a building,” says Ali Juma, an Umoja agent in Morogoro.

Umoja Coin also offers features like staking, where users can earn up to 25 percent  annually similar to savings accounts or investment products, but without needing a bank. This appeals to Africa’s young, tech-savvy population who are often locked out of formal finance.

For investors and development partners, Umoja shows how blockchain can support inclusive finance on the continent.

Umoja Coin isn’t trying to replace local currencies or compete with Bitcoin. Instead, it’s part of a new wave of African blockchain projects focused on solving real problems.

We’re not copying Silicon Valley. We’re building for our own needs,” says Juma Mohamed, a Web3 educator in Dar.

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