Africa has the largest concentration of young people in the world—representing 20% of Africa’s entire population and one fifth of the world’s youth population. According to Arcane Research, the African countries with the highest crypto adoption as a percentage of internet users is South Africa at 13%, Nigeria at 11%, Ghana at 6%, and Kenya at 5%, with the worldwide average at 7%. Similarly, Google Trends shows interest in cryptocurrencies is highest in Nigeria, Uganda, South Africa, and Ghana. Companies like M-Pesa, a mobile money transfer service launched in 2007 by Vodafone and Safaricom, dominates 90% of e-commerce in Kenya, have already created a blueprint for Bitcoin adoption, leading to over $20 million a week being traded on peer-to-peer marketplaces like Paxful and LocalBitcoins. So why is crypto utilization in Africa 2X higher than the rest of the world? For starters, small business owners increasingly want to avoid African banks due to their high fees, fluctuating exchange rates, complex capital controls, and hyper-centralization. Bitcoin, on the other hand, is decentralized (no third-party) and you can send millions of dollars for less than $1 USD. Second, the current rate of inflation in the Nigeria naira, for example, is about 12%, and it was as high as 17% in 2017. The naira is not a very good store of value. Lastly, unstable government is also a big driver of crypto adoption in Africa. Not only does political instability exacerbate inflation and currency volatility, but it can also lead to GDP declines, forced migration, and confiscation of wealth. In 2018, Africa reported the highest amount of civil conflicts since 1946, with Burkina Faso, Mali, Chad, South Sudan, Ethiopia, Central African Republic, Congo (DR), Mozambique and Nigeria experiencing significant violence and civil unrest. Political instability, inflation, and high banking and transaction fees have helped push Africa's 226 million youth towards Bitcoin in record numbers.

Arcane Research Report (2020)