Is Africa truly on the brink of a transformative digital revolution, or is it being tempted into yet another tech-centric illusion? That’s why the recent funding of USD 700K into Rise of Fearless, a UAE-based mobile gaming platform, is interesting. This investment will allow them to dominate the African market by integrating Web3, making us ask an often-overlooked question. Second, it’s easy to get carried away on waves of enthusiasm, powered as they are by financial inclusion and financial empowerment rhetoric. An injection of historical perspective is all the more essential.
Africa's Tech Investment History
Africa’s tech ecosystem is a graveyard of shiny successes and cautionary tales. Remember the initial hype surrounding mobile banking? Though it surely opened new financial doors for millions, it opened up new ways to exploit them and worsened many inequalities in the process. Solar energy initiatives were previously lauded as the solution to energy poverty. Yet, they are often still grappling with sustainability and affordability issues in the most impoverished communities. The lesson? Technology, in and of itself, is neither inherently good nor bad. It’s the way that they apply it and their intent that is most important.
The real question therefore isn’t whether Web3 gaming can benefit Africa – it’s whether it will in reality.
African Gamers' Financial Freedom?
Web3 gaming promises amazing things, including true ownership of digital in-game assets, play-to-earn business models, and player-centric decentralized economies. This is hugely appealing for a continent whose fast-growing youth population is increasingly outpacing available formal job opportunities. Africa’s gaming market is ripe for disruption, with more than 680 million mobile subscribers. By 2029, experts anticipate its market value will reach USD 3.72 billion. The spirit of Rise of Fearless is inspired by Ethiopia’s victory at the Battle of Adwa. It seeks to tap into this potential through a completely free-to-play experience, steeped in African culture.
The reality is that many African gamers face significant hurdles: unreliable internet access, unaffordable devices, and a lack of digital literacy. How many gamers can actually take advantage of digital assets when they can barely afford food and shelter? How safe are these digital assets in a state ground down by cyber criminality and a fragile regulatory ecosystem? Will the lure of fiscal liberty become a reliable new revenue source? Or will it usher in a new era of digital feudalism, where a few early movers and platform masters are the ones who reap the vast majority of benefits?
Beyond that, we have to factor in the extreme volatility of cryptocurrencies, the underpinnings of most Web3 gaming ecosystems. Imagine a farmer in semi-arid rural Kenya. He watches in disbelief as its value disappears overnight because market forces, as if on cue, send that cryptocurrency’s value plummeting. This is not just a theoretical risk – it is an imminent reality that may further deepen pre-existing economic vulnerabilities.
Consider this unexpected connection: just like the historical scramble for Africa's natural resources, are we seeing a new scramble for Africa's digital assets and attention, masked as benevolent investment?
Ethical Gaming and Cultural Impact
Past the financial aspects, we need to contend with the moral and societal impacts of Web3 gaming on the continent. The risk of addiction, especially for at-risk youth, is an issue of great concern. Getting paid to play video games is very alluring. This siren song frequently causes individuals to abandon their studies, familial duties, and tangible connections to the outside world.
In addition, we must be cognizant of the potentially destructive effects of such change on longstanding African cultures. Would this flood of Western-centric gaming content undermine local traditions and values? Or will African developers be able to use Web3 technology to produce video games that amplify and protect their distinct cultural legacy? Fearless has already taken a fearless decision to anchor its game on Africa’s history. Now, it’s up to fellow developers to pay attention and make true, meaningful storytelling a priority, too.
It can be tempting to buy into the buzz around Web3, NFTs and the metaverse. We have to continue to understand that these technologies are tools, not panaceas. It is not that they can only be used for good or ill depending on how they are implemented and regulated.
The other side of the golden opportunity slate is responsible innovation, and that’s key to unlocking the potential of this opportunity.
The key to Web3 gaming flourishing in Africa is a powerful alliance. Governments, investors and developers need to collectively address the fundamental issues at stake and lower the risks currently baked into these megadeals. This requires:
- Investing in infrastructure: Expanding internet access, lowering device costs, and promoting digital literacy are essential prerequisites.
- Developing robust regulatory frameworks: Protecting consumers from fraud, exploitation, and addiction requires clear and enforceable regulations.
- Supporting local developers: Empowering African game developers to create culturally relevant content that resonates with local audiences.
- Promoting financial literacy: Educating gamers about the risks and rewards of cryptocurrency and decentralized finance.
The UAE's investment, alongside funding rounds for Sadq, TruBuild, ViAct, and capital increases for BKN301 Group, suggests a growing appetite for innovation in the MENA region and beyond. That momentum has the potential to fuel great things in Africa. As we fully engage with it, we need to do so with a healthy skepticism, an ethical center of gravity, and an unrelenting orientation toward the interests of African communities.
Please, let us not do this again as we have in the past. Let’s mobilize our collective will to learn from history and make Web3 gaming an endeavor that will empower African gamers, instead of taking advantage of them. The choice is ours.
