The evolution of bitcoin has created a new market in Africa. The biggest economies in the continent, Nigeria and South Africa are at the helm of the boom, which is showing a lot of young people a way out of unemployment.

It is more like a fulfillment of the 2018 United Nations’ report, which predicted that Africa could be the next frontier for cryptocurrency due to poor governments’ fiscal policies and regulatory bottlenecks that pose a challenge to economic growth in the continent.

While Nigeria leads the African crypto market, South Africa is trailing with a ground-breaking volume of transactions.

Apart from its 32.5% unemployment rate, South Africa is a country where the majority of the population is unbanked, creating the opportunity for more people to embrace bitcoin not only as a way of transaction, but also as means of employment.

For the past five years, the South African cryptocurrency market has evolved to become one of the leading peer-to-peer marketplaces in the world. South Africa processed nearly $100 million in P2P bitcoin exchange in 2020, opening opportunity for further investment in 2021.

The growth has been spurred by many factors, including flexible payment systems, cross border trade, currency fluctuation and fair regulation.

Before now in South Africa, cross-border financial transactions were expensive, rigorous and unreliable, even within the Southern African Development Community (SADC) bloc. Across the continent, the complexity was limiting business transactions and frustrating Small & Medium Enterprises (SMEs) and other markets.

Then there’s currency fluctuation. The South African rand is one of the most volatile major currencies in the world. Since 2014, it has lost 30% of its value as the economy wobbles.

Another factor fueling the surge of bitcoin in South Africa is the African Continental Free Trade Area (AfCFTA), a bloc idea born in 2012 and signed in July 2019 to facilitate intra-African trade. So far, more than 30 countries have ratified their instrument, which means there is anticipation of increased cross-border trade within Africa that will need flexible means of financial transactions.

In addition, seeing where the world is headed with digital payments, the South African Reserve Bank has established a team of players from the financial sector, including stakeholders in the cryptocurrency industry, tasked to develop a regulatory framework for the industry.

These factors have spurred significant growth in the South African bitcoin market, stoking the interest of many who are joining the trend daily.

However, as interest grows in the South African Cryptocurrency market, challenges remain. In January, South African financial sector regulator, the Financial Sector Conduct Authority (FSCA) requested more oversight power to regulate cryptocurrencies in order to be able to prosecute fraudsters in the industry.

FSCA made the request after Mirror Trading International (MTI), a bitcoin trading club, was accused of a $740 million bitcoin scam, conducting operations illegally and lying to investors. The regulator shut MTI down in December due to the enormity of the fraud allegations leveled against it. The club was, among other acts of fraud, accused of falsifying trade statements and did not declare losses after promising customers daily returns of 0.5% for $100 deposit.

It has been the biggest scandal in the South African cryptocurrency market, and set a trajectory that would have scared traders off the market if not that many exchanges have established good reputations that withstood the scandal.

“Mirror Trading International is another example of why the industry must spread the word that algorithmic trading platforms promising unrealistically high returns are nearly always scams,” data firm, Chainalysis said.

“When cryptocurrency exchanges and other services learn of these scams and receive their cryptocurrency addresses, they should discourage users from sending funds to those addresses or at least warn them that financial losses are highly likely,” it added.

Despite these pitfalls, the South African authorities have taken a different approach from their Nigerian counterparts, who in February 5 announced the ban of cryptocurrency exchanges’ operations. The South African regulators are poised on regulating existing exchanges to give credibility to the industry.

But due to the scandal, the exchanges, including peer-to-peer (P2P), a decentralized platform whereby two individuals interact and transact directly with each other, without the need of a middleman to broker the deal, have come under the radar of both regulators and traders.

Against this backdrop, the South African bitcoin market is set for full regulation aimed at curtailing fraud practices. This means that all the exchanges including P2P platforms being used in South Africa will have to undergo credibility verification.

The FSCA has proposed stringent regulations that will mandate crypto startups to obtain a financial services provider (FSP) or cease operations. But there is more to it that has thrown the market into disarray. Under the proposed regulation, taxpayers are required to disclose all crypto-related transactions to South African Revenue Service (SARS), or face a penalty that may involve a two-year jail term.

As a result of this proposed regulation, the South Africa’s daily bitcoin transaction volume plunged 10%, from $258,783 to $235,470 in January; as many traders began to withdraw their investment.

The proposed tax rule will undermine the autonomy of cryptocurrency in South Africa, spooking investors as they wouldn’t want to operate in a market where the government is interfering with transaction autonomy.

Although the South African authorities claim their aim is to sanitize the cryptocurrency market through regulation, the proposal is suggesting that the government wants a share of the bitcoin boom.

SARS had earlier proposed capital gains tax (CGT) on crypto investments that would require traders paying from 7% to 18% tax on profits made, another development crypto traders don’t want to reckon with.

Generally, the growth of the cryptocurrency market both in Nigeria and South Africa appears partially dependent on the regulatory policies of both governments. For this reason, exchanges have been innovating to keep the market flow going through P2P platforms where the authorities have no control.

Local Bitcoin, a Finland-based exchange is among the many stepping up to fill the void that would be created by the South African regulatory proposal if approved.

With a P2P platform that supports hundreds of different payment methods, Local Bitcoin has become one of the most established crypto exchanges in the world; offering escrow-secure P2P services that gives traders a sense of security. It also wades in when there is dispute between traders and provides all parties with deserving resolution.

Although recent happenings have thrown the South African bitcoin market into a state of distrust, resulting in government’s intervention that is currently slowing the market’s growth, credible exchanges are fighting through secure and transparent transactions to protect the market.

Nigeria’s first batch of COVID-19 vaccines will be received  on March 2, and  Dr. Faisal Shuaib, Executive Director Of the National Primary Health Care Development Agency (NPHCDA), at the weekly media briefing of the COVID-19 Presidential Task Force on Monday 1st March 2021 at Abuja, outlined the order of events that will follow its arrival, including who gets the jabs first.

PROTOCOLS

I am delighted to inform you that the first batch of Oxford/AstraZeneca COVID-19 vaccine, which is about 3,924,000 doses, is expected to arrive in Nigeria tomorrow, Tuesday 2nd March 2021 at 11:10am.

I once again assure Nigerians that all necessary safety and quality control measures have been put in place for the arrival, storage and successful administration of the vaccine in the country. There is going to be a small ceremony chaired by the Chairman of the PTF on COVID-19 to receive the vaccine at the VIP Protocol section, General Aviation Terminal of Nnamdi Azikiwe International Airport, Abuja.

At the end of the ceremonies to mark the arrival of the vaccines. A few vials of the vaccines would be handed over to the NAFDAC team which they will analyze over a period of two days (Wednesday March 3rd and Thursday March 4th)

Further to the clearance by NAFDAC, the PTF, FMOH, NPHCDA and strategic leaders will be at treatment center of the National Hospital on Friday March 5th 2021, where the first vaccination site will be set up to commence the vaccination of the frontline health workers and support staff. These Staff would also be electronically registered in the Covid-19 vaccine database and would receive their COVID-19 vaccination card which has a QR code that can be verified worldwide.

On Monday March 8th 2021, more vaccination sites would have been set up at designated locations such as National Assembly clinic, State House clinic and Federal medical centre, Jabi where strategic leaders such as the SGF, Senate President, Speaker of the House of Representatives, Attorney General of the Federation, Inspector General of Police, the Ministers and Ministers of States, Senators, House of Representatives, traditional leaders and religious leaders would be vaccinated.
After this launch and initial roll-out phase, Vaccine distribution to the States for the phase 1 vaccination process will begin. This phase is the vaccination of all frontline health workers, their supporting staff and strategic leaders. Deployment of vaccines to the States would be based on the assessment of their level of preparedness. Some of the parameters that would be used for the assessment include adequate maintenance of their cold chain storage facilities, adequate preparation for logistic transportation to the ward/ health facility, adequate security in place during transportation and at vaccination sites, completion of training of health workers, efficient social mobilization activities in place, adherence to protocol for vaccine deployment.

Working with CACOVID, plans are on ground for a cargo plane provided by them to transport the vaccines to the States by air. States without a functional airport will have their vaccines transported by road using vans with fitted Cold Cabins, from the nearest airport. The vaccines will be stored at the State Cold Stores, from where they will be transported by road to LGA Cold Stores
Once activities have commenced in the States, there would be strict monitoring by PTF, FMOH, NPHCDA and independent bodies such as EFCC, DSS, ICPC, and Civil Society Organizations. States/health facilities/health workers that are identified as defaulting from the standard protocol and guidelines for this phase of vaccination would be sanctioned.

While this is ongoing, the National team would be ready for the arrival of the next batch of vaccines which would be used for the next phase of vaccination. Phase 2 vaccination process involves vaccination of the elderly from 50 years and above. This has been sub grouped into 2, with the vaccination of 60 and above occurring first followed by 50 – 59years. This will occur across all 36 States and the FCT. Those who are eligible for vaccination that have not registered electronically, would be assisted at the designated health facility and would be vaccinated.

The phase 3 vaccination process involves vaccination of those between 18 – 49years with co-morbidities (such as hypertension, diabetes, lung disease, other heart disease, liver or renal disease, etc). Individuals at ages 50 and above with co-morbidities would already have been Immunized within their age group.

The phase 4 vaccination process would involve vaccination of the rest of the eligible population between the ages 18 – 49years. It is worthy to note that at each phase of vaccination, the level of preparedness of the States are assessed before vaccines are deployed and accountability measures have been put in place to ensure strict compliance to the vaccination process. Pregnant women will be evaluated by their health providers to weigh the benefit versus risk, before a decision is taken to vaccinate them.

Earlier today, the Honourable Minister of Health, Dr Osagie Ehanire launched our indigenous T.E.A.C.H strategy for COVID-19 vaccination and Electronic Management of Immunization Data system. This is to ensure safe and effective vaccination of prioritized and eligible Nigerians against COVID-19. Following the launching, through a unique link available on NPHCDA website, twitter handle, Facebook and Instagram, we have commenced electronic self-registration of health workers. This will enable us to avoid crowding at vaccination posts as the registered health workers will be scheduled and reminded of their vaccination date via sms and email.

We urge all eligible Nigerians aged 18 years and above to be patient as we will eventually vaccinate them. As the vaccines arrive in batches due to limited supply we will inform Nigerians about who and where to receive the vaccine.

A comprehensive and transparent roll-out plan that involves public vaccination of President Muhammadu Buhari and other important dignitaries and stakeholders has been developed. Again, this is to assure Nigerians on the safety of the COVID-19 vaccines that we are bringing into the country.

May I therefore crave your indulgence to continue to support the government in conveying truthful, factual and objective messages to Nigerians in order to dispel rumours around COVID-19 vaccines and government efforts to protect the citizens against the disease.