US’s Alternet Systems Inc (ALYI), has announced its partnership with an anonymous company to launch a crypto aimed at providing funds for manufacturing electric vehicles in Africa. The ALYI African electric vehicle project is, however, expected to kick off with a $100M initial coin offering (ICO) funding as the US firm announced that the crypto has successfully been minted on Ethereum blockchain.
Reportedly, the intended ICO for the ALYI African electric vehicle project has attracted investors for the $100 million offering, noting that they are the only firm to have partnered for the crypto initiative.
ALYI African electric vehicle and other blockchain investment in Africa
As part of plans for the ALYI African electric vehicle project, the firm is analyzing regulations on crypto and Africa and also working on its marketing strategy for the ICO as it is yet unscheduled.
The firm, also through its electric motorcycle subsidiary, has been able to manufacture an electric motorcycle and sidecar to be used in Africa. However, as the US firm is said to have signed a deal in an African country for its bikes, the money to be generated from the ICO is also to be used to fund the manufacturing of electric motorcycles.
The ALYI African electric vehicle project by the US firm and its ICO is only one out of many foreign blockchain investments in Africa by firms in the crypto space. Among chains of foreign investors in Africa is the Bill and Melinda Gates Foundation. Its $1.4 million grant to blockchain-enabled fintech Security Company will provide fintech services to Africans and Asians who don’t have access to banks.
Africa and electric cars, how ready is the continent?
Africa, known as a third world and underdeveloped continent, generally would be thought “not to have what It takes” to be ready for electric cars. However, it is not the case. The continent is now reported to be urbanizing faster than any other continent.
Also, the continent’s transport system is said to run on fuel, which is quite expensive for car users as residents in Nairobi, the capital city of Kenya, spend around 14-30% of their income on fuel as the government in many African countries has subsidized fuel.
The African continent also has continued to demand electricity which by 2040 is expected to quadruple. There were plans to diversify its means of generating electricity using renewable alternatives like solar, wind, etc.
According to the World economic forum, Africa needs electric cars as they seek alternatives to vehicles that run on fuel and also an electricity storage solution to store abundant renewable energy.