Insights from David Otieno , CEO of Chaintum & Head of Research at the Blockchain Association of Kenya (BAK) of Kenya
Emerging technologies like blockchain and AI hold immense potential for transforming Africa’s economy, governance, and financial systems. Yet, a critical challenge persists: the continent’s research efforts in these fields remain fragmented and underfunded.
To explore the role of research in driving Africa’s digital transformation, the Kenya Blockchain & Crypto Conference (KBCC) sat down with David Otieno, CEO of Chaintum Research and Head of Research at the Blockchain Association of Kenya (BAK). His insights highlight why African governments, private institutions, and individuals must prioritize investments in research to ensure these technologies are tailored to Africa’s unique socio-economic landscape.
The Research Gap: Why Africa Needs Its Own Data
Africa has long been a consumer of global innovations, but Otieno warns that imported narratives often fail to capture the realities of African markets. He emphasizes that without local research, Africa risks being a passive adopter rather than an active innovator.
“One of Africa’s biggest challenges in emerging technology adoption is the lack of localized research. We have often relied on imported narratives that do not fully capture our unique realities,” says Otieno.
A quote by Femi Longe of the Human Rights Foundation (HRF) perfectly encapsulates this issue:
“Our Bitcoin reality is not yours.”
A fact underscored by the low Bitcoin mining nodes in Africa. This statement underscores how blockchain and AI solutions developed in the West often do not align with Africa’s economic and social structures. The lack of tailored research leads to a “knowledge segregation gap,”where only the most tech-savvy individuals can navigate these innovations, while the majority remain excluded.
Bridging the Gap with Research
Otieno believes research is the missing link between blockchain’s theoretical potential and real-world adoption. He points out that while blockchain is frequently marketed as a solution for Africa’s challenges—such as financial inclusion, governance, and trade inefficiencies—its actual impact on African communities remains poorly documented.
“We couldn’t just talk about blockchain’s potential in abstract terms; we needed to ground it in real-world use cases that resonate with everyday people. Research, I realized, was the bridge between blockchain evangelists and those unfamiliar with the technology.”
Chaintum Research: Advancing Africa’s Blockchain and AI Ecosystem
At Chaintum Research, Otieno and his team focus on five key areas where blockchain and AI can drive meaningful change in Africa:
- Governance: Enhancing transparency and accountability in public administration.
- Mining & Energy: Using blockchain for resource tracking and sustainability.
- Supply Chains: Improving efficiency and reducing fraud in trade.
- Finance: Expanding financial inclusion through decentralized finance (DeFi).
- Real Estate: Enabling property ownership through blockchain-based digital identities.
These research areas are critical for Africa’s future because they directly impact economic development, social equity, and technological progress. Without localized insights, Africa remains at risk of adopting foreign blockchain and AI solutions that do not effectively address local needs.
“If Africa is to fully harness the power of blockchain and AI, we must prioritize research that is grounded in local realities, amplifies African innovations, and guides strategic adoption.”
The Role of Governments and private Institutions in Research Funding
Research into blockchain and AI remains grossly underfunded in Africa. For instance, less than 1% of GDP is directed towards research and development in Kenya. The Science, Technology, and Innovation (Amendment) Bill 2024 targets 2% of GDP to R&D funding, a target yet to be achieved.
To put things into perspective, Kenya’s GDP was KSh 13.5 trillion as of 2022, a 2% apportionment to that would amount to KSh 260 billion –no small addition to innovation, were it to be realized.
David Otieno identifies three major reasons why meaningful research in blockchain and AI has not been attained:
– Limited institutional support: Most research institutions lack the needed resources and infrastructure to carry out high-impact studies.
– Lack of funding and grants: Due to insufficient financial support, many important research studies have not been completed, and this is delaying the development of localized solutions.
– Weak industry collaboration: Disconnection among academia, policymakers, and private sector players is one of the main reasons for non-translation of research into application.
At BAK, Otieno is actively working to bridge these gaps by engaging policymakers, industry leaders, and institutions to shape pro-innovation regulations and support research-driven adoption of blockchain and AI.
For Africa to fully harness the potential of blockchain and AI, governments and institutions must take proactive steps in funding research. That is, creating specific funds for research, attracting private investment, and encouraging academia-industry partnerships. Only through sustained investment can Africa develop homegrown innovations that address its unique socio-economic challenges.
Steps to Strengthen Research in Africa
Otieno suggests three key solutions:
1. Public-Private Partnerships (PPPs): Governments should work with private companies to create research hubs.
2. Academic Grants & University Collaborations: Funding students and researchers working on blockchain and AI.
3. Industry-Driven Initiatives: Encouraging corporations to invest in localized R&D.
While Kenya has made some strides, with institutions like the Kenya National Innovation Agency (KENIA)and Konza Technopolis supporting innovation, a structured national research strategy is still lacking.
“For real impact, Kenya needs a structured national strategy that integrates research, policy, and industry adoption to ensure that blockchain and AI contribute meaningfully to economic and social transformation.”
The Future: Breakthroughs That Could Shape Africa’s Economy
Looking ahead, Otieno identifies four key breakthroughs in blockchain and AI research that will have the greatest socio-economic impact in Africa:
1. Decentralized Finance (DeFi): Enabling financial inclusion for the unbanked.
2. AI-Driven Agricultural Analytics: Enhancing food security and climate resilience.
3. Blockchain-Based Supply Chains:Improving transparency and reducing corruption in trade.
4. Digital Identity Solutions:Strengthening governance and cross-border commerce.
Chaintum Research is playing a much needed role in driving these advancements by producing data-driven insights that inform policymakers and entrepreneurs.
“Our research ensures that blockchain and AI solutions are tailored to Africa’s unique challenges, fostering homegrown innovations that drive sustainable economic growth.”
Why Africa Must Act Now
Africa is at a critical juncture in its digital transformation journey. Investing in blockchain and AI research is not optional—it is essential for ensuring these technologies serve African needs rather than merely being imposed from abroad.
Governments, private institutions, and individual investors must take responsibility for funding and supporting localized research, ensuring that Africa not only adopts blockchain and AI but also leads in shaping their future applications.
As Otieno warns: “Without research, we risk becoming passive consumers rather than active contributors to blockchain and AI innovation.”
The time to act is now. Africa must invest heavily in research to own its digital future.