Africa & Gradido - Research dossier for a new future

This comprehensive research dossier sheds light on the opportunities and challenges for the introduction of the Gradido common good-oriented currency system on the African continent. Africa, with its 1.4 billion people, 54 states and immense cultural diversity, faces enormous challenges - from poverty and inequality to political instability and climate change. At the same time, the continent has unique cultural strengths such as the Ubuntu philosophy, a young and dynamic population and a rapidly growing digital revolution. The analysis shows: Gradido could fall on fertile ground in Africa if the system is sensitively adapted to local conditions and linked to existing initiatives.

1. current economic, social and political situation in Africa

Economic situation: growth at a low level

Despite numerous challenges, Africa is showing remarkable economic momentum. The African Development Bank (AfDB) has forecast economic growth of 3.7 to 3.8 percent for 2024 and an increase to 4.1 to 4.3 percent for 2025. However, these figures conceal considerable regional differences: East Africa leads the way with forecast growth of 5.1 percent, followed by West Africa with 4 percent. Southern Africa is lagging far behind at just 2.2 percent, burdened by infrastructure problems and the ongoing energy crisis in South Africa.^1^3

Ten of the world's 20 fastest growing economies are in Africa. Niger (8.6 percent), Senegal (7.5 percent), Rwanda (7.2 percent) and Libya (7 percent) are developing particularly dynamically. Nevertheless, overall economic output remains modest: Africa's total gross domestic product (GDP) reached around 2.53 trillion US dollars in 2024 - roughly comparable to the economic output of Italy alone.^2^1

Regional disparities: A continent of contrasts

The economic and social differences between the African regions are immense:^5^7

North Africa was historically closely linked to Europe and the Middle East and has a relatively diversified economy. The region benefits from oil and gas reserves and a strategic location on the Mediterranean. Countries such as Morocco and Egypt are actively working to diversify their economies away from pure textile and oil exports towards the automotive and electronics industries.^6

West Africa shows great willingness to reform and increasing diversification. Nigeria dominates the region as the continent's largest economy, but struggles with extreme corruption, insecurity and dependence on the oil sector. The region is benefiting from macroeconomic reforms, but faces challenges due to high youth unemployment and poverty.^1

East Africa is proving to be the most dynamic region with the strongest growth. Countries such as Kenya, Ethiopia and Rwanda are investing heavily in infrastructure and regional integration. The region is a pioneer in digital innovations, particularly in the area of mobile money.^1

Central Africa is suffering from declining oil production, political instability and armed conflicts. Although the Democratic Republic of the Congo has immense natural resources, it is barely able to use them for development due to corruption and violence.^5

Southern Africa is dominated by South Africa, which is considered the most economically developed country on the continent. However, the region is struggling with dilapidated infrastructure, the devastating energy crisis in South Africa and the after-effects of apartheid.^8^5

Political situation: between democratization and regression

The political situation in Africa is characterized by contradictory trends. On the one hand, democratic institutions have been consolidated in many countries, but on the other, there are worrying signs of regression. There were 25 military coups between 1990 and 2018, but 17 were recorded between 2019 and 2023 alone - an alarming negative trend.^9^11

Competing rulers are currently claiming political legitimacy in several countries: Mozambique has had two presidents in parallel since January 2025, while Sudan has two governments. Ethiopia, the Democratic Republic of the Congo and South Sudan are on the verge of state fragmentation. Despite these flashpoints, political stability on the continent is increasing overall and the African Union and regional organizations are playing an increasingly active role in conflict resolution.^10

2. distribution of wealth and poverty: the gap between rich and poor

Extreme poverty concentrated in Africa

Africa bears the brunt of global poverty. Around 692 million people worldwide live in extreme poverty (less than USD 2.15 per day), and around 90 percent of them are concentrated in sub-Saharan Africa and South Asia. In 18 African countries, at least 25 percent of the population live in extreme poverty, and in ten countries the situation is particularly devastating.^12

The poverty rate is stagnating or even rising in many African regions, while it is falling worldwide. What is particularly alarming is that around half of all people living in poverty worldwide are children under the age of 18, and a disproportionate number of them live in Africa.^13

Inequality: Nowhere more extreme than in South Africa

South Africa holds the sad world record for income inequality. The Gini coefficient reaches peak values and the consequences of apartheid are still clearly noticeable today. South Africa is home to 37,500 dollar millionaires - more than a quarter of all African millionaires. Almost one in ten African millionaires lives in Johannesburg, followed by Cape Town in second place.^14

This extreme concentration of wealth contrasts sharply with the reality for the majority: more than 60 percent of South Africans live below the poverty line and the unemployment rate is around 33 percent, among young people it is as high as 50 percent.^15

Who has access to opportunities? Urban versus rural, ethnicity and gender

Access to education, resources and opportunities is extremely unevenly distributed in Africa:

Urban versus rural populationCapital cities and urban centers are considerably better developed than sparsely populated rural areas. The urban regions concentrate economic power, educational facilities and healthcare.^5^16

Ethnic and indigenous groupsIndigenous peoples and ethnic minorities are massively disadvantaged. In several countries, over two thirds of the indigenous population live in poverty. They have significantly poorer access to education, healthcare, credit and labor markets.^17

Gender inequalityWomen and especially mothers with many children are affected by poverty more often than average. They earn less than men and have less access to formal employment.^17

GenerationsThe young generation faces enormous challenges. In sub-Saharan Africa, only two out of three children successfully complete elementary school. Almost a third of all children leave school without any qualifications.^19

Children sitting in a circle with feet connected, embodying the African Ubuntu philosophy of community and interdependence.

3. labor migration, diaspora and precarious employment

The African diaspora: an economic power factor

Labor migration and the African diaspora play a key role in the continent's economy. Remittances of over USD 100 billion to Africa are forecast for 2024 - an increase of 5.4% compared to the previous year. This sum significantly exceeds both foreign direct investment (48 billion US dollars) and official development aid (42 billion US dollars).^21^23

Diaspora remittances make up a significant proportion of GDP in some countries: 7.6 percent in West Africa, 6.8 percent in East Africa and 4.4 percent in North Africa. In Ghana, for example, remittances amounted to USD 4.6 billion in 2023, seven times more than foreign direct investment. Kenya leads the East African region with USD 437.2 million per month - the country's largest single source of foreign currency.^23

Migration as a survival strategy and brain drain

For many African families, migration is the only way to escape poverty. According to the OECD, permanent migration to OECD countries reached its highest level since at least 2005 in 2022 with 6.1 million people - an increase of 26% compared to 2021.^25

However, this mass emigration is leading to a brain drain: highly qualified specialists such as doctors, nurses, engineers and teachers are leaving their home countries. Nigeria, for example, has lost thousands of doctors and nurses in recent years. This considerably weakens the health and education systems and hinders development.^25

Precarious employment and the informal sector

A large proportion of the African population works in the informal sector - in unregulated, poorly paid and insecure employment without social security. This precariousness is hardly recorded by official statistics, but it shapes the everyday lives of millions of people.^7

The effects on society and families are serious: families are torn apart by migration, children grow up without parents, traditional community structures erode. At the same time, a strong emotional and financial connection is created between the diaspora and the home country, which could be used as a resource for alternative economic models.^26

4. corruption, conflicts of interest and organized crime

Corruption as a systemic problem

Corruption pervades many African countries at all levels - from local administration to the highest circles of government. It manifests itself in bribery, nepotism, kleptocracy and non-transparent procurement practices.^11^28

In Nigeria, for example, corruption is so ubiquitous that it is often accepted as an unavoidable part of everyday life. In the health sector, around one in seven respondents have to pay bribes to receive medical treatment. Corruption is particularly widespread in Liberia, Morocco, Sudan and Egypt, while Botswana and Mauritius are largely free of corruption.^16

Consequences for social development

The effects of corruption on social development are devastating:^29^28

• Loss of confidenceCitizens are losing confidence in state institutions and the rule of law

• Distorted distribution of opportunitiesAccess to education, jobs and justice depends on ability to pay, not merit

• Obstacle to investment: Uncertain legal situation and corruption deter investors

• Distortion of competitionCorruption favors inefficient companies and slows down innovation

• Waste of resources: Development funds seep into private pockets instead of flowing into public goods

In the Democratic Republic of Congo, for example, members of the transitional government received 22 million US dollars in "unclear allowances" - a sum that exceeded the total expenditure on public health, rural development and the electoral commission combined.^30

Organized crime and a weak monopoly on the use of force

In many African regions, the state's monopoly on the use of force is not secure. Armed groups, militias and criminal networks control entire regions. In Sudan, the Rapid Support Forces (RSF) and the army are waging a devastating war that has resulted in the worst humanitarian disaster in the world.^31^32

Resettlement, sexual violence and the scorched earth strategy characterize many conflict zones. Organized crime, drug trafficking and the illegal exploitation of resources flourish in areas with weak state control.^11

5. cultural strengths of Africa: Ubuntu and community as a foundation

Ubuntu: "I am because we are"

One of Africa's greatest cultural strengths is its deeply rooted Ubuntu philosophy. Ubuntu means "humanity" in the Nguni-Bantu language and describes a way of life based on connectedness, interdependence and community.^33^35

The central sentence of the Ubuntu philosophy is: "I am because we are." This world view stands in contrast to Western individualism and emphasizes that the person only exists and can only be realized in relation to the community.^34

Ubuntu includes values such as:

• Compassion and selflessnessSharing, even if you have little yourself

• Charity and solidarityStanding up for each other in good times and bad

• Collective responsibility: The good of the community takes precedence over self-interest

• Respect for elders and traditions: Wisdom is passed down through generations

The Ubuntu philosophy can be found under various names in 15 countries south of the Sahara: in East Africa it is called "Obuntu", in West Africa "Maaya". In total, there are 41 different names for this pan-African philosophy.^34

Family and community as a social safety net

The family in Africa is more than just parents and children - it includes the extended family, the extended clan and often the whole village. This extended understanding of family creates strong social networks that act as a safety net in times of crisis.^34

Neighborly help, mutual support and spontaneous sharing are deeply rooted in the culture. Strangers are quickly accepted into family structures as "brother", "uncle" or "dad" if they help the community. This culture of solidarity is an ideal breeding ground for community-oriented economic models such as Gradido.^34

Spirituality and a holistic view of the world

African cultures view people, the environment and spirituality as a unit that can only exist in harmony with one another. This holistic world view is in harmony with the Gradido philosophy of the "natural economy of life".^34

Historical significance: From Mandela to the Truth Commission

The Ubuntu philosophy played a central role in South Africa's post-apartheid transformation. Nelson Mandela, who is regarded as an outstanding example of successful Ubuntu, based his reconciliation policy on these principles. The Truth and Reconciliation Commission (TRC) emphasized reconciliation and understanding over retribution - a direct application of Ubuntu values.^35

Critical perspectives and differentiation

It would be wrong to romanticize Ubuntu. African societies also have proverbs and behaviors that contradict Ubuntu. The complexity of cultural contexts must not be reduced to an essentialist "African goodness".^36

Nevertheless, the cooperative movement has recognized that Ubuntu principles and cooperative ideas are related. A conference in southern Africa in 2023 highlighted the similarities between Ubuntu and the cooperative principles formulated by Friedrich Wilhelm Raiffeisen. This shows that Ubuntu offers a solid cultural basis for alternative, community-oriented economic models.^37

6 Education and training situation: Immense deficits despite progress

Access to education: Millions of children left out

Although the proportion of children without access to education almost halved between 2000 and 2015, 32 million children of primary school age in sub-Saharan Africa were still not attending school in 2015. This means that more than half of the world's children live without access to education in this region.^19

The figures are alarming:^20

• Only two out of three children successfully complete elementary school

• A quarter of 15 to 24-year-olds cannot read or write

• Only a third of all young people attend secondary school

• Not even a tenth make the leap to university

Not a single country in sub-Saharan Africa achieved the Millennium Development Goal of providing all children with primary education by 2015.^19

Disadvantaged groups: Poverty, gender and geography

Access to education is extremely unevenly distributed:^19^39

Poor familiesChildren from poor households are often unable to afford school fees, uniforms and school materials. Many have to contribute to the family income instead of going to school.

GirlsDespite progress, girls are still at a disadvantage. They are more often taken out of school to help in the household or get married early.

Rural regionsSchools in rural areas are often poorly equipped, have too few qualified teachers and are difficult to reach. The journey to school can take several hours on foot.

Ethnic minoritiesIndigenous and ethnic minorities experience cultural barriers, discrimination and a lack of recognition of their languages in the education system.

Quality of education: Hungry children, overworked teachers

Even when children do go to school, the quality is often miserable. Many children come to school hungry, which makes learning much more difficult. Four million young people grow up without parents or with only one parent, which often impairs their motivation to learn.^39

Almost 50 percent of socially disadvantaged 15 to 24-year-olds in South Africa are unable to find work after leaving school. The education system is in a "miserable state" in many places.^39

Tertiary education: huge gap to Europe

While 78% of the population in Europe and North America have access to tertiary education (universities, vocational training), this figure is only 9% in sub-Saharan Africa. This gap exacerbates global inequality and hinders the development of a highly qualified workforce.^20

7. healthcare systems and social security: underfunded and unequal

Inadequate healthcare as the main problem

After unemployment, inadequate healthcare is the second biggest problem in many African countries. In 36 countries surveyed, an average of 50 percent of people have no or inadequate access to medical care.^16

The situation varies greatly from region to region:^16

• In Liberia, Gabon, Benin and Togo, over 70 percent do not have sufficient access

• In Mauritius, only two percent have access problems

• In Cape Verde, around a fifth of the population complains about a lack of supplies

Urban-rural divide and corruption in the healthcare sector

The urban-rural divide is enormous. Important medical services are concentrated in cities and mainly benefit the wealthy classes. In rural regions of Cameroon, the medical infrastructure is significantly worse and around 70 percent of healthcare expenditure is borne privately by the people.^16^41

Corruption in the healthcare sector is widespread: One in seven respondents who receive medical treatment have to pay bribes. In some countries, bribery is almost non-existent (Botswana, Mauritius), in others (Liberia, Morocco, Sudan, Egypt) it is rampant.^16

Skills shortage: Three million healthcare professionals missing

In Africa alone, there is currently a shortage of around three million healthcare professionals. The brain drain is exacerbating the situation: qualified doctors and nurses are migrating to better-paid positions in Europe, North America or the Gulf States.^25

Weak social security systems

Formal social security systems do exist in many countries, but they often do not reach the poorest, rural and informal population groups. Official health insurance schemes often only cover formal employees, while millions in the informal sector live without any protection.^43

The family acts as the most important safety net. Care work - caring for the sick, elderly and children - is predominantly performed by women and is largely invisible and unpaid in society.^26

8 Volunteering and local initiatives: unsung heroes

The power of civil society

Despite all the challenges, Africa has a vibrant civil society and an impressive level of voluntary commitment. Civil society organizations played a central role in the democratization processes of the 1990s and continue to exercise important control and role model functions.^44

There is a demonstrable link between successful democratization and a vibrant civil society. Civil society groups make important contributions to democratic governance, particularly through election observation.^44

Grassroots initiatives: from tree planting to educational projects

Local initiatives and grassroots movements have a long tradition in Africa. The Green Belt Movement in Kenya, founded by Wangari Maathai in 1977, is an outstanding example: Over 30 million trees have been planted, over 30,000 women trained in forestry, beekeeping and food processing. Maathai was awarded the Nobel Peace Prize in 2004 for this work.^45

Local education initiatives such as the Rubavu Technical College in Rwanda offer disadvantaged young people practical training and increase their chances on the job market. Such projects show: When local communities are supported, they can bring about enormous change.^46

Social recognition: ambivalent

The recognition of volunteer work is ambivalent. On the one hand, community initiatives are highly valued and are deeply rooted in Ubuntu culture. On the other hand, women's care work - nursing, raising children, helping neighbors - is hardly appreciated by society and remains invisible.^26

Gradido could make a decisive contribution here: By making volunteering, care work and community contributions visible and valued through the creation of Gradidos, the system would start exactly where Africa is already culturally strong.^47^49

Shrinking spaces: a threat to civil society

The increasing restriction of civil society spaces is a cause for concern. Between 2010 and 2015, 26 legal initiatives were registered that restricted the scope of action of civil society organizations in sub-Saharan Africa. This makes Africa the continent with the second highest number of incidents after South and Central Asia.^44

Regimes in the "gray zone" between democracy and autocracy make particular efforts to silence critical NGOs - through restrictive laws, frozen funds or lawsuits against activists.^44

9. openness to innovation and alternative economic models

Growth of mobile money services in Africa by region in 2024, showing key financial metrics and regional differences.

The digital revolution: mobile money as a game changer

Africa is the world leader in mobile money. Over 1.1 billion accounts are registered - more than 70% of all global mobile money accounts. In 2024, transactions worth over 1.1 trillion US dollars were processed, an increase of 15% compared to the previous year.^50^52

Kenya is the undisputed pioneer: M-Pesa, launched by Safaricom in 2007, has over 51 million active users and processes transactions worth over 50 billion US dollars annually - almost a quarter of Kenya's GDP. M-Pesa revolutionized the financial landscape and gave even the poorest population access to financial services.^53

Nigeria has an exploding fintech scene with players such as Flutterwave and Paystack, which processed over 10 billion US dollars in transactions in 2022. Ghana experienced a spectacular 91 percent increase in remittances in 2024.^23

Fintech boom: 65 billion US dollars market potential by 2030

Africa's fintech market is set to grow to 65 billion US dollars by 2030 - a five-fold increase compared to today. The annual growth rate (CAGR) is estimated at 32 percent. A McKinsey study predicts that fintech could contribute up to 150 billion US dollars to Africa's GDP by 2027.^53

The leading markets are South Africa, Nigeria, Egypt and Kenya. Mobile money accounts for three quarters of the global mobile money volume.^50

Infrastructure as a driver: 4G and 5G on the rise

The digital transformation is made possible by rapidly growing connectivity. 4G is expected to account for 50 percent of all connections by 2030, while 5G will contribute 6 percent by then and contribute 10 billion US dollars to the economy. The internet usage rate has already reached over 73% in some regions.^55

Resistance and challenges

Despite the positive trends, there are reservations:^57

• Digital divide: Rural areas and poor sections of the population often have no access to the internet and smartphones

• Lack of digital competenceMany people, especially older people, are not familiar with digital technologies

• Trust deficitDistrust of digital payment systems, especially after negative experiences with corruption

• Regulatory uncertainty: Unclear legal framework inhibits innovation

Nevertheless, it is clear that Africa is open to digital innovations and alternative economic models. The success story of Mobile Money proves that innovative solutions adapted to local needs can be adopted rapidly.

10. experience with alternative currencies and cooperatives

Regional currency initiatives: from the CFA franc to the ECO

Africa has a wealth of experience with alternative currency systems:

CFA francThe West African (UEMOA) and Central African (BEAC) monetary communities use the CFA franc, which is pegged to the euro. 14 countries with 180 million people use this currency. Critics see it as a neo-colonial instrument of France that restricts monetary sovereignty.^58^60

ECOThe Economic Community of West African States (ECOWAS) has been planning to introduce a common currency since 1987. Implementation has been postponed several times, currently to 2027: Africa is looking for ways to achieve greater monetary independence.^59

PAPSS (Pan-African Payment and Settlement System): Introduced in 2022, this African payment system enables trade in local currencies without a detour via the US dollar. It could save up to 5 billion US dollars a year in transfer costs.^62

AfroThe Abuja Treaty of 1991 provides for the introduction of a common African currency by 2028. Although its implementation is uncertain, the initiative demonstrates the will to integrate.^63

Local alternative currencies: TEM, Ovolos and others

Greece (as a comparative example) offers important insights: During the economic crisis, local currencies such as the TEM system in Volos (over 800 members) and Ovolos in Patras (332+ members). Both systems operate at a ratio of 1:1 to the euro and have proven to be stable.^64

Such experiences show: In times of crisis, people are particularly open to alternative currency systems that strengthen local economic cycles.^65^64

Cooperative structures in Africa

Africa has a strong cooperative tradition, especially in agriculture. In many countries, cooperative structures exist at local (primary), regional (secondary) and national (tertiary) level.^64

The Ubuntu philosophy and cooperative principles harmonize perfectly. A conference in southern Africa in 2023 highlighted the connection between Ubuntu and Raiffeisen principles. The motto of cooperatives - "What one cannot do alone, many can!" - corresponds to the Ubuntu principle "I am because we are".^37

Social economy and social cooperative enterprises

A social economy with specialized legal forms for social enterprises is developing in several countries. Greece introduced Social Cooperative Enterprises (SCEs) in 2011. Such structures could serve as a model for African countries.^64

Lessons learned for Gradido

Experience teaches us:^65^64

1. Local roots are crucialCurrencies must be adapted to local needs

2. SimplicitySystems must be easy to understand and use

3. Build trustTransparency and comprehensible rules are essential

4. Step-by-step introductionStart parallel to the existing system, not as a replacement

5. Community buildingSuccessful systems create a sense of community and mutual support

11. climate, agriculture and food sovereignty

Agriculture: backbone of the economy, threatened by climate change

Agriculture is of paramount importance in Africa and contributes between 10 and 70 percent to GDP, depending on the country. It employs the majority of the population in sub-Saharan Africa - around a fifth of GDP comes from this sector.^67

But the situation is precarious: climate change has already severely impaired the productivity of African agriculture and reduced the growth rate by 34% since 1961. Maize and wheat harvests fell by 5.8 percent and 2.3 percent respectively between 1974 and 2008 as a result of climate change.^69

Climate change: an existential threat

The forecasts are alarming:^70^69

• Global warming of 2°C could result in crop losses of up to 50 percent

• At 4°C warming, the maize harvest in West Africa would fall by 41 percent

• Agricultural yields in sub-Saharan Africa are expected to fall by 15 percent by 2050

• Food production would have to increase by 60 percent by 2050 to feed the growing population

Extreme weather events - droughts, floods, delayed start of the rainy season - are on the increase. The Sahel drought of the 1970s and 1980s led to devastating famines and turned many people into environmental refugees.^68

Food sovereignty: Africa imports massive amounts of food

Almost 200 million people in Africa are undernourished - over 40 percent of the population in Central, Eastern and Southern Africa. In the 1980s, food consumption was twice as high as domestic production, in the 1990s it was 30 percent higher.^68

Many African countries are highly dependent on food aid, which accounted for two-thirds of food imports in Kenya and Tanzania in the 1990s.^68

Potential: Africa could feed the world

The paradox: according to the World Bank, Africa has almost half of the world's suitable land for a sustainable expansion of agricultural production. The continent is extremely diverse in terms of agroecology and climate - from dry savannahs to tropical rainforests.^67

Initiatives and solutions

CAADP (Comprehensive Africa Agriculture Development Program): Since 2003, this has been the Africa-wide framework for action for agricultural change. The African Union supports member countries in investing and increasing productivity with targeted growth rates of over 6 percent.^70

Climate adaptationGermany and other donors support the integration of climate adaptation into national agricultural investment plans.^71

Permaculture and organic farming: Local initiatives promote sustainable cultivation methods, soil protection, biodiversity and regional economic cycles.^73

Digital agriculture: Smartphones provide access to useful information about the weather, market prices and cultivation methods. The digital transformation increases productivity and makes value chains more efficient.^67

Challenges

The biggest obstacles to food sovereignty are:^73^69

• Water shortage: Inefficient irrigation systems and droughts

• Soil degradationErosion and desertification

• Lack of infrastructurePoor roads, lack of storage facilities

• Climate extremes: Increasing weather fluctuations

• Dependence on export crops: Focus on cash crops instead of food for local supply

• Lack of investment: Too little capital for modern technologies and fertilizers

Gradido potential in agriculture

Gradido could have a revolutionary effect:^47^73

• Appreciation of small farmers: Through gradido creation for sustainable agriculture

• Promotion of permaculture and organic farming: Environmental and climate protection are rewarded via the compensation and environmental fund

• Regional value chains: Local markets instead of export dependency

• Knowledge transferGradidos for educational projects on sustainable agriculture

• Care work in the countryside: Women who work in subsistence farming receive recognition

12 International actors and their role

The African Union (AU): architect of continental integration

The African Union (AU), successor to the Organization of African Unity (OAU), is the continent's central political organization with 55 member states. It strives for the economic and political integration of Africa.^74

Central initiatives:

• Agenda 2063: Long-term development strategy for Africa

• African Economic Community (AEC): The aim is to create a continental economic union by 2028^75

• NEPAD (New Partnership for Africa's Development): AU Development Framework

With the African Continental Free Trade Area (AfCFTA) created the largest free trade area in the world since the WTO - a single market of 1.2 billion people.^67

Regional Economic Communities (RECs): Building blocks of integration

The AU recognizes eight Regional Economic Communities as "building blocks" of integration:^74^77

ECOWAS (West African Economic Community): The oldest and most active regional organization (founded in 1975) with 15 members. It promotes economic integration, freedom of movement, peacekeeping and plans to introduce the ECO common currency.^77

EAC (East African Community): Dynamic integration with a focus on infrastructure and digital trade.

SADC (Southern African Development Community): Comprises the most economically developed country on the continent, South Africa.

COMESA (Common Market for Eastern and Southern Africa), ECCAS (Central African Economic Community), IGAD, CEN-SAD, UMA (Union of the Arab Maghreb): Other RECs with varying degrees of integration.^76

The overlapping of memberships - many countries belong to several RECs - makes integration more difficult.^76

The European Union: largest donor and investor

The EU is Africa's most important partner in development cooperation. Between 2013 and 2021, 190 billion US dollars (an average of 21 billion US dollars per year) in development aid flowed to Africa. The EU is also the largest source of direct investment, with a stock of around 160 billion US dollars (2020).^79

Priorities of EU-Africa cooperation:^80

• Tackling global challenges (climate, health, migration)

• Sustainable growth and economic partnerships

• Democracy, education and innovation

• Peace, security and stability

Initiatives such as Global Gatewaythe G20 Compact with Africa and bilateral cooperation should promote investment and sustainable growth.^80

China: Infrastructure makers with their own agenda

China has established itself as an important player in Africa since 2000. The Forum on China-Africa Cooperation (FOCAC) coordinates the cooperation. High-level ministerial conferences are held every three years, at which China makes significant financial commitments.^81

At the FOCAC summits since 2012, loans, investments and development aid amounting to tens of billions of US dollars have been pledged. In 2024, China announced around 11 billion US dollars in development aid.^81

China's approach differs fundamentally from Western development aid:^83

• Focus on infrastructure projects (roads, railroads, ports, power plants)

• Barter deals: infrastructure for raw materials

• No conditionality regarding human rights or democracy ("non-interference")

• Fast implementation without lengthy bureaucratic processes

Criticism of China's commitment:

• Support for questionable regimes

• Debt trap: High loans that countries cannot repay

• Neocolonial exploitation of raw materials

• Land grabbing for Chinese food production

• Use of Chinese labor instead of local

Recognition:

• Actual infrastructure development

• Economic development

• Alternative to the often ineffective western approach

The Chinese contribution is now seen as a counter-model to Western development policy and is considered part of development cooperation in a broader sense.^82

EU-Africa-China trilateral cooperation

The EU has proposed strengthening cooperation between the EU, Africa and China. Sharing experiences and coordination could create synergies and increase development impact.^84

NGOs and civil society: critical partners

International and local NGOs play an important role in development cooperation. Their numbers have exploded in the last 25 years: In Tanzania there were only 41 registered NGOs in 1990, by 2000 there were already 10,000. African NGOs managed around 3.5 billion US dollars in aid funds in 2010.^85

NGOs are seen as a miracle cure for failed top-down management. They are supposed to empower local populations and give them a voice. However, critics argue that many NGOs are dependent on Western donors and implement their agenda instead of truly representing local interests.^85

Role of international players in the introduction of Gradido

International partners could play different roles in a common good-oriented currency initiative such as Gradido:^47^80

African Union and RECsCould support Gradido as a pilot project in model regions and create a legal framework.

EUCould finance Gradido pilot projects as an innovative development measure within the framework of Global Gateway.

NGOs and civil societyCould act as multipliers and implementation partners.

Research facilitiesCould accompany pilot projects scientifically and create credibility.

UN organizationsFAO, UNDP and others could integrate Gradido into existing food security and sustainable development programs.

13. potentials and hurdles for Gradido in Africa

Greatest potential: Where Gradido could shine

1. cultural fit with Ubuntu philosophy

Gradido harmonizes perfectly with the African Ubuntu culture. The idea that everyone generates their income through contributions to the common good corresponds to the principle of "I am because we are". The appreciation of community, neighborly help and mutual support is deeply rooted.^47^33

2. making care work visible and rewarding it

Millions of African women perform unpaid care work - caring for the sick, elderly and children, subsistence farming, water harvesting. Gradido would make this invisible work visible and reward it for the first time.^48^43

3. combating poverty and creating prosperity

The Active Basic Income would provide everyone with basic security - regardless of formal employment. In regions with high unemployment and precarious employment, this could have a transformative effect.^87^48

4. independence from the debt money system

Many African countries are highly indebted and dependent on the international financial system. Gradido as a complementary currency would enable more monetary sovereignty.^88^47

5. link to the mobile money revolution

With over 1 billion mobile money accounts, Africa is the world leader in digital payment systems. The infrastructure and know-how for a digital complementary currency are available.^50^52

6. promotion of sustainable agriculture and climate protection

The compensation and environmental fund would create incentives for reforestation, permaculture, soil conservation and climate adaptation - exactly what Africa urgently needs.^70^47

7. strengthening local economic cycles

Gradido would promote regional value chains and reduce dependence on imports. Local markets, cooperatives and solidarity agriculture could flourish.^86^47

8 Democratic participation and transparency

Gradido's decentralized structure with community-based money creation and sociocratic decisions on public budgets would strengthen democracy and transparency.^90

Biggest hurdles: What to consider

1. political and legal framework conditions

The introduction of an alternative currency requires political will and legal adjustments. Many governments could see Gradido as a threat to their monetary sovereignty. Currency laws would have to explicitly allow complementary currencies.^86^91

2. corruption and power structures

Established elites who benefit from the current system could block Gradido. Corrupt structures would have to be overcome, which could provoke enormous resistance.^29^28

3. digital divide and lack of infrastructure

While urban centers are well connected, rural areas often have no access to the internet or smartphones. A purely digital currency would exclude millions. Analog solutions (e.g. DankBar bills) would have to be developed in parallel.^91^56

4. level of education and digital competence

Many people, especially older and uneducated people, are not familiar with digital technologies. Comprehensive education and training programs would be necessary.^57^20

5. building trust

After decades of negative experiences with corruption, fraud and failed development projects, mistrust is widespread. Gradido would have to prove through transparent pilot projects that it works and is not being manipulated.^47^86

6. complexity of the system

Gradido with triple money creation, negative interest and decentralized administration is complex. The system would have to be greatly simplified and adapted to local levels of understanding.^89

7. scaling and technical implementation

The development of a secure, fast and globally scalable currency based on distributed ledger technology (DLT) is technically demanding and requires considerable resources.^93^57

8. resistance from banks and financial institutions

The financial system could perceive Gradido as competition and lobby against its introduction.^90^47

9. cultural adaptation

Africa is extremely diverse - 54 countries, thousands of ethnic groups, hundreds of languages. Gradido would have to be adapted to local cultural characteristics instead of being a one-size-fits-all system.^95

10. currency stability and inflation risk

The negative interest rate (5.6 percent per month) could meet with rejection in high-inflation countries. Stability of value would have to be clearly communicated and proven.^48

14 First pilot steps: Where could Gradido start in Africa?

Strategic considerations for pilot regions

Successful pilot projects should fulfill certain criteria:^86^66

• Manageable sizeSmall to medium-sized communities (5,000-20,000 inhabitants)

• Strong local identityCommunity spirit and cohesion

• Open-mindedness for innovation: Positive attitude towards alternative approaches

• Existing structuresCooperatives, NGOs, local initiatives as partners

• Economic challengesRegions with poverty, unemployment, precarious situation

• Basic digital infrastructureAt least mobile money coverage

• Political support: At least neutral attitude of local authorities

Potential focus regions

1 East Africa: Kenya as a pioneer

Kenya is the ideal starting point:

• World champion in mobile moneyM-Pesa with 51 million users

• Strong civil societyGreen Belt Movement and other grassroots initiatives

• Relatively stable governanceDemocratic structures established

• Innovative spiritStart-up culture in Nairobi ("Silicon Savannah")

• English as an official languageFacilitates international cooperation

Pilot approach KenyaStart in a rural region with a strong community structure. Linkage with existing cooperatives in agriculture. Rewarding reforestation projects (Green Belt Movement) via the compensation and environmental fund.

2 Rwanda: The "Singapore of Africa"

Rwanda has established itself as a role model:

• Good governanceLow corruption, efficient administration

• Digital ambitions: Massive investments in IT infrastructure

• High growth rates7.2 percent forecast

• Strong civil society structuresVocational training centers, local NGOs

Pilot approach RwandaIntegration into existing vocational training centers. Students receive gradidos for their educational achievements and community service contributions.

3 Ghana: Experimentation and growth

Ghana shows impressive dynamism:

• Spectacular increase in remittances: +91 percent in 2024

• Strong diaspora connectionRemittances exceed FDI by a factor of seven

• Democratic tradition: Peaceful transition of power established

• Will to reform: Macroeconomic reforms underway

Pilot approach GhanaFocus on diaspora integration. Ghanaians abroad can create gradidos for their families or invest in local projects.

4 South Africa: Ubuntu country of origin with challenges

South Africa offers special opportunities:

• Cultural anchoring: Ubuntu philosophy historically strong

• Developed infrastructure: Good digital networking

• Massive social problems33 percent unemployment, extreme inequality

• Strong civil societyExperience with social innovations

Pilot approach South AfricaStart in townships with high unemployment. Focus on care work, neighborhood help and local economic cycles. Cooperation with existing social economy projects.

5. structurally weak rural regions

Gradido could have the greatest impact, especially in remote, structurally weak regions:

• Hardly any formal economyAlternative systems have room

• Strong community structures: Ubuntu culture alive

• High demandPoverty, unemployment, lack of infrastructure

• Lower regulatory hurdles: Local authorities more flexible than national ones

Sectoral approaches

1. care area and health

Remuneration of:

• Care of the sick, elderly, children

• Neighborhood help

• Volunteering in healthcare projects

• Training of community health workers

2. education and training

Gradidos for:

• Learners and teachers in educational projects

• Literacy courses for adults

• Vocational training in skilled trades

• Peer-to-peer learning

3. sustainable agriculture

Appreciation for:

• Permaculture and organic farming

• Reforestation projects

• Water protection and soil care

• Solidarity agriculture

• Seed conservation of traditional varieties

4. local markets and cooperatives

Integration with:

• Existing agricultural cooperatives

• Women's self-help groups

• Craftsmen's associations

• Local marketplaces

Strategic partnerships

Municipal level: Gain the support of mayors of open-minded towns and municipalities.

NGOs and civil societyEstablished organizations such as the Green Belt Movement, local education NGOs, health projects as implementation partners.

Universities and research institutionsScientific support for credibility and learning effects.

Regional economic communitiesECOWAS, EAC, SADC could promote pilot projects as regional innovations.

African UnionAU programs for innovation and digital transformation as starting points.

International donorsEU (Global Gateway), UN organizations, BMZ for financing and legitimacy.

Phase model for the introduction

Phase 1: Proof of concept (6-12 months)

• One to three small pilot projects in selected communities

• Focus on building trust and ease of use

• Intensive support and adaptation

• Documentation of learning experiences

Phase 2: Local scaling (1-2 years)

• Expansion to several municipalities in the region

• Integration of other sectors (education, health, agriculture)

• Development of local multiplier networks

• First link with existing economic cycles

Phase 3: Regional expansion (2-3 years)

• Spread to several regions within a country

• Cross-border pilot projects with neighboring countries

• Integration with regional economic communities

• Political lobbying for legal recognition

Phase 4: Continental vision (5+ years)

• Establishment as a recognized complementary currency

• Integration with Pan-African Payment and Settlement System (PAPSS)

• Link with AfCFTA free trade area

• Cooperation with the African Union

Success criteria and monitoring

Pilot projects should be continuously evaluated on the basis of:

• Adoption rate: How many people actively use Gradido?

• Transaction volumeHow lively is the exchange?

• Social impactDoes the life situation of the participants improve?

• Community strengthening: Is social cohesion growing?

• Economic effectsAre local value chains emerging?

• Ecological effectAre environmental and climate protection projects being implemented?

Conclusion: Africa as an opportunity for Gradido, Gradido as an opportunity for Africa

Africa is at a turning point. The continent bears the brunt of global poverty, is struggling with corruption, political instability and the consequences of climate change. At the same time, Africa has immense potential: a young, dynamic population, abundant natural resources, deep cultural values such as Ubuntu and a leading role in the digital revolution through mobile money.

Gradido could fall on exceptionally fertile ground in Africa. The Ubuntu philosophy - "I am because we are" - harmonizes perfectly with the Gradido approach that everyone generates their income through contributions to the common good. The already established mobile money infrastructure offers ideal conditions for a digital complementary currency. The massive social challenges create openness for innovative solutions.

The research shows: Gradido should not be imported as a ready-made system, but should be sensitively adapted to local conditions. Successful pilot projects would start small, involve local partners, use existing structures (cooperatives, NGOs, community initiatives) and grow step by step. Regions such as Kenya with its M-Pesa experience, Rwanda with its good governance or South Africa with its Ubuntu tradition offer promising starting points.

The biggest hurdles - corruption, digital divide, political resistance, complexity of the system - are real and should not be underestimated.

But the opportunity is historic: if Gradido proves in Africa that a currency geared towards the common good works, the continent could become a pioneer of global transformation. Africa needs Gradido - and Gradido needs Africa as a place where the vision of "prosperity and peace for all in harmony with nature" can become reality.

The time to act is now. With respect, humility and true partnership at eye level, the Gradido project can shape a better future together with African communities - not for Africa, but with Africa.

<span style="“display:none“">^100^102^104^106^108^110^112^114^116^118^120^122^124^126^128^130^132^134^136^138^140^142^144^146^148^150^152^154^156^158^96^98</span>

<div align="“center“">⁂</div>

[^50]: https://www.fsca.co.za/News Documents/Digital Payments in Africa - Can regulation keep up with innovation.pdf