About Lekan Network

Lekan Network is Africa’s First Decentralized Network which run on a proof of work consensus before moving to a pure proof of Stake Algorithm.

Lekan’s mission is to move the continents informal sector on to blockchain through various Decentralized Applications from ecommerce to a robust, borderless digital payment.

The Informal economy has been a key component of most economies in sub-Saharan Africa, contributing between 25% and 65% of GDP accounting for between 30% and 90% of total nonagricultural employment. Despite positive advances in financial inclusion on the continent, 95% of all consumer payments in Africa are still made in cash.

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Why is this bad?

For the people and micro-entrepreneurs who are trapped in cash-only systems, it is much harder to grow a business, much less safe to save and much more difficult to forge a path into the middle class.

Cash is fueling what is called the invisible economy, limiting productivity and growth of vibrant sectors such as micro- and small enterprises, and making it infinitely more difficult to include these economic activities in any form of official statistics, oversight, taxation and regulation. In fact, the informal economy in sub-Saharan Africa makes up nearly 86% of all employment, according to the International Labor Organization. The issue is compounded by Africa’s demographic dividend, with the informal sector projected to absorb many of the continent’s young employment-seekers. By and large, it is an issue created by the lack of inclusion, and the lack of access and usage of formal financial tools, especially in economies where wealth and assets are not reasonably distributed. If economic growth is not accompanied by equitable income distribution or an equal rise in employment levels, we see an increase in the growth of the informal economy, given its low barriers to entry. Bringing the informal sector into the formal economy is probably one of the most significant policy-making challenges 21st-century African governments face.

The truth of the informal economy

Unlike common depictions of the informal economy as a single “undifferentiated” group of workers, the sector is hugely dynamic, spanning a wide range of micro-, small and medium enterprises, including workers employed at such businesses and self-employed workers who earn a living from activities such as domestic work, street trading or small-scale farming. Many of these workers do not join the informal economy by choice – it is very much a by-product of their need for survival, providing for themselves and their families. Therein lies the opportunity – bringing this informal economy into the fold, by affording previously excluded individuals’ access to basic financial services and networks that help them save, expand their business and become financially secure. The good news is Our innovative technologies will provide the tools and platforms for infrastructure providers, such as banks and mobile network operators, to reach these traditionally excluded populations. The challenge, however, is to ensure that these solutions are easily adopted and actively used.