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An emerging and exploding trend in the world of finance is Decentralised Finance - DeFi. However, there is also an exciting emerging trend linking DeFi to real-world applications (RealFi). RealFi uses the power of decentralization and distributed LEDGER technology to enable funds to flow into real-world applications, such as property development. RealFi has the potential to fundamentally transform financial systems in areas that, to date, have clearly not worked for large segments of the global population.
The idea of decentralized property development finance has been already put into practice by Empowa: with a set of Cardano-based digital NFT collectibles. These NFT’s are designed to enable end-user finance for property assets on a lease-to-own basis in areas that need it most. Traditional mortgage rates in Africa can be up to 45% which makes housing unaffordable and has created a housing shortfall of over 50 million units across Africa. Through the use of NFT’s, Empowa enables funding to end users, providing a financial return to holders while contributing directly to poverty reduction, the improvement of living conditions, reduction of carbon emissions, and advocacy for the rights of women in Africa. Empowa is harnessing the power of the latest technological innovation to link communities to build a sustainable future for them, for broader economies, and our planet – a future based on the participatory power of the individual, a future in which every life matters.
Being fascinated with the work performed by Empowa, I approached Glen Jordan, the Co-founder of the platform for an interview. Together, we explored various aspects of the project, as well as dug deeper into the ways Empowa can enable real transformation.
First of all, what led you to establish Empowa.io? How would you formulate the core mission of your organization?
Many people assume that the backlog of 50 million homes in Africa is due to poverty. It is not. It is due to structural issues, particularly existing financial systems. How can any country with over 30 million people only have 600 mortgages? How can you expect anybody to be able to afford a mortgage at an interest rate of 45%? The solution to this problem is a trillion-dollar business opportunity.
Our mission is to build a decentralised financing platform for affordable mortgages in Africa.
How is Empowa able to achieve the synchrony between financial returns and non-profit goals?
Empowa is not a charity. While our goals may appear noble, we are merely seeking to provide to the developing world, what is normal in the developed world! The success of mobile money in Africa is proof that the market exists - it just requires new ways to access. We know that there is a huge, unfulfilled demand for affordable housing finance and through the effective use of technology we are able to deliver an innovative solution to a challenge that, to date, has seemed insurmountable. The non-profit objectives make sense because it is what the market needs.
Why has Africa been chosen as your target geography? What are the key sources of potential you’ve identified in that area?
Africa is ripe for innovation because the existing systems just do not work. Just as Africa leap-frogged into the world of mobile telephony and mobile money, so too will Africa leap-frog into new financial systems. Africa is the youngest continent, with the fastest growing cities in the world. By 2030, there will be six megacities in Africa. And yet, as outlined before, there is a housing backlog and a financial system that doesn’t work. Where better to introduce the innovation of affordable decentralised finance for housing?
What prompted your decision to build the platform on Cardano, instead of other popular chains?
Cardano is a third-generation blockchain, focused on the core requirements of scalability and interoperability, issues that will be very important for Empowa to achieve the targeted global scale. While at Empowa we agree with the importance of these core requirements, we were also drawn to Cardano due to their scientific research based approach, their professional development practices, their secure smart contract language, and their environmental focus through Proof of Stake rather than Proof of Work.
But most of all, we share a passion with Cardano to create a decentralized global financial operating system to “bank the unbanked” with a focus on Africa as a starting point.
Speaking about social change - what are the most fundamental societal goals Empowa.io is able to foster in local communities?
A house is so much more than just a place to live. In terms of the United Nations Sustainable Development Goals, housing impacts 16 of the 17 Development Goals for the planet. Even more, emphasis has been placed on housing during the Covid pandemic as a home is a place of safety, of refuge. The building of a house creates 5 jobs and stimulates an economic multiplier effect. As Africa and the developing world seek to recover from the economic damage of the pandemic, housing has the potential to make a significant contribution to this recovery. Everybody wins when everybody has a home.
Who are the key constituencies of Empowa.io? Who are the Empowa Project Partners that helped to support the realization of your ambitious goals?
We are a platform to support property development - we are not property developers. This means that we enable others through the platform. In-country partners at the city and country level are vitally important for us. We empower these partners by linking them to affordable finance through the platform.
Please tell me a bit more about the Empowa Token (EMP). How can it be utilized?
The Empowa Platform relies on the exchange of value between many different parties, service providers, and smart contract processes. Due to the global nature of the platform, many of the participating entities will have different local currencies. This not only adds complexity in managing the exchange of different currencies within the marketplace but also doesn’t allow the predictable tracking of value through the system.
The Empowa Platform will therefore use the Empowa utility token (EMP).
Following the Empowa’s ISPO, what are the upcoming crucial dates the community should keep an eye on?
The Empowa Token sale is taking place on the 24th of January 2022, but registration is open from the 8th of December 2021.
What lies ahead of Empowa.io? Are there any plans to expand your geographical reach further?
Africa is just the start. 70% of the population of the world struggles to create wealth through the ownership of a home. We aim to change that.
