- The move targets the refugees and the host communities in the country.
- The objective of the project is to address the critical challenges faced by refugees and asylum seekers.
- The program will verify identity and facilitate digital transactions.
CryptoSavannah announces a project partnership with Coinbase and Mercy Corps to provide blockchain powered solutions.
The Ugandan crypto and blockchain firm seeks to advance economic empowerment and financial inclusivity.
The move targets the refugees and the host communities in the country.
The objective of the project is to address the critical challenges faced by refugees and asylum seekers.
The challenges faced by refugees
The challenges include the inability to access appropriate and affordable financial services. The cause of these challenges can be traced back to slow and inefficient identity systems. Such challenges act as barriers to the access of mobile network services in the country.
According to UNHCR, Uganda plays host to the largest population of refugees in Africa. The third world country hosts more than 1.5 million refugees and is capped as the third largest in refugee populations.
The population of refugees has been on the rise in the country since 2018. The refugees come from various parts of Eastern Africa which are hotbeds for human conflicts. South Sudan leads the way with 939,138 refugees capped at 61.3% of the refugee population in Uganda.
Democratic Republic of Congo follows suit with 28.3% and Somalia at 3.8%. The rest emanate from Burundi, Rwanda, Eritrea, Ethiopia, Sudan and others. The biggest problem however is that refugees are required to present approved identification documents during sim card registration.
Mobile money transfer cannot also be activated by a Mobile Network Operator (MNO) in Uganda. Delays in identity verification between mobile network operators and humanitarian organizations leads to delays in other sectors.
Receipt of Aid disbursements, registration for education, employment, medical supplies and financial services is also delayed.
How will Coinbase help solve the problem?
CryptoSavannah aims to digitize the already existing refugee identities through a blockchain system. The digitized system will also act as an attestation layer to the database of the Refugees Identity Issuers.
The firm will also test the system using 2 pilot programs that will target 35,000 people. The first pilot program is a digital ID platform powered by blockchain technology. The program will verify identity and facilitate digital transactions.
Refugees will be able to access aid disbursements, government services, formal financial services and obtain a digital proof of identity. The proof of identity is responsible for recording credentials such as certifications, education et cetera.
The second pilot program will boost the first program by providing a digital wallet that can be used to receive, store and spend funds. The program will reduce the potential fraud and corruption cases, increase personal safety for employees and recipients and enhance financial transparency.
Shifting from a traditional record management system to a blockchain enabled system will help CryptoSavannah solve many problems that affect refugees in Uganda.
