Decentralized Employment Solutions for Africa: How DAOs Can Make a Difference
Tags: career, blockchain, web3, daos
Published: 2023-01-02 12:13:40

Unemployment is a major issue in Africa, with high rates of joblessness having far-reaching negative impacts on individuals and society. Decentralized Autonomous Organizations (DAOs) have the potential to help reduce unemployment in Africa through their decentralized and autonomous nature, which allows them to be more agile and responsive to the needs of the market. In this article, we will explore the benefits of DAOs for employment in Africa, as well as some of the challenges and limitations that need to be overcome in order to fully realize their potential. 

## What is a DAO

To articulately explain what a DAO is, i will love to use an analogy. We understand how bees work and operate, a DAO is like a beehive where the bees work together to achieve a common goal, but there is no single "queen bee" in charge. Instead, the hive operates according to a set of predetermined rules that are encoded into smart contracts, much like a hive has a specific set of behaviors and roles that each bee follows. 

Just like a bees can work together to produce honey and other products, a DAO can accomplish tasks or produce outcomes using the resources and expertise of its members.  The key difference is that in a DAO, the members are decentralized and not all located in one place, and the decision-making process is automated and transparent.

## An Overview of Unemployment In Africa

According to data from the [International Labor Organization (ILO), the unemployment rate in Africa was 7.6% in 2020](https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/briefingnote/wcms_737670.pdf), with an estimated 33 million people out of work. Youth unemployment is especially high in Africa, with many young people struggling to find employment despite being educated and qualified.

There are many factors that contribute to high rates of unemployment in Africa, including a lack of job opportunities, inadequate education and training, and structural barriers such as corruption and poor governance. Tackling unemployment in Africa will require a multifaceted approach that addresses these underlying issues and provides support and opportunities for jobseekers.

DAOs have the potential to reduce unemployment in Africa through their decentralized and autonomous nature, which allows them to be more agile and responsive to the needs of the market.

## How Do DAOs Operate

DAOs are decentralized organizations that operate on a set of predetermined rules encoded into smart contracts. These rules define how the organization functions and how decisions are made, and they are enforced by the network of computers that run the smart contracts. 

To participate in a DAO, individuals or organizations typically need to hold tokens, which represent a stake in the organization and give them a say in how it is run. The specific rules of a DAO will dictate how these tokens can be used and how decisions are made.

DAOs are decentralized, meaning that they are not controlled by any one individual or organization. This decentralization allows for more democratic and transparent decision-making, as well as reducing the risk of fraud or corruption. 

DAOs are also autonomous, meaning that they can operate without the need for human intervention. This allows them to be more agile and responsive to the needs of their members and the market. DAOs can be used for a wide range of tasks and outcomes, depending on the specific goals and rules encoded into their smart contracts

## The benefits of DAOs improve employment rate in Africa

- **Creating employment opportunities**: DAOs can be used to create employment opportunities directly, either through the creation of new businesses or the financing of existing ones. For example, a DAO could be used to crowdsource funding for infrastructure projects in Africa, creating temporary and permanent employment opportunities. 

- **Increasing access to global markets**: DAOs can help African businesses tap into global markets and customers, increasing demand for their products and services. This can lead to more stable and sustainable employment opportunities.

- **Improving efficiency and transparency**: DAOs can help streamline business operations and increase transparency, leading to cost savings and increased trust among stakeholders. This can make it easier for businesses to operate in Africa, leading to more employment opportunities.

- **Supporting the gig economy**: DAOs can be used to coordinate and manage tasks among a group of people, such as in a distributed work setting. This can help create more flexible employment opportunities in Africa, particularly for those who may not be able to commit to traditional full-time employment.

## DAOs Also Have Limitations

- **Limited awareness and understanding**: Many people in Africa may be unfamiliar with DAOs and how they work, leading to a lack of understanding. This can make it more difficult to adopt and utilize DAOs for employment initiatives.

- **Limited access to technology**: In order to participate in a DAO, individuals and organizations typically need access to the necessary technology, such as computers and the internet. This can be a challenge in some parts of Africa where access to technology is limited.

- **Legal and regulatory hurdles**: DAOs are a relatively new and largely unregulated technology, and there may be legal and regulatory hurdles to overcome in order to use them for employment initiatives in Africa.

- **Dependence on cryptocurrency**: Some DAOs may be dependent on cryptocurrency, which may be less stable and widely accepted in Africa compared to other parts of the world. This can make it more difficult to use DAOs as a means of financing employment initiatives in Africa.

- **Complexity**: DAOs can be complex and may require a certain level of technical expertise to set up and manage. This can make them less accessible to those with limited technical skills or resources.

## My DAO Story

Early 2022, I made up my mind to transition into the web3 ecosystem. I came across the concept of DAOs around the third quarter of the year. The first DAO I came across was [Bankless DAO](https://twitter.com/banklessDAO?s=20&t=_xuCxJmLOHlQQ2RjOxJtnQ). Immediately i saw their mission and i was sold. I joined their discord and for a while i was overwhelmed, I knew i wanted to contribute but everything was just a lot so i backed out. 

I continued trying to push web3 and blockchain adoption by education in the pidgin language. After i published an issue on my blog, a mutual reached out and told me to join hands with [Bankless Africa](https://twitter.com/Bankless_Africa?s=20&t=_xuCxJmLOHlQQ2RjOxJtnQ). 

I was really excited to see that they had just launched an initiative called [Pidgin Parlor](https://twitter.com/PidginParlour?s=20&t=_xuCxJmLOHlQQ2RjOxJtnQ) to help promote adoption by pushing out contents in pidgin which was what i was doing and i hopped on the train and it has been an amazing time for me contributing at any time i like, 

The flexibility was amazing for me because i was a student and the workload of the DAO didn't put me under unnecessary pressure. I also love how everyone's opinion matters and there's no "big boss" to shut you up. 

I also love how they easily offer work experience. Traditionally, one has to run around for a job or internship and hope to be picked and then build work experience but with a DAO, joining and contributing is super easy and so building experience is very easy too. 

## Conclusion

Despite the challenges, the potential of DAOs to create employment opportunities and drive economic growth in Africa is significant, and they should be considered as a key part of any strategy to tackle unemployment.