Startups Eye Metaverse, NFTs, to Solve Africa’s Economic Woes

A concert in Ubuntuland, Africa’s first metaverse marketplace. (Thomson Reuters Foundation/Handout courtesy of Bianca Chan)
A concert in Ubuntuland, Africa’s first metaverse marketplace. (Thomson Reuters Foundation/Handout courtesy of Bianca Chan)
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Startups Eye Metaverse, NFTs, to Solve Africa’s Economic Woes

A concert in Ubuntuland, Africa’s first metaverse marketplace. (Thomson Reuters Foundation/Handout courtesy of Bianca Chan)
A concert in Ubuntuland, Africa’s first metaverse marketplace. (Thomson Reuters Foundation/Handout courtesy of Bianca Chan)

It might sound like science fiction, but a Nigerian-born tech entrepreneur thinks he has found a way for Africans to escape problems like inequality and bad governance - a virtual nation born online.

His is among a number of African-led virtual projects that aim to help the world's poorest continent capitalize on digital growth and tackle real-world problems, though some tech experts said such online spaces risk replicating offline inequalities.

"There's so many things that limit us as Africans from real-world opportunities," said Emole, co-founder of the Afropolitan network state project.

"(The internet) is the only place in the world which serves as an equalizer."

The development of the metaverse - a shared online environment where people can meet, buy virtual goods, and attend events - has sparked concern over digital rights, privacy and online inequality.

"What happens to a grandma in rural South Africa with no internet connection?" asked Thami Nkosi, an activist and researcher at South African non-profit Right2Know, which works to improve access to public information.

"We don't have broadband, internet, electricity, so who will benefit from this?"

But some researchers and activists think that as mobile phones and internet connection become more widespread across the continent it will open up opportunities, and have stressed the need for products that are geared towards African needs.

The emerging virtual economy already includes some 2.5 billion people and generates billions of dollars each year, according to a report by market research company L'Atelier.

"Most of the technology platforms we use in Africa were created in northern America, Europe, the Middle East or China," said Johan Steyn, chair of the Special Interest Group on Artificial Intelligence and Robotics with the Institute of Information Technology Professionals South Africa (IITPSA).

"We need an African lens on the use of smart technology in order to accommodate the people of this continent," said Steyn.

South African tech startup founder Mic Mann said bringing the metaverse to Africa is part of "future-proofing" the continent to ensure it keeps up with the rapidly expanding digital space.

"It's going to completely change everything: the way we work, live, play," said Mann, the co-founder of Ubuntuland, which calls itself the continent's first metaverse marketplace.

Pan-African digital state

The Afropolitan project is aimed at the more than 140-million strong African diaspora - and ultimately aims to expand to a physical territory.

Emole, who was born in Nigeria and raised in the United States, said it can offer solutions to poor governance in many of the continent's countries, which he cited as a key factor behind emigration.

Afropolitan said it raised $2.1 million from a funding round in June to help develop the digital state, and 10,000 people have subscribed for more information and updates.

Its founders plan to launch initially by selling NFTs which will act as a "digital passport" to Afropolitan events and physical spaces, before developing an app allowing members to transfer money and buy goods and services.

Emole, who is based in Silicon Valley, said the project will span the internet and metaverse, gradually expanding to become a "full-blown digital country with its own native currency and shared purpose".

The founders ultimately hope to acquire land from governments to create a series of Singapore-style charter cities with "full-scale sovereignty" and even provide services to citizens like water and electricity, using cryptocurrency.

These physical territories will also include Afropolitan embassies that could help citizens to challenge government incompetency by providing alternative leadership and financial structures, they said.

"We want to fix the biggest problem of all, which is the governance issue, because when you have good governance, every other thing can thrive," Emole said.

The project is still in a first phase of gathering supporters and cash before starting to build its planned app, while tech researchers question whether its plans are feasible.

"Governance is much more than an online, virtual space," said Nkosi from Right2Know.

"I doubt that we can digitize nation-states, built on a power base of the political elite who would always wish to hold on to ultimate power", added Steyn, though he said the idea was "interesting and worth debate."

Cities and countries have been eyeing the potential of the metaverse, with the city of Seoul and the island nation of Barbados announcing last year they would enter it to provide administrative services.

Risks and rewards

Mann hopes that metaverse spaces such as his Ubuntuland will be a "job creation tool" where users can showcase their skills or earn online.

With land sales going public in February, Ubuntuland has begun selling plots of land in its virtual marketplace where it aims to showcase African art, music, tech and design.

Telecom giant MTN and M&C Saatchi Abel, a South African marketing agency, have already invested in plots.

Using the Ubuntu Token cryptocurrency, users will be able to buy and customize land, set up shops, therapy spaces, concerts, films and games, said Mann.

"I'm hoping millions of jobs will be found in various metaverses around the world," said Mann, whose native South Africa has a 35% unemployment rate.

Tech researchers said such online and metaverse projects opened new avenues for communities - but were unlikely to be a silver bullet for complex issues.

"Technology offers promising solutions to healthcare and educational issues, with the hope of resulting in a better chance for all... We need people like these to push the boundaries and to dream of what could be possible," said Steyn.

However, utopian online projects could run into the same issues of crime, corruption and inequality they are trying to escape, said Nkosi and others.

"We are seeing a replication of the frictions of the physical world in the virtual world," said Kanis Saengchote, an associate professor of banking and finance at Thailand's Chulalongkorn University, who has researched the metaverse.

Even as some metaverse plots sell for millions, Saengchote said it was debatable whether virtual land has "actual value". There are also risks of fraud and scams, just as with offline transactions, he said.

Emole said the concerns about financial crime are "valid criticism", which they will combat both through advanced fraud detection and education about potential scams.

Both Emole and Mann said there will be lots of trial and error to ensure virtual spaces do not become elitist or divisive.

"I think the beauty of it is that it's going to be like an experimentation of what's really possible within our times," Emole said.



Binance Hackers Used Fake Job Interview in $6.3 Billion Attack

The Binance logo and hacker code are seen in this illustration taken October 30, 2026. (Reuters)
The Binance logo and hacker code are seen in this illustration taken October 30, 2026. (Reuters)
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Binance Hackers Used Fake Job Interview in $6.3 Billion Attack

The Binance logo and hacker code are seen in this illustration taken October 30, 2026. (Reuters)
The Binance logo and hacker code are seen in this illustration taken October 30, 2026. (Reuters)

Hackers used a bogus job interview and software hidden in an advertisement to compromise the computers of two Binance software engineers before using a third's computer to drain $6.3 billion worth of crypto in last week's record heist, the exchange said on Tuesday.

In its initial report on how hackers pulled off what could be the largest-ever financial theft, Binance detailed a multi-stage hacking endeavor that began in June and set off a series of security breaches culminating in the theft on Thursday.

Even as Binance scrambled to lock down its system and freeze withdrawals after detecting the attack late on Thursday, the hackers were still making off with crypto from the exchange nearly four hours after the first theft, Binance said.

The FBI has blamed a North Korean hacking group, a claim North Korea has rejected. ‌Binance has said it ‌is repaying all customers whose funds were stolen.

The attack has raised questions about ‌how ⁠hackers breached the world's ⁠largest crypto exchange after years of North Korea-linked attacks, which have grown in ambition and frequency, and renewed questions about the vulnerability of digital assets to cybercrime.

Cybersecurity experts and government officials have for years warned about North Korean and other hackers using phony job interviews to target employees at companies of interest, said Michael Barnhart, a researcher with cybersecurity firm DTEX. Fake job interviews are a well-known hacking technique.

Binance said it had detected and prevented 57 suspected North Korea-linked cyberthreats in 2026. That shows Binance is “just getting barraged,” Barnhart said.

"This should not have happened, and we apologize for the concern, disruption and uncertainty it caused our users, partners ⁠and the wider industry," Binance said in its report.

LEFT EXPOSED

Binance said the attack ‌began in June when an employee on its wallet developer team downloaded ‌a tool from the internet that hackers had tampered with. The exchange said it detected this afterwards, replaced the device and changed ‌credentials, but the employee's role and those of others on the wallet team were exposed.

A person familiar with the ‌incident said the tool's malicious version had been placed in an advertisement, which meant it appeared higher in a search engine than the real version.

Then in September, a second software engineer seeking a new job downloaded a "malicious code repository" onto the person's computer after interviewing for what they thought was a legitimate role, including meeting virtually with the CEO of a fictitious company, Binance's report said.

On October 20, ‌the attacker used the compromised computer plus an internal AI tool to gain control of the wallet developer's system and that of a second wallet developer.

Nine days later, ⁠the attacker used the second ⁠wallet developer's computer, with stolen credentials from the first wallet developer, and triggered a malicious script to launch the attack.

A limited number of engineers at the company have direct access to wallets — which store or trade crypto — the person familiar with the hack said.

CRYPTO REMOVED IN MINUTES

The attack unfolded quickly on October 29, removing 233.46 million XRP — a cryptocurrency — from five Binance hot, or internet-connected, wallets to an attacker-controlled address in just four minutes, before attackers withdrew other cryptocurrencies including bitcoin, the exchange said in its report.

Binance said it received an internal alert about large transfers and began investigating. It moved to suspend withdrawals, freeze affected tokens and remove unauthorized permissions, resulting in about $2.85 billion of frozen assets, but suspending withdrawals alone could not stop all unauthorized asset movements.

Attackers used 50 signing transactions to manipulate the account, while Binance said it was forced to build new procedures to revoke authorizations, slowing its response.

The final unauthorized transfer was at 2356 GMT, Binance said, nearly four hours after the attack began.

Binance said as a result of the hack, it was increasing investment in AI-enabled detection and working on establishing a security research fund and targeted initiatives with leading AI companies.


Big-Ticket Tech Deals Need to Keep Pace with AI Boom but Risks Remain High, Financial Leaders Say

David Solomon, Chairman and Chief Executive Officer of Goldman Sachs, speaks during the Global Financial Leaders' Investment Summit in Hong Kong, China, November 3, 2026. (Reuters)
David Solomon, Chairman and Chief Executive Officer of Goldman Sachs, speaks during the Global Financial Leaders' Investment Summit in Hong Kong, China, November 3, 2026. (Reuters)
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Big-Ticket Tech Deals Need to Keep Pace with AI Boom but Risks Remain High, Financial Leaders Say

David Solomon, Chairman and Chief Executive Officer of Goldman Sachs, speaks during the Global Financial Leaders' Investment Summit in Hong Kong, China, November 3, 2026. (Reuters)
David Solomon, Chairman and Chief Executive Officer of Goldman Sachs, speaks during the Global Financial Leaders' Investment Summit in Hong Kong, China, November 3, 2026. (Reuters)

Tech companies will need to raise more capital to help meet the enormous demand for the AI industry's growth boom, but there is a risk of an industry correction, global financial leaders said on Tuesday.

Tech stocks globally have faced pressure in recent weeks as growing concerns about AI spending trigger a new wave of selloffs, with combined spending set to exceed $730 billion this year, up from about $700 billion.

Most of the major tech companies were expected to raise more capital to keep up with the enormous likely demand from the AI industry's growth, said Jon Gray, president of Blackstone, which is an active investor in AI infrastructure.

"Now you're in an environment where the demand's running well ahead of supply," Gray said at an investment gathering in Hong Kong, citing "pretty extraordinary" demand for computing power.

"So that gives me a lot of comfort," he added. "Meta and Google and ‌Oracle raising equity ... ‌SpaceX going public, Anthropic going public," Gray said.

"On top of it ... the data centers, the ‌energy ⁠needs are enormous."

STRONG COMPANIES ⁠WITH 'GOOD STORIES'

Despite some AI-related market upheavals, strong companies with "good stories" would still be able to raise capital, though the industry's strong growth could create volatility for investors, said Goldman Sachs Chief Executive David Solomon.

"But things will go wrong too, and we'll get things wrong," he added at the event, the Hong Kong Monetary Authority's Global Financial Leaders' Investment Summit.

"Investors will find situations where they pick wrong, where they lose money ... It's important to have a balanced, diversified view."

JPMorgan Vice Chairman Daniel Pinto said he was bullish on AI, but the market was pricing in revenue and earnings growth for related companies that was too steep.

"I do believe that it has a positive, slow curve and ⁠it may not be as steep as the market is pricing," he said.

"So I think that ‌it could be a correction in the AI sector," he said, adding that ‌other firms with high valuations related to AI could come under pressure as the industry started to recalibrate its expectations.

Last month, S&P said it ‌expected the top six US hyperscalers - Amazon, Microsoft, Alphabet, Oracle, Meta and SpaceX - to spend more than $7 trillion on data centers ‌and other AI-related capex between 2025 and 2030, while having negative free cash flow until at least next year.

Citadel Securities Chief Executive Peng Zhao said the sheer scale of capital and growth in AI was proving difficult for some investors to value correctly, which was adding to volatility in the sector.

"Our ability to really know what this technology will do and its revenue potential is very, very limited due to the fact that we've ‌never seen anything like this," he said.

"It's not so much that people all of a sudden develop a bearish view of what the technology can accomplish, but it's rather the ⁠sudden realization that we can ⁠only know so much ... the numbers involved are so huge."

Morgan Stanley Chief Executive Ted Pick flagged emerging early signs of US markets edging close to a correction, with a majority of stocks in major indices off nearly 10%.

The latest test of investor appetite is a sale of €6 billion ($6.7 billion) in bonds on Monday by Google parent Alphabet .

ASIA-PAC TECH FUNDRAISING MORE THAN TRIPLED

Fundraising by Asia-Pacific tech companies more than tripled to $125.8 billion in the first three quarters of 2026 from $36 billion a year earlier.

The growth was driven by a wave of semiconductor and AI-related deals, such as Chinese chipmaker CXMT’s $9.8-billion IPO and Enflame Technology's $910.6-million listing, LSEG data shows.

Alphabet, Amazon, Microsoft and Meta have signaled that spending on AI will not slow.

In one of the largest debt deals tied to the AI buildout,

Blackstone agreed last week to provide financing of $63 billion with Bank of America, Citi and Morgan Stanley to buy Broadcom's AI chips and networking gear for Anthropic.

The rising cost of capital and some of today's skepticism will slow the pace, however, Gray added.

"But the overall trend is towards greater investment and therefore more needs for multiple forms of capital."

Emmanuel Roman, CEO of asset manager PIMCO, said AI financing deals are attractive, with more coming for the firm.


OpenAI Hires Former US Army Secretary for National Security Role

A person stands next to the logo of ChatGPT, an AI-powered chatbot by OpenAI at Bharat Mandapam, one of the venues for AI Impact Summit, in New Delhi, India, February 17, 2026. (Reuters)
A person stands next to the logo of ChatGPT, an AI-powered chatbot by OpenAI at Bharat Mandapam, one of the venues for AI Impact Summit, in New Delhi, India, February 17, 2026. (Reuters)
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OpenAI Hires Former US Army Secretary for National Security Role

A person stands next to the logo of ChatGPT, an AI-powered chatbot by OpenAI at Bharat Mandapam, one of the venues for AI Impact Summit, in New Delhi, India, February 17, 2026. (Reuters)
A person stands next to the logo of ChatGPT, an AI-powered chatbot by OpenAI at Bharat Mandapam, one of the venues for AI Impact Summit, in New Delhi, India, February 17, 2026. (Reuters)

OpenAI has appointed former US Army secretary Dan Driscoll to a newly created role focused on advancing the use of artificial intelligence in national security, the company said on Monday.

Driscoll will join OpenAI as senior counselor for national security and will "advise on how advanced AI can strengthen national and cyber security," according to a company statement.

Driscoll stepped down from his US Army post in September following reports of tensions with Defense Secretary Pete Hegseth.

"I'm joining OpenAI to help the United States and our allies put this technology to work responsibly, for the people who keep us safe," Driscoll said in OpenAI's announcement.

"The people who serve deserve the very best tools we can put in their hands," he said, adding that AI can help process information and reduce paperwork.