South African Bitcoin Ekasi Project Transforms Township Economy

Founded in August 2021, Bitcoin Ekasi continues to grow in a township in Mossel Bay, South Africa. The project creates a circular Bitcoin economy in the community, where "Ekasi" is Afrikaans slang for "township." Its success builds on relationships established by The Surfer Kids, a non-profit founded in 2010 by Hermann Vivier, who also leads Bitcoin Ekasi.

"Bitcoin Ekasi operates with The Surfer Kids as its umbrella organization," Vivier explained in an interview. "The secret to Bitcoin Ekasi's success is the fact that we have a long-standing relationship with the community. We started operating in this particular community where Bitcoin Ekasi is based in 2015."

Introducing Bitcoin wasn't simple at first. Luthando Ndabambi, Project Community Leader, recalled the early challenges: "In the beginning, it was tough. Most shop owners in the township had never heard of Bitcoin, except perhaps from negative associations with scams. I spent a lot of time walking them through how it worked."

Today, the project has achieved significant milestones:

• 32 shops now accept bitcoin in the community
• 21 employees of The Surfer Kids earn their salaries in bitcoin
• The local school staff participate in the Bitcoin economy

The Bitcoin Ekasi team has strengthened connections with T.M. Nanda Primary School, which most youth in The Surfer Kids program attend. "We've built trust with the principal, teachers, and students through consistent engagement," said Thinus Mouton, Special Projects Coordinator at Bitcoin Ekasi and The Surfer Kids.

A physical Bitcoin Ekasi Center has operated since mid-2022, providing in-person support for community members using Bitcoin. "It's for people who have issues with their mobile bitcoin wallets or for people who are curious about how to use Bitcoin. It's basically a walk-in support center," Vivier said. The team recently received preliminary approval to purchase land for a new, larger center.

The project also runs a home-painting initiative that pays residents 7000 sats (about $6) weekly to maintain and paint their homes, with logos of Bitcoin companies displayed. Recipients must either save the bitcoin or spend it within the community, not convert it to South African rand.

Elsewhere in South Africa, investment company Altvest Capital recently purchased its first Bitcoin as part of a Bitcoin-only strategy. CEO Warren Wheatley cites protection against rand depreciation and Bitcoin's decentralized nature among key factors for this approach. As Africa's first public company making such a move, Altvest plans additional Bitcoin purchases through profits and new capital.

While the project faces ongoing challenges with education and funding, Vivier believes operating on a "bitcoin standard" provides unique advantages: "Because we operate on a bitcoin standard, we get three times the amount of work done with the same amount of funds donated. The fact that we spend in bitcoin, which drives adoption, means that the positive ripple effects have far wider effect than fiat donations would."