As currencies across Africa are facing mounting pressure from inflation and policy uncertainty, new digital tools are emerging to reshape how value is stored and moved. These tools, known as Second Currencies, include stablecoins, central bank digital currencies (CBDCs), and e-cash within mobile money networks. To delve deeper into this shift, CNBC Africa’s Tabitha Muthoni sat down with Ehizogie Binitie, Co-Founder & CEO of Resrv. Binitie highlighted the importance of understanding second currencies as complementary to existing currencies, playing a vital role in digitalizing money and mitigating currency risk. He emphasized that second currencies provide a means for faster money transfer across the continent, complementing the already prevalent use of mobile money in local markets. This digital revolution is enhancing financial inclusion, particularly for underserved communities in Africa. With approximately 1.1 billion mobile money accounts in Africa, second currencies are revolutionizing trade, finance, and financial inclusion, setting the stage for a digitally empowered Africa. While the concept of second currencies holds great promise, there are challenges to navigate, including regulatory and operational hurdles. The African continent comprises at least 44 monetary zones, each with its own policies. Despite experiments with CBDCs in countries like Ghana and Nigeria, a unified regulatory framework is yet to be established, posing implementation challenges. Additionally, currency volatility and inflation risks remain key considerations in adopting second currencies. African currencies often move in tandem due to their close links to the US dollar, presenting a need for hedging strategies against currency risk. Second currencies offer a potential solution, although it is still early days in leveraging them for risk management. For investors and financial institutions, second currencies present a new frontier of opportunities and risks. The correlation between second currencies and the mobile money ecosystem suggests promising investment prospects, albeit with high transaction costs. As regulators explore this space and innovations continue to emerge, now is a prime time for investors to delve into businesses operating in the second currency sector. The potential for accelerated capital flows, faster transactions, and increased productivity make second currencies an enticing avenue for investment in Africa’s evolving digital landscape.