Afrail Inc. Joins Elite Club of African Companies Tokenizing Assets

Across the continent, a few pioneering companies have already taken bold steps toward tokenization.

Afrail Inc. is thrilled to announce its place among an exclusive group of companies in Africa that have embraced blockchain technology to tokenize their assets. Through its AFX Security Token offering, Afrail is raising $4.04 billion USD, marking a significant milestone in digital finance and capital raising. This offering, built on the ERC-1400 Smart Contract, sets Afrail apart as a leader in the innovative approach to asset-backed fundraising, joining other forward-thinking companies in the region.

Across the continent, a few pioneering companies have already taken bold steps toward tokenization. Flyt Property Investment in South Africa became the first to tokenize real estate assets, raising significant capital to fund property developments, though specific figures have not been disclosed. Farmcrowdy in Nigeria used tokenization to enable micro-investments in agriculture, empowering small-scale investors, with raised amounts typically linked to specific farm projects. Tobias Holdco and several crowdfunding platforms across Kenya, Nigeria, and Ghana have used tokenized equity and revenue streams to raise capital, though the exact figures vary by project. Similarly, Mazzuma in Ghana has embraced tokenization to facilitate digital services and microtransactions, although the amounts raised are not publicly detailed.

In contrast, Afrail is raising $4.04 billion USD through the AFX Security Token offering to fund the development of its AfrailX and ArailX urban mass transit systems. AfrailX, which will initially launch in Northern Namibia and Miami, Florida, will revolutionize public transportation with eco-friendly, automated electric pods designed to alleviate traffic congestion and reduce carbon emissions by up to 50%. This transformative system is expected to improve urban mobility, create over 1.2 million jobs, and significantly enhance economic growth across its operational regions.

What is Tokenization and Why Are Global Companies Doing It?

Tokenization is the process of converting ownership rights in a real-world asset—such as real estate, equity, or commodities—into digital tokens on a blockchain. These tokens represent fractional ownership of the underlying asset and can be traded, sold, or transferred in a secure, transparent, and decentralized environment. Tokenization allows for the creation of digital representations of physical assets, enabling more efficient, transparent, and accessible markets for both investors and companies.

Global companies are increasingly turning to tokenization for several compelling reasons:

1. Increased Liquidity: By tokenizing assets, companies can make illiquid assets more easily tradable. This can open up new avenues for investment and create liquid markets for traditionally hard-to-trade assets.

2. Access to Global Investors: Tokenization allows companies to access a global pool of investors, overcoming geographic and financial barriers. Through digital assets, companies can raise capital from anyone with an internet connection.

3. Enhanced Transparency: Blockchain technology provides immutable and transparent records of transactions, giving investors more trust and security in their investments.

4. Lower Costs: Tokenization reduces the need for intermediaries such as brokers or banks, cutting down on transaction fees and administrative costs.

5. Fractional Ownership: Tokenization enables fractional ownership of high-value assets, allowing a broader range of investors to participate in markets that were previously reserved for larger institutional investors.

Afrail's decision to tokenize its assets through the AFX Security Token offering aligns with these benefits, ensuring global investors can participate in the development of the innovative AfrailX and ArailX transportation projects. By tapping into the potential of tokenization, Afrail is not only raising funds but also setting a new standard in how global companies can fund ambitious projects in a transparent and efficient manner.

Notable Global Examples of Tokenization

1. Property (Swiss Real Estate Company):

   • Amount Raised: $100 million

   • Overview: Property, a Swiss real estate company, became one of the first to tokenize a real estate fund, offering blockchain-based tokens that represented shares in the property fund. This allowed for fractional ownership and opened the market to a global pool of investors, increasing liquidity and transparency in the real estate sector.

2. Filecoin (ICO):

   • Amount Raised: $257 million

   • Overview: Filecoin, a decentralized file storage network, raised $257 million in 2017 through its ICO by tokenizing its future services. The ICO was one of the largest fundraising events using tokenization at that time, demonstrating the potential for blockchain-based fundraising in the technology sector.

3. RealT (Tokenized Real Estate):

   • Amount Raised: Millions of dollars in multiple rounds

   • Overview: RealT is a company that tokenizes individual real estate properties, allowing fractional ownership through blockchain-backed tokens. These tokens represent shares in specific properties, and investors can earn rental income based on their stake. RealT has successfully raised millions using this model, making real estate investments more accessible to small-scale investors.

These examples show how tokenization has become a powerful tool for raising capital across various industries, offering greater accessibility, liquidity, and transparency in fundraising. By leveraging blockchain technology, companies are now able to tap into global investor pools and raise funds in ways that were previously difficult or costly.

Fundraising Through the PPO

Afrail Inc. is raising these funds through a Private Placement Offering (PPO), conducted in accordance with Regulation D Rule 506(c) of the U.S. Securities and Exchange Commission (SEC). This regulatory framework enables Afrail to offer the AFX Security Tokens to accredited investors, ensuring compliance with U.S. securities laws while providing a transparent and secure platform for global investors to participate in the capital raise.

AFX Security Tokens: Backed by Equity and Convertible with Revenue Sharing

The AFX Security Tokens are backed by equity in Afrail Inc. and provide token holders with the ability to convert their tokens into Afrail Inc. Class A shares. Each 100 AFX Security Tokens can be converted into one Class A share, giving holders a stake in the company. These tokens are also tradeable and offer revenue sharing, allowing token holders to benefit from Afrail's performance and success in its global projects. This combination of equity backing, convertibility, and revenue sharing makes the AFX Security Token a powerful and attractive investment vehicle for global investors seeking exposure to Afrail’s innovative transportation infrastructure and growth.

More about Afrail Inc at https://afrail.xyz.