Tokenisation of Real-World Assets in African Capital Markets: Regulatory Models, Investor Protection and Responsible Adoption

Abstract

This study examined the institutional and regulatory conditions under which tokenised real-world assets could support capital formation and investor access in African capital markets. A pragmatic qualitative design combined an integrative literature review with structured multiple-case documentary analysis of Nigeria, South Africa, Kenya and Mauritius, using Singapore as an international comparator. Forty-eight peer-reviewed and official documents published between 2020 and 2026 were analysed using content and framework analysis, cross-case comparison, pattern matching, gap analysis and a documentary Tokenisation Readiness Index. Government bonds and regulated investment funds emerged as the most suitable early-stage applications, whereas real estate, infrastructure, private credit and environmental assets required stronger title, valuation, custody and liquidity safeguards. Singapore demonstrated advanced readiness, while the four African jurisdictions were substantially prepared but retained material gaps in ownership recognition, settlement integration, insolvency treatment and cross-border compatibility. Tokenisation could lower investment thresholds, extend digital distribution and automate selected compliance and settlement functions, but could not independently create liquidity, cure defective title or guarantee investor protection. The study developed a six-pillar responsible-adoption framework and four-phase implementation roadmap. It concluded that tokenisation could support African capital-market development where investor claims were legally enforceable, underlying assets verifiable, client assets segregated, settlement final, intermediaries accountable and regulatory institutions technically capable of effective supervision.