Senegalese Government Cancels $6B Akon City Crypto Project After 7 Years, Shifts to $1B Tourism Plan

The Senegalese government has officially canceled Akon City, a $6 billion cryptocurrency-powered urban development project led by musician and entrepreneur Akon, after seven years of stalled progress. The cancellation, announced by the government’s coastal development agency SAPCO, marks a significant pivot in the project’s direction. SAPCO will repossess most of the 500-hectare site, though Akon retains ownership of eight hectares for a yet-undefined new initiative [1]. The project’s original vision—a fully crypto-integrated city with Akoin as its primary currency—failed to materialize due to persistent challenges in execution, funding, and adoption.

The revised plan now focuses on a $1 billion tourism development supported by SAPCO, shifting away from cryptocurrency to prioritize economic stimulation through infrastructure and hospitality. This move underscores the limitations of relying solely on crypto-based models in emerging markets. Despite Akon’s earlier claims of progress, the project saw minimal on-the-ground development, with Akoin failing to gain traction among local businesses or international adopters [1]. The cancellation also highlights broader skepticism toward ambitious crypto-led urban projects in Africa.

Akon publicly acknowledged mismanagement of the initiative, stating, “It wasn’t being managed properly. I take full responsibility for that” [1]. This admission aligns with criticisms of similar ventures, such as Uganda’s short-lived “Crypto Savannah,” which also struggled with transparency and financial viability. Experts suggest that unrealistic expectations and inadequate oversight often plague such initiatives, particularly when tied to volatile digital assets. The Senegalese government’s decision to repurpose the land for a tourism venture reflects a pragmatic approach to leveraging existing assets without crypto dependencies.

While the cancellation has little impact on major cryptocurrencies or decentralized finance (DeFi) markets, it serves as a cautionary tale for African tech entrepreneurs. The project’s failure illustrates the difficulty of scaling blockchain-powered urban developments without robust regulatory frameworks, stakeholder alignment, and realistic financial planning. SAPCO’s involvement in the new tourism plan, however, suggests a preference for government-backed, conventional economic strategies over experimental crypto models.

The Akon City saga highlights the gap between aspirational tech projects and their practical implementation. Though Akoin’s token remains a niche experiment with limited adoption, the broader implications extend to how African nations approach innovation. By pivoting to a tourism-focused initiative, Senegal appears to prioritize tangible, low-risk investments over high-profile but unproven digital ventures. This shift may signal a broader trend in the region, where governments are increasingly balancing innovation with fiscal conservatism.

The project’s legacy will likely center on the lessons it provides for future urban development. As Akon transitions to a smaller-scale endeavor, the focus remains on whether the retained eight hectares can serve as a foundation for a more feasible venture. Meanwhile, the $1 billion tourism plan must navigate its own challenges, including infrastructure logistics and market demand. For now, the cancellation of Akon City stands as a reminder of the complexities of merging cryptocurrency ambitions with real-world economic realities.

Source: [1] [Akon City Project Canceled by Senegalese Government] [https://coinmarketcap.com/community/articles/688614ba992f375ac451b58c/]