The Senegalese government have finally closed the curtain on its ambitious $6 billion Akon City after years of grand promises and minimal tangible progress.

In Brief

• Senegal officially terminated the Akon City project after years of zero construction progress and multiple contract violations.

• Akoin’s failure to deliver real-world utility mirrored the smart city’s collapse, casting doubt on unregulated crypto-backed development projects.

• The Mbodiène site will now be redeveloped into a state-backed $1.2B tourism hub, shifting from tech utopia to economic realism.

The Minister of Tourism and Air Transport, Mr Daouba Ndiayer, confirmed the cancellation in a statement released on July 10 2025.

The once-marvelled Wakanda-inspired smart city project has come crumbling down after its project leads failed to meet contractual obligations, particularly the critical deadline to commence construction.

Akon’s $6B Crypto City Collapse: Senegal Cancels Futuristic Project

The ambitious city first debuted back in 2018 with massive fanfare over its vision and impact in Africa.

The foundation was already mapped out near the Mbodiène development site, a coastal region approximately 120 kilometres south of Dakar.

The smart city was slated to become a beacon of African innovation and self-sufficiency, with the city pledging to run entirely on renewable energy and utilize Akon’s proprietary digital asset, the Akoin cryptocurrency, as the primary medium of exchange.

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Alongside this futuristic economy would include state-of-the-art hospitals, universities, luxury residences, shopping complexes, and special segments to boost Senegals’s film industry.

However, despite the ideals it boasted, no form of progress was seen. For years, residents, community leaders and journalists documented the conspicuous absence of construction activities.

This raised serious concerns over the transparency, funding and Akon’s commitments.

The smart city projects were an ideal haven to promote job creation and expand the nation’s economic standpoint. However, it merely remained an ideal.

Akoin’s Parallel Struggle and Predictive Warnings

The collapse of the physical city projects mirrored the struggle of its intended financial engine, Akoin cryptocurrency.

Back in 2024, we highlighted the suspicious trajectory of Akoin, citing even its start hinted at suspicious behaviour.

The token never launched under its name but rather under the Token of Appreciation (TOA) campaign. Later on, the TOA converted all its funding($290,000) into Akoin, promising higher returns to its donors.

The result is a steady decline within the Akoin price history. What initially gained hype as the “cryptocurrency powering Africa” quickly lacked relevance due to its inability to provide actual utility.

In response, Akon conceded mismanagement, stating that he would take full responsibility, but the damage was done.

Other reasons for the crypto project cancellation were legal hurdles; the Central Bank of West African States (BCEAO), a regulator of Senegal’s official CFA franc currency, is known for its opposition to cryptocurrencies.

This drove a wench into Akon City as citizens would use Akoin cryptocurrency for exchange, requiring the singer to convince the regulators it was safe.

Government Action and Shifting Plans

After years of empty promises and unmet deadlines, the Senegalese authorities had enough.

The smart city project was doomed, and what sealed its fate was the annulment of its MOU in 2023 after the “non-respect of the clauses, particularly the deadline to start construction.”

Akon City received one last chance after Sapco issued a two-week ultimatum in 2024 for work to begin, yet there was no response, and the Mbodiène development site still had value.

With the smart city project scrapped, the government has new plans for the area backed by 665 billion CFA francs ($1.2 billion) investment to turn the area into a major tourist hub.

The revised project will feature hotels, apartments, a marina, and a promenade connecting to a nearby lagoon and aims to make Mbodiène a genuine “engine of growth.”

Lessons from the Ruins of a Dream

The Akon City provides a stark case study on the various aspects one should identify to invest in alternative crypto projects.

For instance, its $6 billion price tag vastly exceeded realistic funding capabilities, especially given Akon’s wealth, estimated to be $80 million.

The Covid 19 period also resulted in chronic delays, but it is still not an excuse for the failure to meet even basic construction start deadlines.

Additionally, Akon City should have started with regulations to align its Senegalese governments with an ambitious crypto economy.

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Doing so would have given the initiative some backing and would be a better use of the lag time Covid provided.

The legacy of Akon City provides a cautionary tale about the complexities of large-scale intrastate developments, volatile crypto markets and the importance of realistic planning.

Mbodiène village chief, Diome, said that he once had high hopes that his community would finally transform.

Unfortunately, those dreams are shattered, and now only the tourist’s plan can shed hope for the cleared region.