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African Blockchain Industry Soars, Outperforming Global Growth as Nigeria Leads in Funding

Blockchain industry growth in Africa

African blockchain industry has great potential. The industry recorded a staggering 429 per cent growth in venture funding last year, according to the African Blockchain Report 2022 from Standard Bank and Crypto Valley Venture Capital (CV VC).

Notably, this growth rate significantly outpaced the worldwide increase in blockchain funding, which was 4 per cent.

The report presents an in-depth analysis of Africa’s blockchain landscape, examining funding data, regulation, industry advancements, an investor watch list and insights from industry pioneers and leaders.

Further, the survey revealed that the continent now accounts for 1.8 per cent of global blockchain funding, up from 0.3 per cent the previous year.

African Blockchain market in numbers

Despite economic and socio-political challenges, the global blockchain industry broke records in 2022. For instance, the year saw 1,828 deals, representing a 30 per cent jump from the previous year.

Africa emerged as the most vigorous market, with blockchain companies achieving the highest funding growth rate among all globally assessed regions.

African blockchain startups raised an impressive $474 million in 2022. Gideon Greaves, the Managing Director of CV VC Africa, explained that “investors are gaining confidence” as African blockchain startups get funding.

He added that the continent’s “magnetic collaborative environment” among developers and organizations drives the industry’s growth.

Notable African blockchain companies that raised funds include Kucoin, MFS Africa, Scroll, VALR, and Carry1st.

Nigeria led in the number of funded blockchain startups, with South Africa, Seychelles, and Kenya following. Seychelles and South Africa accounted for 81 per cent of all African blockchain funding.

The report also highlighted the highest-funded categories in Africa, with ‘Custody and Exchanges’ at 52 per cent, ‘Fintech’ at 24 per cent, and ‘Infrastructure and Development’ at 15 per cent.

Greaves emphasized the real-life utility of blockchain in areas such as social impact, proptech, tokenization, NFTs, energy, government, and education.

Ian Putter, Head of the Blockchain Center of Excellence at Standard Bank Group, added that the bank is embracing blockchain technology to bring about transformation in a regulated and inclusive manner.

He said, “We firmly believe Web3 will be the economy of the future and appreciate the function that blockchain technology plays in getting everyone there.”

As Africa’s blockchain industry continues to experience rapid growth, with investors embracing the technology, further market penetration is expected in the coming years.

According to the Financial Times, Kenya, Nigeria and South Africa host the majority of little-known billion-worth start-ups.