Blockchain technology is sweeping across Africa, driving growth and innovation in ways never seen before. The African blockchain industry has witnessed a remarkable surge in funding, with a 429% year-over-year increase in blockchain venture funding, outpacing the global average. According to the African Blockchain Report 2022 by Crypto Valley VC, financing for blockchain deals in Africa reached an impressive $474 million in 2022.
The growth of blockchain in Africa is a clear indication of this technology’s immense potential for the African continent, as it seeks to overcome some of its most pressing challenges, from financial inclusion to agriculture. This surge in investment is a testament to the potential of blockchain technology to transform industries across the continent and to provide opportunities for entrepreneurs looking to break into this rapidly evolving industry.
Steady Blockchain Funding In The US, But Africa Steals The Show With Record Growth
In 2022, Africa emerged as the fastest-growing region in blockchain venture funding globally, with an impressive year-over-year increase. The United States remained stable at $15.2 billion. Asia and Europe witnessed YoY increases of 50% and 35%, with $4.74 billion and $4.88 billion in funding, respectively. Within Africa, Seychelles and South Africa led the way, accounting for 81% of blockchain venture funding, raising $208 million and $177 million, respectively. In addition, blockchain deals in Africa increased by 12% YoY, rising from 26 to 29. This data highlights the growing interest and investment in African blockchain startups, signaling a promising future for the industry on the continent.
Nigeria Tops The List For Blockchain Startup Deals In Africa, But Lags In Funding Volume
Nigeria led the number of blockchain startups receiving funding in Africa, followed by South Africa, Seychelles, and Kenya. However, Nigeria accounted for only 3.4% of all African blockchain venture funding in 2022, with an average deal size of $1.25 million. The significant growth in blockchain funding and the slight increase in deals indicate a rise in median deal size. This reflects growing confidence in African blockchain ventures. These trends highlight blockchain technology’s potential in Africa and exciting opportunities for entrepreneurs and investors.
The Booming Blockchain Startup Ecosystem In Africa
As per the African Blockchain Report 2021, blockchain funding in Africa skyrocketed by 1,668% from $5.1 million to $91 million between Q1 2021 and 2022. The absence of traditional financial systems and a large unbanked population have paved the way for cryptocurrencies and blockchain to gain momentum on the continent. Blockchain technology is hailed as the next big thing after the internet. Countries like Nigeria, South Africa, Kenya, and Ghana are leading the charge in adopting crypto assets for faster and more efficient payment solutions.
