African blockchain startups raised $474 million in 2022, up 429% year-on-year, according to the Africa 2022 Blockchain Report, published by the venture capital firm. CV VC blockchain in association with Standard Bank.
The total number of transactions on the continent increased by 12%, with transactions in the areas of infrastructure, personal identification, record keeping and access to financial independence. Africa’s venture capital funding grew 34% to $3.14 billion, with blockchain accounting for 15% of the market share of all venture capital funds in Africa. “Combine the dramatic increase in blockchain funding with the fact that Africa has seen the lowest increase in blockchain transactions globally, but is the only region in the world to have an increase in all transaction sizes, showing that blockchain startups in Africa increase scrutiny and investors gain confidence.
“This is in contrast to the backdrop that Africa’s overall share of global funding has increased by a significant margin more than any other region,” the report’s authors write. According to the report, recent months have seen the emergence of the first blockchain “unicorns” in Africa – private startups with current valuations of $1 billion or more. Kucoin, the Seychelles-based crypto exchange, reached value in Q3 2022, while Scroll.io, which describes itself as a scaling solution for Ethereum, recorded a valuation during the quarter. first of this year.
However, despite the rapid growth recorded in the blockchain industry in Africa, Africa’s share of global blockchain funding remains modest, growing from 0.3% in 2021 to 1, 8% by 2022. Deal value is also geographically concentrated, with Seychelles (43.9%) and South Africa (37.3%) accounting for 81% of Africa’s blockchain funding. Nigeria was the first country in terms of the number of transactions (13), but their value amounted to $24.7 million, compared with the Seychelles’ $208 million (six transactions) and $176.6 million for South Africa (six transactions). Liberia is ranked by value with two deals, mainly after Jambo, a software development company, raised $37.5 million, while Kenyan companies raised $25.78 million. for four transactions. In the introduction to the report, Gideon Greaves, CEO of CV VC Africa, calls for more business education on the benefits of blockchain technology.
“Despite the rapid growth and progress, there is still a significant knowledge gap that needs to be filled. Having had the opportunity to engage with traditional businesses across the continent, it became clear to me that most C-level employees don’t know what blockchain does or why they should care. This lack of knowledge and understanding hinders the potential for further growth and advancement. It is imperative that we close this gap and educate the powerful and influential on the potential of blockchain technology.
