• African blockchain businesses raised $34.7 million across 12 deals in 2024.

• Blockchain venture funding in Africa is greater than the worldwide average, making up 6.4% of all venture capital and 12.5% of total deals.

• In the first six months of 2024, the nations of Seychelles and Nigeria closed the most blockchain deals.

In 2024, African blockchain businesses marked a significant milestone by raising $34.7 million across 12 deals. This surge in funding underscores the continent’s burgeoning role in the global blockchain landscape.

Let’s look at the key highlights from the recent CVVC African Blockchain Report and what this means for blockchain venture funding, Web3 startups, DeFi in Africa, and overall blockchain adoption.

Africa’s Blockchain Adoption Boom

Blockchain has become a steady component in the tech world. What started as a mere digital asset has expanded into multiple industries, overhauling existing ones while creating fresh ones.

Amid this new era, Africa has stolen the spotlight more than once. Countries like Nigeria, Kenya, South Africa, and Morocco were the pioneers of DeFi in Africa, with a substantial number opting for digital assets to survive.

This later grew, inspiring some countries like Tanzania, Zambia, Ghana, and the Seychelles to participate in the continent’s Web3 journey. As a result, numerous Web3 startups have emerged in the past two decades, further propelling Africa’s blockchain adoption rate.

Organizations like Flutterwave, Luno, BitPesa, and BitcoinDADA have inspired many entrepreneurs to pursue DeFi in Africa.

ALSO, READ: African Blockchain Revival Spurs Optimism Among Investors, According to CV Summit.

Furthermore, several innovators branched from the growing fintech and DeFI industries, introducing new ways of applying DeFi in Africa. With this surge in promising activity in Africa, many investors have lined up, hoping to be part of Africa’s next big thing.

According to the CV VC African Blockchain Report, a document dedicated to showcasing Africa’s accent to dominating the Web3 industry, the report showcases a promising future given 2024 readings.

Blockchain venture funding in Africa outpaces global percentages.

One of the report’s most notable findings is that blockchain venture funding in Africa accounts for 6.4% of all venture funding and 12.5% of total deals.

These figures are notably higher than the global averages, where blockchain funding comprises just 3.5% of all venture funding and 5.9% of total deals. This indicates a growing interest in blockchain technology within the African market.

Why Africa is Leading the Way

Several factors contribute to Africa’s leading position.

• Rapid Digital Adoption: Many African countries are leapfrogging traditional technologies, moving straight to digital solutions.
• Growing Entrepreneurial Ecosystem: A robust startup culture is flourishing in several African nations, driven by young, tech-savvy entrepreneurs.
• Supportive Regulatory Environment: Countries like Nigeria and the Seychelles have created environments conducive to blockchain innovation.

Nigeria and Seychelles Lead the Pack

In the first half of 2024, Nigeria and the Seychelles are leading the way with the most blockchain deals, each securing five deals. Other notable countries include Egypt, Kenya, and South Africa, each with one deal.

The focus areas for these investments include centralized financial services, DeFi, blockchain networking, and NFTs.

Case Studies of Success

• Scroll: Raised $50 million and became Africa’s most recent blockchain unicorn.
• Beldex secured $28 million in funding.
• Carry1st: Raised $27 million to enhance its gaming and digital content platform.
• Seedify and Bitget: Each raised $10 million, focusing on DeFi and crypto exchange services.

Blockchain and Crypto Entities Supporting Africa

More and more blockchain entities are entering the African market, aiming to support and foster growth. For instance:

• Bybit has partnered with local companies like Ovex and Yellow Card to expand crypto trading.
• Zarp Stablecoin, Lisk, Tether, and the Hashgraph Association are actively promoting blockchain projects and education.

Noteworthy Initiatives

• The Hashgraph Association collaborated with DAR Blockchain in Tunis to nurture and grow Web3 talent.
• During GITEX 2024, the Association signed partnerships in Morocco to enhance citizen services using DLT and Web3 technologies.

ALSO, READ: Switzerland growth in Web3, an inspiration for Africa.

The Road Ahead for Blockchain in Africa

Despite the slowdown in overall VC funding in Africa in 2023, blockchain and Web3 startups have shown resilience and growth.

The median deal size in 2024 increased to $2.2 million, compared to $1 million in previous years. This growth signifies increasing confidence among investors in the African blockchain ecosystem.

Challenges and opportunities

While Africa’s share of global blockchain venture funding decreased to 0.6% in H1 2024, the continent still presents immense growth opportunities. The presence of three private blockchain unicorns—Scroll, Kucoin, and Bitget—illustrates the potential for high returns on investment.

Conclusion

Africa’s blockchain ecosystem is growing at an impressive rate, with significant investments flowing into various sectors. The success of Nigerian and Seychellois startups in securing deals highlights the continent’s potential to become a global blockchain hub.

For tech investors, Web3 analysts, and blockchain startups, now is the time to explore Africa’s opportunities.