A new report by CV VC and South Africa’s Standard Bank reveals that Africa’s crypto venture capital investment surged by over 400% in 2022 to approximately $470 million, surpassing the global industry’s 4% growth to reach $27 billion.
African crypto firms raised around $474 million, outperforming other sectors by almost 400% and beating the global crypto investment growth.
Seychelles and South Africa secured 81% of African funding, securing $208 million and $176 million, respectively. Notably, crypto exchanges and custody platforms accounted for 52% of the funds raised.
Meanwhile, fintech and blockchain infrastructure and development were the second and third-most funded categories, accounting for 24% and 15% of the funds raised, respectively.
Africa’s share of $26.8 billion in global blockchain venture funding rose from 0.3% in 2021 to 1.8% in 2022. Despite this growth, however, most crypto VC funding remains concentrated in the United States, Asia, and Europe. The US concluded 137 deals, while Asia and Europe had 84 and 78, respectively.
The five-fold increase in investments is noteworthy as it makes Africa the only region to achieve a triple-digit percentage increase in its share of the total global blockchain venture dollars raised. The African Blockchain Report 2022 was published on April 18.
Blockchain adoption in Africa
Blockchain technology has the potential it has to address issues of corruption, inefficiency, and lack of transparency in various industries, including finance, supply chain management, and governance.
In many African countries, corruption is a significant problem, leading to mistrust of government institutions and hindering economic growth. Blockchain technology provides a transparent and immutable ledger that can help prevent fraud, corruption, and mismanagement of funds.
The emerging technology also has potential to facilitate cross-border payments and financial inclusion. Traditional banking systems can be costly and inaccessible for many people, particularly in rural areas. Blockchain technology enables the development of decentralized financial services, allowing people to access financial services without requiring intermediaries like banks.
