African Blockchain Investment Surpasses 2021 Total of $127 Million

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African Blockchain Investment Surpasses 2021 Total of $127 Million

During the first quarter of 2022, $91 million of capital entered the African blockchain ecosystem, followed by another $213 million during the second quarter, totaling $304 million.

Venture capital investment continues to flow into Africa

In May, Seychelles-based cryptocurrency trading platform KuCoin raised $150 million in its pre-Series B funding round, bringing the company’s total valuation to US$10 billion. . Subsequently, Mara, a pan-African crypto exchange, raised $23 million, while Congolese and Nigerian startups Jambo and Afrex raised $30 million and $10 million, respectively.

The African Blockchain Report 2021, published as a joint project by Crypto Valley Venture Capital and Standard Bank, shows that between the first quarter of 2021 and 2022, funding increased by 1,668% from $5.1 million at $91 million.

Crypto-centric payments have also surged, growing by 1,200% between July 2020 and June 2021. Despite these stark numbers, Africa only accounts for a measly 0.5% of total global blockchain funding.

Entries dominated by only four countries

Nigeria, Kenya and South Africa, three of Africa’s “big four” startup ecosystems, joined by the island nation of Seychelles, accounted for $122 million of total venture capital inflows. Nigerian crypto firms raised $49.6 million, followed by Seychelles at 33.8 million. Kenyan and South African crypto companies were able to rack up $20 million and $18.8 million respectively. The report adds:

“The lack of common legacy financial systems and a huge, mostly unbanked population all contribute to the popularity and growth of cryptocurrencies on the continent,”

Finally, countries like Cameroon, Burkina Faso, Egypt and Ghana were able to attract investments worth $4.1 million, $300,000, $200,000 and $125,000 respectively.

P2P payments are on the rise

Peer-to-peer (P2P) payments among small businesses and crypto investors are on the rise, indicating that the African masses are adopting blockchain technology en masse. Ian Putter, Standard Bank’s Blockchain Research Institute Regional Director Africa underline:

“Countries like South Africa, Kenya, Nigeria, and Ghana have seen rapid adoption of crypto assets to access more efficient payment paths provided by blockchain networks and generate revenue returns with assets. like Bitcoin or stablecoins pegged to the value of the US dollar,”

Another one report by the Boston Consulting Group (BCG), Bitget and Foresight Ventures suggest that crypto adoption in Africa will see strong growth in the near term, largely due to the boom in crypto derivatives trading.

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