Blockchain Business Funding in Africa Increases 5X in 2022

Blockchain Business Funding in Africa Increases 5X in 2022

Blockchain funding in Africa raised a total of USD 474 million, an increase of 5x in 2022. The latest CVVC African Blockchain Funding Report has revealed a 429% increase in funding compared to last year. The custody and exchanges category raised over USD 250 million, which is equivalent to more than 50% of funds raised by the blockchain companies.

South Africa and Seychelles Raise 80% of Funding

The latest CVVC Africa Blockchain Funding Report has revealed that blockchain businesses from the continent raised USD 474 million in 2022, a year-on-year funding increase of 429%. The report states the total blockchain funding on the continent has been realized from 29 deals, four more than the 25 deals sealed in 2021.

Individual countries with the biggest share of the total funding showed that South Africa (37.3%) and Seychelles (43.9%) together received more than 80% of the total amount. Nigeria, which accounted for the second-highest share in 2021, had nine deals with a total value of nearly USD 16 million, or 3.4% of the total funding.

Nigeria and Egypt are the only countries on the continent to have recorded a decrease in the value of funds raised in the report. The data indicates that the rest of the tracked countries recorded a significant increase in funding. Liberia, which received no funding in 2021, was the third-highest-ranked country in 2022 with 7.9% of the total funding.

Demand for Cryptocurrency Trading in Africa

The custody and exchanges category is the best-performing one, having raised over USD 250 million, or more than 50% of the total funding. Noting the dominance of the category, the report states:

"The significant increase in the funding for the sector demonstrates the growing demand for cryptocurrency trading in Africa, as well as the recognition of the importance of secure storage solutions."

Fintech was the second-best performing category with 24.3%, followed by the infrastructure and development category with 14.3%. The non-fungible token (NFT), gaming, and metaverse categories accounted for nearly 7% of the funding, while the rest of the categories had a share of less than one percent.

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