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The African continent remains a promising area for the advancement and adoption of blockchain technology.
According to the African Blockchain Report 2022 published by Crypto Valley VC, blockchain transactions in Africa amassed a total of $474 million, leading to a remarkable 429% rise in venture funding for blockchain initiatives in the region. This increase in funding for African blockchain projects outpaced the global average, which experienced only a 4% rise in blockchain financing.
The report indicated that funding for blockchain in Africa exhibited a growth rate that was more than 12.5 times greater than that of overall African venture funding on a year-over-year basis. Specifically, African blockchain projects secured $474 million throughout 2022, marking a 429% increase in funding. In contrast, total African venture funding recorded a 34% rise, with $3.14 billion raised across 570 transactions during the same timeframe.
In 2022, African blockchain startups accumulated a total of $474 million, reflecting a 429% increase compared to the $90 million raised in 2021. Africa achieved the highest growth rate in funding among all regions. Meanwhile, the US maintained a steady funding level of $15.2 billion, while Asia and Europe experienced year-on-year increases of 50% and 35%, respectively, with funding amounts of $4.74 billion and $4.88 billion.
African blockchain venture funding by nations. Source: CV VC African blockchain report 2022
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Over the past year, Seychelles and South Africa accounted for 81% of the blockchain venture funding in Africa, raising $208 million and $177 million, respectively. Additionally, the number of blockchain deals in Africa rose by 12% year-on-year, increasing from 26 to 29.
African blockchain venture funding constituted 1.77% of the global blockchain venture funding, which saw an impressive 407% year-on-year increase, with various countries contributing to this growth. In comparison, the US completed 137 deals, while Asia and Europe had 84 and 78, respectively.
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Nigeria currently leads in the number of blockchain startups that have secured funding, followed by South Africa, Seychelles, and Kenya. However, despite Nigeria having the highest number of deals on the continent in 2022, it represented only 3.4% of the total African blockchain venture funding, with an average deal size of $1.25 million.
Considering the significant rise in blockchain funding in Africa and the relatively modest increase in the number of blockchain deals, it indicates that the median deal size has notably increased. This suggests that companies are obtaining larger amounts of funding, and investors are growing more confident in African blockchain initiatives.
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