Africa and blockchain – a perfect match

While digital asset prices took a massive hit in 2022, blockchain adoption was on the rise as the world continues to distinguish between real utility and short-term price speculation. Nowhere is this divide clearer than in Africa, where blockchain continues to have a real impact on the everyday lives of millions of underserved, marginalized and underbanked citizens.

429% increase in blockchain funding for African startups

A recent report by blockchain VC fund CVVC highlighted Africa’s continued appetite for blockchain and how it is attracting interest from global financiers. The report revealed that African blockchain startups saw a 429% increase in funding in 2022, the highest growth globally. Asia came in a distant second with a 50% increase, while Europe recorded a 35% increase.

Seychelles and South Africa led the region in fundraising, while Nigeria ranked at the top for the number of deals. KuCoin, the global exchange, and Scroll.io, an Ethereum Layer-2 scaling solution, both based in the Seychelles, became Africa’s first blockchain unicorns in 2022 with massive fundraising rounds.

Beyond the checks, the report highlighted how blockchain is changing the lives of millions across the region. Take Sun Exchange, a South African peer-to-peer solar panel leasing company that allows anyone to own and lease power cells to businesses.

With one billion people, the population south of the Sahara is one of the world’s fastest growing. However, according to the International Energy Agency, only half of the population has access to electricity. Sun Exchange’s blockchain-based platform, which relies on digital assets for payments, allows users to invest as little as $5 to power solar panels that power South African schools, businesses and organizations.

Access to health services and medical information remains a major challenge in Africa. Kenyan startup Afya Rekod is using blockchain to change this sector, allowing users to securely store their health information and interact with medical professionals.

Financial access is one of the industries most impacted by blockchain technology globally, and Africa is no different. Startups like Ejara are democratizing access to financial services through blockchain technology. The Cameroonian startup offers digital asset savings products, stablecoin cross-border transfers, tokenized government bonds and more.

It goes beyond the startups. Multinational institutions, non-governmental organizations and even government agencies are warming up to blockchain in the region. In Kenya, the National Transport Safety Authority (NTSA) operates a blockchain service to notify the government of important information about motor vehicles.

Nigeria’s Union of Road Transport Workers (NURTW) operates its own blockchain service to increase road safety and reduce the cost and time associated with record keeping.

There are challenges with the region’s emergence as a blockchain hub. Regulation, or lack thereof, continues to be the biggest stumbling block. Blockchain companies operate under an ambiguous and vague legal framework that continues to keep investors and users away, especially at an institutional level.

South Africa, Kenya and Zambia are among a handful of nations stepping up to regulate the sector. But even with these trailblazers, the focus has been on digital assets. A few others have taken a crack at central bank digital currencies, led by Nigeria, whose eNaira debuted to overwhelming reception. No country has formulated specific regulations aimed exclusively at promoting the adoption and growth of the technology.

Join African blockchain trailblazers at the London Blockchain Conference

Africa’s future could be shaped by blockchain technology, and this will be one of the main themes explored at this year’s London Blockchain Conference. Kicking off on 31 May, the event will bring together some of Africa’s top blockchain developers, founders, innovators and investors to discuss the way forward for the region.

The three-day event will explore beyond Africa’s blockchain progress, including global Bitcoin regulations, Web3 and the metaverse, NFTs, IPv6, tokenization, ESG, smart contracts and much more.

Book your ticket today!

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