African Blockchain Business Funding Soars 429% in 2022 — Report – Blockchain Bitcoin News
By 2022, African blockchain companies raised a total of $474 million, a 429% increase from what was raised the previous year, the latest CVVC African blockchain funding report has revealed. The custody and exchange category raised over $250 million, which is more than 50% of the funds raised by blockchain companies.
South Africa and Seychelles accounted for more than 80% of funds raised
According to the latest CVVC Africa Blockchain funding report, blockchain companies from the continent raised $474 million in 2022, a year-on-year funding increase of 429%. The report says the continent’s total blockchain funding in 2022 was realized from around 29 deals, about four more than the 25 sealed in 2021.
In terms of individual countries with the largest share of total funding, the report showed that South Africa (37.3%) and Seychelles (43.9%) alone received more than 80% of the total. Nigeria, which accounted for the second highest share in 2021, had nine deals with a total value of nearly $16 million, just 3.4% of total funding.
Apart from Nigeria and Egypt – the only countries from the continent to record a decrease in the value of funds raised – the report data indicates that the rest of the countries tracked recorded significant increases in funding. Liberia, which had zero funding in 2021, was the third highest ranked country in 2022 with 7.9% of total funding.
Growing demand for crypto trading in Africa
Meanwhile, the report lists the custody and exchange category as the top performer, having raised over $250 million or more than 50% of the total. Noting the dominance of this category, the report said:
The significant increase in funding for this sector shows the growing demand for cryptocurrency trading in Africa, as well as the recognition of the importance of secure storage solutions.
Fintech was the next best category at 24.3%, followed by infrastructure and development which accounted for 14.3%. With the exception of the non-fungible token (NFT), gaming and metaverse category which accounted for almost 7% of the funding, the rest of the categories had a share of the total of less than one percent.
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