Kenya partners with Abu Dhabi’s Venom Foundation to build blockchain, Web3 hub

The Kenyan government has entered into an agreement with Abu Dhabi-based blockchain platform Venom Foundation to launch a blockchain and Web3 hub in Africa.

The partnership will seek to help drive blockchain innovation in the continent’s key sectors, including finance, supply chain, agriculture, business and cross-border trade, the May 10 announcement said.

The planned blockchain and Web3 hub will act as a central platform for African technology companies and government entities, promoting knowledge exchange and stakeholder collaboration.

Under the agreement, Venom will provide tools and resources to support Kenya and other African countries in their digital transformation, including blockchain-based solutions for supply chain management, land registry, voting systems and asset tokenization.

Moses Kuria, Kenya’s secretary of state for investment, trade and industry, said the deal shows the country’s stance on next-generation technology. He added:

“We believe that the establishment of this blockchain hub will catalyze further innovations in various industries, benefiting our people both nationally and globally.”

Kenya and Africa as a whole continues to become a hotbed of innovation, including the implementation of blockchain technology. The continent witnessed a 429% increase in blockchain deals, as companies raised $474 million last year from $90 million in 2021, CV VC data shows. The data added that these figures outperformed the global funding average, which grew by just 4%.

“Africa is already rich in natural resources and human capital,” said Venom Foundation CTO Christopher Louis Tsu. “By bringing next-generation blockchain technology to the continent, it will empower the people and help not only Kenya, but many other African nations to capitalize on their assets and participate in new global markets competitively.”

Related: Web3 economy to gain more traction in Africa through DeFi-based financial inclusion

In January, the Venom Foundation, with investment manager Iceberg Capital, announced a $1 billion fund for Web3 and blockchain companies. The investment fund will look to attract technology companies to use Venom’s scalable, proof-of-stake blockchain solution.

Elsewhere, lawmakers in Kenya have introduced the Finance Bill 2023, which seeks to tax crypto and nonfungible token (NFT) transfers. The proposal, which will undergo five rounds of readings, would require registered crypto exchanges and NFT marketplaces to deduct 3% of the transfers’ value to be paid to the government.