According to the fourth CV VC report, Africa demonstrates impressive growth in blockchain activity, highlighting its increasing significance in the global economy.
Key Blockchain Investment Metrics in Africa
The report indicates a 15% increase in blockchain deal activity in Africa compared to a global average growth of 6%. In 2024, the total investment in African blockchain amounted to $122.5 million, with Nigeria accounting for 33% of the continent's total deals. Despite a 36% decline in total investment, Nigeria’s median deal size reached $2.8 million, twice the all-sector median. 'Nigeria’s blockchain ecosystem is thriving because it addresses real pain points like inefficient remittances and financial exclusion,' stated Jarryd Kennedy, Head of Investments at CV VC Africa.
Regulatory Changes Impacting Blockchain
Regulatory advancements are unlocking new opportunities for blockchain growth in Africa. Currently, seven countries have clear digital asset regulations, while 35 more are exploring possible frameworks. An example is Nigeria's lifting of its cryptocurrency ban in December 2023 and new legislative initiatives in March 2024. 'This isn’t just an investment gap; it’s an opportunity gap,' emphasized Mathias Ruch, CEO of CV VC.
Opportunities and Challenges for African Blockchain
The African blockchain landscape offers many opportunities but faces significant challenges. Regulatory uncertainty persists in 47 of 54 nations, while infrastructure limitations such as unreliable internet hinder scalability. However, by 2050, Africa is expected to comprise 25% of the global population, creating unique conditions for blockchain technology growth. 'African innovators are solving deeply rooted challenges with blockchain, from trade bottlenecks to agricultural transformation,' said Rob Downes, Head of Digital Assets at Absa CIB.
The CV VC African Blockchain Report emphasizes the critical role of blockchain technology in addressing economic and social challenges on the continent, highlighting the need for increased global investment to accelerate innovation.
