• In 2023, 95 percent of all venture capital investments in blockchain technology on the African continent were recorded by two countries – Seychelles and South Africa.
• Blockchain adoption is growing in Africa, at the fastest rate in the world.
• Up and comer Nigeria has already raised 38 percent of total venture capital funding for blockchain in Africa for 2024.

Almost 100 percent of venture capital investments into blockchain technology made in Africa in 2023 were made by two countries, the island nation of Seychelles and South Africa.

This is according to a report from CV VC and Absa on blockchain in Africa, which says that 95 percent of the continent’s total blockchain funding stemmed from just these two countries. “Remarkably, Seychelles led this investment for the sixth year, securing over half of all funds,” the report reads.

Blockchain is more than the technology that is used to make cryptocurrency untraceable and decentralised and has a wide range of use cases, such as protection against fraud, transparent peer-to-peer sales, recording data to simplify the Internet of Things (IoT), and more.

CV VC says that blockchain adoption across Africa has increased significantly, showing “impressive progress.” In 2022 alone, African blockchain startups raised $474 million in funding, over four times more than what was raised just a year before.

“Africa’s funding growth rate is the highest globally, in stark contrast to the stagnant levels seen in the US,” the report adds.

While Seychelles and South Africa dominating investments in the space, which TechCabal suggests that these countries are hubs for blockchain innovation and cryptocurrency usage, adoption of blockchain technology can also be seen in emerging markets like Nigeria and Kenya where crypto adoption has increased in response to instability of local currencies.

And into 2024, the situation seems to be changing, as Nigerian startups have already raised $13 million in blockchain investments – around 38 percent for all investments made in Africa in the first half of the year.

The report cites a study by Consensys, that says that 99 percent of Nigerian respondents knew what cryptocurrency was, and 70 percent showed a clear understanding of blockchain technology. In South Africa, 98 percent of the population is aware of cryptocurrencies.

“This deep understanding of blockchain technology in Africa will likely enable the region to reshape financial systems and empower people globally,” it adds.

“Unlike developed countries with entrenched legacy systems, African nations offer a fresh canvas for blockchain technologies to thrive.”

You can read the full report here.

[Image – Photo by Chris Liverani on Unsplash]