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The year 2022 was a unique year for the blockchain industry in Africa as more funds were raised between Q1 and Q4 of 2022 in several African nations.
Based on research from CV VC, amongst the top eight African countries that attracted 100% of blockchain funds, Seychelles and South Africa topped the list.
Seychelles
Seychelles attracted 43.5% of all blockchain funds raised in Africa in 2022. This was done in 6 deals to the tune of $208,039,500. In 2021, the figure was down to 32.7%, 3 deals, and $29,300,000. The major firms in this country are Kucoin and Scroll which raised $160 million and $30 million respectively in 2022.
Seychelles has taken steps to attract blockchain businesses to the country, such as launching a regulatory framework and establishing a blockchain research lab. These initiatives have made the country an attractive destination for blockchain businesses, such as BitMEX and Steemit.
South Africa
In 2022, South Africa second to Seychelles raised 37.3% of all blockchain funds generated in Africa. This was done in 6 deals like Seychelles and amounted to $176 million. Back in 2021, they got 13.8%, from 4 deals, valued at $12 million. MFS Africa and VALR are the two top organizations in the nation that attracted $100 million and $50 million respectively in 2022.
South Africa is a nation on the African continent’s southernmost tip. South Africa has a growing cryptocurrency market, with several exchanges and businesses accepting cryptocurrencies as a form of payment. The SARB has issued guidance notes and established a regulatory framework for virtual currencies. The market is still in its early stages but is rapidly evolving.
Liberia
Liberia sits in the third position on this list. In 2022, the country secured 7.9% of all blockchain funds from 2 deals valued at $37.5 million. Jambo is the major blockchain firm in Liberia. On the other hand, Liberia had no blockchain funds in the previous year. Liberia has shown an increasing interest in cryptocurrency and blockchain technology.
Kenya
Following Liberia is Kenya, which is already tagged as one of the largest tech hubs in Africa. Kenya attracted 5.4% of all blockchain funds in Africa for 2022 from 4 deals valued at $25.7 million which is also lower than what it got in 2021 – 23.2%, 2 deals, and $20.8 million.
Kenya has seen a growing interest in cryptocurrencies, but the Central Bank of Kenya has not yet issued regulations. Kenya has several exchanges and startups, and the Kenyan government is exploring the potential use of blockchain technology.
Nigeria
Nigeria is known as a major force in Africa when it comes to tech and blockchain but in 2022, could only get 3.4% of all blockchain funds raised in Africa. The 3.4% was realized from 9 deals and pegged at $15.9 million. In 2021, Nigeria had the second highest after Seychelles at 27.6%, 13 deals, and $24.6 million. Bitnob, Canza Finance, and Stakefair are some of the Nigerian-based blockchain firms that raised huge amounts in 2022.
Nigeria has seen a surge in cryptocurrency adoption in recent years, with popular cryptocurrencies such as Bitcoin, Ethereum, and Binance Coin. The Central Bank of Nigeria (CBN) issued a ban in February 2021, but it has since been suspended. Nigeria has a thriving cryptocurrency ecosystem, with startups and exchanges operating in the country. There is potential for further growth and innovation in this area.
Cameroon
Cameroon is another West African country that has attracted the attention of the blockchain industry. The country raised 1.7% of all blockchain funds gathered in Africa in 2022 from a single deal valued at $8 million. Ejara is the major face of 2022 blockchain funding in Cameroon. Back in 2021, the country had 2.2%, from a deal at $2 million.
Cameroon has a growing interest in cryptocurrencies, with a blockchain-based platform for mobile payments and remittances and several cryptocurrency exchanges.
Ghana
Ghana sits at position 7 only ahead of Egypt in the 2022 list. In 2022, the West African nation got 0.4% of all blockchain funds in Africa from a deal valued at $2 million. This is higher than what it got in 2021 – 0.1%, 1 deal, and $125,000.
Ghana has seen a surge in cryptocurrency adoption, with several exchanges and startups operating in the country. The government has expressed interest in exploring the potential use of blockchain technology in areas such as land registration and supply chain management.
Egypt
Egypt, although a major hub for tech innovation in Africa, didn’t get any blockchain funds in 2022. In 2021, it got 0.3% of the total blockchain funds raised in Africa from 2 deals valued at $250,000. Vezeeta, Raseedy, and Arabtizor are some blockchain firms in Egypt.
The government of Egypt has launched a blockchain strategy to promote the use of blockchain technology in the private sector. The Central Bank of Egypt is exploring the potential use of digital currencies, with plans to launch a digital version of the Egyptian pound.
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