According to the latest report by CVVC, African blockchain businesses raised a total of $474 million in 2022, marking a 429% increase from the previous year. This total was realized from 29 deals, four more than the 25 that were sealed in 2021. The report indicates that the custody and exchanges category was the best-performing one, raising over $250 million, which is more than 50% of the total funds raised by blockchain companies. The fintech category came in second with 24.3%, followed by infrastructure and development at 14.3%. The rest of the categories, except for non-fungible tokens (NFTs), gaming, and metaverse, had a share of under 1% of the total funding.
The report further shows that South Africa and Seychelles were the countries that received the biggest share of the total funding, accounting for more than 80% of the total. South Africa received 37.3% while Seychelles received 43.9%. Nigeria, which had the second-highest share in 2021, had nine deals with a total value of nearly $16 million, which was only 3.4% of the total funding. The report data indicates that the rest of the tracked countries recorded significant funding increases, except for Nigeria and Egypt, which recorded a decrease in the value of funds raised. Liberia, which had no funding in 2021, was the third-highest-ranked country in 2022, with 7.9% of the total funding.
The report attributes the dominance of the custody and exchanges category to the growing demand for cryptocurrency trading in Africa and the recognition of the importance of secure storage solutions. The report stated that the significant increase in funding for this sector demonstrates the growing demand for cryptocurrency trading in Africa.
Terence Zimwara, an award-winning journalist, author, and writer from Zimbabwe, has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. He believes that the report’s findings are a positive sign for the African continent, indicating that there is growing interest in blockchain and cryptocurrency.
In conclusion, the report by CVVC shows that African blockchain businesses are gaining momentum, with a significant increase in funding in 2022 compared to the previous year. The custody and exchanges category was the best-performing one, raising over $250 million, which is more than 50% of the total funds raised by blockchain companies. The report’s findings are a positive sign for the African continent, indicating that there is growing interest in blockchain and cryptocurrency.
