The Rise of Blockchain in Africa
Africa is not just the continent of safaris and stunning landscapes; it’s rapidly becoming a powerhouse in the blockchain space. The recent numbers are staggering, as African blockchain deals raised a jaw-dropping $474 million in 2022. That’s a 429% spike compared to the mere $90 million raised in the previous year. So, what gives? Are investors finally waking up and smelling the jollof rice?
Explosive Growth Compared to Global Trends
In a world where blockchain funding growth was barely keeping its head above water at 4%, Africa played hardball with a growth rate more than 12.5 times that of general African venture funding! Overall, venture funding on the continent only increased by 34%, tallying up to $3.14 billion across 570 deals. Let’s just say, Africa caught a serious case of the blockchain bug!
Leading Countries in Blockchain Funding
When we talk about key players, Seychelles and South Africa are not just sitting around – they accounted for a whopping 81% of the total blockchain venture funding! Seychelles raked in $208 million, while South Africa followed closely with $177 million. And as the cherry on top, the total number of blockchain deals in Africa saw a 12% increase year-on-year, moving from 26 to 29. Who needs a crystal ball when you have these figures?
Comparative Analysis: Africa vs. Other Regions
While Africa dazzled with its 407% year-on-year increase, the U.S. trudged along, sticking to its steady $15.2 billion funding, while Asia and Europe saw increases of 50% and 35%, respectively. Africa’s blockchain venture funding constituted 1.77% of the global total, which might not sound like a lot, but it’s enough to make anyone sit up and take notice!
Nigeria’s Role in the Blockchain Ecosystem
Leading the pack in numbers, Nigeria had the highest concentration of blockchain startups getting funding, followed by South Africa, Seychelles, and Kenya. Though Nigeria led the numbers, it only snagged 3.4% of the total funding, with an average deal size of $1.25 million. Interestingly, while the total number of deals is rising, the median deal size is ballooning. Investors are putting down bigger stakes in African blockchain ventures, possibly signaling increased confidence in the continent’s potential.
