The third edition of the African Blockchain Report reveals an impressive surge in African blockchain funding, nearly doubling the global average, despite worldwide economic pressures. This growth is largely attributed to progressive regulatory changes across the continent, enhancing transparency, sustainability, data accountability, and fostering new service and creator economies, as well as promoting financial inclusion.

Industry Luminaries Highlight Blockchain’s Transformative Potential

Prominent figures like Mathias Ruch, CEO of CV VC, and Rob Downes, head of digital assets at CIB Africa, Absa Group, underscore the transformative potential of blockchain technology in Africa’s socioeconomic landscape. They anticipate continued expansion as regulatory frameworks become clearer and the awareness of blockchain’s advantages proliferates.

Ruch stated, “Africa’s greatest asset, its people, combined with the increasing recognition of their technological prowess, resilience, and innovation, positions blockchain as a crucial instrument for socio-economic progress, not just within Africa, but as a global remedy for various challenges.”

Downes added, “We expect blockchain-enabled applications to proliferate as regulatory clarity improves and our customer base becomes more cognizant of the benefits. The regulatory environment is pivotal to our broader engagement, and this report, which we are proud to co-publish with CV VC, offers an excellent overview.”

Key Insights and Highlights

The report offers a comprehensive overview of global venture funding with a particular focus on Africa. It highlights trends such as the shift towards decentralized finance (DeFi) and data management, verification, and analytics in the first half of 2024. This shift reflects growing investor confidence in fundamental blockchain technologies and financial solutions.

Insights from NODO, the report’s regulatory research partner, indicate a significant evolution in the regulatory landscape. Previously, cryptocurrency was implicitly banned in 36 countries, but this number has now reduced to 8, showing a progressive shift in regulatory attitudes.

CV VC and Absa Group emphasize Africa’s rising stature in the global venture ecosystem, achieving an unprecedented 0.62 percent of all global venture deals. The report also notes that despite a 64 percent global decline in blockchain funding in 2023, the first half of 2024 experienced a more modest nine percent year-over-year decrease, indicating potential recovery.

In the first half of 2024, blockchain represented 6.4 percent of Africa’s total venture funding and 12.5 percent of all deals, surpassing the global averages of 3.5 percent and 5.9 percent, respectively.

Resilient Deal Activity

From a deal volume perspective, African blockchain ventures are showing signs of recovery. In 2023, $135.4 million was raised from 17 deals, and $34.7 million from 12 deals in the first half of 2024. This marks a nine percent increase in deal volume compared to the first half of the previous year.

By focusing on decentralized finance and innovative data management solutions, Africa is positioning itself at the forefront of the global blockchain revolution, showcasing resilience and adaptability in a rapidly evolving industry.