The growth of the African crypto market has been remarkable in spite of the ongoing crunch the industry is experiencing globally.
This growth has been confirmed by a report published by blockchain venture capital company Crypto Valley VC in association with Standard Bank, saying that African Blockchain startups enjoyed raised $474 million in 2022 from funding. The funding is a 429% increase from the previous year’s $90 million, the report explains.
The report notes that 2021 was the record-breaking year of global venture funding, but most of the gains were reversed by slow funding in 2022. However, for blockchain, 2022 still recorded an all-time high funding flow with more deals and funds being closed.
Nigeria, South Africa, and Seychelles led the continent with the number of startups funded. In terms of the amounts of funding raised, Seychelles, South Africa, Liberia, Kenya, Nigeria, Cameroon, and Ghana topped the list in that order.
Startups in Seychelles raised over $200M, followed by South Africa at $176 M, while Kenya and Nigeria raised $25 M and 15M respectively. Cameroon and Ghana closed the list with $M and $2M respectively.
The average funding for each deal sealed in Nigeria raised about $1.25M, while total funding tool up only 3.4% of the total venture funding.
Gideon Greavs, the Managing Director at Crypto Valley Africa said, “I must say that I am excited about the future of blockchain technology on the continent. The growth and progress made over the past year is nothing short of remarkable, and the potential for further advancement is even more exciting.”
Greaves noted that with the youngest demographic in the world, the continent is distinctively situated to take advantage of its current conditions. “ The existing circumstances have provided an ideal setting for the growth of blockchain technology, which can address practical problems and showcase tangible benefits,” he said.
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