Absa Group and CV VC have released the third African Blockchain Report, highlighting the continent’s expanding share of global blockchain funding. Despite global economic pressures, Africa’s blockchain sector shows resilience, driven by regulatory advancements and contributing significantly to economic growth.
The CV VC African Blockchain Report reveals that Africa’s role in the global venture ecosystem has reached a record high of 0.62% of all global venture deals. This growth is attributed to blockchain’s impact on transparency, sustainability, data accountability, and financial inclusion across the continent.
Despite a 64% global decline in blockchain funding in 2023, the first half of 2024 saw only a 9% year-over-year decrease, indicating potential recovery. Africa’s blockchain sector accounted for 6.4% of total venture funding and 12.5% of all deals, surpassing global averages and underscoring the continent’s leadership in blockchain innovation.
In 2023, African blockchain ventures raised $135.4 million from 17 deals, with $34.7 million from 12 deals in the first half of 2024, marking a 9% increase in deal volume compared to the previous year’s first half. Investment trends show a growing focus on DeFi and Data Management, reflecting investor confidence in foundational blockchain technologies.
Regulatory research partner NODO highlights a shift in the regulatory landscape, with the number of countries implicitly banning crypto dropping from 36 to 8. This evolving stance supports the growth and adoption of blockchain technologies in Africa.
Mathias Ruch, CEO of CV VC, and Rob Downes, Head of Digital Assets at Absa Group, emphasize blockchain’s transformative potential in Africa’s socioeconomic systems. As regulations clarify and awareness grows, they foresee continued growth and expanded use cases for blockchain, positioning it as a pivotal tool for socio-economic advancement.
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