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As the global investment landscape continues to evolve, Africa is emerging as a prominent player in the blockchain sector. Recent reports highlight a notable increase in blockchain investment across the continent, driven by a growing recognition of the technology’s potential to revolutionize various industries. This surge in investment reflects a shift towards foundational blockchain technologies and a positive regulatory climate, signaling a promising future for Africa’s blockchain ecosystem.

The third CV VC African Blockchain Report which was published in collaboration with Absa Group, a leading Pan-African bank reveals that Africa’s share of global blockchain funding is growing, even amid global economic challenges. 

This growth is attributed to regulatory progress that is facilitating a resurgence in funding. The report highlights blockchain’s significant role in advancing African economies, impacting areas such as transparency, sustainability, data accountability, new service and creator economies, and financial inclusion.

The report emphasizes Africa’s growing influence in the global venture ecosystem, achieving a record high of 0.62% of all global venture deals. According to this report, African blockchain ventures also began to rebound, with $135.4 million raised from 17 deals in 2023, and $34.7 million from 12 deals in the first half of 2024, marking a 9 percent increase in deal volume from the previous year’s first half.

Mathias Ruch, CEO of CV VC, and Rob Downes, Head of Digital Assets at Absa Group, highlighted the transformative potential of blockchain in Africa’s socioeconomic systems and financial sector.

“Africa’s vast natural asset, its people, coupled with the growing recognition of Africans’ technological ability, resilience, and spirit, positions blockchain as a pivotal tool to support socio-economic advancement, not just for Africa but as a solution to many of the ill winds blowing globally,” Ruch said.

“We expect to see blockchain-enabled use cases grow as regulations become clearer and awareness of the benefits grows among our customer base. The regulatory landscape is critical to our expanded participation, and there’s a great overview of it in this report, which we are very proud to co-publish with CV VC,” Downes added, on his part.

Several notable companies have secured significant funding in recent months. Beldex, known for its privacy-focused blockchain solutions. In 2023, it secured $25 million in funding in February and an additional $3 million in August, reflecting strong investor confidence and supporting its growth.

 Zone has become a leader in integrating blockchain technology with financial services throughout Africa. It has transitioned from a SaaS model to establishing itself as a regulated Layer-1 blockchain network.

 Bidget which sets itself apart with a wide range of services, including spot trading, futures trading, and derivative products, catering to users with different risk tolerances and trading preferences.

Bitget’s large operational scale and influence are evident in its daily trading volume, often surpassing $10 billion, with a user base of over 20 million registered users worldwide. This high level of activity showcases the platform’s liquidity and the strong trust and confidence it has established within the crypto trading community.

Additionally, gaming-focused companies like Seedify and Carry 1st, data specialist Shamba Records, and scalability-focused Scroll have also seen substantial funding increases.

The report also outlines investment trends, revealing a growing focus on DeFi (Decentralized Finance) and Data Management, Verification, and Analytics in the first half of 2024. This shift reflects increasing investor confidence in core blockchain technologies and financial solutions. Insights from NODO, the report’s regulatory research partner, show a notable change in regulatory attitudes: the number of countries with implicit bans on cryptocurrency has decreased from 36 to 8, indicating a shift in regulatory stances.

This regulatory evolution is crucial for fostering a supportive environment for blockchain innovation. As regulations become clearer and more favorable, they are likely to attract further investment and encourage the growth of blockchain-based projects across the continent.

With a supportive regulatory environment and a vibrant investment landscape, Africa is poised to harness the full potential of blockchain technology, paving the way for a more inclusive and innovative future.

Blockchain technology holds the potential to transform various sectors within Africa, driving economic growth and development. From enhancing financial inclusion and improving data transparency to creating new opportunities in the gaming and supply chain sectors, blockchain’s impact is far-reaching.

The increase in blockchain investment in Africa is a promising development for the continent’s economic future. As investor confidence grows and regulatory frameworks continue to evolve, Africa is well-positioned to become a leading hub for blockchain innovation. The focus on DeFi, data management, and scalability reflects a strategic shift towards core blockchain applications, which are set to drive significant advancements in various industries.