Blockchain technology is flourishing in Africa, with the continent becoming an ideal destination for its growth and implementation.
The latest “African Blockchain Report” by CV VC reveals that blockchain deals in Africa have raised a substantial amount of $474 million in 2022, marking a 429% increase as compared to $90 million in 2021.
This remarkable growth in funding has surpassed the global average, which only saw a meager 4% increase in blockchain funding.
The report further highlights that African blockchain funding experienced a growth rate of over 12.5 times more than the general African venture funding on a YoY basis.
In comparison, overall African venture funding rose by just 34%, raising $3.14 billion across 570 deals.
In terms of global funding growth, Africa stands out as the region with the highest growth rate, while the United States remains steady at $15.2 billion.
Asia and Europe have also seen YoY increases of 50% and 35%, raising $4.74 billion and $4.88 billion in funding, respectively.
In the previous year, African countries Seychelles and South Africa garnered a whopping 81% of blockchain venture funding in the region amounting to $208 million and $177 million, respectively.
The total number of African blockchain deals also rose by 12% compared to the previous year, from 26 to 29.
African blockchain venture funding comprised only 1.77% of the global blockchain venture funding, yet it still exhibited an impressive 407% YoY increase, with numerous countries contributing to the growth.
In contrast, the United States concluded 137 deals, while Asia and Europe had 84 and 78, correspondingly.
In terms of the number of blockchain startups receiving funding, Nigeria was at the forefront, followed by South Africa, Seychelles, and Kenya.
However, even though Nigeria had the highest number of deals in Africa in 2022, it only made up 3.4% of all African blockchain venture funding, with an average deal size of $1.25 million.
Considering the significant increase in blockchain funding in Africa and the relatively small increase in the number of blockchain deals, it’s evident that the median deal size has considerably risen.
This indicates that businesses are securing more substantial funding, and investors are becoming more confident in African blockchain ventures.