In 2022, African blockchain companies raised a total of $474 million, up 429% from what was raised in the previous year, CVVC’s latest African Blockchain Funding Report reveals. The Custody and Exchange category has raised more than $250 million, which equates to more than 50% of the funds raised by blockchain companies.
South Africa and the Seychelles accounted for more than 80% of the funds raised
According to the latest CVVC Africa Blockchain Funding a report, Blockchain businesses from the continent raised $474 million in 2022, an annual funding increase of 429%. The report states that total blockchain funding on the continent for 2022 materialized around 29 deals, about four more than the 25 deals concluded in 2021.
In terms of individual countries with the largest share of total funding, the report showed that South Africa (37.3%) and Seychelles (43.9%) alone received more than 80% of the total. Nigeria, which had the second highest share in 2021, closed nine deals with a total value of nearly $16 million, just 3.4% of the total financing.
Besides Nigeria and Egypt – the only two countries on the continent that recorded a decrease in the value of money raised – the report’s data indicates that the rest of the countries tracked recorded significant increases in funding. Liberia, which had no funding in 2021, was the third highest ranked country in 2022 with 7.9% of total funding.
The growing demand for cryptocurrency trading in Africa
Meanwhile, the report shows the custody and exchange category as the best performer, raising more than $250 million or more than 50% of the total. Referring to the dominance of this category, the report said:
The significant increase in funding for this sector illustrates the growing demand for cryptocurrency trading in Africa, as well as the recognition of the importance of secure storage solutions.
Fintech was the second best performing category at 24.3%, followed by infrastructure and development at 14.3%. With the exception of the non-fungible tokens (NFT) category, games, and the metaverse category which accounted for nearly 7% of the funding, the rest of the categories took a share of the total under one percent.
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