Africa generated $304 million in blockchain investments during the first half of 2022

What

During the first two quarters of 2022, $304 million worth of capital entered the African blockchain ecosystem

Why 

The African Blockchain Report 2021 revealed that between Q1 2021 and 2022, funding grew by 1,668% – rising from $5.1 million to $91 million

What next

“The lack of common legacy financial systems and an enormous population, primarily unbanked, all contribute to the popularity and growth of cryptocurrencies on the continent,” the report explained

The story

As Africa’s crypto adoption numbers continue to break records, so too did the amount of venture capital investments, with a total of $304 million entering the African blockchain ecosystem over the first half of 2022.

According to the African Blockchain Report 2021, between Q1 2021 and 2022, funding grew by 1,668% – rising from $5.1 million to $91 million. Crypto-centric payments too have been growing, surging by 1,200% between July 2020 and June 2021.

The large influx of venture capital was generated primarily by Nigeria, Kenya, and South Africa – three of the largest startup ecosystems in Africa. The report cited a lack of common legacy financial systems and a larger proportion of unbanked citizens as key contributors to the popularity and growth of cryptocurrencies on the continent.

Commenting on the trends, Ian Putter, Standard Bank’s Head Blockchain COE and Blockchain Research Institute Africa Regional Director explained:

“Countries like South Africa, Kenya, Nigeria, and Ghana have seen a rapid uptake of crypto assets to access more efficient payment trails provided by blockchain networks and yield returns on income with assets like Bitcoin or stablecoins pegged to the value of the US dollar.”

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