Over the last year, different crypto and blockchain projects have continued to crop up on the face of the African continent with increasing frequency. These projects have attracted a significant amount of funding to have Africa labelled by some experts as a new economic frontier for Web3.
According to a new report by Standard Bank and blockchain-investment firm Crypto Valley Venture Capital (CV VC), Africa received substantially more venture funding in the first quarter of 2022 compared to the same period in 2021.
The report titled “The African Blockchain Report 2021 shows that blockchain startups were able to raise $91 million within 2022’s first quarter. While Africa has not yet seen a “blockchain mega-deal,” the report noted that these might come up in 2-3 years.
When the $91million raised is compared with the amount raised in 2021, this showed a year-on-year (YoY) increase in cash inflow of 1,668%. In 2021, when this was computed after the first quarter, it showed a YoY increase of 149%. This gives an increase of more than 11 times.
This massive increase resonates with the growth figures seen in the number of users and transactions done with crypto as the region continues to grow its interest in blockchain powered projects.
According to CV VC Managing Director for Africa, Gideon Greaves, blockchain funding in Africa surpassed all other forms of startup funding. He added that with the aid of CV VC, the region can enter markets faster through blockchain projects.
Greaves said that they see this development as a key enabler for African enterprises, giving rapid entry to markets by using blockchain as the catalyst to build new businesses.
Within the next five years, Greaves believes Africa will become the dominant market for “capitalizing on business using blockchain.” According to him, Africa has the proper tools, drive, and population to build enormous projects that service millions of people.
Furthermore, according to Greaves, the absence of legacy infrastructure across the African continent gives blockchain entrepreneurs an advantage because they can fill this gap with fast and innovative technology.
A report from last month showed that Nigeria had experienced an increase in crypto ownership despite an existing ban in the country. This was found to be a result of the lack of financial services infrastructure in Nigeria with citizens also using crypto as an alternative for storing and transferring assets.