Africa is rewriting the global blockchain narrative, with a 15% year-on-year increase in deal activity, outstripping the world’s 6% growth, according to CV VC’s fourth African Blockchain Report, released today.
While global blockchain funding rose 14%, Africa’s share of venture capital (VC) deals climbed to 2.3%, driven by Nigeria’s dominance and innovative applications in agriculture and finance.
The report, co-published with Absa Group, underscores Africa’s strategic embrace of blockchain to tackle local challenges.
Nigeria secured a commanding 33% of Africa’s blockchain deal count in 2024, cementing its position as the continent’s leader. The country’s startups, leveraging blockchain for financial inclusion and cross-border payments, attracted significant investor interest.
Despite a 36% drop in total investment to $122.5 million, Nigeria’s median deal size of $2.8 million doubled the all-sector median, signalling robust confidence in early-stage ventures.
“Nigeria’s blockchain ecosystem is thriving because it addresses real pain points like inefficient remittances and financial exclusion,” said Jarryd Kennedy, Head of Investments at CV VC Africa.
The country’s 300,000 active blockchain developers, representing 3% of the global total, further fuel this momentum.
Blockchain’s impact in Africa extends far beyond fintech, with agriculture emerging as a key beneficiary. Employing over 60% of the continent’s workforce, the sector faces challenges like poor supply chain traceability, costing Africa billions in food exports annually. Blockchain solutions, such as Shamba Records’ on-chain farmer identity and crop data systems, are addressing these issues.
“Africa isn’t testing blockchain; it’s embedding it where it matters most for the future of humanity,” said George Maina, CEO of Shamba Records.
Blockchain meets EU import rules requiring proof of zero deforestation, therefore unlocking access to a €7.5 billion market, enhancing transparency and liquidity for farmers with just a mobile connection.
Regulatory progress unlocks potential
Regulatory advancements are paving the way for Africa’s blockchain surge. Seven countries now have clear digital asset regulations, while 35 others are exploring frameworks, shifting from caution to innovation.
Nigeria’s lifting of its crypto ban in December 2023 and new draft guidelines in March 2024 exemplify this trend, fostering a stable environment for startups.
However, Africa captured just 1% of global blockchain funding in 2024, down from 1.8%.
“This isn’t just an investment gap; it’s an opportunity gap,” said Mathias Ruch, CEO of CV VC. He emphasised that global investors are missing out on Africa’s potential, given its 65% of global arable land and rapidly growing economies.
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Key markets and investment trends in Africa’s blockchain ecosystem
Africa’s blockchain landscape is diverse, with Nigeria, Kenya, and South Africa leading the charge. The report highlights:
- Nigeria: 33% of deal count, driven by fintech and payment infrastructure startups like Zone Payment Network, which raised $8.5 million.
- Kenya: 13% of deals, focusing on decentralised finance (DeFi) and data analytics.
- South Africa: 18% of total funding, bolstered by regulatory clarity and established startups.
- Pan-African Platforms: 28.4% of funding, reflecting scalable, cross-border solutions.
Seed rounds dominated, capturing 33.9% of funding, while centralised blockchain financial services led with 40.5% of total capital, underscoring the sector’s focus on scalable infrastructure.
In rural Kenya, smallholder farmer Mary Wanjiku exemplifies blockchain’s transformative power. Using Shamba Records’ platform, she verifies her coffee’s ethical sourcing, securing a premium price from European buyers.
The extra income, $300 annually from carbon credits, allows her educate her daughters, breaking the cycle of poverty. Such stories highlight blockchain’s role in empowering Africa’s 600 million unbanked adults, offering a bridge over costly legacy banking systems.
Blockchain also addresses practical challenges like land ownership disputes. In Nigeria, HouseAfrica’s digital property validation system records transactions transparently, reducing fraud in a country where paper-based records dominate. These grassroots solutions demonstrate why Africa’s blockchain adoption is driven by necessity, not hype.
However, despite its progress, Africa faces hurdles. Regulatory uncertainty persists in 47 of 54 nations, and infrastructure limitations, such as unreliable internet, hinder scalability. Cybersecurity concerns also deter some investors.
Yet, the opportunity is immense. With 25% of the world’s population by 2050 and nine of the 20 fastest-growing economies, Africa is poised for a digital leap.
Mobile penetration
Mobile penetration, already at 80%, provides a foundation for blockchain’s decentralised solutions. The report calls for increased global investment to close the funding gap and accelerate innovation.
The CV VC African Blockchain Report paints a picture of a continent in motion, where blockchain is not a luxury but a necessity.
“African innovators are solving deeply rooted challenges with blockchain, from trade bottlenecks to agricultural transformation,” said Rob Downes, Head of Digital Assets at Absa CIB.
He sees blockchain as central to Africa’s digital economic leap, with Absa actively supporting the ecosystem.
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