In 2022, African blockchain companies raised a total of $474 million, an increase of 429% over what was raised the previous year, CVVC’s latest African blockchain funding report revealed. The custody and exchanges category raised more than $250 million, which is equivalent to more than 50% of the funds raised by blockchain companies.
South Africa and Seychelles accounted for more than 80% of the funds raised
According to the latest CVVC Africa Blockchain funding report, mainland blockchain companies raised $474 million in 2022, a year-over-year funding increase of 429%. The report states that the continent’s total blockchain funding by 2022 was made from some 29 deals, roughly four more than the 25 that were sealed in 2021.
Regarding the 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. Accounting for the second-highest turnout in 2021, Nigeria had nine deals worth a total of nearly $16 million, just 3.4% of total funding.
Apart from Nigeria and Egypt, the only countries on the continent to see a decline in the value of funds raised, the report data indicates that the rest of the countries tracked saw 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.
Growing demand for crypto trading in Africa
Meanwhile, the report shows the custody and exchanges category as the best performer, having raised more than $250 million or more than 50% of the total. Commenting on the prevalence of this category, the report said:
The significant increase in funding for this sector demonstrates the growing demand for cryptocurrency trading in Africa, as well as recognition of the importance of secure storage solutions.
Fintech was the second best performing category at 24.3%, followed by infrastructure and development, which accounted for 14.3%. With the exception of the non-fungible token (NFT), gaming and metaverse category which accounted for almost 7% of the funding, the rest of the categories had a share of the total of less than one percent.
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