South Africa. 16 July,  2024. The third CV VC African Blockchain Report, released in partnership with Absa Group (leading Pan-African bank), shows that Africa's share of global blockchain funding is expanding despite global economic pressures, driven by regulatory advancements paving the way for a rebound in funding. This report underscores blockchain's contribution to driving African economies forward. The technology's impact in Africa spans transparency, sustainability, data accountability, new service and creator economies, and financial inclusion.

• The report highlights Africa's rising prominence in the global venture ecosystem, reaching an all-time high of 0.62% of all global venture deals.
  
• Despite a 64% global decline in blockchain funding in 2023, the first half of 2024 showed a more moderate 9% year-over-year decrease, signaling potential recovery.
  
• In the first half of 2024, blockchain accounted for 6.4% of Africa's total venture funding and 12.5% of all deals, surpassing global averages of 3.5% and 5.9%, respectively. This underscores Africa's leadership in blockchain innovation and adoption.
  
• African blockchain ventures also began to rebound, with $135.4 million raised from 17 deals in 2023, and $34.7 million from 12 deals in the first half of 2024, marking a 9% increase in deal volume from the previous year's first half.
  

The report presents all venture funding from a global perspective with a lens on Africa. In doing so it highlights African investment trends, showing a shift towards DeFi (Decentralized Finance) and Data Management, Verification, & Analytics in H1 2024, reflecting growing investor confidence in foundational blockchain technologies and financial solutions. Insights by NODO, the report's regulatory research partner, show that previously, crypto was implicitly banned in 36 countries, now reduced to 8 indicating evolving stances.

Leaders in the industry, including Mathias Ruch, CEO of CV VC, and Rob Downes, Head of Digital Assets, CIB Africa, Absa Group, emphasize blockchain's transformative potential in Africa's socioeconomic systems and financial sector. They foresee continued growth as regulations clarify and awareness of blockchain's benefits expands.

Ruch said “Africa's vast natural asset, its people, coupled with the growing recognition of Africans' technological ability, resilience, and spirit, positions blockchain as a pivotal tool to support socio-economic advancement, not just for Africa but as a solution to many of the ill winds blowing globally.”

Downes added “ We expect to see blockchain-enabled use cases grow as regulations become clearer and awareness of the benefits grows among our customer base. The regulatory landscape is critical to our expanded participation, and there’s a great overview of it in this report, which we are very proud to co-publish with CV VC.”

The CV VC African Blockchain Report serves as a comprehensive resource on Africa's blockchain ecosystem, offering critical insights into the sector's dynamics amidst global economic shifts.

Read African Blockchain Report

‍Report Graphics

The 2023 African Blockchain Report delineates a year of strategic realignment and resilience within the African blockchain ecosystem amidst broader global economic shifts. While venture funding has seen a general downturn, the sustained interest and investment in blockchain ventures across Africa are irrefutable and poised to foster innovation and drive growth. The report stands as a pivotal resource for navigating the intricacies of the blockchain funding ecosystem in Africa, offering nuanced insights into the evolving dynamics of the sector.

Some select graphics from the report can be downloaded from here.

A quick link to the full report is available here.

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