30+ blockchain and crypto companies based in Africa

Africa is the third-fastest growing cryptocurrency economy, according to the 2021 Geography of Cryptocurrency report by Chainalysis, with $105.6B worth of cryptocurrency circulated between July 2020 and June 2021. Nigeria, Morocco, and Kenya were among the top 20 countries in the 2022 Global Crypto Adoption Index by Chainalysis.

The higher rate of crypto adoption in Africa is due to many factors, including inefficiencies caused by a legacy system laden with red tape, lack of financial services infrastructure, low financial inclusion, high unbanked population, rising inflation, and the devaluation of local currencies. The growing number of tech-savvy young adults and the increased use of smartphones and the internet are other reasons for higher crypto acceptance. The increased acceptance of blockchain as a technology and crypto as a means of transaction allows startups and consumers to either bypass these inefficient legacy systems or provide ways to reduce overarching frictions.

In contrast to affluent Western countries, the poorer countries of Africa use crypto as a necessity of everyday life to combat unfavorable economic conditions.

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Since 2014, the investor community has backed 86 companies in Africa through 156 funding deals. Of those, 49% were seed rounds, followed by incubator or accelerator (14%) and Series A (9%). Nigeria (37%), Seychelles (21%), and South Africa (15%) are the top three countries attracting VC investments, followed by Kenya (7%), Egypt (5%), and Ghana (5%). Investors, mainly from the US (43%), including Pantera Capital, Y Combinator, 500 Global, CMT Digital, Coinbase Ventures, and Digital Currency Group, see the growing potential of Africa in the blockchain and crypto space. Nigeria and South Africa have also been actively investing in this domain.