Blockchain venture funding in Africa saw a significant decrease of 74% in the first half of 2024 compared to the same period in 2023, according to a report by Swiss blockchain venture capital firm CV VC.
Released on July 16, the report highlighted that African blockchain ventures raised $34.7 million in the first six months of 2024. This is a substantial drop from the $135.4 million secured in the first half of 2023. Despite the decline in funding, the number of deals in the region increased by 9%.
Broader Decline in Global Blockchain Funding
The downturn in African blockchain funding is part of a larger trend observed globally. According to CV VC, global blockchain funding fell from $10.66 billion in the first half of 2023 to $5.74 billion in the same period in 2024, representing a 64% year-on-year decline. The number of deals also dropped from 1,306 to 678, marking a 49% decrease.
Regional Focus and Unique Challenges
While the total amount of funding in Africa has decreased, the region accounted for 6.4% of all venture funding and 12.5% of regional deals in the blockchain space. CV VC’s report indicates that Africa’s higher percentage of blockchain venture activity suggests a regional focus on leveraging blockchain technology to address unique challenges.
Positive Outlook
Despite the overall decline in funding, Africa’s performance in terms of deal share reached an all-time high, indicating a strong interest and commitment to blockchain solutions. The data implies that Africa is prioritizing blockchain technology to solve region-specific issues, which is a positive sign for the future of blockchain ventures on the continent.
Summary Review: The sharp decline in blockchain venture funding in Africa mirrors a broader global trend. However, the increase in the number of deals and the higher percentage of blockchain activity in the region suggest a focused effort to utilize blockchain technology to tackle unique challenges. This continued interest and investment in blockchain solutions indicate a promising future for the technology in Africa.
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