400% Growth in African Crypto Venture Capital Despite Bear Market

Venture capital investment in African crypto firms rose by over 400% in 2022 to $474m, with cryptocurrency exchanges and custodial services receiving 52% of the funds. Seychelles and South Africa accounted for 81% of the investments, followed by fintech and blockchain infrastructure and development. International exchange KuCoin raised $180m, achieving unicorn status. The number of blockchain firms involved in personal identification and financial independence rose by 12%. Africa’s share of global blockchain venture funding reached 1.8%. The regulatory environment in several African jurisdictions remains unclear with Zimbabwe stating it will prohibit cryptocurrencies outright. Meanwhile, Nigeria’s securities watchdog is finalising new crypto rules and the Bank of Ghana is developing a new framework. While some countries have issued guidance or require compliance with anti-money laundering or counter-terrorism rules, several have implicitly or explicitly banned cryptocurrencies.