Blockchain funding soared by a stunning 1,668% in 2022 compared to the preceding year, accumulating a total of USD 91 million in countries like Kenya, South Africa and Nigeria according to a new report.
The report dubbed the “State of Web3.0 in Africa” by EMURGO Africa, in strategic partnership with PwC, Kenya has a speedy growth in implementing blockchain solutions that stimulate economic development in East Africa while in South Africa, the adoption of Web3.0 and blockchain technologies is revolutionizing industries via secure and transparent data management.
According to Ahmed M Amer, CEO of EMURGO Africa, “Web3.0 technologies are already redefining the African digital landscape, offering innovative solutions to long-standing challenges and empowering individuals and communities across the continent. This report presents an in-depth exploration of the potential of these technologies to drive positive change, while highlighting the importance of fostering a collaborative environment between stakeholders, policymakers, and regulators to unlock the full potential of Web3.0.”
In Nigeria, the report highlights the country’s high-ranking position in the top 10 worldwide for crypto adoption, emphasizing the country’s role in propelling financial inclusion and nurturing innovation in the digital currency sector in West Africa.
The MENA region, concurrently, has been identified as the fastest-growing crypto market from 2021 to 2022, leading the digital revolution among users, regulators and crypto investors alike. The report illustrates the impressive progress and latent potential of blockchain and Web3.0 technologies across Africa and paints a picture of Kenya’s forefront role in blockchain adoption and digital innovation.
On the global stage, crypto regulation is evolving, with 40% of the 35 nations surveyed having instituted regulatory frameworks, 34% actively developing them, and a scant 9% enforcing outright prohibitions on cryptocurrencies.
Despite the fact that Africa has thus far received a mere 0.5% of global blockchain funding, the continent’s commitment to Web3.0 technologies and digital currencies is poised to recalibrate its technological and financial landscape, paving the way for unprecedented financial inclusion and innovation.
Weakening local currencies coupled with fragile economic backdrops have created rapidly growing demand for USD-pegged stablecoins on the continent, as consumers protect their asset values from free-falling and owners of SMEs seek cheaper and efficient ways of payment. This development is a testament to the burgeoning adoption of digital currencies and blockchain technology as practical solutions in economically volatile environments.
The “State of Web3.0 in Africa” underscores the importance of a balanced regulatory approach in safeguarding individual privacy and protection especially with 20% of Sub-Saharan African countries currently outlawing crypto-assets, and established data protection laws in countries like Kenya, Nigeria, Egypt, and South Africa.