Africa’s blockchain ecosystem is undergoing a dynamic transformation, marked by shifting investment patterns and emerging regional leaders. At the forefront of this evolution is Seychelles, which has emerged as the top destination for blockchain funding on the continent. Despite its small size and relatively low crypto adoption rates, Seychelles continues to attract the largest share of venture capital in Africa’s blockchain space.
According to the latest African Blockchain Report by CV VC, Seychelles secured 31% of all blockchain funding across Africa—amounting to $38.35 million. This positions the island nation ahead of traditional tech powerhouses like South Africa ($24.25 million, 18%) and Nigeria ($18.85 million, 15%), with Kenya following at $5 million (4%).
A Consistent Leader Despite Market Shifts
Seychelles has maintained its dominance in blockchain investment for four consecutive years since the report's inception. What makes this achievement remarkable is that the country does not rank highly in terms of actual cryptocurrency usage or transaction volume across Africa. Instead, its appeal lies in regulatory clarity, tax incentives, and a business-friendly environment that attracts blockchain startups and investors alike.
However, Seychelles’ lead has been narrowing. In 2022, it captured $209 million—43% of Africa’s total blockchain funding. By 2023, that figure dropped to $89 million (46% share), and in 2024, it further declined to $38.35 million. While still dominant in percentage terms, the downward trend reflects broader market volatility and increasing competition from other African nations.
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Nigeria Rises in Deal Volume Despite Funding Drop
In contrast to Seychelles’ capital concentration, Nigeria demonstrates strength in entrepreneurial activity and market penetration. Despite receiving nearly $60 billion in cryptocurrency inflows between 2022 and 2023—one of the highest volumes globally—the country saw a sharp decline in formal blockchain funding.
Nigeria raised only $15.9 million in 2022 and just $1.5 million in 2023. Yet, it leads the continent in deal volume, securing 10 blockchain funding rounds—accounting for 33% of all deals recorded in Africa. Seychelles follows with eight deals (31%), highlighting a growing diversification in where startups are being funded versus where innovation is happening.
This disconnect suggests that while Nigerian founders are highly active and crypto adoption is widespread, access to institutional capital remains limited—possibly due to regulatory uncertainty and banking restrictions.
Notable Funding Rounds Driving Innovation
Several high-profile funding rounds have helped sustain momentum in Africa’s blockchain sector:
- Yellow Card closed a $33 million Series C round, reinforcing its position as one of Africa’s leading crypto exchange platforms.
- Zone raised $8.5 million in a pre-seed round, positioning itself as a key player in blockchain infrastructure.
- Juicyway secured $3 million to expand its blockchain-based logistics and supply chain solutions.
These investments signal growing confidence in African blockchain ventures, particularly those solving real-world problems such as cross-border payments, remittances, and financial inclusion.
Volatility in African Blockchain Investment
The trajectory of blockchain funding in Africa has been anything but stable. The market saw funding rise from $89 million in 2021 to a peak of $474 million in 2022—driven by global crypto bull runs and increased investor appetite. However, it sharply declined to $190.7 million in 2023 and fell further to $122.45 million in 2024.
This volatility mirrors global trends but is amplified by regional factors such as inconsistent regulation, currency instability, and limited venture capital infrastructure.
Today, Africa accounts for just 1% of global blockchain funding, underscoring the nascent stage of its ecosystem. Most investments remain concentrated in centralized financial services—such as crypto exchanges and remittance platforms—rather than decentralized protocols or Web3 infrastructure.
In fact, 40% of all blockchain funding in Africa in 2024 went to centralized financial service providers. Meanwhile, sectors like blockchain infrastructure networks reportedly received zero funding—though this claim is debated, given companies like Zone operating at the intersection of infrastructure and application layers.
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Long-Term Potential Amid Challenges
Despite current challenges, experts remain optimistic about Africa’s long-term role in the global blockchain landscape. Jarryd Kennedy, Head of Investments at CV VC Africa, emphasizes the unique value proposition of blockchain technology on the continent:
“Blockchain technology is uniquely positioned to tackle specific challenges across Africa, and local founders are leading by example—demonstrating how blockchain can provide practical, real-world solutions.”
From enabling frictionless cross-border transactions to providing financial services to the unbanked, blockchain offers scalable answers to systemic issues. With over 60% of Sub-Saharan Africa’s population underbanked, the demand for alternative financial systems is clear.
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Frequently Asked Questions (FAQ)
Q: Why does Seychelles lead in blockchain funding despite low crypto adoption?
A: Seychelles offers a favorable regulatory environment, tax incentives, and strong legal frameworks that attract international blockchain companies seeking incorporation hubs. Its focus is on investment infrastructure rather than mass consumer adoption.
Q: How does Nigeria compare to Seychelles in blockchain development?
A: While Seychelles leads in total funding attracted, Nigeria leads in deal volume and grassroots crypto usage. Nigerian startups are more numerous and active, but face greater regulatory hurdles that limit institutional investment.
Q: What types of blockchain projects are receiving funding in Africa?
A: Most funding goes toward centralized financial services like crypto exchanges and payment platforms. However, there is growing interest in blockchain infrastructure, supply chain solutions, and identity verification systems.
Q: Is blockchain investment growing in Africa?
A: Investment has been volatile. After peaking in 2022, funding dropped significantly in 2023 and 2024. However, long-term indicators suggest continued growth potential due to high demand for financial inclusion and digital transformation.
Q: What role does regulation play in African blockchain funding?
A: Regulation varies widely across countries. Clear frameworks like those in Seychelles attract capital, while restrictive or ambiguous policies—such as Nigeria’s past banking restrictions on crypto firms—can deter investment despite strong user demand.
Q: Can Africa increase its share of global blockchain funding?
A: Yes. With improved regulatory coordination, deeper venture capital networks, and stronger technical talent pipelines, Africa could significantly expand its footprint in the global blockchain economy.
Final Thoughts
Seychelles’ leadership in African blockchain funding reflects strategic positioning rather than mass-market usage. Meanwhile, countries like Nigeria showcase the power of organic adoption and entrepreneurial energy. As the ecosystem matures, collaboration between regulatory clarity and grassroots innovation will be key to unlocking sustainable growth.
The path forward requires bridging the gap between capital availability and real-world application—ensuring that blockchain technology delivers tangible benefits across the continent.