The African blockchain sector experienced a significant downturn in venture funding during the first half of 2024, according to a recent report from Swiss blockchain venture capital firm CV VC.
The report revealed a 74% decline in funding compared to the same period last year, with African blockchain startups raising just $34.7 million, down from $135.4 million in 2023. However, despite this drop in funding amount, the number of deals made in the region increased by 9%.
According to the report, the downturn isn’t isolated to Africa, as the global blockchain sector also faced challenges. Worldwide blockchain venture funding fell by 64% year-on-year, from $10.66 billion in the first half of 2023 to $5.74 billion in 2024. The number of global deals also decreased by 49%, with 678 deals recorded in 2024 compared to 1,306 in 2023.
However, there’s a silver lining for Africa. The continent’s share of global blockchain venture funding rose to 6.4%, while its share of deals reached a record high of 12.5%, according to the report. This increased proportion indicates that despite the overall funding decline, Africa is gaining prominence in the global blockchain landscape, likely due to the technology’s potential to address unique regional challenges.
The Nigerian government recently announced plans to set up dedicated research centres that will focus on artificial intelligence (AI), the Internet of Things (IoT), and blockchain technologies. Kashifu Inuwa, the Director-General of the National Information Technology Development Agency (NITDA) revealed this during his speech at the just concluded IoT West Africa Conference in Lagos.
According to Inuwa, who was represented by NITDA’s Director of Corporate Planning and Strategy, Aristotle Onumo, signals Nigeria’s commitment to positioning itself at the forefront of technological advancemen t in Africa. Onumo noted that the goal of this initiative is to encourage technological innovation in important areas such as uncrewed aerial vehicles (UAVs), additive manufacturing, and robotics.
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