Kenya, South Africa and Nigeria are driving the adoption of blockchain and Web 3.0 technologies on the continent, a new report says.
The report, State of Web 3.0 in Africa, by EMURGO Africa – a blockchain technology firm – and PwC was released today. The report casts a spotlight on the rise of blockchain investment within Africa.
This report comes at a time when blockchain technology is burgeoning and is regarded as a catalyst to transform many industries, from finance and healthcare to transportation and supply chain management.
According to PwC, blockchain technologies could boost the global economy with $1.76 trillion by 2030. Blockchain funding soared by 1,668% in 2022, the report says, compared to the preceding year, accumulating $91 million in countries like Kenya, South Africa and Nigeria.
This heralds Africa's burgeoning presence within the global blockchain arena, says the report. The State of Web 3.0 in Africa report provides an analysis of the emergent influence of blockchain and Web 3.0 technologies within Africa and the Middle East region.
According to the research, Nigeria ranks in the top 10 worldwide for crypto adoption, emphasising the country's role in propelling financial inclusion and nurturing innovation in the digital currency sector in West Africa.
Although the use of cryptocurrency remained banned in the country, earlier this year, the Nigerian government approved the national policy on blockchain.
These findings, the reports say, underline the transformative effect of blockchain and Web 3.0 technologies in Kenya, South Africa and Nigeria, establishing them as leading contributors to the digital revolution unfolding across Africa.
Web 3.0 technologies are experiencing exponential growth and expansion in Africa, with the potential to bring transformative change to various industries such as trade and industry, financial services and lending, supply chain management and logistics and healthcare provision and accessibility.
Even though Africa has so far received a mere 0.5% of global blockchain funding, the report says the commitment to Web 3.0 technologies and digital currencies are poised to recalibrate its technological and financial landscape, paving the way for unprecedented financial inclusion and innovation.
"Web 3.0 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 Web 3.0," says Ahmed M Amer, CEO of EMURGO Africa.
EMURGO Africa says the report can be used as a resource for industry leaders, policymakers, innovators, and all interested parties’ and offers implications for the future of these regions beyond mere statistics.
Also, EMURGO says, 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, the report underscores the importance of a balanced regulatory approach to safeguarding individual privacy and protection.
EMURGO Africa is one of EMURGO's investment arms, with a $100 million allocation focused on identifying and investing African blockchain startups. The firm also provides startups with the resources necessary for funding, global marketing, and product building through local partners across the continent.
EMURGO Middle East & Africa (MEA) launched in October 2021 as a part of EMURGO’s initial $100 million ecosystem investment vehicle on Cardano, one of the world’s biggest public blockchains.
Originally EMURGO Africa, the investment grew to become EMURGO MEA, reflecting the huge opportunity for blockchain adoption and growth in the Middle East.
Upon its inception, EMURGO MEA partnered with pan-African venture builder Adanian Labs and started the Adaverse Cardano accelerator program in Africa to begin identifying, supporting, and incubating local blockchain talent.