Investors update: African blockchain startups raised $474m in 2022
3 min Read May 1, 2023 at 12:24 PM UTC

African blockchain startups raised $474m in 2022
Highlights
- The growth of the African crypto market has been remarkable in spite of the ongoing crunch the industry is experiencing globally, as confirmed by a report published by blockchain-focused Crypto Valley VC and Standard Bank.
- Per the report, African blockchain startups raised $474 million in 2022 from funding, a 429% increase from the previous year’s $90 million.
- While global venture funding slowed in 2022, last year still recorded an all-time high funding flow with more deals and funds being closed for blockchain.
Source: CV VC Report
Our Takeaway
Nigeria, South Africa, and Seychelles led the continent with the number of startups funded. In terms of the amounts of funding raised, Seychelles, South Africa, Liberia, Kenya, Nigeria, Cameroon, and Ghana topped the list in that order. Startups in Seychelles raised over $200m, followed by South Africa at $176m, while Kenya and Nigeria raised $25m and $15m respectively. Cameroon and Ghana closed the list with $3m and $2m respectively. The average funding for each deal sealed in Nigeria raised about $1.25m, while total funding took up only 3.4% of the total venture funding.
Nigeria plans to allow asset-backed tokens but not crypto
Highlights
- Nigeria’s Securities and Exchange Commission is processing applications for digital exchanges on a trial basis.
- The SEC is considering permitting tokenized coin offerings on licensed digital exchanges that are backed by assets including equity, debt, and property but not crypto.
- This is in a bid to widen market participation in Africa’s most populous country where the central bank restricts trading in cryptocurrencies.
Source: Bloomberg
Our Takeaway
Nigeria accounts for the largest volume of cryptocurrency transactions done on peer-to-peer trading platforms outside the US, according to Paxful, an exchange that folded up in April. Hence, the move may lure digitally-savvy people in a nation of more than 200 million — with 43% of the population below 14 — to local assets including equities, which have been shunned for years. Other nations are also testing similar tokens and just last week, Zimbabwe announced plans to issue a $100 million-gold-backed digital currency.
Tunisian e-commerce Drest.tn raises $336k from 216 Capital
Highlights
- Drest.tn, a Tunisian startup specializing in online sales of lifestyle products, has announced a recent fundraising round with investment fund 216 Capital Ventures.
- The fundraising round, which amounted to 1.2 million dinars ($336,000), will enable Drest.tn to continue its growth and expand into the African market.
- Since the creation of its website in June 2020, Drest.tn has stood out in the Tunisian market by offering a complete range of lifestyle products, with a focus on fashion and beauty.
Source: Wamda
Our Takeaway
Compared to its North African counterparts, specifically Morocco and Egypt, Tunisia’s retail market is relatively underdeveloped. As a result, there are several promising opportunities that domestic and foreign operators can capitalize on, particularly in areas such as e-commerce. As the number of shopping centers continues to expand, the presence of online shopping in Tunisia is also growing, albeit at a slower pace than other markets in Africa. Nonetheless, the market has a predicted revenue of $522.8 million for this year and is expected to grow 14.1%, resulting in a projected value of $886.8 million by 2027.
This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Articles do not reflect the views of DABA ADVISORS LLC and do not provide investment advice to Daba’s clients. Daba is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.






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