Seychelles Overtakes African Countries in Blockchain Investment during Market Dynamics Evolution
In the rapidly evolving world of blockchain technology, Seychelles has emerged as a significant player in Africa, attracting a substantial portion of the continent's total blockchain funding. Despite not ranking highly in crypto adoption among the general population, Seychelles has become a favoured destination for blockchain and crypto-related ventures.
In 2024, Seychelles accounted for approximately 33% of Africa's total blockchain funding, a testament to its appeal to international and local investors focused on blockchain projects and financial service innovations. This investment surge is driven by the country's favourable regulatory environment, strategic initiatives, and the entrepreneurial spirit and tech talent Seychelles offers.
While crypto adoption is lower in Seychelles compared to some other African countries, the influx of blockchain funding is not primarily driven by domestic consumer use of cryptocurrencies. Instead, Seychelles functions as a blockchain investment hub, where companies and investors focus on developing financial services and digital infrastructure using blockchain technology.
In contrast, countries like Nigeria, despite receiving nearly $60 billion in cryptocurrencies between 2022 and 2023, secured only $1.5 million in blockchain funding in 2023. However, Nigeria now tops the continent in deal volume, securing 10 blockchain funding deals, 33% of all recorded in Africa.
Other countries, such as Kenya and South Africa, also received blockchain funding in 2023, with Kenya securing $5 million (4%) and South Africa securing $24.25 million (18%). Centralised financial service providers received 40% of all blockchain funding in Africa in 2024.
The African Blockchain Report, published recently, highlights the challenges in Africa's blockchain sector. However, Jarryd Kennedy, Head of Investments at CV VC Africa, remains optimistic about Africa's long-term potential in the blockchain space. Kennedy believes that blockchain technology can provide practical, real-world solutions in Africa, with local founders demonstrating the practical applications of blockchain technology.
However, it's worth noting that some observers contest the claim that no funding was directed towards blockchain infrastructure networks in Africa in 2024, as Zone may be classified as a blockchain infrastructure company.
The role of Seychelles as a blockchain investment hotspot underscores the multifaceted nature of the technology’s economic impact across the continent, offering a glimpse into the potential future of blockchain adoption in Africa.
In 2024, Seychelles, with its favorable regulatory environment and tech talent, attracted a significant portion of international and local investors focused on blockchain projects and financial service innovations, accounting for approximately 33% of Africa's total blockchain funding. This investment surge was driven by the country's strategic initiatives, entrepreneurs, and its position as a hub for companies developing financial services and digital infrastructure using blockchain technology, rather than due to domestic consumer use of cryptocurrencies.
