EMURGO Africa has unveiled the ‘State of Web3.0 in Africa’ report, which highlights the emergent influence of blockchain and Web3.0 technologies within Africa and the Middle East and North Africa (MENA) region.
The report, which casts a spotlight on the pivotal rise of blockchain investment within Africa, notes that blockchain funding soared by a stunning 1,668% in 2022 compared to the preceding year, accumulating a total of USD 91 million (Ksh.12.7 billion) in Kenya, South Africa and Nigeria.
The report also paints a picture of Kenya’s role in blockchain adoption and digital innovation while showcasing the country’s speedy growth in implementing blockchain solutions that stimulate economic development in East Africa.
In South Africa, the report indicates, the escalating adoption of Web3.0 and blockchain technologies that are revolutionizing industries via secure and transparent data management in Southern Africa.
The report also highlights Nigeria’s high-ranking position in the top 10 worldwide for crypto adoption, emphasizing the country’s role in propelling financial inclusion and nurturing innovation in the digital currency sector in West Africa.
The findings underline the transformative effect of blockchain and Web3.0 technologies in Kenya, South Africa and Nigeria, establishing them as major contributors to the digital revolution unfolding across Africa.
The MENA region, concurrently, has been identified as the fastest-growing crypto market from 2021 to 2022, leading the digital revolution among users, regulators and crypto investors alike.
On the global stage, crypto regulation is evolving, with 40% of the 35 nations surveyed having instituted regulatory frameworks, 34% actively developing them, and a scant 9% enforcing outright prohibitions on cryptocurrencies.
Despite the fact that Africa has thus far received a mere 0.5% of global blockchain funding, the continent’s commitment to Web3.0 technologies and digital currencies is poised to recalibrate its technological and financial landscape, paving the way for unprecedented financial inclusion and innovation.
Weakening local currencies coupled with fragile economic backdrops have created rapidly growing demand for USD-pegged stable coins on the continent, as consumers protect their asset values from free-falling and owners of SMEs seek cheaper and efficient ways of payment.
“Web3.0 technologies are already redefining the African digital landscape, offering innovative solutions to long-standing challenges and empowering individuals and communities across the continent,” said Ahmed M. Amer, CEO of EMURGO Africa.
The 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 Web3.0.”
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 in safeguarding individual privacy and protection.
BY CITIZEN DIGITAL