WITHIN the next 10 years, more Africans may transact in stablecoins than through bank accounts. This is the bold assumption made in the Africa Blockchain Report, presented by Absa and blockchain venture capital firm CV VC Africa today.
The claim is based on trends revealed in the report that relate to mobile-first adoption, currency volatility, and limited access to traditional banking.
While global venture funding cooled off in 2024, Africa’s blockchain sector bucked the trend. According to the newly released Africa Blockchain Report 2024, blockchain ventures captured a record 7.4% of all venture capital funding in Africa – more than double the global average – and 12.7% of deal volume, even as the continent’s total VC funding shrank by 39% year-on-year.
This divergence is more than a statistical anomaly – it’s a signal of blockchain’s growing relevance in solving Africa’s long-standing infrastructure and financial inclusion challenges.
Speaking at the launch of the report, Brenton Naicker, Principal and Head of Growth at CV VC Africa, said blockchain in Africa is no longer speculative. “We’re seeing real-world use cases driving adoption – from cross-border payments to agricultural traceability – and venture capital is following that utility.”
From crypto hype to practical infrastructure
The 2024 report shows a noticeable shift from hype-driven crypto investments to more grounded applications of blockchain technology. Centralised financial services and decentralised finance (DeFi) together made up over 70% of blockchain investment, while other high-growth areas included data verification, agri-tech, and carbon credit tokenisation.
The median blockchain deal size in Africa reached $2.8 million, twice the all-sector median and a 10% year-on-year increase – proof that while ticket sizes are down globally, African investors are making more focused bets on digital infrastructure. Still, the average deal size dropped by 44%, underscoring a flight to quality over scale.
Stablecoins lead Africa’s leapfrogging moment
One of the strongest drivers of blockchain adoption is stablecoins, with use cases ranging from SME trade finance to corporate treasury and on-demand cross-border liquidity.
Rob Downes, Head of Digital Assets at Absa CIB, noted that stablecoins are fast becoming an integral part of Africa’s financial systems, without the visibility of traditional reporting.
“Institutional clients are using stablecoins for settlement and liquidity management, but they’re not broadcasting it,” said Downes during the report’s launch panel. “It’s about outcomes: faster, cheaper, more transparent transactions – not just the technology behind it.”
The report projects that within the decade, more Africans may transact in stablecoins than through bank accounts – a trend driven by mobile-first adoption, currency volatility, and limited access to traditional banking.
Nigeria, South Africa, and Seychelles dominate activity
According to the report, Nigeria, South Africa, and Seychelles emerged as the leading markets for blockchain venture funding. Nigeria’s rebound was particularly notable following a regulatory thaw in 2024 and remains Africa’s largest crypto user base. South Africa continues to attract investors due to its regulatory clarity and stable financial infrastructure.
Interestingly, Seychelles accounted for nearly a third of funding, though this is partly attributed to the country’s tax and legal advantages for companies operating globally. “It’s a blockchain hub on paper, but not all activity is targeted at African markets,” Downes cautioned.
Real-world Impact: From farms to fintech
Beyond finance, African startups are pioneering blockchain solutions in supply chains, agriculture, mining, and ESG. One such example is Shamba Records, a CV VC-backed agri-tech firm in East Africa helping over 30,000 smallholder farmers build verifiable yield data, gain access to insurance, and increase incomes by up to 30%.
“Blockchain is helping smallholder farmers secure credit, prove product provenance, and weather climate shocks,” Naicker said. “These are the kinds of innovations that make Africa one of the most promising blockchain frontiers.”
Regulatory clarity is key to growth
Seven African countries now offer full regulatory clarity for digital assets, while only five enforce outright bans. This evolving policy landscape is vital to investor confidence. South Africa, for instance, has moved decisively, classifying crypto assets as financial products and introducing crypto asset service provider licenses and on-chain transaction monitoring rules.
As Downes noted, “Regulation doesn’t stifle innovation – uncertainty does. Clear frameworks are encouraging capital inflows, especially in jurisdictions where it’s easy to repatriate funds.”
Despite representing just 1% of global blockchain funding, Africa’s 2.3% share of global blockchain deals and strong median deal size may signal the practical potential of blockchain on the continent.
With rising digital adoption, a young population, and deep infrastructure gaps to solve, Africa is uniquely positioned to shape the future of blockchain.
As the report puts it, “Africa isn’t just adopting blockchain. It’s building with it.”
