The state of blockchain technology in Africa

Africa's blockchain space is experiencing a rapid growth, with various countries beginning to establish working communities to explore the potential of this technology. The continent is witnessing a significant evolution in the use cases of blockchain beyond cryptocurrency exchange, moving towards applications in land titling, logistics, credit systems, and more. To discuss the advancements in the African blockchain ecosystem, CNBC Africa's Julius Bizimungu interviewed Oluwaseun David Adepoju, the author of the Africa Blockchain Report. Adepoju highlighted the progress made in blockchain innovation in Africa, shedding light on the factors driving this improvement. He mentioned a slight increase in funding for blockchain innovation on the continent, with some foreign investors starting to show interest in supporting homegrown solutions. Additionally, Adepoju emphasized the importance of creating an enabling environment for blockchain innovation, noting that while most African governments are not impeding progress, more effort is needed to foster a conducive ecosystem. Adepoju also discussed the concept of 'investment goes in the direction of value,' explaining that building a robust blockchain ecosystem that consistently delivers valuable solutions will naturally attract investments. However, he acknowledged that more work is needed to build up the ecosystem to a level where investors readily see the value in African blockchain solutions. The interview also delved into the varying performances of different African markets in blockchain innovation. Adepoju pointed out that countries like Ghana and Zimbabwe have seen significant blockchain-based innovations due to factors such as skills availability, government support, and historical technological vibrancy. In contrast, countries like Rwanda are still growing their blockchain ecosystems but are making strides with supportive governments. The interview concluded with a reflection on the discrepancy between the progressive attitudes of some African governments towards blockchain technology and the actual profitability of startups in the sector. Adepoju highlighted that despite the vibrancy of the blockchain ecosystem in Africa, many startups are still in the ideation stage, facing challenges like regulatory uncertainties and insufficient support for scaling up. He emphasized the need for progressive regimes to not only embrace blockchain technology but also provide comprehensive support to help startups transition from ideation to profitability and sustainability. In essence, while Africa's blockchain space shows immense potential for growth and innovation, concerted efforts from both governments and investors are essential to drive the ecosystem towards maturity and profitability.