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- 1 Web3 investors poured nearly $90 Million in Africa.
- 2 Crypto’s Africa market grew by 1200 percent during 2020 and 2021.
Web3 adoption is grinning in the face of Web2. Although a global rollout may take years, however, some countries are already seeing significant adoption. EMURGO, a co-founding entity of Cardano (ADA), kept Africa a focal point in their recent research. The study found Web3 adoption in the continent is growing by leaps and bounds.
The African Crypto Boom
Being transparent and decentralized in nature, blockchain presents a plethora of opportunities in Africa according to the report. Potential areas of the technology’s integration in the continent include supply chain, education, mobility, and more. Faith found Web3 investors in Africa with Kenya, Nigeria, and South Africa receiving almost $90 Million post-covid.
Citing blockchain analysis firm Chainalysis, EMURGO’s report highlights blockchain’s growth remains slower while crypto’s, progressive. The latter’s Africa market grew by 1200 percent during 2020 and 2021. Increasing crypto adoption has its benefits, its unregulated nature may disrupt the continent’s financial system. They are not government backed assets and hence pose monetary risks.
Africa has reportedly the fastest blockchain adoption rate with funding in the sector increasing by 1,668 percent. Crypto use cases have spread in a range of areas including real-estate, education, energy and more. However, 20 percent of Sub-Saharan Africa have banned cryptocurrencies ascribed to potential financial risks. November 2022 is a testament to this, the report mentions, as the market lost sense of control following the FTX drama.
AI and ML Paves Path For Web3 in South Africa
Kenya shows a significant digital divide with just over 40 percent people having access to the internet, indicating a limited access to Web3. Although, growth appears progressive with users getting their hands to necessary tools. Moreover, the country’s authorities are working their way up to expand internet accessibility.
Nigeria is slowly becoming home to blockchain startups organization. The country is also the first African nation to launch their own central bank digital currency (CBDC) project, eNaira, in 2021. However, it failed to gain traction in the region. Reports suggest cash preference among citizens remains a radical cause for low CBDC adoption.
Web3 is accompanied by artificial intelligence (AI) and machine learning (ML) in South Africa. Decentralized apps (dApps) and blockchain are picking up steam in a range of industries there. Agriculture sector in the nation has found a use for blockchain in the supply chain.
Building on the data from previous two waves, a 2021 article published in Forbes, an American business magazine, notes that Web3 will gain the necessary traction after it has attracted a Billion users, which is likely to hit by 2025. Nonetheless, we cannot cite the exact number of Web3 users attributing to its multiple facets.
Some sources indicate only a Million monthly active users, while others make as much as 400 Million. This data suggests either we are nowhere close to Web3 adoption or just a few years away until it makes room in the mainstream.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
