Investing on African soil can make those who can’t see beyond the end of their wallets smile. However, all the studies show that this is where the deployment of blockchain technology and the adoption of cryptocurrencies will largely be played out. In any case according to their fundamental utility principle and not only as a speculative investment. This is why venture capital investment structures wish to support the development of local start-ups. With the creation of a Dedicated Fund set up by Crypto Valley Venture Capital.
It is not enough to invest in the right project to enable an emerging technology to establish its development. It is still necessary to find the ground conducive to its effective adoption on a large scale. And in the case of cryptocurrencies and blockchain technology, most of the time this happens outside the borders of the richest countries. Because the will of the latter is much more focused on prohibition and control, in order to protect their monopoly and the advantages it allows to obtain.
All this recently and very “clearly” summarized by Christine Lagarde. The latter explaining in all illogicality assumed that cryptocurrencies are worth nothing, but that it is nevertheless necessary very quickly to control all aspects of it. While at the same time, the number of countries adopting the useless bitcoin as legal tender continues to grow. With the territory conducive to all experiments in the field: the African continent.
Africa + blockchain = perfect combination
Last week, the Central African Republic made a remarkable entry into the still very closed club of countries that have registered Bitcoin as legal tender. A first for this continent, very often at the forefront in the field of the adoption of cryptocurrencies and blockchain technology. Largely because its population very rarely has access to reliable banking or monetary services. Or to functional and cost-effective solutions to allow cross-border transactions to be carried out, without going through the extortion of the fees imposed there.
A reality that has not escaped certain projects such as Stellar (XLM), registered for years in this geographical area. But also – and more recently – venture capital type investment structures eager not to miss this development opportunity. Reason why Crypto Valley Venture Capital (CV VC) announces the establishment of a fund focused on African startups. This parallels the World Economic Forum in Davos, which is currently taking place in Switzerland from May 22 to 26.
Investing in African Blockchain
An announcement made this Monday, during the Blockchain Hub organized in parallel with the Davos summit. With the objective of creating a fund dedicated to the blockchain sector made in africa. That is to say, for the Crypto Valley Venture Capital structure behind this initiative, the hope of raising between 10 and 50 million dollars for this purpose. And even if a priori this concerns above all countries like South Africa, Nigeria, Kenya, Ghana and Egypt, the goal remains to identify “the best ideas wherever they are. All this in order to actively participate in the financing of a hundred start-ups over the next 4 years.
” The African continent has the perfect combination of factors contributing to the adoption of blockchain technology, which in turn will rapidly accelerate the transformation of its nation’s well-being, wealth and global ranking. Africa is not only a Crypto continent, it is also an international driving force in the use of blockchain as a transformative technology for humanity. »
Crypto Valley Venture Capital
A strategy that the Crypto Valley Venture Capital structure did not wait to put into practice. With already 12 African startups registered in its funding program. Among which is, for example, the Nigerian project Leading House Africa focused on land management using blockchain technology. Or the Mazzuma mobile payment platform, developed in Ghana.
Africa – 0.5% of investments in 2021
Because despite its great potential, Africa represents only 0.5% of the investments made in the blockchain sector in 2021. With 96% of this amount allocated to the territories of Nigeria, Ghana, South Africa and Seychelles alone. But a period went from 11 months in 2019 to only 7 weeks in 2021 to reach an amount at least equivalent to 1 million dollars. A new clear proof of the growing interest that this continent arouses among investors.
It only remains to see what amount can be raised as part of this fund dedicated to African startups in the blockchain sector. And there is no doubt that there will be no shortage of interesting projects to match this technology with local needs. All this in order to draw the beginnings of an economy still almost entirely to be built, here as elsewhere.