Blockchain start-ups in Africa lack funding to scale

Blockchain start-ups in Africa are facing challenges when it comes to securing funding to scale their innovative solutions. A recent report conducted in Kenya, Nigeria, Tunisia, and South Africa shed light on the issues surrounding funding and misconceptions about blockchain technology on the continent. Oluwaseun David Adepoju, Head of Research at Africa Blockchain Institute, discussed the findings of the report in an interview with CNBC Africa. The report highlighted the popular use case of cryptocurrency exchange platforms but aimed to delve deeper into other solutions emerging from these key markets. Adepoju mentioned various innovative solutions such as using blockchain for logistics, identity management systems, national databases, social good initiatives, music royalties, and e-voting. Despite the promising innovations, many of these start-ups struggle to scale due to a lack of funding. Adepoju emphasized the importance of seed funding culture and the need for venture capitalists to support early-stage blockchain projects. He emphasized the significance of allowing start-ups to prototype their ideas without the fear of failure, enabling them to learn and iterate on their solutions. Adepoju also addressed the misconceptions surrounding blockchain technology in Africa. He noted that early scam narratives had hindered the growth of the technology and created skepticism among potential users. To address these misconceptions, Adepoju suggested that governments play a critical role in understanding and promoting blockchain technology. By incorporating blockchain into government initiatives and educating the public, it is possible to dispel myths and promote the broader adoption of blockchain solutions in Africa. Advocacy and education were identified as key strategies to enhance understanding and acceptance of blockchain technology on the continent. Overall, overcoming funding challenges and misconceptions will be essential for blockchain start-ups in Africa to thrive and contribute to the continent's digital transformation.