Nigeria and South Africa are at the forefront of Sub-Saharan Africa’s growing cryptocurrency adoption, emerging as key players in the global digital currency landscape.
Despite the region accounting for just 2.7% of global crypto transaction volume between July 2023 and June 2024, as highlighted in Chainalysis’s The 2024 Geography of Crypto Report, Sub-Saharan Africa experienced a remarkable increase in on-chain value. With an estimated $125 billion in cryptocurrency received during the period—a $7.5 billion rise from 2023—the region is leveraging crypto to drive financial innovation and inclusion.
Nigeria leads the charge, recording $59 billion in cryptocurrency transaction value, making it the only African nation ranked in the global top 20. This dominance persists despite regulatory hurdles, including a 2024 clampdown restricting crypto platform access and naira transactions. Authorities cited concerns over exchange rate manipulation and illicit transactions, but these measures have done little to curb Nigeria’s burgeoning demand for cryptocurrency. Alongside Nigeria, South Africa, Ethiopia, and Kenya are also advancing the region’s crypto landscape, ranking 30th, 28th, and 26th globally, respectively.
The appeal of cryptocurrency in Africa is rooted in its practical applications, offering a hedge against inflation, enabling efficient cross-border payments, and facilitating business transactions. As Moyo Sodipo, COO of Busha, observed, cryptocurrency has transitioned from being viewed as a speculative investment to a tool for daily financial activities. From paying bills to purchasing retail goods and topping up mobile credits, crypto is increasingly integrated into everyday life, providing a lifeline for individuals in regions with limited access to traditional banking systems.
As digital currencies redefine financial inclusion across Africa, Nigeria and South Africa are demonstrating the continent’s potential to become a global hub for crypto innovation. By addressing challenges and embracing the practical utility of blockchain technology, Sub-Saharan Africa is not just catching up but setting the stage to be a leader in the future of digital finance.
Further Africa
