Amid high inflation and a crackdown by African governments on cryptocurrency platforms, the continent’s crypto adoption has experienced massive growth since 2023.
The growth is driven by substantial investments and increased individual interests, facilitating trading across Africa.
A recent report by Chainalysis says Sub-Saharan Africa contributed about 2.7% to the global crypto economy’s transaction volume this year.
However, the region has experienced significant growth in crypto transactions, with an estimated value of $125 billion during the review period, representing a $7.5 billion spike in 2023.
Africa’s massive crypto adoption is due to increased usage among Africans who leverage digital currencies for various reasons, such as business payments, inflation hedging, and smaller, more frequent transactions.
In Nigeria, about 33% of the population invest in cryptocurrency. However, government crackdowns on crypto platforms have stifled adoption.
The government’s restrictions include instructing telecommunication companies to restrict access to crypto platforms and directing operators to discontinue naira transactions.
The development followed a global concern about crypto use, as many governments had taken strong stances against cryptocurrencies and imposed strict regulations.
Despite Challenges, Nigeria reportedly received about $59 billion in cryptocurrency value between July 2023 and June 2024, making it the only African country in the top 20 ranking in 2024.
The Chainalysis report shows the top African countries with the highest adoption rate in 2024.
In the report, Nigeria maintained its lead with the highest adoption rate in Africa and second globally.
Ethiopia came second and was also crowned the fastest-growing cryptocurrency market on the continent for retail-size stable coin transfers, with 180% growth per year.
Morocco’s crypto adoption index is 20th globally, according to a 2023 report from blockchain analytics firm Chainalysis. After Ethiopia, Morocco is Africa’s third country with the highest crypto adoption rate.
According to the Chainalysis 2024 Global Crypto Adoption Index, Kenya ranks 28 globally regarding cryptocurrency adoption. In 2020, Kenya had the most significant volume in Africa, coming second only to Nigeria, with Bitcoin trades totalling approximately 6.48 billion Kenya shillings.
South Africa
Cryptocurrency is undeniably transforming the financial landscape of the region, home to several high-ranking nations on our Global Adoption Index.
Uganda ranked sixth on the continent and 34th globally. In the past year, it has witnessed immense growth in crypto adoption.
Algeria has seen a growing interest in Bitcoin and other altcoins. Algerian traders should consider the platform’s security, affordability, and features when choosing a cryptocurrency exchange. The country is ranked seventh in Africa and 43rd globally.
According to recent data, Egypt’s cryptocurrency adoption rate is relatively high within the MENA region. Estimates suggest a user access rate of around 9.82% in 2024, with projections for further growth to reach 11.3 million users by 2025; this places Egypt among the top crypto-adopting countries in the region, even though the Central Bank of Egypt has issued warnings against using digital currencies.
