As the Web3 landscape matures, investors’ focus is shifting from speculative hype to projects with genuine utility, clear regulatory paths, and strong foundational infrastructure.
The sector has matured in Africa compared to its earlier years because of its ongoing clearer regulations, institutional adoption, and tangible real-world applications in various sectors like decentralised finance (DeFi), gaming, supply chain management, digital identity, social media, healthcare, property, energy, and even governance.
The blockchain technology is no longer just a niche interest but a fundamental shift in how finance, data ownership, and digital interactions are structured.
The state of Web3 in Africa and why it matters
Africa’s uses of blockchain are different from those of Western markets. Most developed economies, like European countries and America, explore Web3 as an alternative financial system, but they are adopting it out of necessity in African regions.
Traditional banking infrastructure remains inaccessible to millions, with nearly 60 percent of Sub-Saharan Africa’s population unbanked or underbanked. High inflation in countries like Nigeria, Ghana, and many others has eroded trust in local currencies, pushing citizens toward Bitcoin and stablecoins as stores of value and mediums of exchange.
The smartphone served as the backbone, allowing millions of Africans to have access to decentralised applications (dApps) without needing traditional banking services.
Peer-to-peer (P2P) crypto trading is booming, with countries like Nigeria, Kenya, and South Africa ranking among the highest in local adoption.
More so, many African governments are now recognising blockchain’s potential. South Africa has introduced licensing frameworks for crypto exchanges, Rwanda is experimenting with central bank digital currencies (CBDCs), and Kenya is exploring blockchain for land registry transparency.
Key Web3 investment opportunities in Africa
Bitcoin and Ethereum
Despite the rise of alternative blockchains, Bitcoin remains the most widely held and trusted cryptocurrency in Africa. Its decentralised nature makes it a hedge against inflation, particularly in countries with unstable fiat currencies.
Ethereum, meanwhile, powers most of Africa’s decentralised finance (DeFi) and non-fungible token (NFT) ecosystems.
Local exchanges like Yellow Card, VALR, and Bundle have made it easier for users to buy, sell, and trade these assets.
Bitcoin’s role in remittances is particularly noteworthy, as many regional companies have facilitated cross-border crypto payments for years to offer citizens faster and cheaper alternatives to traditional remittance services.
Decentralised finance
The DeFi sector is one of the most exciting areas for investment in Africa. DeFi is often used in the West for speculative trading, but African platforms are using this same sector to provide real financial services to underserved populations.
Many DeFi platforms, whether in one part of Africa or across the region, offer users access to savings, loans, and yield farming without requiring a bank account.
AfriDex, a decentralised trading protocol, allows farmers and small businesses to tokenise agricultural commodities, enabling direct trade without middlemen.
Also, Ajua, a Kenyan loyalty and payments platform, integrates blockchain to help merchants and consumers transact more efficiently.
Stablecoins
Stablecoins like USDT, USDC, and cUSD (Celo Dollar) are becoming essential tools for businesses and individuals. They provide a stable store of value in economies struggling with inflation and enable seamless cross-border trade.
Yellow Card’s integration of USDC has made it easier for Africans to receive remittances and conduct international business.
Waya Money, a stablecoin project in Nigeria, targets the remittance market. It offers near-instant transfers at a fraction of traditional costs.
Aella Finance, a credit platform, uses stablecoins to provide loans to freelancers and gig workers who lack access to traditional banking.
Tokenising real-world assets
Tokenisation is another exciting development in Web3. This sector bridges traditional finance with decentralised networks by representing physical assets like real estate, bonds, and private credit on blockchain.
Projections suggest the tokenised asset market could reach $16 trillion by 2030, accounting for a significant portion of global gross domestic product (GDP).
Projects like Ondo Finance, which tokenises U.S. Treasuries, and MakerDAO, which backs its stablecoin with real-world collateral, are at the forefront of this movement.
Regulatory clarity in regions like Europe and the high adoption in the United Arab Emirates make RWAs attractive for yield-seeking investors. Just like an upgrade to volatile cryptocurrencies, tokenised assets often provide stable returns, appealing to a broader audience.
Emerging trends like AI
Artificial intelligence (AI) is a transformative force intersecting with Web3. Projects like Fetch.ai and Bittensor are creating decentralised AI marketplaces, where machine learning models can be trained and monetised on-chain.
More local startups are building a decentralised AI marketplace where developers can monetise machine learning models.
These innovations are still in early stages but represent a compelling long-term bet.
Risk and reward in Web3 investing
Despite the opportunities, Web3 investing carries high risks. Regulatory uncertainty, smart contract vulnerabilities, and market volatility require careful consideration.
Diversification, spreading investments across blue-chip assets, DeFi, infrastructure, and emerging trends, can mitigate some of these risks.
Security is another critical factor. Using hardware wallets, verifying smart contracts, and staying informed about regulatory changes helps protect investments. Unlike traditional markets, the crypto space changes time to time, demanding constant vigilance.
In conclusion, the sector is now more nuanced than ever. It’s clear that the wild speculation of long years has diminished; therefore, the opportunities are far more substantial.
Bitcoin and Ethereum remain foundational, but the growth of DeFi, stablecoins, real-world asset tokenisation, and AI offers new avenues for returns.
