To establish a blockchain and Web3 hub in Africa, the Kenyan government has signed an agreement with the Venom Foundation, an Abu Dhabi-based blockchain platform.
In the main industries of the continent, including finance, supply chain, agriculture, business, and cross-border trade, the collaboration will work to promote blockchain innovation, according to the announcement.
The anticipated blockchain and Web3 hub would act as a focal point for African government agencies and ICT firms, promoting stakeholder cooperation and knowledge sharing.
In accordance with the agreement, Venom will offer tools and materials to assist Kenya and other African nations with their digital transformation. These materials and tools will include blockchain-based solutions for asset tokenization, land registry, voting systems, and supply chain management.
Kenya’s Cabinet Secretary for Investments, Trade, and Industry, Moses Kuria, stated that the establishment of a blockchain hub in the country shows Kenya’s support for advanced technology. According to him, this development will bring further innovations in various industries and benefit Kenya’s citizens and people globally.
Africa as a whole, including Kenya, is becoming a hub for innovation that utilizes blockchain technology. According to CV VC data, the number of blockchain deals on the continent increased by 429% last year, when companies raised $474 million, up from $90 million in 2021. The report also indicated that those figures exceeded the average level of global funding, which increased by only 4%.
According to Christopher Louis Tsu, the CTO of Venom Foundation, Africa is abundant in natural resources and human capital. He believes that introducing next-generation blockchain technology to the continent will empower people, enabling Kenya and other African nations to capitalize on their assets and participate in new global markets more effectively.
In January, the Venom Foundation and Iceberg Capital unveiled a $1 billion fund for Web3 and blockchain companies. The investment fund will encourage tech companies to embrace Venom’s scalable, blockchain-based proof-of-stake solution.
Kenyan legislators have introduced Finance Bill 2023, which aims to tax transfers of cryptocurrency and nonfungible tokens (NFT). According to the proposal, which will go through five readings, registered crypto exchanges and NFT marketplaces must withhold 3% of each transfer’s value as a fee for the government.