Kenya has partnered with Abu Dhabi-based blockchain platform Venom Foundation to launch a blockchain and Web3 hub in Africa, which will serve as a center for knowledge exchange and collaboration between technology firms and government entities in the region. The hub aims to drive blockchain innovation in key sectors, including finance, supply chain, agriculture, business, and cross-border trade.
Under the deal, Venom will provide tools and resources to support Kenya and other African countries in their digital transformation, including blockchain-based solutions for supply chain management, land registry, voting systems, and asset tokenization. The establishment of this blockchain hub will catalyze further innovations in various industries, benefiting our people both nationally and globally, according to Moses Kuria, Kenya’s Cabinet Secretary for Investments, Trade and Industry.
Christopher Louis Tsu, CTO of Venom Foundation, believes that bringing next-generation blockchain technology to the continent will empower the people and help not only Kenya but many other African nations to capitalize on their assets and participate in new global markets competitively.
The African continent is becoming a hotbed for innovation, including the implementation of blockchain technology. According to data from CV VC, the continent witnessed a 429% increase in blockchain deals, as companies raised $474 million last year from $90 million in 2021, surpassing the global funding average, which only grew by 4%.
Meanwhile, Kenyan lawmakers have introduced Finance Bill 2023, which seeks to tax crypto and non-fungible token (NFT) transfers. The proposal would require registered crypto exchanges and NFT marketplaces to deduct 3% of the transfers’ value to be paid to the government. Kenya is one of the top 20 countries in terms of crypto adoption, and the introduction of a tax on crypto and NFT transfers could set a precedent for other African countries.
If other African countries follow Kenya’s lead, it could lead to a more standardized approach to regulating crypto on the continent, potentially attracting more investors and businesses to the region.
However, some argue that a crypto-only tax is unfair and could hinder adoption. Regardless, the African crypto scene is rapidly evolving, and it will be interesting to see how this new tax proposal shapes its future. The blockchain and Web3 hub in Africa could serve as a catalyst for further innovation and knowledge exchange between technology firms and government entities, potentially benefitting various industries both nationally and globally.