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- Kenya partners with Abu Dhabi's Venom Foundation to create a blockchain and Web3 hub to foster innovation in finance, supply chain, agriculture, and cross-border trade in Africa.
- The hub will serve as a central platform for African tech companies and government entities, with Venom providing tools and resources to support digital transformation.
- Concurrently, Kenya introduced Finance Bill 2023, which seeks to tax cryptocurrency and nonfungible token (NFT) transfers, requiring registered exchanges and marketplaces to pay the government 3% of transfer values.
To foster blockchain innovation across key sectors in Africa, Kenya has announced a partnership with Abu Dhabi’s Venom Foundation. The collaboration aims to revolutionize industries such as finance, supply chain, agriculture, business, and cross-border trade, according to the May 10 announcement.
A central platform for African tech companies and government entities
The proposed blockchain and Web3 hub will be a central platform for African technology companies and government entities. The hub will facilitate knowledge exchange and stakeholder collaboration, enhancing the continent’s digital transformation.
Venom Foundation will provide tools and resources to assist Kenya and other African nations in their digital transformation journey as part of the agreement. This includes blockchain-based solutions for supply chain management, land registry, voting systems, and asset tokenization.
Kenya’s Cabinet Secretary for Investments, Trade, and Industry, Moses Kuria, emphasized the country’s commitment to next-generation technology. He expressed optimism that the blockchain hub would spark further innovations across various industries, benefiting local and global communities.
Africa: A growing hotspot for blockchain innovation
Africa has increasingly become a breeding ground for innovation, particularly in blockchain technology. Data from CV VC reveals a staggering 429% increase in blockchain deals in the continent, with companies raising $474 million last year compared to $90 million in 2021. This growth rate surpasses the global funding average, which only saw a 4% increase.
Christopher Louis Tsu, CTO of Venom Foundation, highlighted Africa’s abundance of natural resources and human capital. He believes that the introduction of next-generation blockchain technology will empower African nations, enabling them to capitalize on their assets and compete in global markets.
Earlier this year, Venom Foundation, alongside investment manager Iceberg Capital, announced a $1 billion fund for Web3 and blockchain firms. This investment fund aims to attract technology companies to utilize Venom’s scalable, proof-of-stake-based blockchain solution.
In addition to the partnership with Venom Foundation, Kenyan lawmakers have introduced Finance Bill 2023, which seeks to tax cryptocurrency and nonfungible token (NFT) transfers. The proposal, subject to five rounds of readings, would mandate registered crypto exchanges and NFT marketplaces to deduct 3% of the transfers’ value as payment to the government.
The collaboration between the Kenyan government and Abu Dhabi-based blockchain platform Venom Foundation signifies a significant step forward in establishing a blockchain and Web3 hub in Africa.