A recent announcement on May 10 revealed an exciting partnership between the Kenyan government and Abu Dhabi-based blockchain platform Venom Foundation, aimed at driving blockchain innovation across Africa in key sectors such as finance, supply chain, agriculture, business, and cross-border trade. The planned blockchain and Web3 hub will serve as a central platform for African technology companies and government entities, fostering knowledge exchange and stakeholder collaboration.
Venom will provide tools and resources to support Kenya and other African countries in their digital transformation, offering blockchain-based solutions for supply chain management, land registry, voting systems, and asset tokenization. Moses Kuria, Kenya’s Cabinet Secretary for Investments, Trade, and Industry, highlighted that the deal showcases the country’s stance toward next-generation technology. “We believe that the establishment of this blockchain hub will catalyze further innovations in various industries, benefitting our people both nationally and globally,” Kuria commented.
Africa has increasingly become a hotbed for innovation, particularly in the implementation of blockchain technology. According to data from CV VC, the continent witnessed a 429% increase in blockchain deals in 2022, as companies raised $474 million, up from $90 million the previous year. This impressive growth surpassed the global funding average, which only increased by 4%.
“Africa is already rich in natural resources and human capital. By bringing next-generation blockchain technology to the continent, it 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,” said Christopher Louis Tsu, Venom Foundation CTO.
In addition to this partnership, Venom Foundation, alongside investment manager Iceberg Capital, announced a $1 billion fund for Web3 and blockchain firms in January. The investment fund aims to attract technology firms to utilize Venom’s scalable, proof-of-stake-based blockchain solution.
Meanwhile, lawmakers in Kenya have introduced the Finance Bill 2023, which seeks to tax crypto and nonfungible token (NFT) transfers. The proposal, currently undergoing five rounds of readings, would require registered crypto exchanges and NFT marketplaces to deduct 3% of the transfers’ value, to be paid to the Kenyan government. While the implementation of cryptocurrency and blockchain technologies can spur economic growth and innovation, taxation may prove a challenge, sparking discussions on the best approach to regulating and nurturing this emerging industry.
In conclusion, the collaboration between the Kenyan government and Venom Foundation promises to contribute to the growth of blockchain technology and innovation across the African continent. However, challenges such as taxation and regulation still need to be addressed, ideally in a way that encourages innovation while maintaining stability and security.
Source: Cointelegraph
