Reports
June 5, 2023
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Overview
The "State of Cryptocurrency in Africa" report delves into the consumer habits, attitudes, and outlook on cryptocurrency across 21 African countries. The report emphasizes the importance of understanding African consumer trends to unlock growth opportunities for crypto players. It explores awareness, usage, ownership, drivers, sentiment, and the outlook on cryptocurrency in the African market.
Key Takeaways
Awareness: Cryptocurrency awareness is high, with 66% of Africans exposed to crypto, largely through social media.
Knowledge Gap: While awareness is high, actual knowledge about cryptocurrencies is average to low, indicating a need for education.
Ownership: Only 8% of Africans own crypto, with high-income earners most likely to be owners. Bitcoin is the most popular crypto asset.
Purchase Drivers: Quick returns and diversification are key motivations for crypto ownership.
Sentiment: Despite market downturns, crypto owners remain optimistic, with positive sentiment overshadowing non-crypto users.
Outlook: A bearish sentiment is observed, with a "Crypto winter" hitting Africa. Distrust in crypto is prevalent, and the market is seen as riskier than stocks.
Regional Variances: Crypto adoption varies across countries, with surprising leaders like Angola and Namibia outperforming larger economies.
Methodology
Combining research from Kasi Insight’s Consumer Intelligence and Economic Intelligence teams, the report draws insights from a monthly survey of 9,762 adults in 19 African countries. The surveys were conducted between December 20th, 2022, and January 10th, 2023, using a Random Sampling Intercept Method and CAPI methodology. The data is unweighted, with a margin of error of +/-2 percentage points. The Kasi Index of Consumer Sentiment (ICS) is used to measure sentiment.
The report concludes that Africa is slowly catching on to the cryptocurrency market despite challenges. Africans show interest in digital currencies for both short and long-term returns. The market is dynamic, with surprising leaders emerging, and awareness, adoption, and usage figures indicate active interest. Despite a bearish market, positive sentiment persists, suggesting the potential for growth and opportunities in the African crypto market. The report calls for targeted education efforts, understanding regional variations, and building trust to foster crypto adoption in Africa.
