- Cardano has officially established EMURGO Africa, an investment and incubation program for African blockchain and tech impact-driven startups.
- The program launches with a $100 million fund, beginning its initiative in four African countries before proceeding to the rest of the continent.
EMURGO, the official commercial arm and founding entity of the Cardano (ADA) blockchain, recently announced the establishment of EMURGO Africa. The initiative will support 100 local startups in the continent within three years.
Notably, EMURGO is a wholly-owned subsidiary of the Cardano ecosystem. The division consists of two arms: EMURGO Africa and EMURGO Ventures. Both seek to invest in “early startup and growth companies focused on building socially impactful solutions powered by Cardano.”
In specific, EMURGO Africa aims at establishing Cardano as the standard tech infrastructure platform in Africa. Financial empowerment is one of the benefits of the arm, especially considering the underbanked African populations.
EMURGO’s announcement further reads:
To mark EMURGO Africa’s official launch and first portfolio investment, it has forged a strategic partnership with Adanian Labs – a successful pan-African venture studio and incubator currently provides services all over Africa with focuses on building impact-driven tech start-ups across key sectors.
Cardano and EMURGO Africa
This year, venture capital investments in African startups are expected to rise to the tune of $2.25-$2.8 billion. Such investment figures indicate a large potential for meaningful and high-growth startups in the continent. Already, African companies such as e-commerce platform Jumia, are making waves in the local market.
Additionally, between 2020 and 2028, the global blockchain market is expected to increase exponentially from $3.67B to $449.6B (120 times). Africa alone is expected to hold a 30 percent share in the market, growing from $1.1B in 2020 to $134.9B in 2028.
Other than the blockchain industry sectors such as DeFi and NFTs, EMURGO Africa will also focus on innovative technologies such as the metaverse, AI, fintech, agri-tech, edu-tech, and health tech. The program will first focus on Kenya, Nigeria, South Africa, and Egypt before expanding coverage to the rest of Africa. The program launches with an initial fund allocation of $100 million.
Other than Adanian Labs, EMURGO Africa has announced a strategic partnership with Everest Ventures Group (EVG). EVG is an Asian blockchain venture studio backed by a cluster of prominent investors including the Rothschild family and Hanwha Group, among many others. The two will jointly launch Adverse – a Cardano-focused acceleration program in Africa. Ken Kodama, the EMURGO CEO stated;
We are more focused than ever on accelerating the development of Cardano’s ecosystem with a rich mix of decentralized services catering to a global community that is increasing in overall blockchain awareness,
ADA price action
Analysts forecast a possible 17 percent ADA breakout in either direction. The gain would place ADA at $2.65, while the shed off would place it at $1.73.
As per EMURGO’s, ADA was trading at $2.17 at writing time, having shaved off 2.1 percent in the day. The crypto asset is, however, up 6.6 percent week-over-week.