Africa's crypto infrastructure to improve as blockchain adoption grows

Blockchain technology is reshaping the global payments landscape, offering innovative solutions to persistent issues, particularly in Africa. [Courtesy, iStock]

A strategic investment aims to expand blockchain-based payments in Africa, potentially lowering costs and settlement times for SMEs and consumers.

The move could enable businesses and individuals to access global liquidity and transact more efficiently, addressing long-standing challenges such as high transaction costs, long settlement times and limited access to international financial networks.

Africa's crypto market is growing rapidly. Sub-Saharan on-chain transaction volume exceeded $205 billion between July 2024 and June 2025, a 52 per cent increase from the previous year, driven largely by retail activity and remittances.

Key markets include Nigeria, Kenya, South Africa and Ethiopia, where users increasingly rely on cryptocurrency to navigate high inflation and limited banking infrastructure.

Tether, the world's largest stablecoin issuer, has invested in Kenyan crypto startup Kotani Pay, which provides on-ramp ando off-ramp services connecting Web3 users to local payment channels.

Paolo Ardoino, CEO of Tether, said, "Kotani Pay's vision and strong regional presence make it the right fit to drive our shared goals in Africa. Together, we aim to provide businesses and individuals with access to digital assets for their global operations, reduce friction in cross-border transactions and build a more inclusive financial future."

Felix Macharia, CEO of Kotani Pay, added, "This strategic investment positions us to continue our work as a bridge to the on-chain economy, connecting millions of Africans to the global financial system."

Experts note that regulatory uncertainty and limited banking infrastructure remain hurdles for large-scale adoption, but investments like Tether's signal growing confidence in Africa's blockchain and fintech potential.