Lisk, a Swiss-based Layer 2 blockchain platform, is doubling down on its commitment to fostering Web3 innovation in Africa, announcing the second cohort of its Blockchain Incubation Hub. Funded and operated in partnership with CV Labs, the venture capital and incubation arm of Swiss Crypto Valley, the programme seeks to identify and nurture promising African startups building on the Lisk protocol. Following what it deems a successful inaugural six-month programme, Lisk is once again opening applications, offering selected ventures grants of up to $20,000 and the prospect of further funding up to $100,000 upon graduation.
The move indicates a growing trend of international blockchain entities turning their attention to the African continent. While cryptocurrency adoption rates in several African nations are amongst the highest globally, the focus is increasingly shifting beyond speculative digital assets towards the underlying technology’s potential for real-world applications.
“The initial wave of blockchain enthusiasm was undeniably centred around cryptocurrencies, and Africa has been a significant adopter,” notes Brenton Naicker, Principal & Head of Growth at CV VC. “However, we are witnessing a compelling evolution. African innovators are demonstrating how blockchain technology can address critical inefficiencies and promote financial inclusion across the continent.”
The first cohort, comprising 23 startups, highlights this shift. Graduates showcased diverse applications, moving beyond simple token issuance to tackle tangible challenges in sectors including agriculture, finance, and logistics. Projects ranged from Tata-iMali in South Africa, developing a fiat-backed stablecoin to bridge the formal and informal economies, to Afrikabal in Rwanda, utilising blockchain to connect farmers with wholesalers and provide transparent trade finance. Other ventures included Nomachain from Kenya, tokenising property plans for a blockchain-based rent-to-own model, and Pokecoin from South Africa, aiming to create a secure NFT marketplace for authenticated Pokémon card trading.
According to Lisk, the first cohort collectively onboarded over 26,000 users, tokenized $1.8 million in assets, and processed over 20,000 blockchain transactions, fuelled by $196,000 in grant funding distributed throughout the programme.
Dominic Schwenter, COO of Lisk, emphasizes the strategic rationale behind the initiative. “For too long, Web3 development has disproportionately focused on established markets, often overlooking the immense potential and talent pool in high-growth regions like Africa,” he states. “This is evolving. We recognise that true innovation and scalability in blockchain will likely emerge from these markets, driven by necessity and a deep understanding of local challenges.”
The Lisk Incubation Hub offers a structured six-month curriculum, mentorship from industry experts, and access to a network of investors and potential partners. Startups receive initial grants of up to $20,000, disbursed incrementally as ventures meet pre-defined milestones. Crucially, the programme aims to facilitate access to more substantial follow-on funding, with successful graduates eligible to apply for up to $100,000 in further investment to scale their operations.
While the programme’s proponents highlight the potential for blockchain to drive positive change in Africa, challenges remain. Regulatory landscapes across the continent are fragmented and often unclear regarding digital assets and blockchain-based businesses. Furthermore, issues of digital literacy, infrastructure limitations, and access to consistent internet connectivity could present hurdles for widespread adoption of these technologies.
Nevertheless, the renewed commitment from Lisk, and similar initiatives from other international players, signals a growing recognition of Africa as a fertile ground for blockchain innovation. Whether these incubation programmes can translate into sustainable businesses and meaningful economic impact remains to be seen, but the focus on practical applications and the provision of early-stage capital represent a significant step in fostering a more inclusive and globally distributed Web3 ecosystem.
Applications for the second cohort of the Lisk Incubation Hub are open until April 12th, with the programme scheduled to commence in May 2025. The industry will be watching closely to see if this new batch of African startups can build upon the initial successes and further solidify the continent’s position in the evolving blockchain landscape.
For more information, visit www.liskincubationhub.com