The Foundation Beneath a $205 Billion Ecosystem

Africa’s crypto market is booming, with Nigeria alone receiving $59 billion in digital asset inflows between July 2023 and June 2024. But while user adoption is clear, the ownership of the underlying infrastructure remains less visible.

A Concentrated Network

According to Ethernodes, there are roughly 28 Ethereum nodes across Africa—a mere 0.3% of the global total. South Africa leads with 13, followed by Mauritius (9), and Nigeria (4). This concentration means that a relatively small number of entities control critical access points to one of the world’s largest blockchains.

The Layers of Access

When users send crypto across borders, multiple layers come into play:

1. The Blockchain: The distributed ledger that records transactions
2. Nodes: Computers that connect wallets to the blockchain network
3. Cloud Servers: Hosting applications and interfaces
4. Token Issuers: Companies like Tether (USDT) and Circle (USDC)

Most crypto apps don’t run their own nodes, instead relying on providers like Alchemy, Infura, QuickNode, or Blockdaemon—which centralizes a key function of decentralized technology.

Key Players in the Ecosystem:

• Tether: Invested in Kenya-based Kotani Pay to expand distribution of its stablecoin across Africa
• Circle: Partners with Onafriq for USDC settlements through payment networks spanning 40+ African markets
• Onafriq: Payment network that enables conversions between crypto and local currencies
• Kotani Pay, Yellow Card, Quidax: Companies facilitating on-ramps and off-ramps for digital assets

Data Center Ownership:

A recent mapping by UK consultancy Data Landscapers found that 70% of data centers in Sub-Saharan Africa are African-controlled. This includes facilities hosting both local and international cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud.

This ownership extends beyond physical buildings—lenders, equipment suppliers, and even tenants wield influence over these critical digital assets.