The NFT gold rush in Africa resembled a spectacular fireworks display – bright, explosive, but brief. By late 2023, the once-bustling digital marketplaces fell quiet, leaving creators and investors wondering what went wrong.

The global NFT market, valued at $36.12 billion in 2023, was projected to grow at a staggering compound annual growth rate (CAGR) of 22.05%, reaching $217.07 billion by 2032.

However, despite this global enthusiasm, NFT sales in Africa were modest. In stark contrast to the explosive growth seen in regions like Asia-Pacific—where countries like the Philippines boast that 32% of their population owns NFTs—the African landscape reveals a different story.

While 21.7% of Nigerians expressed intentions to acquire NFTs, actual ownership remains significantly lower. The story of NFTs in Africa reveals deeper truths about technology adoption, market readiness, and the gap between global trends and local realities.

The hype saw money moving like water during the peak. Artists created collections overnight. Everyone wanted to mint the next big thing. But few asked the essential question: What happens after the sale?”

The initial surge attracted significant attention. Nigerian artists reported some NFT sales reaching $1.2 million in early 2023. Kenyan digital creators launched collections celebrating local culture. South African galleries opened virtual spaces. The enthusiasm spread across the continent like wildfire.

However, beneath the surface, problems brewed. Most projects focused on quick profits rather than sustainable value creation. The market mirrored global NFT trends without adapting to African needs and contexts.

Infrastructure: The Hidden Iceberg

“One of the primary challenges is the inadequate infrastructure for minting and selling NFTs. Many available NFT marketplaces are based outside Nigeria, creating barriers for local creators who face issues with payment gateways and logistical challenges”, Dr. Olayinka Farouk, Nigerian Blockchain Alliance

The technical barriers proved more challenging than anticipated. Trying to mint NFTs with unstable internet feels like building a house during an earthquake. Many creators faced frequent disconnections during crucial transactions, leading to lost opportunities and wasted fees.

Beyond connectivity, the cost of participation created significant hurdles. Gas fees for minting NFTs often exceeded the monthly incomes of many potential participants. Payment gateway limitations made converting cryptocurrency to local currencies a complex puzzle.

Only less than 12% of NFT projects launched in early 2023 remained active by year’s end. The primary reason? Technical barriers and transaction costs.

The African NFT market needed stronger connections to tangible benefits. We copied the global playbook without considering the local context. People here need practical solutions, not just digital collectibles.

Some projects showed promise in real-world applications. Zimbabwe’s LandLock NFT initiative attempted to address property rights issues through blockchain technology. Though technically sound, it struggled with regulatory hurdles and user adoption.

The disconnect between digital assets and daily utility became increasingly apparent. While global markets could sustain purely speculative NFT trading, African communities sought more practical applications for their investments.

“While there is growing interest in NFTs, the market is not fully prepared to support widespread adoption. Many creators lack the necessary tools and knowledge to effectively engage with NFT platforms, which hampers their ability to participate in this emerging market”, Dr. Olayinka Farouk affirms

Also read, How safe is your digital asset? Smart contract vulnerabilities in NFTs

Meanwhile, most projects neglected to build sustainable communities around their offerings. NFTs without community are like social media without people, the technology alone cannot drive adoption.

Successful projects demonstrated the importance of community building. Uganda’s ArtRoot collective maintained steady growth by focusing on artist education and collective marketing. They created workshops, mentorship programs, and collaborative projects that sustained interest beyond initial sales.

Rebuilding with Purpose

The short-lived boom offered valuable lessons for the future of NFTs in Africa. First, successful projects must address specific local challenges. Second, infrastructure limitations require creative solutions, perhaps through layer-2 scaling solutions or alternative blockchain platforms with lower fees.

Several initiatives point toward a more sustainable future. Morocco’s ArtTech Foundation launched a program combining NFT education with technical infrastructure support. They provide creators with stable internet connections, technical training, and marketing assistance.

In Rwanda, a consortium of tech companies developed a low-cost NFT minting solution using alternative blockchain networks. The system reduces gas fees by 90% while maintaining security and authenticity.

The path forward requires focusing on several key areas:

Infrastructure development must precede market expansion. Projects need reliable, affordable platforms for creation and trading.

• Education should emphasize both technical skills and business fundamentals. Creators must understand how to build sustainable value beyond initial sales.
• Regulatory frameworks require clarification to protect both creators and buyers while encouraging innovation.

NFT for the Long Term

Despite initial setbacks, innovative applications continue to emerge. Ethiopian coffee cooperatives use NFTs to track and verify premium beans, providing transparency for buyers and fair compensation for farmers.

South African musicians tokenize royalty rights, creating new revenue streams while maintaining artistic control.

The future of NFTs in Africa lies in solving real problems. We need to stop chasing global trends and start building solutions that matter here.

The NFT boom’s collapse cleared the way for more thoughtful, sustainable approaches. Success requires patience, local adaptation, and genuine utility. Projects that combine technological innovation with practical benefits will lead the next phase of development.

The NFT market will likely resurge – not as a speculative bubble, but as a practical tool for economic and creative empowerment. The key lies in building from the ground up, with careful attention to local needs, technical limitations, and community engagement.

The story of NFTs in Africa continues to unfold. While the initial chapter ended prematurely, the lessons learned will shape a more resilient and impactful future for digital assets across the continent.