Capital Raising - Africa

Africa

The country in Africa is expected to reach a Total Capital Raised of US$4.09bn in 2024 within the Capital Raising market market.
Traditional Capital Raising is anticipated to lead the market with a projected market volume of US$3.84bn in 2024.
When compared globally, the United States is forecasted to generate the most Capital Raised (US$195,400.0m in 2024).
In Africa, the Capital Raising market is seeing a surge in interest from foreign investors seeking exposure to the continent's growing economies.

Key regions: United States, China, India, Israel, Europe

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Analyst Opinion

The Capital Raising market in Africa has been experiencing significant growth in recent years. This can be attributed to several factors including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences in Africa have shifted towards seeking alternative sources of financing beyond traditional bank loans. This is partly due to the challenges faced by small and medium-sized enterprises (SMEs) in accessing bank loans, as well as a desire for more diverse investment opportunities. As a result, there has been an increased demand for capital raising options such as crowdfunding platforms, venture capital, and private equity.

Trends in the market have also contributed to the development of the Capital Raising market in Africa. One key trend is the rise of technology-driven platforms that connect investors with businesses seeking funding. These platforms have made it easier for entrepreneurs to access capital and have expanded the pool of potential investors.

Additionally, there has been a growing interest from international investors in African markets, attracted by the continent's potential for high returns on investment. Local special circumstances have played a role in shaping the Capital Raising market in Africa. Many African countries have a young and dynamic population, which has led to a surge in entrepreneurial activity.

This has created a need for capital to fund these new ventures. Furthermore, some African countries have implemented policies and regulations that support the growth of the Capital Raising market, such as tax incentives for investors and the establishment of dedicated investment funds. Underlying macroeconomic factors have also contributed to the development of the Capital Raising market in Africa.

Economic growth in many African countries has been robust in recent years, creating a favorable environment for investment. Additionally, the increasing integration of African economies into the global market has attracted foreign investment and stimulated capital raising activities. In conclusion, the Capital Raising market in Africa is experiencing significant growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

As African economies continue to develop and diversify, the demand for capital raising options is expected to further increase. This presents opportunities for both local and international investors to participate in the growth of African markets.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.