Crowdinvesting - Tanzania

Tanzania

Highlights

The total transaction value in Tanzania's Crowdinvesting market is expected to reach US$22.41k in 2024.
When compared globally, it is evident that the United Kingdom leads with a transaction value of US$608m in 2024.
Tanzania's crowdinvesting market is gaining traction, offering diverse opportunities for capital raising in sectors like real estate and technology.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdinvesting market in Tanzania has been steadily growing in recent years, driven by customer preferences for alternative investment options and the increasing availability of online platforms.

Customer preferences: Tanzanian investors are increasingly looking for alternative investment options that offer higher returns than traditional savings accounts or fixed deposits. Crowdinvesting provides an opportunity for individuals to invest in a wide range of projects, including startups, real estate developments, and renewable energy initiatives. This allows investors to diversify their portfolio and potentially earn higher returns on their investments.

Trends in the market: One of the key trends in the Crowdinvesting market in Tanzania is the rise of online platforms that connect investors with entrepreneurs and project owners. These platforms provide a convenient and transparent way for individuals to invest in projects that align with their interests and risk tolerance. The use of technology has made it easier for both investors and entrepreneurs to participate in Crowdinvesting, leading to increased activity in the market. Another trend in the market is the growing interest in impact investing. Tanzanian investors are increasingly looking for opportunities to support projects that have a positive social or environmental impact. This includes investing in startups that are addressing social challenges, such as access to healthcare or education, as well as renewable energy projects that contribute to sustainable development.

Local special circumstances: Tanzania has a vibrant entrepreneurial ecosystem, with a growing number of startups and small businesses seeking funding. Crowdinvesting provides an alternative source of capital for these entrepreneurs, who may struggle to secure traditional bank loans or venture capital funding. By tapping into the crowd, entrepreneurs can access the capital they need to grow their businesses and bring their innovative ideas to life.

Underlying macroeconomic factors: The growth of the Crowdinvesting market in Tanzania is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has created a favorable environment for investment. Additionally, the government has implemented policies to promote entrepreneurship and innovation, further supporting the growth of the Crowdinvesting market. In conclusion, the Crowdinvesting market in Tanzania is developing due to customer preferences for alternative investment options, the rise of online platforms, and the growing interest in impact investing. The local entrepreneurial ecosystem and favorable macroeconomic factors also contribute to the growth of the market. As more Tanzanian investors recognize the potential of Crowdinvesting, we can expect to see further expansion and innovation in the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

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 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, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. 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.