Crowdinvesting - Uganda

Uganda

Highlights

The total transaction value in the Crowdinvesting market in Uganda is expected to reach US$16.70k in 2024.
When compared globally, it is noted that the highest transaction value is recorded the United Kingdom, amounting to US$608m in 2024.
In Uganda, Crowdinvesting in the Capital Raising market is gaining traction among tech startups seeking alternative funding sources.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Crowdinvesting, also known as crowdfunding, is gaining traction in Uganda as a popular method for raising funds for various projects and businesses. This alternative form of financing has seen a steady increase in popularity in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences in Uganda have played a significant role in the development of the crowdinvesting market. Ugandans are increasingly looking for opportunities to invest their money in projects and businesses that align with their values and goals. Crowdinvesting provides them with a platform to support local entrepreneurs and innovative ideas, while also having the potential to earn returns on their investments.

This preference for impact investing and supporting local initiatives has contributed to the growth of the crowdinvesting market in Uganda. Trends in the market have also influenced the development of crowdinvesting in Uganda. The rise of digital platforms and the increasing accessibility of the internet have made it easier for entrepreneurs and investors to connect and collaborate.

Online crowdfunding platforms have emerged, allowing individuals to showcase their projects and attract potential investors from all over the country. This trend has opened up new avenues for fundraising and investment opportunities, fueling the growth of the crowdinvesting market in Uganda. Local special circumstances have further contributed to the development of crowdinvesting in Uganda.

The country has a vibrant entrepreneurial ecosystem, with many individuals and small businesses seeking funding to bring their ideas to life. However, traditional financing options, such as bank loans, may not always be accessible or suitable for these entrepreneurs. Crowdinvesting provides an alternative avenue for raising capital, empowering individuals to turn their ideas into reality.

Additionally, the supportive and collaborative nature of Ugandan communities has fostered a culture of crowdfunding, with individuals coming together to support and invest in local projects. Underlying macroeconomic factors have also played a role in the growth of the crowdinvesting market in Uganda. The country has experienced steady economic growth in recent years, with a rising middle class and increasing disposable income.

This has created a pool of potential investors who are looking for opportunities to diversify their investment portfolios. Crowdinvesting offers an attractive option for these individuals, allowing them to invest smaller amounts of money in a variety of projects and businesses. In conclusion, the crowdinvesting market in Uganda is developing due to customer preferences for impact investing and supporting local initiatives, trends in the market such as the rise of digital platforms, local special circumstances that support entrepreneurship and collaboration, and underlying macroeconomic factors such as economic growth and rising disposable income.

This alternative form of financing is providing individuals and businesses in Uganda with new opportunities to raise funds and invest in projects that align with their values and goals.

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.