Crowdinvesting - Zimbabwe

Zimbabwe

Highlights

Zimbabwe is a country where the total transaction value in the Crowdinvesting market is projected to reach US$830.50k in 2024.
In a global comparison perspective, it is highlighted that the highest transaction value is reached the United Kingdom (US$608m in 2024).
Zimbabwe's crowdinvesting market shows a rising interest in funding local tech startups, signaling a shift towards diverse investment opportunities in the capital raising sector.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdinvesting market in Zimbabwe is experiencing significant growth and development.

Customer preferences: Zimbabwean investors are increasingly turning to crowdinvesting as a way to diversify their investment portfolios and access opportunities in various sectors. Crowdinvesting provides a platform for individuals to invest in startups, small businesses, and real estate projects, allowing them to support local entrepreneurs and potentially earn attractive returns. The convenience and accessibility of crowdinvesting platforms also appeal to Zimbabwean investors, who can now participate in investment opportunities from the comfort of their own homes.

Trends in the market: One of the key trends in the crowdinvesting market in Zimbabwe is the emergence of platforms that focus on impact investing. These platforms connect investors with projects that have a social or environmental mission, allowing them to support initiatives that align with their values. This trend reflects the growing interest among Zimbabwean investors in investing in projects that have a positive impact on society and the environment. Another trend in the market is the increasing participation of international investors. Crowdinvesting platforms in Zimbabwe are attracting investors from around the world who are interested in supporting local businesses and projects. This influx of international capital is providing a boost to the Zimbabwean economy and helping to stimulate economic growth.

Local special circumstances: Zimbabwe has a vibrant entrepreneurial ecosystem, with many innovative startups and small businesses looking for funding to grow and expand. However, traditional sources of financing, such as banks, are often inaccessible to these businesses due to strict lending criteria and a lack of collateral. Crowdinvesting platforms provide an alternative source of funding for these entrepreneurs, allowing them to access the capital they need to scale their businesses. Furthermore, the Zimbabwean government has recognized the potential of crowdinvesting to drive economic growth and has implemented policies to support the development of the market. These policies include the creation of a regulatory framework that provides investor protection and promotes transparency in the crowdinvesting industry. This regulatory environment has helped to build trust among investors and has contributed to the growth of the market.

Underlying macroeconomic factors: The crowdinvesting market in Zimbabwe is also benefiting from favorable macroeconomic conditions. The country has experienced a period of relative stability in recent years, with inflation rates declining and the economy showing signs of recovery. This stability has increased investor confidence and encouraged individuals to explore alternative investment options, such as crowdinvesting. Additionally, the rapid advancement of technology and the widespread use of mobile phones in Zimbabwe have facilitated the growth of the crowdinvesting market. Mobile-based crowdinvesting platforms have made it easier for individuals to invest and monitor their investments, further driving the adoption of crowdinvesting in the country. In conclusion, the crowdinvesting market in Zimbabwe is developing rapidly due to customer preferences for diversification and convenience, as well as the emergence of impact investing and the participation of international investors. Local special circumstances, such as a vibrant entrepreneurial ecosystem and supportive government policies, have also contributed to the growth of the market. Favorable macroeconomic conditions and technological advancements have further propelled the development of crowdinvesting in Zimbabwe.

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.