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CrowdLending (Business) - Eastern Africa

Eastern Africa

The total transaction value in the Crowdlending (Business) market market in Eastern Africa is forecasted to reach US$6.6m in 2024.
When compared globally, it is evident that China leads with a transaction value of US$15,970m in 2024.
In Kenya, CrowdLending platforms are gaining popularity as an alternative capital-raising option for small businesses amidst a growing entrepreneurial ecosystem.

Key regions: China, United Kingdom, Brazil, Israel, India

Market

Region

Region comparison

Currency

Analyst Opinion

The CrowdLending (Business) market in Eastern Africa is experiencing significant growth and development. This can be attributed to several factors, including customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences in Eastern Africa are shifting towards alternative financing options like CrowdLending (Business). This is driven by the desire for more accessible and flexible funding options, especially for small and medium-sized enterprises (SMEs). Traditional lending institutions have often been reluctant to provide loans to these businesses due to perceived risks and lack of collateral.

CrowdLending (Business) platforms offer a solution by connecting borrowers directly with lenders, making the lending process more efficient and inclusive. Trends in the market also contribute to the development of the CrowdLending (Business) market in Eastern Africa. One key trend is the increasing adoption of digital technologies and mobile banking services in the region.

This has facilitated the growth of online lending platforms, making it easier for borrowers to access funds and for lenders to invest in businesses. Additionally, the rise of social media and online networking has created a conducive environment for crowdfunding campaigns, further fueling the growth of CrowdLending (Business) in the region. Local special circumstances play a role in the development of the CrowdLending (Business) market in Eastern Africa.

The region has a vibrant entrepreneurial ecosystem, with a high number of startups and SMEs seeking funding to grow their businesses. CrowdLending (Business) platforms provide an alternative source of financing for these businesses, enabling them to access capital quickly and efficiently. Furthermore, the region has a large unbanked population, and CrowdLending (Business) platforms offer a way for individuals to participate in the financial system and earn returns on their investments.

Underlying macroeconomic factors also contribute to the growth of the CrowdLending (Business) market in Eastern Africa. The region has been experiencing steady economic growth, with increasing investment in sectors such as technology, agriculture, and renewable energy. This creates opportunities for businesses to expand and innovate, driving the demand for financing.

Additionally, the region has a young and dynamic population, which is more open to alternative financing options and digital solutions. In conclusion, the CrowdLending (Business) market in Eastern Africa is developing rapidly due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The shift towards alternative financing options, the adoption of digital technologies, the vibrant entrepreneurial ecosystem, and the favorable macroeconomic environment all contribute to the growth and development of the CrowdLending (Business) market in the region.

Methodology

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.