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CrowdLending (Business) - Tanzania

Tanzania

The total transaction value in the Crowdlending (Business) market market in Tanzania is expected to hit US$0.0 by 2024.
When compared globally, it is evident that China leads with a transaction value of US$15,970m in 2024.
Tanzania's CrowdLending market is gaining traction, offering local businesses a new avenue for capital raising amidst traditional financing challenges.

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

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Analyst Opinion

The CrowdLending (Business) market in Tanzania is experiencing significant growth and development.

Customer preferences: In Tanzania, there is a growing demand for alternative financing options, especially among small and medium-sized enterprises (SMEs) and entrepreneurs. Traditional banks often have strict lending criteria and can be inaccessible to many businesses. CrowdLending platforms provide a more accessible and flexible financing solution, allowing businesses to raise capital from a large pool of individual lenders. This appeals to Tanzanian businesses who are looking for more inclusive and efficient ways to access funding.

Trends in the market: One of the key trends in the CrowdLending market in Tanzania is the rise of peer-to-peer (P2P) lending platforms. These platforms connect borrowers directly with individual lenders, cutting out the intermediaries and reducing transaction costs. P2P lending has gained popularity in Tanzania due to its simplicity and transparency. Additionally, the use of mobile technology has played a significant role in the growth of CrowdLending in Tanzania. Mobile banking and payment platforms have made it easier for lenders and borrowers to transact and manage their loans.

Local special circumstances: Tanzania has a large unbanked population, with many individuals and businesses lacking access to traditional financial services. CrowdLending platforms have emerged as a viable alternative for these underserved segments of the population. The informal nature of many businesses in Tanzania also makes it difficult for them to meet the requirements of traditional lenders. CrowdLending platforms provide a more flexible and inclusive financing option for these businesses.

Underlying macroeconomic factors: Tanzania's economy has been growing steadily in recent years, driven by sectors such as agriculture, manufacturing, and telecommunications. This growth has created a demand for financing among businesses looking to expand their operations. CrowdLending platforms have filled this financing gap by providing access to capital for businesses that may not meet the criteria of traditional lenders. Additionally, the government of Tanzania has been supportive of initiatives to promote financial inclusion and access to credit, which has further contributed to the growth of the CrowdLending market. In conclusion, the CrowdLending market in Tanzania is experiencing growth and development due to customer preferences for alternative financing options, the rise of P2P lending platforms, the use of mobile technology, the need to serve the unbanked population, and the supportive macroeconomic environment. This market trend is expected to continue as more businesses and individuals recognize the benefits of CrowdLending as a viable financing option.

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.