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CrowdLending (Business) - Zambia

Zambia

The total transaction value in the Crowdlending (Business) market market in Zambia is projected to reach US$308.40k in 2024.
When considering a global perspective, it is evident that the highest transaction value is anticipated China (US$15,970m in 2024).
Zambia's CrowdLending market is gaining traction among local businesses seeking alternative capital raising options for expansion and growth.

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

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Analyst Opinion

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

Customer preferences: In recent years, there has been a shift in customer preferences towards alternative financing options, such as CrowdLending. This is driven by the increasing difficulty for businesses to secure traditional bank loans due to strict lending criteria and limited access to credit. CrowdLending provides a more accessible and flexible financing solution for businesses in Zambia, allowing them to raise capital from a large number of individual lenders.

Trends in the market: One of the key trends in the CrowdLending market in Zambia is the emergence of online platforms that connect borrowers and lenders. These platforms provide a convenient and efficient way for businesses to access funding, as well as for lenders to diversify their investment portfolios. The use of technology has also made the lending process more transparent and streamlined, reducing the risk for both borrowers and lenders. Another trend in the market is the increasing participation of institutional investors in CrowdLending. As the market matures, institutional investors such as banks and investment funds are recognizing the potential of CrowdLending as an asset class. This has led to larger loan sizes and increased competition among lenders, resulting in more favorable terms for borrowers.

Local special circumstances: Zambia has a vibrant and dynamic small and medium-sized enterprise (SME) sector, which plays a crucial role in the country's economy. However, many SMEs face challenges in accessing financing from traditional sources. CrowdLending has emerged as a viable alternative for these businesses, providing them with the capital they need to grow and expand. Furthermore, Zambia has a large unbanked population, with a significant portion of the population lacking access to formal financial services. CrowdLending platforms have the potential to bridge this gap by providing financial services to individuals and businesses that have been excluded from the traditional banking system.

Underlying macroeconomic factors: The development of the CrowdLending market in Zambia is also influenced by macroeconomic factors. The country has experienced stable economic growth in recent years, which has created a favorable environment for businesses to thrive. Additionally, the government has implemented policies to support entrepreneurship and SME development, further driving the demand for alternative financing options. In conclusion, the CrowdLending (Business) market in Zambia is experiencing significant growth and development. This is driven by customer preferences for alternative financing options, the emergence of online platforms, the increasing participation of institutional investors, the vibrant SME sector, the large unbanked population, and favorable macroeconomic factors. As the market continues to evolve, it is expected to play an increasingly important role in supporting the growth and development of businesses in Zambia.

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.