CrowdLending (Business) - Zimbabwe

Zimbabwe

Highlights

The Crowdlending (Business) market market in Zimbabwe is projected to reach a total transaction value of US$154.90k in 2024.
When comparing globally, it is evident that China leads with the highest transaction value of US$16bn in 2024.
Zimbabwe's CrowdLending market is gaining traction as businesses turn to alternative capital raising methods amidst economic challenges.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: In recent years, there has been a growing preference among businesses in Zimbabwe to seek alternative sources of financing, such as crowd lending. This is mainly due to the challenges faced in accessing traditional forms of financing, such as bank loans. Crowd lending provides businesses with a more accessible and flexible option for raising capital, as it allows them to bypass the stringent requirements and lengthy approval processes associated with traditional lenders. Additionally, crowd lending platforms often offer competitive interest rates, making it an attractive option for businesses in need of funding.

Trends in the market: One of the key trends in the CrowdLending (Business) market in Zimbabwe is the increasing number of crowd lending platforms that have emerged in recent years. These platforms act as intermediaries, connecting businesses in need of funding with individual lenders. The rise of these platforms has made it easier for businesses to access crowd lending services and has contributed to the overall growth of the market. Another trend in the market is the diversification of crowd lending offerings. Initially, crowd lending platforms in Zimbabwe primarily focused on providing loans to small and medium-sized enterprises (SMEs). However, there has been a shift towards catering to a wider range of businesses, including larger corporations and startups. This diversification has allowed crowd lending platforms to tap into a larger customer base and meet the varying financing needs of businesses across different sectors.

Local special circumstances: Zimbabwe's economy has faced significant challenges in recent years, including high inflation rates and a shortage of foreign currency. These factors have made it difficult for businesses to access traditional forms of financing, as banks have become more risk-averse and have tightened their lending criteria. As a result, businesses have turned to crowd lending as a viable alternative for raising capital. Another special circumstance in Zimbabwe is the high level of mobile phone penetration. Mobile money platforms, such as EcoCash, have gained popularity in the country and have become a preferred method of payment for many individuals and businesses. This has facilitated the growth of crowd lending platforms, as they are able to leverage mobile money platforms for loan disbursements and repayments, making the process more convenient for borrowers and lenders.

Underlying macroeconomic factors: The development of the CrowdLending (Business) market in Zimbabwe can be attributed to several underlying macroeconomic factors. One of the main factors is the government's efforts to promote financial inclusion and support the growth of the SME sector. Crowd lending has been recognized as a key tool for providing access to finance for SMEs, which are considered the backbone of the country's economy. Additionally, the increasing digitization of financial services in Zimbabwe has created an enabling environment for the growth of the crowd lending market. The government has implemented policies to promote the use of digital financial services, such as mobile money, which has facilitated the development of crowd lending platforms and made it easier for businesses to access financing. In conclusion, the CrowdLending (Business) market in Zimbabwe is experiencing significant growth and development, driven by customer preferences for alternative sources of financing, the emergence of crowd lending platforms, local special circumstances such as the challenging economic environment and high mobile phone penetration, and underlying macroeconomic factors such as government support for financial inclusion and digitization of financial services.

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.