Market Insights Financial Capital Raising

Digital Capital Raising - Northern Africa

Northern Africa

The Digital Capital Raising market market in Northern Africa is expected to reach a total transaction value of US$25.6m in 2024.
In the same year, MarketMarketplace Lending (Consumer) is projected to lead the market with a total transaction value of US$24.3m.
When compared globally, the United States is forecasted to achieve the highest cumulated transaction value of US$35,370m in 2024.
In Northern Africa, Digital Capital Raising is gaining traction as startups leverage technology to attract global investors in the Capital Raising market.

Key regions: Brazil, Germany, United States, United Kingdom, China

Market

Region

Region comparison

Currency

Analyst Opinion

The Digital Capital Raising market in Northern Africa is experiencing significant growth and development. Customer preferences in the region are shifting towards digital platforms for capital raising.

This is driven by the convenience and accessibility offered by digital platforms, which allow individuals and businesses to raise capital from a larger pool of potential investors. Additionally, digital capital raising platforms often provide more transparency and efficiency compared to traditional methods, attracting customers who value these features. Trends in the market show that crowdfunding is becoming increasingly popular in Northern Africa.

Crowdfunding platforms allow individuals and businesses to raise capital from a large number of individuals, often through small contributions. This trend is fueled by the growing interest in entrepreneurship and innovation in the region, as well as the desire for individuals to support local projects and businesses. Furthermore, the rise of social media and online communities has made it easier for crowdfunding campaigns to reach a wider audience and gain traction.

Another trend in the market is the emergence of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, eliminating the need for traditional financial intermediaries. This trend is driven by the demand for alternative financing options, particularly among small and medium-sized enterprises (SMEs) that may face challenges accessing traditional bank loans.

Peer-to-peer lending platforms offer a streamlined and efficient process for matching borrowers with lenders, making it an attractive option for both parties. Local special circumstances in Northern Africa also contribute to the development of the Digital Capital Raising market. The region has a young and tech-savvy population, which is increasingly embracing digital technologies and platforms.

This demographic shift is creating a fertile ground for the growth of digital capital raising platforms. Additionally, the region has a vibrant startup ecosystem, with many entrepreneurs and innovators looking for funding to bring their ideas to life. Digital capital raising platforms provide an avenue for these startups to access the necessary capital to fuel their growth.

Underlying macroeconomic factors further support the growth of the Digital Capital Raising market in Northern Africa. The region has been experiencing economic growth and increasing foreign investment, creating a favorable environment for capital raising activities. Furthermore, the digital transformation of the financial sector is a global trend, and Northern Africa is no exception.

Governments and regulatory bodies in the region are recognizing the potential of digital capital raising and are taking steps to promote its development. This includes creating regulatory frameworks and providing support for startups and entrepreneurs. In conclusion, the Digital Capital Raising market in Northern Africa is growing and evolving rapidly.

Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this development. As the region continues to embrace digital technologies and entrepreneurship, the Digital Capital Raising market is expected to thrive and play a crucial role in driving economic growth and innovation.

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.