Reward-Based Crowdfunding - Ghana

The Reward-Based Crowdfunding market in Ghana is expected to see a total transaction value of US$50.71k by 2024.
When comparing this figure globally, it is evident that the United States leads with a projected transaction value of US$465m in 2024.
Ghana's crowdfunding market is gaining traction, especially in the capital raising sector, offering diverse investment opportunities for both local and international investors.

Definition:

Reward-Based Crowdfunding is a financing form independent from financial institutions, location of the campaign creator or investor. Reward-Based Crowdfunding campaigns can be initiated for a wide range of different purposes such as product launches, art-, music- and film-financing, software development, scientifc research etc. Usually there is a financing goal defined by funding volume and time to reach this goal for every campaign. The campaign creator publishes engaging content (e.g. photos, videos, text) that explain the goal and motivation of the fundraising. Almost everyone can participate in reward-based crowdfunding campaigns as an investor. The only prerequisite is a valid payment account.

Additional Information:

Key players in the reward-based crowdfunding campaigns are Kickstarter and Indiegogo.

Reward-based Crowdfunding
Pre-financing of products, art, music and films, software or scientific research
e.g. Kickstarter, Indiegogo

Traditional venture capital investments
Equity-based Crowdfunding (see Crowdinvesting)
Lending-based Crowdfunding (see Crowdlending)

The Crowdfunding market in Ghana has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Ghana have shifted towards alternative financing options, such as crowdfunding, due to limited access to traditional banking services.

With a large unbanked population, many Ghanaians are turning to crowdfunding platforms to raise funds for various purposes, including business ventures, education, healthcare, and community projects. The convenience, transparency, and inclusivity offered by crowdfunding appeal to customers who are looking for accessible and flexible financing options. Trends in the crowdfunding market in Ghana reflect the global growth of this industry.

There has been an increase in the number of crowdfunding platforms operating in the country, offering a wide range of funding models such as donation-based, reward-based, equity-based, and debt-based crowdfunding. This diversity allows individuals and businesses to choose the most suitable crowdfunding model for their needs. Furthermore, the use of social media and online marketing has played a crucial role in promoting crowdfunding campaigns and reaching a larger audience.

Local special circumstances also contribute to the development of the crowdfunding market in Ghana. The country has a vibrant entrepreneurial ecosystem, with many startups and small businesses seeking funding to fuel their growth. Crowdfunding provides an alternative source of capital for these enterprises, enabling them to access funds without the need for collateral or a long track record.

Additionally, crowdfunding has become a means for Ghanaians in the diaspora to support their communities back home, fostering a sense of connection and engagement. Underlying macroeconomic factors have also influenced the growth of crowdfunding in Ghana. The country has experienced steady economic growth in recent years, which has created a conducive environment for entrepreneurial activities.

Additionally, the government has implemented policies and initiatives to promote entrepreneurship and innovation, further stimulating the demand for crowdfunding as a financing option. In conclusion, the Crowdfunding market in Ghana is developing rapidly due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The convenience, inclusivity, and accessibility of crowdfunding platforms have made them an attractive alternative to traditional financing options.

With the continued growth of the entrepreneurial ecosystem and supportive government policies, the crowdfunding market in Ghana is expected to expand further in the coming years.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.