Capital Raising - Tanzania | Statista Market Forecast

The country in Tanzania is expected to see the Total Capital Raised in the Capital Raising market market reach US$210.70m in 2024.
Traditional Capital Raising is set to lead the market with a projected market volume of US$199.70m in 2024.
When compared globally, the United States will generate the most Capital Raised, with US$195.4bn in 2024.
Tanzania's Capital Raising market is seeing a surge in private equity investments, indicating growing confidence in the country's economic potential.

Definition:

The Capital Raising market refers to the process of raising additional capital to launch, finance, and grow a business or a project. Traditional Bank Loans are not considered in the market.

Structure:

The market consists of two segments:
- The Traditional Capital Raising market refers to traditional venture financial services for startups and emerging companies that do not yet possess a positive track record, but have exceptional growth potential.
- The Digital Capital Raising market refers to digital financial services for business customers and private borrowers.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Besides Traditional Bank Loans, there are various alternative forms of debt and equity financing that help businesses, especially startups and emerging companies who seek additional funds to support their business' operation and growth. Nowadays, owing to the rapid growth rate of startups and emerging companies, these financial services are more attractive and popular.
Key players in this market are companies such as Squoia Capital, Hercules Capital, and Indiegogo

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Venture Capital
Venture Debt
Digital Capital Raising

Traditional Bank Loans

The Capital Raising market in Tanzania has been experiencing significant growth in recent years.

Customer preferences: Tanzanian investors are increasingly looking for opportunities to invest in the capital markets. This is driven by several factors, including the desire to diversify their investment portfolios and the potential for higher returns compared to traditional savings accounts. Additionally, the increasing availability of investment products and services, such as mutual funds and private equity funds, has made it easier for investors to participate in the capital raising market.

Trends in the market: One of the key trends in the Tanzanian capital raising market is the growing popularity of initial public offerings (IPOs). Companies in various sectors, including banking, telecommunications, and energy, have successfully raised capital through IPOs in recent years. This trend is expected to continue as more companies seek to take advantage of the favorable market conditions and investor appetite for new investment opportunities. Another trend in the market is the increasing use of debt financing by both companies and the government. Companies are turning to debt financing to fund their expansion plans and capital expenditure needs, while the government is using debt financing to support infrastructure development projects. This trend is driven by the relatively low interest rates and the availability of financing options in the market.

Local special circumstances: One of the key factors driving the growth of the capital raising market in Tanzania is the country's strong economic growth. Tanzania has been one of the fastest-growing economies in Africa in recent years, driven by investments in sectors such as construction, manufacturing, and services. This has created a favorable environment for companies to raise capital to finance their growth plans. Additionally, the Tanzanian government has implemented several reforms to improve the business environment and attract foreign investment. These reforms include the establishment of special economic zones, the simplification of investment procedures, and the improvement of infrastructure. These initiatives have helped to attract both domestic and foreign investors to the capital raising market.

Underlying macroeconomic factors: The growth of the capital raising market in Tanzania is supported by several macroeconomic factors. These include a stable political environment, low inflation rates, and a sound financial system. The Tanzanian government has also implemented fiscal and monetary policies to promote economic stability and attract investment. Furthermore, the increasing integration of Tanzania into the global economy has opened up new opportunities for capital raising. The country's membership in regional economic blocs, such as the East African Community and the Southern African Development Community, has facilitated cross-border investments and trade. This has attracted foreign investors to the Tanzanian capital raising market, further fueling its growth. In conclusion, the capital raising market in Tanzania is experiencing significant growth due to customer preferences for investment opportunities, the popularity of IPOs, the increasing use of debt financing, the country's strong economic growth, local special circumstances such as government reforms, and underlying macroeconomic factors including political stability and economic integration.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

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 data from OECD, 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, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . 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.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.