Market Insights Financial Capital Raising

Traditional Capital Raising - Western Africa

Western Africa

The country in focus, in Western Africa, is expected to see the Total Capital Raised in the Traditional Capital Raising market market reach US$1,557.0m by 2024.
Venture Capital is set to dominate this market with a projected volume of US$1,465.0m in the same year.
When compared globally, the United States is anticipated to generate the highest Capital Raised amount in 2024, with US$296,400.0m.
In Western Africa, the traditional capital raising market is seeing a shift towards more diverse investment opportunities and increased participation from local investors.

Key regions: Israel, Brazil, United States, Europe, United Kingdom

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Region

Region comparison

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Analyst Opinion

The Traditional Capital Raising market in Western Africa is experiencing significant growth and development in recent years.

Customer preferences: In Western Africa, there is a growing preference for traditional capital raising methods such as bank loans and private equity investments. This is due to a combination of factors, including the familiarity and trust associated with these methods, as well as the limited access to alternative financing options in the region.

Trends in the market: One of the key trends in the Traditional Capital Raising market in Western Africa is the increasing demand for bank loans. This can be attributed to the region's growing economy and the need for businesses to access capital for expansion and investment. Additionally, the stability and reliability of banks in the region have further fueled this trend. Another trend in the market is the rise of private equity investments. Western Africa has seen a significant increase in foreign direct investment, particularly in sectors such as infrastructure, energy, and telecommunications. Private equity firms are attracted to the region due to its untapped potential and high returns on investment. This trend has provided local businesses with an alternative source of capital, enabling them to grow and expand their operations.

Local special circumstances: Western Africa faces unique challenges in the Traditional Capital Raising market. One of the main challenges is the limited availability of credit information and a lack of credit scoring systems. This makes it difficult for businesses to demonstrate their creditworthiness and access financing. Additionally, the region's underdeveloped financial infrastructure and regulatory environment pose challenges for both lenders and borrowers.

Underlying macroeconomic factors: The growth and development of the Traditional Capital Raising market in Western Africa can be attributed to several macroeconomic factors. Firstly, the region has experienced steady economic growth in recent years, driven by factors such as population growth, urbanization, and natural resource exploitation. This has created a favorable environment for businesses to seek capital and expand their operations. Furthermore, the increasing integration of Western African economies into the global market has attracted foreign investment and boosted economic activity. This has resulted in a greater demand for capital and a need for traditional capital raising methods to support business growth. In conclusion, the Traditional Capital Raising market in Western Africa is experiencing significant growth and development. Customer preferences for bank loans and private equity investments, along with the region's economic growth and integration into the global market, are driving this trend. However, challenges such as limited credit information and underdeveloped financial infrastructure need to be addressed to further enhance the market's potential.

Methodology

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.