Capital Raising - Western Africa

  • Western Africa
  • The country in Western Africa is projected to reach a total Capital Raised of US$2.0bn in 2024.
  • Traditional Capital Raising is set to dominate the market within the country, with a projected market volume of US$1.6bn in 2024.
  • When compared globally, the United States will generate the most Capital Raised (US$331,800.0m in 2024).
  • In Western Africa, Ghana is experiencing a surge in private equity investments, driving growth in the capital raising market.

Key regions: United States, China, India, Israel, Europe

 
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Analyst Opinion

The Capital Raising market in Western Africa has been experiencing significant growth in recent years, driven by various factors such as increasing investor interest, favorable government policies, and the region's economic development.

Customer preferences:
Investors in Western Africa are increasingly looking for opportunities to diversify their portfolios and seek higher returns. As a result, there has been a growing demand for capital raising activities in the region. Investors are particularly interested in sectors such as fintech, renewable energy, and infrastructure, which are seen as high-growth areas with significant potential for returns.

Trends in the market:
One of the key trends in the Capital Raising market in Western Africa is the rise of venture capital and private equity investments. These types of investments have gained popularity as they provide funding to early-stage and growth-stage companies, allowing them to scale up and expand their operations. This trend has been fueled by the region's growing startup ecosystem and the emergence of local venture capital firms. Another trend in the market is the increasing use of alternative financing options, such as crowdfunding and peer-to-peer lending platforms. These platforms provide an alternative to traditional sources of capital, allowing entrepreneurs and small businesses to raise funds from a larger pool of investors. This trend has been driven by the region's high mobile penetration rate and the growing popularity of digital platforms.

Local special circumstances:
The Capital Raising market in Western Africa is also influenced by local special circumstances. One of these is the presence of a large informal economy, which has traditionally relied on informal sources of financing. However, there is a growing recognition of the need to formalize and regulate the capital raising activities in the region, in order to attract more investors and provide a more secure investment environment. Another special circumstance is the presence of regional economic communities, such as the Economic Community of West African States (ECOWAS), which promote economic integration and cooperation among member countries. These regional bodies play a crucial role in facilitating cross-border investments and creating a more favorable investment climate in the region.

Underlying macroeconomic factors:
The development of the Capital Raising market in Western Africa is also influenced by underlying macroeconomic factors. One of these is the region's economic growth, which has been supported by factors such as population growth, urbanization, and natural resource wealth. These factors have created a conducive environment for capital raising activities, as they provide opportunities for investment and business expansion. Another macroeconomic factor is the stability of the region's financial sector. The presence of well-regulated and stable financial institutions is essential for attracting investors and ensuring the smooth functioning of the capital raising market. Governments in the region have been working towards strengthening their financial systems and improving the regulatory environment to encourage investment and capital raising activities. In conclusion, the Capital Raising market in Western Africa is experiencing significant growth due to increasing investor interest, favorable government policies, and the region's economic development. Investors in the region are looking for opportunities to diversify their portfolios and seek higher returns, leading to a growing demand for capital raising activities. The rise of venture capital and private equity investments, as well as the increasing use of alternative financing options, are key trends in the market. Local special circumstances, such as the presence of a large informal economy and regional economic communities, also influence the market. Finally, underlying macroeconomic factors, such as the region's economic growth and the stability of its financial sector, contribute to the development of the Capital Raising market in Western Africa.

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.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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