Key regions: United Arab Emirates, Switzerland, Singapore, United Kingdom, Europe
The Digital Investment market in Africa is experiencing rapid growth and development, driven by several key factors such as increasing internet penetration, growing smartphone adoption, and a rising middle class.
Customer preferences: Customers in Africa are increasingly turning to digital investment platforms as a convenient and accessible way to invest their money. These platforms offer a wide range of investment options, from stocks and bonds to mutual funds and cryptocurrencies. Customers appreciate the ease of use and convenience of these platforms, as they can access their investment accounts anytime and anywhere using their smartphones or computers. Additionally, digital investment platforms often offer lower fees compared to traditional investment options, making them an attractive choice for cost-conscious customers.
Trends in the market: One of the key trends in the African digital investment market is the rise of robo-advisors. These are automated investment platforms that use algorithms to provide personalized investment advice and manage portfolios on behalf of customers. Robo-advisors are gaining popularity in Africa due to their low fees, ease of use, and ability to cater to a wide range of investors, from beginners to experienced investors. They also offer a level of transparency and control that is appealing to customers. Another trend in the market is the increasing integration of mobile money platforms with digital investment platforms. Mobile money has already gained significant traction in Africa, with platforms such as M-Pesa in Kenya and MTN Mobile Money in Ghana. By integrating mobile money with digital investment platforms, customers can easily transfer funds from their mobile money accounts to their investment accounts, making it easier to invest and manage their portfolios.
Local special circumstances: Africa is a diverse continent with unique local circumstances that impact the digital investment market. One such circumstance is the limited access to traditional banking services in many African countries. This has created a gap in the market that digital investment platforms are filling, providing financial services to those who were previously excluded from the formal banking system. Another local circumstance is the high prevalence of informal savings and investment groups, known as "chamas" in East Africa. These groups pool their money together and invest in various ventures. Digital investment platforms are now providing an alternative to these informal groups, allowing individuals to invest their money independently and access a wider range of investment options.
Underlying macroeconomic factors: Several macroeconomic factors are driving the growth of the digital investment market in Africa. One such factor is the continent's young and growing population, which is increasingly tech-savvy and open to adopting new technologies. This demographic trend creates a large customer base for digital investment platforms. Another factor is the increasing urbanization and economic development in many African countries. As more people move to cities and experience rising incomes, they are looking for ways to grow their wealth and invest their money. Digital investment platforms provide a convenient and accessible solution for these individuals. In conclusion, the Digital Investment market in Africa is experiencing significant growth and development, driven by increasing internet penetration, growing smartphone adoption, and a rising middle class. Customers in Africa are turning to digital investment platforms for their convenience, accessibility, and lower fees. Robo-advisors and the integration of mobile money platforms are key trends in the market. Local circumstances such as limited access to traditional banking services and the prevalence of informal savings groups also contribute to the growth of the digital investment market. Underlying macroeconomic factors such as a young and tech-savvy population and increasing urbanization further support the development of the market.
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.
Mon - Fri, 9am - 6pm (EST)
Mon - Fri, 9am - 5pm (SGT)
Mon - Fri, 10:00am - 6:00pm (JST)
Mon - Fri, 9:30am - 5pm (GMT)
Mon - Fri, 9am - 6pm (EST)
