Market Insights Financial Wealth Management

Digital Investment - Eastern Africa

Eastern Africa

The projected total transaction value in the Digital Investment market in Eastern Africa is expected to reach US$6,598.00m in 2024.
It is projected to show an annual growth rate (CAGR 2024-2027) of 10.46%, resulting in a projected total amount of US$8,892.00m by 2027.
The market is dominated by Robo-Advisors, with a projected total transaction value of US$4,898.00m in 2024.
The highest cumulated transaction value in Eastern Africa is reached United States, with US$1,782,000.00m in 2024.
Eastern Africa's digital investment market is experiencing significant growth, driven by the region's young and tech-savvy population.

Key regions: United Arab Emirates, Switzerland, Singapore, United Kingdom, Europe

Market

Region

Region comparison

Currency

Analyst Opinion

The Digital Investment market in Eastern Africa is experiencing significant growth and development. Customer preferences in the region are shifting towards digital investment platforms due to their convenience and accessibility.

Investors are increasingly looking for platforms that offer a wide range of investment options and tools, allowing them to diversify their portfolios and make informed investment decisions. Additionally, customers are demanding user-friendly interfaces and mobile applications that enable them to manage their investments on the go. Trends in the market indicate a growing number of digital investment platforms entering the Eastern African market.

These platforms are leveraging technology to offer innovative investment products and services, such as robo-advisory services, automated trading, and social trading. This has democratized access to investment opportunities, attracting a new generation of investors who are tech-savvy and prefer digital solutions. Local special circumstances in Eastern Africa play a role in the development of the Digital Investment market.

The region has a large and growing young population, with a high level of mobile phone penetration. This presents a unique opportunity for digital investment platforms to tap into a large customer base and expand their reach. Additionally, the region has a relatively underdeveloped traditional banking sector, making digital investment platforms an attractive alternative for individuals looking to grow their wealth.

Underlying macroeconomic factors also contribute to the growth of the Digital Investment market in Eastern Africa. The region is experiencing steady economic growth, with increasing disposable incomes and a growing middle class. This provides individuals with the financial means to invest and the motivation to seek out investment opportunities.

Furthermore, the region is witnessing a rise in entrepreneurship and innovation, creating a favorable environment for the development of digital investment platforms. In conclusion, the Digital Investment market in Eastern Africa is thriving due to customer preferences for convenience and accessibility, the emergence of new digital investment platforms, local special circumstances, and favorable macroeconomic factors. As the region continues to embrace digital technology and experience economic growth, the market is expected to further expand and evolve, offering even more opportunities for investors.

Methodology

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.