Digital Investment - Ethiopia

Ethiopia

Highlights

Total transaction value in the Digital Investment market is projected to reach US$1.48bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 7.76% resulting in a projected total amount of US$2.15bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$1.48bn in 2024.
The highest cumulated transaction value is reached United States (US$1.78tn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Investment market in Ethiopia is experiencing significant growth and development.

Customer preferences: Ethiopian investors are increasingly turning to digital investment platforms to manage their portfolios. This trend can be attributed to several factors. Firstly, digital investment platforms offer convenience and accessibility, allowing investors to monitor and manage their investments from anywhere at any time. Secondly, these platforms often provide a wider range of investment options compared to traditional investment methods, allowing investors to diversify their portfolios and potentially achieve higher returns. Lastly, digital investment platforms often have lower fees and minimum investment requirements, making them more accessible to a wider range of investors.

Trends in the market: One major trend in the Ethiopian digital investment market is the rise of mobile investment apps. With the increasing smartphone penetration in the country, more and more investors are using mobile apps to access investment platforms. These apps provide a user-friendly interface and allow investors to easily track their investments, make trades, and receive real-time market updates. Additionally, some mobile investment apps offer educational resources and tools to help investors make informed investment decisions. Another trend in the market is the emergence of robo-advisors. These are automated investment platforms that use algorithms to provide investment advice and manage portfolios. Robo-advisors are gaining popularity in Ethiopia due to their low fees and ability to provide personalized investment recommendations based on an investor's risk tolerance and financial goals. This trend is particularly appealing to younger investors who are comfortable with technology and prefer a more hands-off approach to investing.

Local special circumstances: Ethiopia has a young and tech-savvy population, which is driving the adoption of digital investment platforms. The country has one of the highest youth populations in Africa, and these young investors are increasingly turning to digital solutions for their investment needs. Additionally, the Ethiopian government has been supportive of the digital investment sector, implementing policies and regulations to promote its growth. This has created a favorable environment for digital investment platforms to thrive and attract investors.

Underlying macroeconomic factors: Ethiopia has been experiencing strong economic growth in recent years, which has contributed to the development of the digital investment market. The country has been investing heavily in infrastructure development, improving internet connectivity and access to mobile technology. This has created an enabling environment for digital investment platforms to expand their reach and attract a larger customer base. Additionally, Ethiopia has a growing middle class with disposable income, creating a demand for investment opportunities and financial services. In conclusion, the Digital Investment market in Ethiopia is experiencing significant growth and development. Customer preferences are shifting towards digital investment platforms due to their convenience, accessibility, and wider range of investment options. The market is witnessing trends such as the rise of mobile investment apps and the emergence of robo-advisors. Local special circumstances, such as a young and tech-savvy population, and supportive government policies, are further driving the growth of the market. Underlying macroeconomic factors, including strong economic growth and infrastructure development, are also contributing to the development of the digital investment market in Ethiopia.

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.