Digital Investment - Tanzania

Tanzania

Highlights

Total transaction value in the Digital Investment market is projected to reach US$555.30m in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 9.18% resulting in a projected total amount of US$861.50m by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$555.30m 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 Tanzania is experiencing significant growth and development, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Digital Investment market in Tanzania are shifting towards more convenient and accessible investment options.

Tanzanian investors are increasingly looking for digital platforms that allow them to invest and manage their portfolios online. This preference is driven by the convenience and flexibility offered by digital investment platforms, which enable investors to access their portfolios anytime, anywhere, and make investment decisions based on real-time information. Additionally, digital investment platforms often provide a wide range of investment options, allowing investors to diversify their portfolios and potentially enhance their returns.

Trends in the market indicate a growing demand for digital investment services in Tanzania. This trend is fueled by the increasing adoption of smartphones and internet connectivity in the country. As more Tanzanians gain access to smartphones and the internet, the barriers to entry for digital investment platforms are lowered, making it easier for individuals to start investing.

Furthermore, the COVID-19 pandemic has accelerated the shift towards digital channels, as investors seek alternative ways to manage their investments while adhering to social distancing measures. Local special circumstances also contribute to the development of the Digital Investment market in Tanzania. The country has a young and growing population, with a high proportion of tech-savvy individuals who are comfortable using digital platforms for various purposes, including investment.

Additionally, the Tanzanian government has implemented policies and initiatives to promote financial inclusion and digital innovation, creating an enabling environment for the growth of the digital investment sector. Underlying macroeconomic factors further support the development of the Digital Investment market in Tanzania. The country has been experiencing steady economic growth in recent years, with a stable political environment and improving business climate.

This economic stability and growth provide a favorable backdrop for investment activities and encourage individuals to explore different investment options, including digital platforms. In conclusion, the Digital Investment market in Tanzania is witnessing significant growth and development driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As more Tanzanians embrace digital technologies and seek convenient investment options, the demand for digital investment services is expected to continue to grow.

This presents opportunities for both local and international players in the market to cater to the evolving needs of Tanzanian investors and contribute to the further development of the digital investment sector in the country.

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.