Digital Investment - Zimbabwe

Zimbabwe

Highlights

Total transaction value in the Digital Investment market is projected to reach US$433.40m in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 7.51% resulting in a projected total amount of US$622.50m by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$433.40m 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 Zimbabwe has been experiencing significant growth in recent years.

Customer preferences: Customers in Zimbabwe have shown a strong preference for digital investment platforms due to their convenience and accessibility. With the rise of smartphone penetration and internet connectivity in the country, more individuals are opting to invest digitally rather than through traditional channels. This shift in customer preferences is driven by the desire for greater control over their investments and the ability to access real-time market information.

Trends in the market: One of the key trends in the digital investment market in Zimbabwe is the emergence of robo-advisory services. These platforms use algorithms to provide personalized investment advice and portfolio management services to customers. This trend is driven by the increasing demand for low-cost investment solutions and the need for automated investment strategies. Robo-advisory services offer a convenient and cost-effective way for individuals to invest their money without the need for extensive financial knowledge or expertise. Another trend in the market is the growing popularity of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, bypassing traditional financial institutions. This trend is driven by the limited access to credit in Zimbabwe, as well as the desire for higher returns on investment. Peer-to-peer lending platforms offer individuals the opportunity to earn interest on their investments by lending money to borrowers in need.

Local special circumstances: Zimbabwe has been experiencing economic challenges in recent years, including high inflation and currency instability. These factors have led individuals to seek alternative investment options to protect their wealth and hedge against inflation. Digital investment platforms provide an attractive option for investors looking to diversify their portfolios and mitigate the impact of economic uncertainty.

Underlying macroeconomic factors: The growth of the digital investment market in Zimbabwe is also influenced by macroeconomic factors such as government regulations and policies. The government has been taking steps to promote financial inclusion and digital innovation in the country, which has created a favorable environment for the development of digital investment platforms. Additionally, the increasing adoption of mobile money services in Zimbabwe has facilitated the growth of digital investment platforms, as individuals can easily transfer funds and make investments using their mobile phones. In conclusion, the Digital Investment market in Zimbabwe is experiencing significant growth due to customer preferences for convenience and accessibility, as well as the emergence of robo-advisory services and peer-to-peer lending platforms. The local special circumstances, including economic challenges and the need for alternative investment options, further contribute to the growth of the market. The underlying macroeconomic factors, such as government regulations and the adoption of mobile money services, also play a crucial role in shaping the development of the digital investment market in Zimbabwe.

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.