Crowdinvesting - Ethiopia

  • Ethiopia
  • The Crowdinvesting market in Ethiopia is projected to reach a total transaction value of US$63.5k in 2024.
  • When compared globally, it is evident that the United Kingdom leads with a transaction value of US$608m in the same year.
  • Ethiopia's crowdinvesting market is burgeoning, attracting local and diaspora investors seeking opportunities in the country's growing business landscape.

Key regions: Europe, Australia, Brazil, China, Israel

 
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Analyst Opinion

The Crowdinvesting market in Ethiopia is experiencing significant growth and development.

Customer preferences:
Ethiopian investors are increasingly turning to crowdinvesting as a way to diversify their investment portfolios and support local businesses. This trend is driven by a desire to participate in the growth of promising startups and SMEs, as well as a growing interest in socially responsible investing. In addition, the convenience and accessibility of online crowdinvesting platforms have made it easier for individuals to invest in projects and businesses that align with their values and financial goals.

Trends in the market:
One of the key trends in the crowdinvesting market in Ethiopia is the emergence of platforms that focus on impact investing. These platforms connect investors with businesses that have a social or environmental mission, allowing individuals to support causes they care about while also earning a return on their investment. This trend reflects a broader shift towards sustainable and responsible investing, as investors seek to make a positive impact on society and the environment. Another trend in the market is the increasing number of crowdinvesting campaigns for agriculture and agribusiness projects. Ethiopia has a strong agricultural sector, and crowdinvesting platforms are providing a new avenue for farmers and agribusinesses to access funding for expansion and innovation. This trend is driven by the recognition of the potential of the agricultural sector to drive economic growth and reduce poverty in the country.

Local special circumstances:
Ethiopia has a large and growing youth population, with a significant number of young people entering the job market each year. This has created a need for entrepreneurship and job creation, and crowdinvesting has emerged as a viable solution. By providing funding and support to startups and SMEs, crowdinvesting platforms are helping to address the youth unemployment challenge and contribute to economic development in the country.

Underlying macroeconomic factors:
Ethiopia has been experiencing strong economic growth in recent years, with a focus on industrialization and diversification. This has created a favorable environment for startups and small businesses, as well as increased investor interest in the country. The government has also implemented policies to promote entrepreneurship and innovation, further supporting the growth of the crowdinvesting market. In conclusion, the crowdinvesting market in Ethiopia is witnessing rapid growth and development, driven by customer preferences for diversification and socially responsible investing. The emergence of impact investing platforms and the focus on agriculture and agribusiness projects are key trends in the market. The youth population and favorable macroeconomic factors are also contributing to the growth of crowdinvesting in Ethiopia.

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.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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