The Cambridge Centre for Alternative Finance has published a new report entitled , which observes a region still in its early stages of development, and currently experiencing slow growth compared to other regions of the world.
CCAF, or the Cambridge Centre for Alternative Finance, recently published a new report benchmarking alternative finance in Africa and the Middle East. Although market development in these regions could generally be described as early stage, and growing slowly, there are certain trends that are unique to specific regions and countries. For instance, funding for non-financial projects such as donation and philanthropic online micro financing platforms is primarily being funded via platforms based outside Africa. In the Middle East, however, rewards-based crowd funding and donation are well established. Debt-based models are also beginning to make a mark. Interestingly, Israel is distinguished by a strong presence of equity-based crowd funding.
This newly released report was produced in a collaborative effort between CCAF and Energy 4 Impact, and with the support of UKAid and CME Group Foundation. It is said to be the first study of its kind that systematically reports on the size and growth of crowdfunding and peer-to-peer lending markets in Africa and the Middle East. The report covers 46 African countries and 12 countries in the Middle East, and includes survey data from more than 70 alternative finance platforms between 2013 and 2015.
The study describes the various forms of online alternative finance that are prevailing in African and Middle Eastern countries, typically ranging from reward-based crowd funding, to peer-to-peer business lending. The report captures industry volumes in key markets, describing the rise of alternative funding for start-ups and SMEs, analysing the latest market trends, and exploring the changing regulatory landscape in Africa and the Middle East.
To read the full report and findings, click here.