Empowering Africa: The Transformative Impact of Crowdfunding on Sustainable Development

Lenny Phulong Mamaro () and Athenia Bongani Sibindi ()
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Lenny Phulong Mamaro: University of South Africa
Athenia Bongani Sibindi: University of South Africa

A chapter in Sustainable Finance and Insurance in Africa, 2025, pp 39-61 from Springer

Abstract: Abstract This chapter explores the transformative role of crowdfunding as a catalyst for achieving Sustainable Development Goals (SDGs) in Africa, particularly in the aftermath of the COVID-19 pandemic. The pandemic has exacerbated financial challenges for entrepreneurs and SMEs, driving a shift away from traditional funding sources and highlighting the need for innovative financial solutions. Crowdfunding emerges as a viable alternative, enhancing access to financial resources and promoting resilience among small and medium-sized enterprises. Crowdfunding aligns with the UN’s emphasis on financial inclusion to drive development by fostering social inclusion, environmental sustainability, and economic prosperity. The chapter discusses the evolution of crowdfunding in Africa, emphasising its potential to address pressing issues such as poverty alleviation, quality education, and gender equality. It also acknowledges the significant contributions of SMEs to job creation while addressing the gaps in underdeveloped financial systems that the pandemic has further strained. As crowdfunding continues to grow, with projections indicating a substantial increase in its economic impact in sub-Saharan Africa, this chapter illustrates its potential to bridge funding gaps and promote sustainable development across the continent.

Keywords: Transformative role of crowdfunding; Sustainable finance; Role of crowdfunding in sustainability; Drivers of crowdfunding success; Challenges of crowdfunding (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:aaechp:978-3-031-86516-9_4

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DOI: 10.1007/978-3-031-86516-9_4

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