Crowdfunding in Africa: Opportunities and Challenges

Emmanuel James Chao (), Priscilla Serwaah (), Prince Baah-Peprah () and Rotem Shneor ()
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Emmanuel James Chao: Mzumbe University
Priscilla Serwaah: University of Agder
Prince Baah-Peprah: University of Agder
Rotem Shneor: University of Agder

Chapter 14 in Advances in Crowdfunding, 2020, pp 319-339 from Springer

Abstract: Abstract The chapter presents the current state of crowdfunding research and practice in Africa while outlining opportunities and challenges associated with them. Conditions of growing popularity of digital and mobile finance, low penetration of traditional financial institutions, and a long cultural heritage of communal mutual support may enhance crowdfunding uptake. On the other hand, conditions of unclear regulation, relatively low levels of internet access, and societies characterized by low social trust may all hinder crowdfunding uptake. Accordingly, African crowdfunding is at its infancy and involves transitory hybrid practices of early adoption, often involving reliance on foreign contributors via donations and pro-social lending platforms. To ensure future development, stakeholders should engage in relevant policy development, technological adaptations, raising public awareness, reducing user entry barriers, and creating incentives for trial.

Keywords: Africa; Reward crowdfunding; Donation crowdfunding; Equity crowdfunding; Crowdlending; Market development; Regulation; Trust; Social trust; Pro-social; International; Social media; Mobile; Information Technology infrastructure; South Africa; Kenya; Nigeria (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/978-3-030-46309-0_14

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