African Seeds

An estimated $430 million was provided to SMEs, individual consumers and various organisations via online crowdfunding channels in 2015 a new report from Financial Sector Deepening Africa (FSD Africa) in partnership with the Cambridge Centre for Alternative Finance at University of Cambridge’s Judge Business School reveals.

In particular, in Africa alone, over $250 million was raised via various alternative finance channels in the period 2013-2015, and East Africa was the continent’s largest alternative finance regional market.

However, crowdfunding in East Africa currently has no specific regulations or policies, and these channels require regulatory attention in order to harness potential benefits while addressing consumer risks.