East Africa Crowdfunding Landscape Study

The East Africa Crowdfunding Landscape Study, published by FSD Africa in October 2016, analyzes the crowdfunding and peer-to-peer (P2P) lending ecosystems in Kenya, Rwanda, Tanzania, and Uganda, comparing them with more mature markets in South Africa and the United Kingdom. The report finds that while the region is experiencing rapid growth, it is primarily driven by international donation and concessionary lending platforms from the global North, rather than native equity or for-profit lending models, which are hindered by regulatory uncertainty and a lack of investment-ready MSMEs.

• Crowdfunding flows to East Africa (Kenya, Rwanda, Tanzania, and Uganda) are growing rapidly, with total funds raised increasing from $37.2 million in 2015 to an estimated $103.0 million in 2016, a growth rate of 177%.
• The growth in East African crowdfunding is largely driven by an 'outside-in' pattern, where the majority of activity consists of donation- and concessionary lending-based flows from developed nations into the region, particularly for healthcare, education, and food and agriculture.
• Kenya is the most active crowdfunding market in the region, with a 2016 forecast of $46.7 million raised. It leads due to its advanced economy, infrastructure, and high levels of internet connectivity and mobile money usage.
• Native crowdfunding platforms in East Africa are innovating by integrating mobile money to overcome low internet penetration. Examples include M-Changa, which allows users to create and manage campaigns via feature phones.
• Regulatory uncertainty and a lack of investment-ready projects are significant barriers to the development of equity- and for-profit lending-based crowdfunding in East Africa.
• South Africa possesses a more mature crowdfunding ecosystem than the East African quartet, characterized by more native platforms (10 compared to 4), a stronger e-commerce foundation supporting rewards-based crowdfunding, and the emergence of for-profit P2P lending.
• The United Kingdom is described as having one of the world's most developed crowdfunding ecosystems, raising $4.5 billion in 2015. Its success is attributed to a 'hands-off' regulatory approach by the Financial Conduct Authority and increasing institutionalization of P2P lending.
• Crowdfunding is being utilized to address specific gaps in East Africa, such as the $9.8 billion combined credit gap for MSMEs and funding for solar energy projects through platforms like Trine and SunFunder.

APA

FSD Africa (2016). East Africa Crowdfunding Landscape Study. https://fsdafrica.org/wp-content/uploads/2025/05/16-11-07-Crowdfunding_Report-final-1-compressed.pdf

Chicago

FSD Africa. East Africa Crowdfunding Landscape Study. 2016. https://fsdafrica.org/wp-content/uploads/2025/05/16-11-07-Crowdfunding_Report-final-1-compressed.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=East Africa Crowdfunding Landscape Study |date=October 2016 |url=https://fsdafrica.org/wp-content/uploads/2025/05/16-11-07-Crowdfunding_Report-final-1-compressed.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2016east, author = {{FSD Africa}}, title = {{East Africa Crowdfunding Landscape Study}}, institution = {FSD Africa}, year = {2016}, month = oct, url = {https://fsdafrica.org/wp-content/uploads/2025/05/16-11-07-Crowdfunding_Report-final-1-compressed.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }