The alternative lending in the region is expected to grow by 31.3% on an annual basis to reach US$5.7 billion in 2024.
Medium to long term growth story of alternative lending in Middle East & Africa remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 21.4% during 2024-2028. The alternative lending market in the region will increase from US$4.3 billion in 2023 to reach US$12.3 billion by 2028.
The alternative lending sector is rapidly expanding, driven by rising demand for flexible financing, innovative fintech solutions, and supportive regulatory frameworks. Key developments include new product launches, strategic partnerships, and regulatory advancements, positioning alternative lending as a pivotal element of the region's financial landscape.
Alternative lending is expected to continue growing in the next few months, with firms likely to form strategic partnerships to launch new products and enhance service delivery. The ongoing economic pressures and the need for accessible credit solutions will further propel the sector's growth, positioning it as a vital component of the region's financial landscape.
In Africa, alternative lending has surged due to growing demand for flexible financing among SMEs and mid-market businesses. Digital platforms and fintech innovations have enabled faster, more accessible lending tailored to diverse borrower needs.
The alternative lending sector is expected to expand further in the next few months, particularly in areas such as peer-to-peer lending and microfinance. As economic conditions evolve and the need for inclusive financial services becomes more pronounced, alternative lending will likely play a crucial role in supporting economic recovery and development across the continent.
This report helps in navigating the nuanced relationships between payment instruments and lending models, offering a detailed breakdown of transaction dynamics. Uncover the multifaceted nature of loans, from personalized B2C offerings like payroll advances to strategic B2B solutions like lines of credit. Complementing these insights, delve into consumer attitudes and behaviours, decoding the impact of age, income, and gender on financial choices.
This report provides a thorough knowledge of alternative lending market dynamics, market size and forecast with more than 75+ KPIs. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
This report provides in-depth data-centric analysis of Alternative Lending industry in through 125 tables and 150 charts. Below is a summary of key market segments.
Medium to long term growth story of alternative lending in Middle East & Africa remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 21.4% during 2024-2028. The alternative lending market in the region will increase from US$4.3 billion in 2023 to reach US$12.3 billion by 2028.
The alternative lending sector is rapidly expanding, driven by rising demand for flexible financing, innovative fintech solutions, and supportive regulatory frameworks. Key developments include new product launches, strategic partnerships, and regulatory advancements, positioning alternative lending as a pivotal element of the region's financial landscape.
Growth in the Alternative Lending Sector
Alternative lending has experienced significant growth, driven by increasing demand for flexible financing options and the rapid expansion of fintech solutions. Key sub-segments such as buy now, pay later (BNPL) and digital lending platforms are gaining traction, particularly in markets like Saudi Arabia and the UAE, where a tech-savvy population and favorable regulatory environments foster innovation.Alternative lending is expected to continue growing in the next few months, with firms likely to form strategic partnerships to launch new products and enhance service delivery. The ongoing economic pressures and the need for accessible credit solutions will further propel the sector's growth, positioning it as a vital component of the region's financial landscape.
In Africa, alternative lending has surged due to growing demand for flexible financing among SMEs and mid-market businesses. Digital platforms and fintech innovations have enabled faster, more accessible lending tailored to diverse borrower needs.
The alternative lending sector is expected to expand further in the next few months, particularly in areas such as peer-to-peer lending and microfinance. As economic conditions evolve and the need for inclusive financial services becomes more pronounced, alternative lending will likely play a crucial role in supporting economic recovery and development across the continent.
Key Developments in the Alternative Lending Sector
Product Launches and Innovations
- Halo's Mortgage Service in the UAE - Halo, a digital mortgage service provider in the UAE, recently completed a seven-figure seed funding round in February 2023. This funding will allow Halo to expand its mortgage offerings to meet increasing demand due to rising real estate prices in the region.
- Kiva's Expansion in Africa - Kiva, a global crowdfunding platform, has expanded its operations in Africa by launching new initiatives aimed at enhancing access to microloans for entrepreneurs. This expansion funds underserved communities, leveraging technology to streamline the lending process and promote financial inclusion.
- M-Pesa's Enhanced Lending Features - M-Pesa, the renowned mobile money service, has rolled out enhanced lending features that allow users to access credit directly through their mobile wallets. This initiative aims to simplify the borrowing process and make it more accessible for individuals and small businesses in Kenya and beyond.
- Lulalend's New Credit Solutions - South Africa-based digital lender Lulalend announced the launch of new credit solutions after raising $35 million in a Series B funding round. The firm has integrated its lending services with partners like Vodacom and e-commerce giant Takealot, aiming to better serve SMEs in various sectors, including construction and retail.
Strategic Partnerships
- African Guarantee Fund and European Partners - The African Guarantee Fund (AGF) has partnered with the African, Caribbean and Pacific Group of States, the European Union, and the UN Development Programme to provide credit guarantees for around 5,000 SMEs in five countries, facilitate affordable financing for "development minerals" businesses, and improve access to capital for underserved sectors.
- The International Finance Corporation (IFC) and Ecobank Collaboration - The IFC and Ecobank are partnering to support SMEs in fragile and conflict-affected states in West and Central Africa. They have established a $110 million risk-sharing facility to enable Ecobank to provide credit to SMEs, bolstering economic resilience in these regions.
- EIB Partnerships with Local Financial Institutions - The European Investment Bank (EIB) has been collaborating with local financial institutions to improve SME access to finance across Africa, focusing on financial sustainability and positive developmental impacts.
- HES FinTech and AZM - HES FinTech partnered with AZM, a leading entity in digital lending, to enhance digital lending capabilities for SMEs as it expands into Saudi Arabia and the UAE.
- MasterCard and Egabi - In May 2023, MasterCard partnered with Egabi, an Egypt-based company, to expand digital lending services in the Middle East. This aims to enhance Egabi's digital lending capabilities, allowing more businesses to enter the market and enabling consumers to benefit from buy now, pay later (BNPL) services.
- Emkan Finance and IBM Collaboration - Emkan Finance partnered with IBM to launch a new digital lending solution aimed at small businesses in Saudi Arabia. This collaboration enhances Emkan's ability to provide financial support through a decision-making engine, streamlining the lending process for SMEs.
Regulatory Changes
- South Africa's Conduct of Financial Institutions Bill (COFI) - South Africa will promulgate the Conduct of Financial Institutions Bill (COFI) in 2024. COFI will provide a unified regulatory framework for financial institutions, ensuring fair treatment and protection for customers, while setting clear guidelines for alternative lending providers.
- Crypto Asset Regulations in South Africa - South Africa now regulates crypto assets, recognizing them as financial products. Crypto asset service providers (CASPs) are considered accountable institutions under the Financial Intelligence Centre Act, requiring them to conduct customer due diligence, maintain client information and transaction records, and comply with reporting obligations to address money laundering and terrorist financing concerns.
- African Development Bank's Initiatives - The African Development Bank (AfDB) has actively promoted alternative financing solutions globally. In 2022, AfDB launched the African Guarantee Fund, providing credit guarantees to enable financial institutions to offer more affordable financing to SMEs. Additionally, the bank partnered with local financial institutions to enhance financing access for SMEs in fragile and conflict-affected states in West and Central Africa.
- Saudi Arabia's Fintech Strategy - Saudi Arabia leads fintech regulation in the Middle East. In 2022, the Saudi Central Bank (SAMA) launched the Fintech Strategy to establish the Kingdom as a global hub for fintech innovation, including initiatives to support startups, attract investment, and develop a strong regulatory framework.
- UAE's Virtual Asset Regulation - In 2022, the UAE introduced the Virtual Asset Regulation Law to oversee and license virtual asset service providers, ensuring consumer protection and market integrity.
- Bahrain's Open Banking Regulation - In 2020, the Central Bank of Bahrain introduced the Open Banking Framework, requiring banks to provide third-party providers access to customer data upon customer consent. This has facilitated the development of alternative lending platforms using open banking APIs to streamline the lending process and offer personalized solutions.
This report helps in navigating the nuanced relationships between payment instruments and lending models, offering a detailed breakdown of transaction dynamics. Uncover the multifaceted nature of loans, from personalized B2C offerings like payroll advances to strategic B2B solutions like lines of credit. Complementing these insights, delve into consumer attitudes and behaviours, decoding the impact of age, income, and gender on financial choices.
This report provides a thorough knowledge of alternative lending market dynamics, market size and forecast with more than 75+ KPIs. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.
The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.
Scope
This title is a bundled offering, combining regional and country reports.This report provides in-depth data-centric analysis of Alternative Lending industry in through 125 tables and 150 charts. Below is a summary of key market segments.
Economic Indicators
- Gross Domestic Product at Current Prices
- Population
- Unbanked Population
- Unemployment Rate
- Loan Default Rate
Alternative Lending Market Size and Forecast
- Transaction Value
- Average Transaction Value
- Transaction Volume
Alternative Lending Market Size and Forecast by End User
- End User - Business
- End User - Consumer
Alternative Lending Market Size and Forecast by Finance Models
- P2P Marketplace Consumer Lending
- P2P Marketplace Business Lending
- P2P Marketplace Property Lending
- Balance Sheet Consumer Lending
- Balance Sheet Business Lending
- Balance Sheet Property Lending
- Invoice Trading
- Debt Based Securities
- Equity Based Crowd Funding
- Real Estate Crowd funding
Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Model
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
- Cash
- Cheques
- Credit Transfer
- Direct Debits
- Debit Card
- Credit Card
- E- Money
Alternative Lending Market Size and Forecast by Loan Types
- B2C Loans
- Personal Loan
- Payroll Advance
- Home Improvement
- Education/Student Loans
- Point of Sale
- Auto Loans
- Medical Loans
- B2B Loans
- Lines of Credit
- Merchant Cash Advance
- Invoice Factoring
- Revenue Financing
Alternative Lending Analysis by Consumer Attitude and Behaviour
- By Age
- By Income
- Gender
Reasons to buy
This report offers a comprehensive insight into the alternative lending market at the regional level, covering Africa & Middle East. It provides a detailed analysis of key areas that are critical for understanding and participating in the regional alternative lending landscape:- Comprehensive Regional Market Intelligence: Gain in-depth insights into the alternative lending market within Africa & Middle East region, including its size, growth potential, emerging trends, and key industry leaders. Investors and entrepreneurs can identify potential areas for market expansion by examining payment instruments, finance models, and loan types specific to the region.
- Regional Economic Indicators: Access essential economic indicators from multiple countries within the region, including GDP, unbanked population, unemployment rates, and loan default rates. This data empowers businesses with crucial information for Africa & Middle East market analysis and strategic planning.
- Industry Attractiveness Analysis: Dive into comprehensive trend analyses for transaction value, average transaction value, and transaction volume within the regional alternative lending sector. This information aids in assessing the industry's appeal and potential for growth within the specific Africa & Middle East.
- Strategic Segmentation Analysis at the Regional Level: Explore extensive market segmentation based on end-users (consumers, businesses, and property), financial models (P2P marketplace lending, balance sheet lending, invoice trading, debt-based securities, equity-based crowdfunding, real estate crowdfunding, and others), and payment methods (cash, cheques, credit transfers, direct debits, debit cards, credit cards, and e-money) specific to the region.
- Growth Projections: Benefit from future growth projections for the alternative lending market within the region, classified by end-users, financial models, and payment instruments. These projections offer insights into areas with growth potential within different market segments, helping businesses to align strategies and make informed decisions within the regional context.
- Loan Type Analysis: Gain a comprehensive understanding of loan types, including B2C Loans (Personal Loans, Payroll Advances, Home Improvement, Education/Student Loans, Point of Sale, Auto Loans, Medical Loans) and B2B Loans (Lines of Credit, Merchant Cash Advance, Invoice Factoring, Revenue Financing) within the specific geographic area, offering valuable market insights.
- Consumer Attitude and Behaviour Analysis: Explore consumer behaviour and attitudes, segmented by age, income, and gender, within the Africa & Middle East. This analysis aids in developing targeted marketing and lending strategies tailored to the local markets.
Table of Contents
This title is a bundled offering, combining the following 8 reports, covering 1000 tables and 1200 figures:
1. About this Report
2. Economic Indicators
3. Alternative Lending Industry Attractiveness
4. Alternative Lending Market Size and Forecast by End User
5. Alternative Lending Market Size and Forecast by Finance Models
6. Alternative Lending Market Size and Forecast by Payment Instrument
7. Alternative Lending Market Size and Forecast by Payment Instrument to Model
8. Alternative Lending Market Size and Forecast by Loan Types
9. Alternative Lending Analysis by Consumer Attitude and Behaviour
10. Further Reading
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 1312 |
| Published | September 2024 |
| Forecast Period | 2024 - 2028 |
| Estimated Market Value ( USD | $ 5.7 Billion |
| Forecasted Market Value ( USD | $ 12.3 Billion |
| Compound Annual Growth Rate | 21.4% |
| Regions Covered | Africa, Middle East |
