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Chapter 8
DOI: 10.4018/978-1-5225-3952-0.ch008
ABSTRACT
This chapter compares the African and Chinese crowdfunding markets with a view to draw lessons from
the two markets. China has a longer experience than Africa in the crowdfunding activities; crowdfund-
ing processes in the country may not be directly applicable to the African states, but there are lessons
that can be learnt by individual or group of African or Asian governments. These differing experiences
identified can serve as a practical guide for urban development actors longing for sustainable funding
for important urban development projects. In order to gather this data, the authors conducted a desktop
review of literature, both grey and published being work on crowdfunding in Africa and China. Data
collected were analysed using thematic content analysis. The chapter argues that the low adoption of
crowdfunding by Africa can be attributed to a number of factors, including national regulatory envi-
ronments that are not conducive for crowdfunding of equity and debt, and unconducive technological
environments where e-commerce is not widely utilised.
INTRODUCTION
The future growth of Africa is not so dissimilar from that of Asia, especially China (Koch and Siering,
2015; Arvanitis, 2015). The urbanization of China represents the greatest demographic change witnessed
in late 20th and early 21st century. Similarly, Africa’s urbanization will be the largest shifts for the rest
of this 21
st
century (Arvanitis, 2015). Given that Chinese context resemble the African context, there are
a lot of lessons that can be drawn from China’s growth initiatives to map Africa’s growth trajectory. The
potential for a demographic dividend is clear as witnessed from China. By 2050, the greater population
A Comparative Analysis
of Africa and Chinese
Crowdfunding Markets
Innocent Chirisa
University of Zimbabwe, Zimbabwe
Liaison Mukarwi
Uinversity of Zimbabwe, Zimbabwe