Abstract: |
The purpose of this study is to show why African countries, in West and
Central Africa (WCA) particularly, are not able to exploit the potential of
crowdfunding and maintain the activities of local platforms. I use the
hypothetico-deductive methodology, and faced with panel data, this study uses
logistic regression models (fixed effect, random effect, and mixed effect),
covering the period 2010–2019 for 20 WCA countries (West and Central Africa).
To my knowledge, this study is among the first to explore the factors upstream
of the deployment of local crowdfunding platforms, based on basic
infrastructure, technological and communication innovation, education, the
legal framework, and financial system. This research contributes to the
current debate on the development of crowdfunding in sub-Saharan Africa as
well as to the future models to be adopted so that this activity is
sustainable at the local level. The study points out that the infrastructure
of information and communication technologies, based on the penetration of the
Internet and mobile telephony, significantly influences the deployment of the
national platform. Nevertheless, the basic infrastructure such as electricity
and urbanization variables, a legal framework based on the business creation
score, education, and the weakness of the financial development system
constitute an obstacle to claiming development in long-term and sustainable
local crowdfunding activities. Following these striking results, the study
highlights a series of levers on which legislators in WCA countries can act to
meet the crowdfunding challenges of tomorrow. By proposing three research
levels, this study should promote and support the development of crowdfunding
from a pedagogical point of view by emphasizing entrepreneurship and emerging
technologies in education at the level of professional or university training,
from the infrastructure, access to physical and digital infrastructure by
emphasizing the importance of regional partnerships, creating partnerships
with traditional African banks, to prevent risks, build trust, and ensure the
security of investments, decision makers must establish the law on alternative
finance activities (crowdfunding, cryptocurrency). |