Body
FinTechs belonging to this category operate crowdfunding, crowdinvesting and crowdlending platforms on which money is raised to invest in various projects, mainly start-up companies and real estate projects.
Crowdfunding is not a defined financial service, but generally used to describe donation-based crowdfunding (the investor donates the money to the project), reward-based crowdfunding (the investor receives an often symbolic consideration for his investment), equity-based crowdfunding (crowdinvesting: the investor participates in the profits of the financed project or acquires shares or debt instruments) or lending-based crowdfunding (crowdlending: the investor is reimbursed at the end of the project with or without interest).
Introduction
Attitude of the country towards crowdfunding, crowdinvesting and crowdlending platforms
Currently, crowdfunding is getting more popular in Tanzania. There is a boom in crowdfunding by FinTechs and Start-up innovators. The government is also taking initiative to allow for the growth and development of these platforms by setting up relevant policies and encouraging investing and Start-up projects. Tanzania demonstrates a constructive and increasingly supportive approach toward modern crowdfunding, crowdlending, and crowdinvesting platforms—balancing innovation with investor protection, especially following the introduction of new regulatory frameworks.
Legal affairs
Obligations and requirements to provide crowdfunding, crowdinvesting and crowdlending platforms described above
Capital Market and Securities Authority ('CMSA') is the regulator of crowd fundings. The Authority (CMSA) guided and established by The Capital Markets and Securities Act, Cap 79.
In October 2023, Tanzania issued the Capital Markets and Securities (Investment-Based Crowdfunding) Guidelines, legally enabling equity and debt crowdfunding and establishing licensing, limits, and safeguards. These Guidelines require platforms to be licensed by the CMSA, with due diligence on issuers and investors and strict fundraising caps.
Additional comments regarding the legal situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area
Tanzania’s posture toward crowdfunding, crowdinvesting, and crowdlending is forward-looking yet cautious. The 2023 Guidelines mark a milestone—formalizing a legal basis, licensing structure, fundraising caps, investor protections, and compliance rules. The ecosystem is evolving slowly, initially via reward/donation models, with equity and debt crowdfunding still in early stages. As regulatory sandboxes and awareness initiatives expand, platform activity is likely to diversify and grow.
Economic conditions
Market size for crowdfunding, crowdinvesting and crowdlending platforms and biggest companies in this business area
Market Size