ABSTRACT
Purpose: 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. Research Design and Methods: To achieve our purpose, we used the
hypothetico-deductive methodology. Faced with panel data, this study
uses logistic regression models (Fixed Effect, Random Effect, and Mixed
Effect), covering the period 2010-2019 for twenty WCA countries (West and
Central Africa). Originality and
Contribution: To our 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, and 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. Findings and Results: 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. Implications: By proposing three
research levers, 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, and to prevent risks, build trust
and ensure the security of investments, decision makers must establish the law
on alternative finance activities (Crowdfunding, cryptocurrency).