ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

1.0 BACKGROUND

Crowdfunding is an alternative source of financial support from people typically via the internet with the help of social media, websites and other forms of communication. It is considered cheap and offers flexible funding across different industries and categories than traditional funding and capital ventures. People give, lend, and invest with control and can adapt to rapidly changing needs and opportunities (AlliedCrowds, 2015). Using the technique, entrepreneurs and small business owners can bypass venture capitalists and angel investors entirely and instead pitch ideas straight to everyday Internet users, who provide financial backing (Scott Steinberg and Rusel DeMaria, 2012). Apart from sourcing funds, CF campaign creates immediate exposure for your idea and gauge public interest before launching new products, service, or cause. There are different types of CF:

1.1 DONATION-BASED

This is the simplest form of CF, where donors generally donate small amounts typically between $1 and $1,000, but sometimes more towards a project, cause or company. Under donation CF, contributors receive no money or incentives in return examples of Platforms include Crowdrise and GoFundMe.

1.2 REWARD-BASED

This type of CF is similar to donation- based but the campaign contributors get no financial return for their donations but are offered a thank-you reward or perk in exchange for their support examples of platforms includes kickstarter and indiegogo.

1.2 DEBT

This type of CF is where lenders are able to provide needed financial support and the lender receives a debt instrument that pays interest return. Examples of these types of portals include:  Prosper, Funding Circle, LendingClub

1.3 EQUITY

This is where investors receive equity or company ownership in return for their contribution examples include: OfferBoard, CircleUp, OurCrowd, ASSOB.com.au, AppVested, I-Bankers.com, CrowdCube, Symbid, Crowdfunder.com, EnergyFunders, KlondikeStrike

Unlike the developed world (U.S, UK and Europe) where CF has grown into a massive industry that provides funding for a variety of Service, Product, Project, Investment, Cause and Experience, it is yet to gain a ton of traction in developing countries. However, the concept of this intervention in Africa is steady improving and the adopters are already making and impact.  Various African platforms been established such as thunderfund, jumpstarter etc.

As crowd funding becomes popular globally in funding different undertakings, Zimbabwean people are also taking to the platform to fund raise for their various projects. AlliedCrowds (2015) ranked zimbabwe as the fastest in growth performance for CF in the world with a score of 100% thus demonstrating the everchanging environment of CF.

2.0       OBJECTIVES

2.1 General

  • To determine the phenomenal of CF initiatives covering Zimbabwe

2.2 Specific

  • To find out the types of campaigns that have been launched
  • To determine the origin of the campaigns
  • To find out how much money has been asked and raised through campaigns

3.0 METHODOLOGY

A phenomenon-based approach will be applied. The author first reviews online for past, existing or planned CF initiatives covering Zimbabwe to get list of campaigns.  A total of 30 platforms will be selected using a technic of random sampling to obtain information on money asked, raised, number of donors, year and location of campaigns. Data collected will analyzed using EXCEL to appreciate the impact on CF in Zimbabwe.

4.0 RESULTS

 

 

 

 

Chart showing  Categories of Campaigns. Crowdfunding Initiatives  for Zimbabwe. 2015

 

The largest category is Humanitarian had 196 campaigns covering 48% followed by Personal 92, 23%, Arts 55, 14%, Environment 44, 11 %, Entrepreneur 14, 3%, Technology 6, 1% respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

                        Year of Campaigns

Year                                                   Frequency                                              Percent

2009                                                        1                                                               .2

2010                                                       10                                                             2.5

2011                                                       10                                                             2.5

2012                                                       27                                                             6.7

2013                                                      67                                                            16.5

2014                                                       81                                                            20.0

2015                                                       210                                                           51.7

Total                                                        406                                                          100.0

 

The most frequent year is 2015 covering 51.7% with 210 campaigns, followed by 2014 with 20%  81, 2013 16.5%  67, 2012 6.7%  27, 2011 2.5% 10, 2010 2.5% 10, 2009 0.2%   1 respectively.

 

 

 

The highest percentage of campaigns is the US accounting for 53.85% followed by Zimbabwe 20.77%, UK 14.36%, Australia 3.08%, Germany 3.08%, France 1.54%, Canada 0.77%, Netherlands 0.51%, Norway 0.26%, New Zeland 0.26%, Spain 0.26% , SA 0.26%, Switzerland 0.26%, SA 0.26%, Malaysia 0.26% and Belgium 0.26% respectively.

DISCUSSION

A total of 408 campaigns were selected on the basis of availability of information on Money Asked, Money Raised, Location and year of campaigns. The campaigns were amassed into six categories namely: Humanitarian, Arts, Environment, Personal, Entrepreneur and Technology. According to this research, campaigns emerged in 2009 (2008 for previous draft report) with a single campaign and  accelerated  with time, by 2015 the campaigns reached 210 campaigns. The US had the highest prevalence of campaign’s origin followed by UK and Zimbabwe respectively. The campaigns from the US were primarily subjective to faith and humanitarian warfare. The UK’s campaigns were mainly focusing on humanitarian and environment(wildlife). Domestic campaigns were predominantly from individuals raising funds for medical treatment and education.

 

HUMANITARIAN

As stated by UNICEF (2007), Zimbabwe has suffered from political turmoil which has depleted its economy and caused significant deterioration in social services. It further underscores that severe droughts, guerrilla warfare, human rights violations, and lack of foreign investment and support have also contributed to the worst humanitarian crisis the country has ever faced. This predicament has not only awakened the international humanitarian AID and other international agencies but have also attracted individuals attention in address the humanitarian needs. These individuals have taken advantage of initiative of crowdfunding to raised money for their interventions towards humanitarian welfare. Under the category of humanitarian, campaigns were further amassed into subgroups as follows; orphans, education, children, disabilities etc.

 

ORPHANS/VULNURABLE CHILDREN

Zimbabwe has historically had one of the highest HIV/AIDS rates in the world; this has resulted into millions of children losing one or both parents. Campaigns focused on  raising money to cater for orphans and valnurable children’s needs such as food , clothing, education and many other needs. Likewise, some campaigns were from adoptive parents form various countries  raising money for school fees for their adoptees in Zimbabwe.

COMMUNITY/EDUCATION

Campaigns aimed to improve livelihood of vulnerable rural poor communities in semi-arid areas of Zimbabwe through capacity building, establishment of infrastructure for the community such as schools, health centers and boreholes for water supply.

HEALTH

The campaigns goals were to support communities have basic essential and access to medical and health resources. Thus providing skills to facilitate health lifestyles as well as to minimize the further Spread of HIV/ADIS in the country and medical supply. Some volunteers ambitioned to work in clinics and hospital to cater for the high demand of health workforce.

 

FOOD SUPPLY

The continued adverse effects of climate change such as high temperature and scarce rains has lead to poor growth survival of crops and animals which people depend for food. The core of the campaigns was to supply food for the hungry children like street kids and old persons who cant afford to buy food for themselves.

 

FAITH

Christianity is embraced by the majority of the population in Zimbabwe, this has attracted a significant number of missionaries in the country to further spread Christianity and Christian beliefs. The campaigns were primarily focusing on raising funds for traveling to Zimbabwe to spread the word of god and building churches.

 

ADVOCAY/MEDIA/PRISONERS

Campaigns were focused on advocating for human rights, peace and economic stability.

 

DISABILITY

Zimbabwe Report (2007) estimated that disability prevalence to be 1.4 million of the total population in Zimbabwe. Disabled people in Zimbabwe are more likely to experience poverty and discrimination due to social and cultural norms as well as problems with accessing health, education and employment (ELDIS, 2015). The campaigns were focused on supporting youths living with disabilities to acquire skills for them to empower themselves and psychotherapy children.

 

WOMEN AND YOUTHS

The campaigns primarily intended to empower Zimbabwean women and youth by raising capital for their businesses and training and to ensure suitability of income.

 

PERSONAL CATEGORY

 

This category subsumes campaigns that are from individuals soliciting funds for personal use. The subcategories are funeral, health, agriculture etc.

 

HEALTH

The disease burden from non-communicable diseases (NCDs) has heightened in African and posing an increasing threat. Majority of the campaigns launched under this category focused on raising funds for medical treatment for illness associated with NCDs such as cancer and cardiovascular that require expensive medical schemes and chemotherapy. Campaign’s origin were both domestic and non-domestic. The later refers to Zimbabwean diasporans and having challenges to afford medical services in their residing countries.

 

FUNERAL

Dying in the diaspora has become one of the serious challenges faced by Africans living in various countries like Britain, America, Australia and others.Relatives, who face the predicament of a death in the family, are expected to fork out large sums of money to repatriate the remains of their loves ones. The campaigns under this category were from Zimbabwean families and relatives who could not afford to pay huge sums of money for repatriation of bodies of their loved ones. Similarly, other campaigns were domestic raising money to cater for funeral processes.

EDUCATION

Most campaigns were from students studying abroad with unsustainable financial circumstances and could not afford continue to pay for their tuition fees and living cost in their residing countries. In a similar manner, domestic campaigns aimed at raising money for tuition fees.

FAMILY/EVENTS

The recent economic hardships have lead to individuals launching campaigns to raise money to sort out family financial problems, family visits and reunion.

TRIPS/EMEGERNCIES

The campaigns focused on raising money to purchase flight ticket to travel to Zimbabwe for holidays. In a similar manner, other campaigns were raising money for emergency evacuation from Zimbabwe (https://www.gofundme.com/dorothymusona).

AGRICULTURE

According to FAO (2015), agriculture is the backbone of Zimbabwe’s economy in so far as Zimbabweans remain largely a rural people who derive their livelihood from agriculture and other related rural economic activities. The campaigns focused on embarking on agricultural training in field of bee keeping, mushroom projects, food security etc for the benefit of the family as source of income and nutrition.

Campaigns were from individuals who wishing to rehabilitate and expand their farms.

ARTS

Zimbabwe is a country which is very rich artistic tradition, including music, dance, fine arts and crafts, and literature.(everyculture.com). Most campaigns were launched on kickstarter and indiegogo.

 

MUSIC/DANCING/CULTURE

Campaigns focused on supporting local music artist launch their albums, trainings and purchase of musical instruments for studios, schools, communities and individuals. Likewise, other campaigns aimed at supporting local artist who wished to take part in international competitions, festivals or short workshops. Expansion of musicians in rural areas an to help prevent yet more trauma and loss to the cultural fabric and contemporary artistic expression in Zimbabwe. There were campaigns intending to revamp the dancing company which was established many years ago.

 

FILM/DRAMA/PHOTOGRAPHY

These campaigns aimed at supporting production of local films which narrates traditional cultures and heritage. Similarly, some campaigns aimed at purchasing video equipment, computers etc for film production. There were non-domestic campaigns that were raising money for photography of natural environment for boosting tourism and business.

 

BOOKS/COMMUNITY/SPORT

Campaigns wished promote locally produced books worldwide as well as been used into schools within the country. For the community, campaigns were raising funds for rehabilitation of communal arts centers in order to encourage youths to discover and utilize their talents. Football is the most common sport which most campaigns were based on. This was to promote the sport in children and youths for entertainment and careerism.

Campaigns were focused on supporting local theater projects, musical albums, films, photography and various talents. Others focused on purchasing of musical instruments for studios and teaching music in a village schools.

ENTREPRENEURSHIP

Campaigns were from individuals and groups of people whose intentions are to form start-up businesses offering innovative product and services in the fashion, food and entertainment industries. most campaigns under this category were launched on donation- based platforms instead of equity and debt based platforms a common tread for similar campaigns in developed countries.

ENVIRONMENT

Zimbabwe is endowed with abundant natural resources that include rich mineral deposits, wildlife, arable lands, forests, and surface and groundwater resources (UN Zimbabwe, 2014). However, the country faces multiple environmental challenges, including biodiversity loss, poor waste management, pollution, and land and forest degradation. Wildlife conservation is one of its biggest priority. Campaigns were focused on saving the most endangered spices as a result of poaching and trophy hunting such as black rhinos, elephant and lions. The killing of Cecil the lion heightened the number of campaigns towards wildlife conservation worldwide. they used various slogans such as ‘bring back Cecil’, ‘save the lion – in memory of Cecil’  etc to raise more concern over the matter. In a similar manner, some campaigns were raising funds to fight for justice of the killing of Cecil.

 

6.0 CONCLUSION

There are seems to be a correlation between the type of campaigns launched and the economic status of  Zimbabwe. Regional and global trends also have a significant influence on the campaigns. Most campaigns were launched on donation based platforms and empathy seemly played a significant role for the campaigns to succeed. The campaigns that mostly succeeded and received massive support were under Humanitarian category more especially on orphanhood.  These campaigns had photos of children

         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.0 REFERENCES

 

1). Oxford Dictionary (2014). Crowdfunding.{ Online} Available from:

http://www.oxforddictionaries.com/us/definition/american_english/crowdfunding

[accessed on: 30/09/15]

2). Scott Steinberg and Rusel DeMaria (2012). The Crowdfunding Bible: How To Raise Money For Any Startup, Vedio, Game Or Project.Readme

3). Aurélie Sannajust, Fabien Roux and Anissa Chaibi (2014). Crowdfunding In France:

A New Revolution? The Journal of Applied Business Research – November/December 2014 Volume 30, Number 6, page 1919.

3). YALI (2015). Crowdfunding: The Power of People.{ online}. Available from:

https://youngafricanleaders.state.gov/crowdfunding-the-power-of-people/

[accessed on: 01/10/2015]

4). AlliedCrowds (2015). Developing World Crowdfunding Entrepreneurship through Crowdfunding. Month report.

King & Wood Mallesonsin (2015). Crowdfunding: Alternative financing for Africa. { oniline }. Available from:

http://www.kwm.com/en/ae/knowledge/insights/crowdfunding-alternative-financing-for-africa-20140723

[accessed on: 01/10/2015]

 

5). Persons with disabilities in Zimbabwe (2007), available at: http://www.africacampaign.info/uploads/media/forgottribeprogressiozim_01.pdf

6). ELDIS(2015), available at:

http://www.eldis.org/go/home&id=33637&type=Document#.Vj0U_yvj3IV

7). FAO(2015), available at:

http://www.fao.org/docrep/005/y4632e/y4632e0y.htm#fn114

8). everyculture.com Read more: http://www.everyculture.com/wc/Tajikistan-to-Zimbabwe/Zimbabweans.html#ixzz3qoVb83mW

9). UNICEF(2007). Zimbabwe’s forgotten children Read more:

http://www2.unicef.org:60090/about/structure/zimbabwe_25622.html

  • . UN Zimbabwe (2014). Sound Management and Use of the Environment, Natural Resources and Land to Promote Sustainable Development. Available from:

http://www.zw.one.un.org/togetherwedeliver/zundaf/4-sound-management-and-use-environment-natural-resources-and-land-promote

– ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

– ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

– ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

– ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

ASSESSMENT OF CROWDFUNDING INTIATIVES FOR ZIMBABWE

 

 

 

 

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