Factors Influencing the Deployment of Local Platform Crowdfunding in Sub-Saharan Africa: Evidence from West and Central Africa Countries

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).