Africa & Middle East Embedded Lending Business and Investment Opportunities

Summary

According to PayNXT360’s Q4 2021 Embedded Finance Survey, Embedded Lending industry in the region is expected to grow by 49.5% on annual basis to reach US$1,936.4 million in 2022.

The embedded lending industry is expected to grow steadily over the forecast period, recording a CAGR of 31.9% during 2022-2029. The embedded lending revenues in the region will increase from US$1,936.4 million in 2022 to reach US$8,983.7 million by 2029.

Strategic partnership with global players to drive financial inclusion through embedded lending in the Africa and Middle East region

In the Africa and Middle East region, there is a large proportion of the young population who do not have access to financial services. Targeting such consumer demographics, firms are entering into strategic alliances with global players to drive financial inclusion in the region. For instance, 

• In June 2021, Aafaq Islamic Finance entered into a strategic partnership with The Social Loan Company, a Singapore-based artificial intelligence-powered cutting-edge, big data-driven credit enablement platform company. 
• Under the collaboration with The Social Loan Company, the firm is planning to launch embedded lending services, thereby offering credit to the underserved young population in the region. 
• Notably, The Social Loan Company has had a phenomenal upward trajectory through its flagship embedded lending brand CASHe in India over the past four years. 

PayNXT360 expects more such strategic alliances with global players in the embedded lending industry over the next four to eight quarters, which will subsequently drive the growth of the market in the Africa and Middle East region from the short to medium-term perspective. 

Strategic collaboration with online and offline businesses will be the key to driving the growth of embedded lending in the Africa and Middle East

To provide an increasing number of consumers and businesses with embedded lending solutions, PayNXT360 expects that strategic alliances with both online as well as offline businesses will be the major driving factor for the growth of the industry in the Africa and Middle East region. Notably, buy now, pay later (BNPL) firms have adopted this strategy widely in the region. For instance, 

• In the Middle East, BNPL firms are aggressively partnering with various businesses across industry verticals. Dubai-based Tabby, for instance, has partnered with 2,000 global brands, which also include small and medium-sized businesses in the region. Similar, Tamara, the Saudi Arabian BNPL firm, has entered into a strategic collaboration with 1,000 merchants to offer consumers short-term loans in the UAE as well as Saudi Arabia. 

While the BNPL sector is growing strongly in the online space, PayNXT360 expects that strategic partnerships in the offline space will remain a key factor in driving the industry's future growth in this region. This is primarily because businesses are reopening again as the effect of the global pandemic subsides and consumers return to physical stores. Consequently, future growth will be driven by partnerships with offline retailers in the region. 

This report provides regional insights into key trends and drivers along with a detailed data centric analysis of market opportunities in embedded lending industry at regional and country level. Region and countries included in this report are:

1. Africa & Middle East 
2. Egypt 
3. Israel
4. Kenya 
5. Nigeria 
6. Saudi Arabia 
7. South Africa 
8. Turkey 
9. United Arab Emirates

Scope

This report provides regional insights, along with an in-depth data centric analysis of the Embedded Lending industry in the Africa & Middle East, covering 50+ KPIs for each region and country (140+ charts and 100+ tables in all). Below is a summary of key market segments:

Embedded Lending Market Size and Forecast

• Embedded Lending by Consumer Segments, 2020 – 2029 
-- Business Lending
-- Retail Lending

• Embedded Lending by B2B Sectors, 2020 – 2029
-- Embedded Lending in Retail & Consumer Goods
-- Embedded Lending in IT & Software Services
-- Embedded Lending in Media, Entertainment & Leisure
-- Embedded Lending in Manufacturing & Distribution 
-- Embedded Lending in Real Estate 
-- Embedded Lending in Other

• Embedded Lending by B2C Sectors, 2020 – 2029
-- Embedded Lending in Retail Shopping
-- Embedded Lending in Home Improvement
-- Embedded Lending in Leisure & Entertainment
-- Embedded Lending in Healthcare and Wellness
-- Embedded Lending in Other

All the regional and country reports cover the following charts and tables:

Figure 1: PayNXT360’s Methodology Framework
Figure 2: Embedded Lending – Revenue (US$ Million), 2020-2029
Figure 3: Market Share Analysis by Consumer Segment (%), 2020-2029
Figure 4: B2B Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 5: B2C Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 6: Market Share Analysis by B2B Sectors (%), 2021 Vs. 2029
Figure 7: Retail & Consumer Goods Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 8: IT & Software Services – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 9: Transport & Logistics – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 10: Manufacturing & Distribution – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 11: Real Estate – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 12: Other – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 13: Market Share Analysis by B2C Sectors (%), 2021 Vs. 2029
Figure 14: Retail & Consumer Goods Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 15: Home Improvement – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 16: Leisure & Entertainment – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 17: Healthcare & Wellness – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Figure 18: Other – Embedded Lending Industry Revenue (US$ Million), 2020-2029

Table 1: Embedded Lending – Revenue (US$ Million), 2020-2029
Table 2: B2B Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 3: B2C Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 4: Retail & Consumer Goods Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 5: IT & Software Services – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 6: Transport & Logistics – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 7: Manufacturing & Distribution – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 8: Real Estate – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 9: Other – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 10: Retail & Consumer Goods Lending – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 11: Home Improvement – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 12: Leisure & Entertainment – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 13: Healthcare & Wellness – Embedded Lending Industry Revenue (US$ Million), 2020-2029
Table 14: Other – Embedded Lending Industry Revenue (US$ Million), 2020-2029

Reason to buy

• In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). 

• Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.

• Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.