FG, AfDB to roll out $617m to support digital, creative enterprises

The federal government in collaboration with the African Development Bank (AfDB) is set to roll out a $617 million investment in digital and creative enterprises (IDICE) fund.

IDICE is an initiative spearheaded by the federal government aimed at fostering entrepreneurship and innovation in digital technology and creative industries.

It addresses the challenges of access to risk capital and innovation ecosystem capacity faced by start-ups.

According to a statement on Friday, Hannatu Musawa, minister of art, culture and the creative economy, spoke about the collaboration during a meeting in Abuja on Thursday with Lamin Barrow, director general of AfDB.

The minister said the creative sector has the potential to generate employment opportunities for millions of young Nigerians.

“With eager anticipation from the creative community, the IDICE fund emerges as a landmark transaction, providing a strategic platform for directing additional long-term financing into this dynamic sector,” Musawa said.

“We are delighted that the conditions precedent for the release of IDICE funds are nearing completion. We eagerly anticipate providing start-up funds to young creatives, facilitating the development and monetisation of their talents.”

The minister further commended AfDB and other parties to the transaction for the remarkable achievement.

Musawa also said IDICE structure offers a platform through which the fundraising initiatives of her ministry can be secured and assured that this opportunity will be thoroughly explored. 

“Nigeria, having solidified its position as a global hub for music, film, and visual art, is strategically positioning itself to leverage the IDICE funds,” she said.

“This move aims to consolidate its global standing and propel further expansion within the creative industry, in sub-sectors such as design, gaming, content creation, animation, culinary arts, and publishing”.

On his part, Barrow provided insight into the fund structure, explaining IDICE is built around a world-class governance framework, incorporating a steering committee that includes the minister. 

“AfDB has appointed the Bank of Industry as the executing agency to manage program implementation, reporting directly to the steering committee,” Barrow said. 

“The initiative is set to forge strategic partnerships with selected universities and polytechnics, major technology companies and key players in the private sector.”

Acknowledging the eagerness of the creative community, Barrow said the youth are “understandably impatient”.

“Since the approval of IDICE, we have received daily inquiries about the launch. While the processes are intricate, we are on the verge of the roll-out phase,” he said. 

According to the ministry, IDICE comprises two major components: the intervention fund, a $147 million fund supporting enterprise and skills development, and the sectoral fund, a $433 million fund divided into three categories. 

The sectoral fund includes; the creative fund, an equity or quasi-equity to startups and SMEs in the creative sector;  and the tech fund, which is equity or quasi-equity to innovative early-stage and growth-stage startups.

Another is fund of funds, which involves participation in closed-end venture capital funds or creative business-focused funds.