With the emergence of digital technologies in Africa, governments are increasingly realizing the importance of the creative economy, which can generate more business opportunities, have a positive impact on livelihoods, and boost the overall economy. 

The African Development Bank (AfDB), the Islamic Development Bank (IsDB), and the French Development Agency (AFD) have invested US$618 million in Nigeria's Investment in the Digital and Creative Enterprises (i-DICE) program.

Speaking at the Nigeria International Economic Partnership Forum in New York on Thursday, September 22, AfDB President Akinwumi Adesina (photo) said the funding will support the creation of 225 creative start-ups and 451 small and medium enterprises (SMEs) in the technology sector. 

“The future is not just digital, the future will be driven by digital revolution. Today, Nigeria has five of the seven unicorns in Africa and raised almost $1.4 billion of the total of $4 billion raised by fintech companies across Africa in 2021,” Akinwumi Adesina said.

The program's funding is aimed at offsetting the economic downturn caused by the Covid-19 pandemic by expanding the financial and technology sectors in Nigeria. According to the AfDB, in the fourth quarter of 2020, ICT contributed 15.06% of gross domestic product (GDP), compared to 13% during the same period a year earlier. Similarly, the vibrant creative industries generated US$14.4 million in revenue between 2015 and 2018.

Despite such performance, several systemic issues including lack of funding, insufficient infrastructure, skills gap, and limited access to the internet hinder the development of the concerned sectors. The i-DICE launched by the Federal Government of Nigeria, last January, aims to tackle those systemic issues. It targets more than 68 million Nigerians aged 15-35 who are recognized as leaders of innovative, early-stage technology start-ups, as well as leaders of micro, small and medium-sized enterprises in the creative sector. For AfDB president Akiwumi, these businesses could create 6.1 million jobs and contribute US$6.4 billion to the Nigerian economy by 2027.

According to Premium Times Nigeria, the AfDB financing “will help the Government initiative further consolidate Nigeria’s position as Africa’s leading start-up investment destination and as a youth entrepreneurship hub.”

Samira Njoya