The African Development Bank (AFDB) and its partners have launched a $618 million investment in the Digital and Creative Enterprises (iDiCE) program to support Nigeria’s digital and creative industries.
The $618 million fund is made up of $170 million from the African Development Bank (AFDB), and $100 million from the Agence Française de Dévelopment, a public financial institution that implements policy defined by the French Government, while the Islamic Development Bank (IsDB) will provide $70 million in co-financing.
Also, the Federal government of Nigeria through the Bank of Industry (BOI) which will lead the iDiCE program, will back the fund with $45 million as a counterpart contribution to be availed through loans for qualifying startups and $271 million from the private sector and institutional investors.
Speaking at the launch of the event at the state capital Abuja on Tuesday, Nigeria’s Vice President Prof. Yemi Osinbajo lauded the inflow of capital to tech startups in the country which he stated has contributed significantly to Nigeria’s GDP.
In his words, “This influx of private capital has enabled start-ups to expand operations and create new jobs while contributing significantly towards our GDP growth. It is now imperative to commence a coordinated approach towards innovation on the continent, bringing together all stakeholders to coordinate efforts at scaling up investments and building programs that provide the right enabling environment and produce talent pipelines that support the growth of innovation on the continent”.
Also speaking at the event is African Development Bank President Akinwunmi Adesina who emphasized the need to leverage the huge potential of iDiCE for sustainable job creation and economic transformation.
He said, “we are retooling Nigeria to be more competitive in an increasingly digital world. We are creating hope for a new Nigeria, driven by the power of the youth”.
Mr. Adesina further disclosed that the iDiCE fund will create 6.1 million direct and indirect jobs and equip more than 175,000 young people with technology startups, 226 creative enterprises, and 75 enterprise support organizations will be supported by the fund.
The i-DiCE model will be rolled out in other regional member countries through AFDB’s Youth Entrepreneurship Investment Bank Initiative, which will be designed to create a financial and non-financial services ecosystem to support startups run by young Africans and to create jobs.
It is also set to improve regulatory policy frameworks, including the 2022 start-up act, and establish a DICE fund, a venture capital fund managed independently to provide access to financing.
Investors King understands that Nigeria is the most popular tech startup investment destination in Africa. Between 2015 and 2022, 383 tech startups raised a combined US$2,068,709,445. The country also attracts the highest number of investors more than any other African country.
Hence, it is not far-fetched to say that the continuous influx of investments in Nigerian startups will no doubt solidify the country’s position as the premier hub for young entrepreneurs and start-up investments in Africa.