The Federal Government, through the Minister of Art, Culture, and Creative Economy, Hannatu Musawa, has forged a partnership with the African Development Bank (AfDB) to introduce the Investment in Digital and Creative Enterprises (IDICE) fund.
This transformative fund, amounting to $617 million, is set to revolutionize the Nigerian creative industry, with the potential to catalyze over $1 billion in the creative economy upon full deployment.
During a meeting with the Director General of AfDB, Mr. Lamin Barrow, Minister Musawa emphasized the vast potential of the Creative Economy to generate employment opportunities for millions of young Nigerians.
The IDICE fund emerges as a landmark transaction, providing a strategic platform for directing additional long-term financing into this dynamic sector.
Expressing her enthusiasm, Minister Musawa stated, “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 monetization of their talents.” The Minister commended AfDB and other parties involved for the remarkable achievement, which is now being emulated by other African nations.
Minister Musawa highlighted that the IDICE structure offers a platform through which the fundraising initiatives of her Ministry can be secured.
“Nigeria, having solidified its position as a global hub for music, film, and visual art, is strategically positioning itself to leverage the IDICE funds. This move aims to consolidate its global standing and propel further expansion within the creative industry, including subsectors such as Design, Gaming, Content Creation, Animation, Culinary Arts, and Publishing.”
Mr. Barrow, an integral part of the collaborative effort, provided insight into the fund structure, emphasizing that IDICE is built around a world-class governance framework.
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 stated, “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.”
IDICE, an initiative spearheaded by the Federal Government of Nigeria, aims to foster 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.
The IDICE fund 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: Creative Fund, Tech Fund, and Fund of Funds.
These categories will provide equity or quasi-equity to startups and SMEs in the creative sector, innovative early-stage and growth-stage start-ups, and participations in closed-end Venture Capital Funds or Creative Business-focused funds, respectively.
As Nigeria sets the stage for a creative renaissance, the IDICE fund stands as a beacon, promising to unlock the full potential of the nation’s vibrant creative economy.