AfDB approves $170 million for Nigeria’s Digital and Creative Startups

The Board of Directors of African Development Bank approved $170,000,000 loan to fund a programme for creative and digital enterprises in Nigeria.

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The Federal Government of Nigeria has launched the investment in the Digital and Creative Enterprises Programme, which promotes investment in the creative and digital industries.

It is part of Nigeria’s effort to rebuild better, greener and more inclusively in order to create more sustainable jobs to support its teeming youth population.

This programme targets over 68,000,000 Nigerians aged 15-35 years. It recognizes leaders in innovative early-stage technology-enabled start ups and creative sector micro, small, and medium-sized businesses. The program is co-financed jointly by the Agence Francaise de Developpement and the Islamic Development Bank.

“Governments play a greater role than policymaking. Akinwumi A. Adesina is president of the African Development Bank. She stated that they need to be creative and provide an enabling environment which includes infrastructure and de-risking in order to attract private sector investment in key growth areas.

The Digital and Creative Enterprises Programme investment will also help the leaders of enterprise support organisations, which support, train and sometimes fund entrepreneurs. These groups include incubators, venture capital firms, and innovation hubs. i-DICE’s bank financing will allow the Government to consolidate Nigeria’s status as Africa’s top startup investment destination as well as a hub for youth entrepreneurship.

“This is the latest in a series of operations that we have undertaken to support the Bank’s Jobs for Youth in Africa Strategy. “Tech-enabled businesses are a broad sector of all economic growth sectors, so the programme’s focus in the digital sector will strengthen Nigeria’s job creation efforts,” stated Beth Dunford, Bank vice President for Agriculture, Human and Social Development.

This initiative will encourage investments in 226 tech and creative startups, and provide non-financial support to 451 small and medium businesses and digital technology. The programme is expected create 6,100,000. Direct and indirect jobs. Bank financing will help to create approximately 850,000. The programme will add $6.4 billion to Nigeria’s economy.

Through independently managed funds that are focused on digital and creative enterprises, the programme will increase Nigeria’s venture capital markets. The funds are expected to raise an initial capitalization of $433,000,000 through both private and public sector financing.

” This program will generate significant economic benefit to Nigeria,” stated Lamin Barrow (director-general of Bank’s Nigeria Country Department). “The programme interventions will address the problems of youth unemployment in Nigeria that could increase without scalable interventions. He said that he wanted to acknowledge the strong ownership of the country, which is under the leadership Vice President Osinbajo.”

The Nigerian active portfolio of the African Development Bank includes 57 operations in 30 public and 27 privat sector operations. It is valued at approximately $4.61 billion.

 

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