Nigeria and AfDB to Launch $617 Million IDICE Fund for Digital Technology and Creative Industry

 Nigeria and AfDB to Launch $617 Million IDICE Fund for Digital Technology and Creative Industry

The Nigerian Federal Government, in collaboration with the African Development Bank (AfDB), is set to launch a $617 million IDICE Fund for the digital technology and creative industry. The Minister of Art, Culture, and Creative Economy, Hannatu Musawa, revealed the plans during a high-level meeting with the Director-General of AfDB, Lamin Barrow, in Abuja.

Key Points:

1. IDICE Fund: The $617 million Investment in Digital and Creative Enterprises (IDICE) Fund aims to foster entrepreneurship and innovation in the digital technology and creative industries, addressing challenges related to access to risk capital and innovation ecosystem capacity for startups.

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3. Fund Components:

   • Intervention Fund: A $147 million fund supporting enterprise and skills development.
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   • Sectoral Fund: A $433 million fund divided into three categories:
     • Creative Fund: Equity or quasi-equity for startups and SMEs in the creative sector.
     • Tech Fund: Equity or quasi-equity for innovative early-stage and growth-stage startups.
     • Fund of Funds: Participations in closed-end Venture Capital Funds or Creative Business-focused funds.

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5. Execution Agency: The Bank of Industry (BOI) has been appointed as the executing agency to manage program implementation, reporting directly to the steering committee.

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7. Strategic Partnerships: The initiative plans to forge strategic partnerships with selected universities and polytechnics, major technology companies, and key players in the private sector.

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9. Minister's Enthusiasm: Minister Hannatu Musawa expressed eagerness about the program, emphasizing its potential to provide startup funds to young creatives, facilitating the development and monetization of their talents.

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11. IDICE Structure: The IDICE structure offers a platform for securing fundraising initiatives in the creative sector, and Nigeria aims to leverage the funds for the growth of the creative industry, including subsectors like Design, Gaming, Content Creation, Animation, Culinary Arts, and Publishing.

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13. Impact Investment Focus: The initiative focuses on impact investment, including geographical spread, first loss position of the Federal Government of Nigeria (FGN), and grants for capacity development.

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15. Global Hub for Creativity: Nigeria, as a global hub for music, film, and visual art, aims to consolidate its standing and expand within the creative industry through the IDICE funds.

The IDICE Fund is expected to play a transformative role, catalyzing over $1 billion in growth in the creative economy upon full deployment.

Please note that the figures and details mentioned are based on current information and are subject to change as the program progresses.