The Story ⚡
The Federal Government, in partnership with the African Development Bank, is preparing to launch a $617 million investment fund dedicated to digital and creative enterprises.
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In a significant development for Nigeria’s creative industry, Minister Hannatu Musawa has announced the rollout of the $617 million IDICE Fund in collaboration with the African Development Bank (AfDB). This pioneering initiative aims to drive unprecedented growth and could potentially stimulate over $1 billion in the creative economy.
The iDICE Fund, according to the Ministry, consists of two main components: the Intervention Fund, totalling $147 million, aimed at supporting enterprise and skill development, and the Sectoral Fund, totalling $433 million, divided into three categories.
These include the Creative Fund, providing equity or quasi-equity for startups and SMEs in the creative sector,
the Tech Fund, offering equity or quasi-equity for innovative early-stage and growth-stage startups, and
Funds of Funds, which involve participation in closed-end venture capital funds or creative business-focused funds.
Key Background
iDICE, a Federal Government initiative executed by the Bank of Industry in Nigeria, aims to boost investment in technology and creative sectors while creating sustainable employment opportunities.
Co-funded by institutions like the African Development Bank, Agence française de développement, Islamic Development Bank, and private investors, iDICE focuses on training and certifying 175,000 youth in ICT skills, enhancing the capacity of enterprise support organizations, and creating over 800,000 direct and indirect jobs.
It also seeks to secure additional financing for early-stage businesses, upscale national data centers, establish regulatory frameworks, and provide access to funds. Moreover, iDICE prioritizes bridging gender gaps in STEM education and entrepreneurship, aiming to invest in over 80,000 women through skills training, mentorship, and startup funding over its 5-year duration.
iDICE targets Nigeria’s young women and men (15-35 years), entrepreneurs, innovative early-stage growth technology-enabled ventures and creative sector micro, small and medium enterprises (MSMEs) as well as Enterprise Support Organizations (ESOs), including Hubs, Accelerators, Venture Capital, and Private Equity Firms. It also targets Federal, State and Private Universities and Polytechnics, and key Participating Federal Ministries, Departments and Agencies (MDAs).
Who is financing and managing the iDICE program?
The total Program cost is estimated at $618 million, out of which the African Development Bank is providing $170 million; the Agence Française de Développement, €100 million ($116 million); and the Islamic Development Bank $70 million in co-financing. The Bank of Industry (BOI) will provide $45 million as FGN’s Counterpart contribution to be availed through loans for qualifying Start-ups. This financing is expected to leverage further equity investments from the private sector and institutional investors to the tune of $ 217 million.
The iDICE fund is managed by three main bodies.
The independent Fund Manager(s) will be competitively recruited and responsible for all investment tasks, including screening, monitoring, and reporting. The Investment Committee, composed of at least 7 members and at least three independent industry experts, ensures that the Fund Manager’s investments follow set criteria and limits. The Fund Advisory Board, composed of representatives of the main investors, advises on audit, compliance, and conflicts of interest, and makes decisions related to minor changes in fund documents and strategy
In Summary
There is a strong sense of enthusiasm among creatives and tech professionals who aspire to benefit from this fund. With this rollout announcement, the tech and creative industry are on the lookout for a call for public submissions, criteria and other checklists to be able to take part in this initiative.
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