Nigeria has become a favorite destination for tech and creative startups, and it’s not hard to see why. The country has spawned successful technology companies such as Flutterwave and Paystack. The creative industry has also grown in recent years, with the music and film industry the most striking. The industry’s impressive growth in recent years is due to a growing youth population and increasing internet penetration. According to the World Intellectual Property Organization, Nigeria ranks among the top five African countries in terms of the number of patent applications filed in the technology sector. This is why the Afrench Development Bank, is investing $618 million to boost Nigeria’s tech and creative startups through a program it launched called Investment in Digital and Creative Enterprises “iDICE”. This is to position Nigeria as the next major player in the global technology and creative industries.
The iDICE program is designed to support digital and creative entrepreneurs in Nigeria by providing them with access to affordable financing, training and mentorship. A program like this is important for Nigeria’s tech and creative industries as it will provide the necessary resources and support to foster innovation and growth in these sectors. The investment could help startups overcome some of the challenges they face, such as access to funding, infrastructure, training and mentorship, which have often hindered their growth and success.
The investment could also have a significant impact on Nigeria’s economy as the tech and creative industries are critical drivers of economic growth and job creation. These industries have the potential to create jobs and opportunities for Nigerian youth, who are often kept out of the formal economy. Nigeria has a huge population, with over 200 million people. This means there is a huge market for tech and creative startups to tap into. According to Jobberman, Nigeria’s creative sector could create an additional 2.7 million jobs by 2025. The movie industry alone, Nollywood, employed 300,000 talents by 2021. It is also the second largest film industry in the world after Bollywood in India. The AfDB’s decision to invest in Nigeria’s tech and creative startups is a testament to the country’s potential as a hub for innovation and creativity.
Not only Nigeria benefits from AfDB’s investment in tech and creative startups. As one of the major hubs for innovation and creativity, the success of such a program in Nigeria could inspire investment in the tech and creative industries of other African countries. Technology and creativity have been the guiding light of Africa in recent years. The startup ecosystem raised a total investment of more than $3 billion last year despite multiple global crises. While the tech and creative industries have experienced impressive growth, there is still much work to be done to enable these sectors to drive innovation and growth for the country and the continent as a whole. The recent collapse of Silicon Valley Bank has raised concerns about the impact it will have on Nigerian tech startups that partnered with the bank. Consistent investments like this in the industry can be the glimmer of hope that startups need to continue to thrive.