FGN and AfDB set to unveil $617m IDICE Fund for the digital technology and creative industry
The Federal Government, in partnership with the African Development Bank (AfDB), has finalized plans to introduce a $617 million Investment in Digital and Creative Enterprises (IDICE) Fund for the digital technology and creative industry. The IDICE fund is seen as a significant milestone, eagerly anticipated by the creative community, as it provides a strategic platform for channeling additional long-term financing into this thriving sector.
The Investment in Digital and Creative Enterprises is an initiative led by the Federal Government of Nigeria. Its primary objective is to promote entrepreneurship and innovation in the digital technology and creative industries, while also addressing the challenges faced by startups in terms of access to risk capital and innovation ecosystem capacity.
Comprised of two major components, IDICE includes the intervention fund, a $147 million fund dedicated to supporting enterprise and skills development. Additionally, there is the sectoral fund, which amounts to $433 million and is divided into three categories:
- Creative Fund: This category provides equity or quasi-equity to startups and small and medium-sized enterprises (SMEs) operating in the creative sector.
- Tech Fund: Equity or quasi-equity is offered to innovative early-stage and growth-stage startups in this category.
- Fund of Funds: This category involves participating in closed-end Venture Capital Funds or Creative Business-focused funds.
This transformative fund has the potential to unlock unprecedented growth, with the capacity to catalyze over $1 billion of growth in the creative economy once fully deployed.
Expressing her excitement, Minister Musawa stated, “We are thrilled that the conditions necessary for the release of IDICE funds are nearing completion. We eagerly look forward to providing startup funds to young creatives, facilitating the development and monetization of their talents.”
The Minister praised AfDB and other parties involved in the transaction for this remarkable achievement, which is now being emulated by other African nations.
She commended the focus on impact investment, which includes elements such as geographical diversity, the FGN’s first loss position, and grants for capacity development. The Minister emphasized that her ministry will reflect this spirit in its nationwide awareness campaign about the initiative.
Minister Musawa emphasized that the IDICE structure offers a platform to secure the fundraising initiatives of her Ministry and assured that this opportunity will be thoroughly explored.
She further stated, “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 strengthen its global standing and drive further growth within the creative industry, particularly in subsectors such as Design, Gaming, Content Creation, Animation, Culinary Arts, and Publishing.”
