African Development Bank Board approves $170 million for investment in
Nigeria’s digital and creative start-ups
The investment in Digital and Creative Enterprises Program (i-DICE) is
a Federal Government of Nigeria initiative promoting investment in
digital and creative industries_
ABIDJAN, Ivory Coast, December 16, 2021/ — The Board of Directors of
the African Development Bank (www.AfDB.org [3]) has approved a loan of
$170 million to finance a digital and creative enterprises program in
Nigeria.
The investment in Digital and Creative Enterprises Program (i-DICE) is a
Federal Government of Nigeria initiative promoting investment in digital
and creative industries. It is part of Nigeria’s efforts to build back
better, greener, and more inclusively, to create more sustainable jobs
for the teeming youthful population.
The program targets more than 68 million Nigerians aged 15 to 35 years
who are recognized as leaders of innovative, early-stage,
technology-enabled start-ups or as leaders of creative sector micro,
small and medium sized enterprises. The program is co-financed by the
Agence Française de Développement (AFD) and the Islamic Development
Bank (IsDB).
“Governments have a much greater role than just policy making. They
need to be innovative and create an enabling environment that includes
infrastructure and de-risking to harness private sector investments in
key growth sectors,” said African Development Bank President Akinwumi
A. Adesina.
The investment in Digital and Creative Enterprises Program will also
support the leaders through enterprise support organizations – groups
that support, train, and sometimes fund entrepreneurs – including
innovation hubs, accelerators, venture capital and private equity firms.
Bank financing of i-DICE will help the Government initiative further
consolidate Nigeria’s position as Africa’s leading start-up
investment destination and as a youth entrepreneurship hub.
“This program is among the latest series of our operations meant to
bolster the implementation of the Bank’s Jobs for Youth in Africa
Strategy. Given that tech-enabled enterprises cut across all the
economic growth sectors, the program’s focus on the digital sector
will deepen Nigeria’s job creation efforts,” said Beth Dunford, Bank
Vice President for Agriculture, Human and Social Development.
The initiative will stimulate investments in 226 technology and creative
start-ups and provide non-financial services to 451 digital technology
and small and medium enterprises. The program is expected to create 6.1
million direct and indirect jobs, of which the Bank’s financing will
support the creation of about 850,000 jobs. The value added to the
Nigerian economy connected to the program is estimated at $6.4 billion.
The program will boost Nigeria’s venture capital market through
independently managed funds focusing on digital and creative enterprise.
These funds aim to attract an initial capitalization of $433 million in
private and public sector financing.
“This program will generate significant economic benefits to
Nigeria,” said Lamin Barrow, Director General of the Bank’s Nigeria
Country Department. “The program interventions will help respond to
the challenges of youth employment in Nigeria, which could intensify
without scalable interventions. I want to recognize the strong country
ownership, under the leadership of Vice President Osinbajo,” he added.
The African Development Bank’s active portfolio in Nigeria comprises
57 operations across 30 public and 27 private sector operations, valued
at about $4.61 billion. The i-DICE Program aligns well with the Bank’s
strategic priority areas, better known as the High 5s – specifically,
“Industrialize Africa,” “Improve the quality of life for the
people of Africa,” and “Feed Africa.”
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
SOURCE: African Development Bank Group (AfDB)
