By John Ikani
The African Development Bank (AfDB) in partnership with other organizations, has launched an exciting new initiative aimed at supporting the technology and creative industries in Nigeria.
The Investment in Digital and Creative Enterprises (iDICE) programme boasts a massive investment of $618 million and has been designed to provide direct investment to over 200 technology and creative startups, with an additional 450 small and medium-sized digital technology enterprises set to benefit from non-financial services.
This investment has the potential to generate $6.4 billion for Nigeria’s economy, as well as creating 6 million new job opportunities for young Nigerians.
The African Development Bank Group is the largest contributor to the fund, offering $170 million, while the French government, through the Agence Française de Développement, will provide €100 million ($116 million), and the Islamic Development Bank is expected to contribute $70 million.
The Nigerian government, through the Bank of Industry, will also offer $45 million in counterpart funding. Additional funding from institutional and private sector investors is anticipated to support this strategic initiative.
Nigeria’s Vice President Yemi Osinbajo at the launch of initiative in Abuja on Tuesday, emphasized the importance of a coordinated approach to innovation across Africa, stating that “Government must provide more support for start-ups and small businesses, and investors must provide more funding.”
On his part, the President of the African Development Bank, Akinwumi Adesina, emphasized the need to leverage the huge potential of iDICE for sustainable job creation and economic transformation. “We are creating hope for a new Nigeria, driven by the power of the youth,” he stated.
Through iDICE, around 175,000 young individuals will have direct access to technology, including university students, to cultivate their creative skills, encourage innovation, and facilitate the growth of new businesses.
This initiative is expected to solidify Nigeria’s position as the premier hub for young entrepreneurs and start-up investments in Africa.
iDICE will also aim to improve regulatory policy frameworks, including the 2022 Start-up Act, and establish a DICE Fund – a venture capital fund managed independently – to provide access to financing.
The initiative is set to mobilize more than $217 million in investment capital and provide technical resources to de-risk digital and creative companies at scale in a sustainable manner.
The African Development Bank is hopeful that the iDICE model will be extended to other regional member countries through the Youth Entrepreneurship Investment Bank initiative, which will establish a financial and non-financial services ecosystem to support start-ups managed by young Africans and generate employment opportunities.
In 2022, African start-ups raised a total of $5.4 billion, with Nigerian companies receiving the largest share at $1.2 billion.
With the launch of iDICE, Nigeria is set to cement its position as a leading destination for start-up investment, while also providing significant opportunities for job creation and economic growth.
