Somali magazine October 17,2023 -Small and Medium Enterprises [SMEs] within the creative industry in Africa are set to benefit from a newly signed pact between the International Finance Corporation [IFC] that aims to identify investment opportunities in companies in this sector.
This partnership will see both firms identify and invest in the continent’s creative industry in a bid to support new economic opportunities and create jobs for the youth.
Funding for entrepreneurs within this industry will be available from seed and early-stage startups. Priority sectors for cooperation will include film, music, animation studios, post-production services, fashion, sports, and technology and platforms supporting the creative ecosystem.
This partnership leverages Sony’s expertise and reach in the creative sector with IFC’s long-standing expertise in investing in private-sector development in Africa and digital technologies.
According to IFC Managing Director Makhtar Diop, “We are excited about our collaboration with Sony, aimed at generating value for businesses in Africa’s creative industry. This partnership will harness IFC’s expertise in emerging markets and our extensive investments in the digital landscape. Sony’s exceptional track record as a leading global player in entertainment, media, and technology positions us well to contribute to the economic growth of the creative sector.”
Africa’s creative industries generate $4.2 billion annually but have a limited share in the global market, comprising only 2.9% of creative goods exports and less than 1% of Africa’s GDP. However, the continent’s digital economy is projected to grow six-fold to over $700 billion by 2050, with Africa’s film and audiovisual sectors alone having the potential to create 20 million jobs and $20 billion in annual revenue. This significant, untapped potential is a route for boosting economic growth and improving employment opportunities for young people and women.
Toshimoto Mitomo ,Sony Group Executive Vice President further added that “Through the partnership agreement with IFC, we hope to accelerate the growth of the African entertainment industry and contribute to the progress and development of the region by providing opportunities for collaboration with the entertainment businesses within the Sony Group.”
Recently, IFC made its first investment in the creative industries in Africa, with a $3.4 million equity investment into Côte d’Ivoire-based ANKA. The funding will allow ANKA, an online sales platform for African creators and merchants, to scale its operations and onboard about 100,000 additional artisans from across Africa by 2030.