The African Development Bank approves $170 million in Nigeria’s to empower digital and creative start-ups

The Board of Directors of the African Development Bank has approved a $170 million loan to Nigeria to fund a digital and creative industries initiative.

The Investment in Digital and Creative Enterprises Program (i-DICE) is a Nigerian government initiative that promotes investment in the digital and creative industries. It is part of Nigeria’s efforts to rebuild better, greener, and more inclusive infrastructure in order to create more long-term job opportunities for the country’s burgeoning youth population.

The program targets over 68 million Nigerians between the ages of 15 and 35 who are identified as leaders of innovative, early-stage, technology-enabled start-ups or creative sector micro, small, and medium-sized firms. The program is co-funded by the Islamic Development Bank and the Agence Française de Développement (AFD) (IsDB).

“Governments play a far more important role than simply establishing policies.” To attract private sector investments in critical growth areas, African Development Bank President Akinwumi A. Adesina said, “They must be inventive and create an enabling environment that includes infrastructure and de-risking.”

Enterprise support organizations, such as innovation hubs, accelerators, venture capital, and private equity firms, would also benefit from the investment in the Digital and Creative Enterprises Program. The government’s i-DICE project will receive bank funding, allowing Nigeria to cement its position as Africa’s premier start-up investment destination and a magnet for young entrepreneurs.

“This program is part of a new set of activities aimed at assisting the Bank’s Jobs for Youth in Africa Strategy in getting off to a good start.” “The program’s emphasis on the digital sector will strengthen Nigeria’s job creation efforts, as tech-enabled enterprises span all economic growth sectors,” said Beth Dunford, Bank Vice President for Agriculture, Human, and Social Development.

The project will benefit 226 technology and creative start-ups while also providing non-financial services to 451 digital technology and small and medium businesses. The program is expected to generate 6.1 million direct and indirect jobs, with the Bank funding assisting in the creation of approximately 850,000 of them. The program is expected to add $6.4 billion to the Nigerian economy.

The program will help to grow Nigeria’s venture capital market by utilizing independently managed funds focusing on digital and creative entrepreneurship. In the first year, these funds hope to raise $433 million in private and public sector funding.

“This program would provide significant economic assistance to Nigeria,” said Lamin Barrow, Director General of the World Bank’s Nigeria Country Department. “The program initiatives will assist in responding to Nigeria’s young employment challenges, which may worsen if scalable interventions are not implemented.” “I want to applaud Vice President Osinbajo’s great country ownership,” he continued.

The African Development Bank’s active portfolio in Nigeria consists of 57 operations totaling $4.61 billion, 30 of which are public and 27 of which are private. The i-DICE Program is perfectly aligned with the Bank’s strategic focus areas, known as the “High 5s,” which include “Industrialize Africa,” “Improve Africans’ Quality of Life,” and “Feed Africa.”