The global coverage of African music, fashion and sports talents is attracting more investors to support the continent’s thriving but underfunded creative economy.
Africa’s creative economy is worth nearly $59 billion, accounting for 3% of the global $2 trillion industry. Discovering gaps in profitable markets, several new investment groups are funding African startups, ranging from sports, music and entertainment to fashion and film.
Last week, the African Business Angel Network (ABAN) launched an investor network targeting sports and creative startups on the continent, working with organizations including entertainment media company Trace. “The sport and creative industries in Africa have the potential to become economic giants, but they need capital to understand their unique value,” said Aban CEO Fadilah Tchoumba.
Pan-Adrican Tech Incubator CCHUB has launched a hub in Lagos to obtain grants and facilities for creators including Podcasters, TV producers and film producers. Joy Ujenyu, planning manager for CCHUB’s creative economic practice, told Semafor that the growing popularity of African cultural exports provides investors with difficult “evidence” of Africa’s creative economic potential.
“As output improves, there will be an improved investor risk appetite,” she said.
Playbook founder Sandrine Nzeukou is a sports media platform focused on Africa and the Middle East. But she said these investments alone are not enough to stimulate growth. “Make sure that the budding companies have relationships, visibility and, most importantly, talent is just as important,” Nzeukou told Semafor.
Pan-Afreximbank announced in October that it would increase its funding to Creative Africa Nexus (CANEX) plan to increase from $1 billion to $2 billion from the next three years. The bank said the decision to double the funding came from “a surge in demand from the creative sector in Africa.” This funding boost is specifically used to support the construction of infrastructure, including gymnasiums, fashion manufacturing hubs, music arenas and film production facilities.
Accelerating investment in African sports and creative industries is crucial to ensuring that the continent retains its vast sports and creative talent, allowing it to gain the economic benefits of such talent rather than venting overseas. For example, currently, the top sports stars on the continent are running abroad due to Africa’s underdeveloped sports ecosystem. Similarly, many well-known figures in African music have signed up for international music record companies in Europe and the United States and earned most of their travel revenue in the international market. Meanwhile, filmmakers often need Western supporters and distribution platforms to effectively produce and profit their work.
