The African Development Bank and partners have launched a $618 million Investment in Digital and Creative Enterprises (iDiCE) programme to support tech and creative sectors in Nigeria
The iDICE initiative, with a total investment of $618 million, is set to attract direct investments in over 200 technology and creative start-ups, while also offering non-financial services to around 450 small and medium-sized digital technology enterprises. The initiative has the potential to generate $6.4 billion for Nigeria’s economy and is expected to create 6 million new employment opportunities for young Nigerians.
Speaking at the launch event in the capital Abuja on Tuesday, Nigeria’s Vice President Yemi Osinbajo highlighted the importance of a coordinated approach to innovation across Africa. “Government must provide more support for start-ups and small businesses, and investors must provide more funding,” Osinbajo said.
The African Development Bank Group is the largest contributor to the fund, offering $170 million. The Agence Française de Développement, on behalf of the French government, will provide €100 million ($116 million), while the Islamic Development Bank is expected to contribute $70 million. The Nigerian government, through the Bank of Industry, will offer $45 million in counterpart funding. Additional funding is anticipated from institutional and private sector investors to support the implementation of this strategic initiative.
African Development Bank President Akinwumi Adesina emphasised the need to leverage the huge potential of iDICE for sustainable job creation and economic transformation. “We are retooling Nigeria to be more competitive in an increasingly digital world. We are creating hope for a new Nigeria, driven by the power of the youth,” he stated.
The African Development Bank anticipates that the iDICE model will be extended to other regional member countries through the Youth Entrepreneurship Investment Bank initiative. This initiative will establish a financial and non-financial services ecosystem to support start-ups managed by young Africans and to generate employment opportunities.
iDICE aims to offer direct access to technology to around 175,000 young individuals, 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. In 2022, African start-ups raised a total of $5.4 billion, with Nigerian companies receiving the largest share at $1.2 billion.
iDICE is set 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 also aims 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.