Vice President Yemi Osinbajo says Nigeria’s technology ecosystem accounts for nearly 30 per cent of Africa’s funded ventures with no fewer than 180 startups.
Osinbajo said this at the official inauguration of the Investment in Digital and Creative Enterprises (iDICE) Programme, and Unveiling of iDICE logo on Tuesday at the State House Banquet Hall.
The Vice President said the iDICE is a government initiative to promote innovation and entrepreneurship in the digital tech and creative industries, especially targeted at job creation.
According to him, the total fund is $618 million, out of which the AFDB provides $170 million, the Agence Francaise de Development, $100 million, and the Islamic Development Bank (IsDB), $70 million in co-financing.
“The Bank of Industry (BOI) will provide $45 million as the Federal Government’s counterpart contribution to be availed through loans for qualifying startups.
“We expect another $271 million from private sector and institutional investors.
“I think it is important to mention that private capital has usually been ahead of government effort, and the last few years have seen a consistent rise in venture capital investments in Nigeria’s technology ecosystem.
“According to Disrupt Africa’s 2022 Tech Funding Report, Nigeria was the best-funded country in Africa for the second year running, with a minimum of 180 startups; making up approximately 30 per cent of Africa’s funded ventures, raising approximately $1 billion – substantially ahead of all other countries on the continent on both counts.
“This influx of private capital has enabled startups to expand operations and create new jobs while contributing significantly toward overall Gross Domestic Product (GDP) growth of the country.
“There are of course thousands of startups that have used private funds or debt that go unrecorded,” he said.
iDICE is a government initiative to promote innovation and entrepreneurship in the digital tech and creative industries, especially targeted at job creation.
Coordinated approach
Osinbajo said it has become imperative to commence a coordinated approach toward innovation on the continent, bringing together all stakeholders to coordinate efforts at scaling up investments and building programmes that support innovation.
He said the government must provide more support for startups and small businesses while investors must provide more funding.
“This is why the iDICE is important; it brings together the public sector, and our development partners – the AfDB, IDB, and the French Development Agency.
“To design a Programme that supports innovation across very critical pillars including policy, infrastructure, access to finance and talent.
“These pillars have been identified as very critical to the growth and sustenance of innovation on the continent.
“As a government, we have consistently provided support to the innovation ecosystem over the last eight years,” he said.
On his part, AfDB’s President, Akinwumi Adesina, said the digital trends held great promise to help create a massive number of jobs.
According to him, estimates by Endeavor (2022) show that expanding digital infrastructure by 10 per cent will lead to a 2.5 per cent annual growth in GDP in Africa.
“Furthermore, expanding access to the internet in Africa from the current 33 per cent to 75 per cent can help create 44 million jobs, including three million jobs in online services by 2025.
“We are already witnessing in Nigeria the power of digital technologies, tools, and platforms. Nigeria currently has five out of the 11 digital companies that have reached the status of unicorn with market valuation of $1 billion.
“Names that come to mind include Jumia, Interswitch, Opay, Flutterwave and Andela, mainly in the fintech space,” he said.
In his remarks, the Minister of Information and Culture, Lai Mohammed, noted that Nigeria’s creative industry was not only about music and film.
He said the industry comprised other sectors such as advertising, hospitality, writing, comedy, photography, hair and beauty among others, and employs millions of Nigerians.
“While the music and film industry have combined to put Nigeria on the world map, in terms of revenue generation, fashion generates N2 trillion against music’s N200 billion, hair and beauty generates N1.52 trillion against film’s N140 billion.
“So, I hope that when we start administering these funds, we will look at these figures and we are very glad to share this report with the advisory council,” he said.
Other speakers at the event included the Ministers of Industry, Trade and Investment, Niyi Adebayo; Finance, Budget and National Planning, Zainab Ahmed, and Communications and Digital Economy, Isa Pantami.
The BOI Managing Director, Olukayode Pitan, and representatives of French Development Agency and IsDB also spoke. (NAN)
