The growing global reach of African music, fashion, and sporting talent is drawing more investors to back the continent’s thriving but underfunded creative economy.
Valued at nearly $59 billion, Africa’s creative economy represents less than 3% of the $2 trillion global industry. Spotting a gap in a lucrative market, several new investment groups are funding African startups in sectors spanning from sports, music, and entertainment to fashion and film.
Last week the African Business Angel Network (ABAN) unveiled an investor network targeted at sports and creative startups on the continent in partnership with organizations including entertainment media company Trace. “Africa’s sports and creative industries have the potential to be economic giants, but they need capital that understands their unique value,” said ABAN CEO Fadilah Tchoumba.
Pan-African tech incubator CcHUB has launched hubs in Lagos and Nairobi aimed at enabling access to grant-funding and facilities for creators including podcasters, TV producers, and filmmakers. Joy Ujenyu, program manager at CcHub’s Creative Economy Practice, told Semafor that the growing global popularity of African cultural exports offered hard “evidence” to investors of the potential of the African creative economy.
“As output improves, there is going to be an improved investor risk appetite,” she said.