By Adedapo Adesanya
The International Finance Corporation (IFC) and Sony Group Corporation have signed a cooperation agreement to identify investment opportunities in companies in Africa’s billion-dollar creative industries.
Under this agreement announced on Thursday, IFC and Sony will identify investment opportunities, with a particular focus on seed and early-stage start-ups in order to support new economic opportunities and create jobs.
Priority sectors for cooperation will include film, music, animation studios, post-production services, fashion, sports, and technology and platforms supporting the creative ecosystem.
Africa’s creative industries generate $4.2 billion annually but have a limited share in the global market, comprising only 2.9 per cent of creative goods exports and less than 1 per cent of Africa’s GDP. However, the continent’s digital economy is projected to grow six-fold to over $700 billion by 2050, with Africa’s film and audiovisual sectors alone having the potential to create 20 million jobs and $20 billion in annual revenue.
Both IFC and Sony say this significant, untapped potential is a route for boosting economic growth and improving employment opportunities for young people and women. The partnership will leverage Sony’s expertise and reach in the creative sector with IFC’s long-standing expertise in investing in private sector development in Africa and digital technologies.
Speaking on the collaboration with Sony, IFC Managing Director, Mr Makhtar Diop said it is aimed at generating value for businesses in Africa’s creative industry.
“This partnership will harness IFC’s expertise in emerging markets and our extensive investments in the digital landscape. Sony’s exceptional track record as a leading global player in entertainment, media, and technology positions us well to contribute to the economic growth of the creative sector.”
“Through the partnership agreement with IFC, we hope to accelerate the growth of the African entertainment industry and contribute to the progress and development of the region by providing opportunities for collaboration with the entertainment businesses within the Sony Group,” said Mr Toshimoto Mitomo, Executive Vice President, Sony Group.
Recently, IFC made its first investment in the creative industries in Africa, with a $3.4 million equity investment into Côte d’Ivoire-based ANKA. The funding will allow ANKA, an online sales platform for African creators and merchants, to scale its operations and onboard about 100,000 additional artisans from across Africa by 2030.
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