Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Innovation Hub

Nigeria launches $618M fund for young tech entrepreneurs

Article Image
The African Development Bank, Nigeria's government and other partners have launched a new $618 million fund aimed at supporting tech and creative sectors for the youth in Nigeria to spur the growth of innovation on the continent.

Nigeria's Vice President Yemi Osinbajo launched the Investment in Digital and Creative Enterprises (iDICE) program in Nigerian capital Abuja this week.

The African Development Bank Group is the largest funder of iDICE, providing $170 million. The French government, through the Agence Française de Développement, will contribute €100 million (US$116 million), and the Islamic Development Bank – pending approval from its board – is expected to provide $70 million in co-financing.

The Nigerian government, through its executing agency, the Bank of Industry, will provide $45 million in counterpart funding through loans for qualifying startups. Meanwhile other institutional and private sector investors are expected to provide around $270 million in additional funding for the implementation of the strategic initiative.

Funding for Nigeria's youth

The program will support young Nigerians ranging from ages 15 to 35 who are entrepreneurs and involved in the early stages of creative, innovative and technology-enabled ventures.

The iDICE will attract direct investments in more than 200 technology and creative startups and provide non-financial services to about 450 digital technology small and medium enterprises. It has a potential to generate $6.4 billion for Nigeria's economy and iDICE is expected to create 6 million new jobs for young Nigerians.

African Development Bank President Akinwumi Adesina stressed the need to leverage the huge potential of the 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 said at the launch event in Abuja.

Support for African innovators

Speaking at the launch, Nigeria's vice president also emphasized the importance of a coordinated approach to innovation across Africa.

"It is now imperative to commence a coordinated approach towards innovation on the continent, bringing together all stakeholders to coordinate efforts at scaling up investments and building programs that provide the right enabling environment and produce talent pipelines that support the growth of innovation on the continent," Osinbajo said.

"But we must do more. The government must provide more support for startups and small businesses, and investors must provide more funding. This is why the Investment in Digital and Creative Enterprises Program is important," he added.

Nigeria's Vice President Yemi Osinbajo speaking at the launch of the Investment in Digital and Creative Enterprises (iDICE) program in Abuja, Nigeria, on March 14, 2023. (Source: The Office of the Vice President of Nigeria)
Nigeria's Vice President Yemi Osinbajo speaking at the launch of the Investment in Digital and Creative Enterprises (iDICE) program in Abuja, Nigeria, on March 14, 2023.
(Source: The Office of the Vice President of Nigeria)

The vice president said that over the past few years there has been a consistent rise in venture capital investments in Nigeria's technology ecosystem. He referenced Disrupt Africa's 2022 Tech Funding Report, which found that Nigeria was the best-funded country in Africa for the second year running, with 180 startups making up about 30% of Africa's funded ventures, raising almost $1 billion in 2022.

"This influx of private capital has enabled startups to expand operations and create new jobs while contributing significantly towards our own GDP growth. There are of course thousands of startups that have used private funds or debt that goes unrecorded. I think they probably constitute the majority in our country," Osinbajo added.

iDICE also aims to enhance regulatory policy frameworks such as Nigeria's 2022 Startup Act; provide access to financing through an independently managed venture capital fund; and provide technical resources to de-risk digital and creative companies at scale in a sustainable manner.

This week, Middle East and North Africa (MENA) seed investor Flat6Labs also announced the launch of a $95 million seed fund for West and East Africa aimed at investing in 160 tech startups over the next five years.

Related posts:

*Top image is of African Development Bank President Akinwumi Adesina (left), and Nigeria's Vice President Yemi Osinbajo (right), launching the Investment in Digital and Creative Enterprises (iDICE) program in Abuja, Nigeria, on March 14, 2023. (Source: The Office of the Vice President of Nigeria)

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Omdia View: February 2024

Highlights in February 2024 in the Middle East and Africa included 5G launches in Senegal and 5G trials in Egypt as well as Kenya's first 5G MVNO. Airtel also launched a new wholesale connectivity business while MTN and Huawei are planning a joint Innovation Technology Lab in South Africa – that and more in this month's Omdia View.

Story

Key adoption areas for machine learning in Africa

ICT analyst Francis Hook identifies some of the key sectors that could be positively impacted by machine learning, including education, government services, healthcare and climate tech.

More Innovation hub

Latest video

More videos

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Sponsored video

More videos

Industry announcements

More Industry announcements

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Partner perspectives

All Partner Perspectives

Guest Perspectives

Story

Omdia View: January 2024

By Omdia Analysts

Highlights in January 2024 in the Middle East and Africa included a $200 million fintech deal between MTN and Mastercard as well as 5G network trials by Telecom Egypt – that and more in this month's Omdia View.

Story

Omdia View: September 2023

By Omdia Analysts

Highlights in September 2023 in the Middle East and Africa included more 5G spectrum licenses, vendor and operator strategies, and partnerships – that and more in this month's Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002