How the $100M Impact Fund is Transforming Africa’s Creative Economy

Source: CNBC Africa

Africa’s creative talent is undeniable. From the vibrancy of our music and fashion to the innovation in film, literature, and digital art, the continent is bursting with cultural wealth. Yet, for far too long, this sector has been overlooked by investors. Through the Impact Fund for African Creatives (IFFAC), we are changing that narrative and the future looks bright.

Why We Created the Impact Fund

In my recent CNBC Africa interview, I highlighted that while other sectors in Africa like tech and fintech have experienced a surge of venture capital and global recognition, the creative economy remains fragmented and underfunded. Globally, creative industries contribute over 5% of GDP. In Africa, it’s less than 1%.

This gap represents both a challenge and an opportunity. Our $100 million fund is designed to provide the structure, capital, and infrastructure that African creatives need to scale their businesses, protect their intellectual property, and ultimately compete on the global stage.

A Blended Approach to Funding Creativity

Our model is unique because it’s blended finance offering a combination of grants, equity, and eventually debt. This ensures we’re not only funding ideas but also building sustainable businesses.

We support creatives through three stages:

1. Incubation: Turning raw ideas into prototypes, with legal protection and business infrastructure.

2. Acceleration: Providing larger capital injections, new market strategies, and mentorship to help businesses grow and scale.

3. Equity Investment: Backing the most promising ventures to create long-term value and prepare them for larger investors or exits.

Demystifying Investment in Creativity

One of the biggest challenges we face is changing perceptions. High-net-worth individuals often appreciate African art and fashion as consumers but are hesitant to treat creative enterprises as investable businesses. Through IFFAC, we are creating the infrastructure and success stories that will change that mindset.

Just as Africa’s tech ecosystem has produced unicorns like Flutterwave, we believe the creative sector can do the same. Our goal is to nurture brands and businesses that can scale internationally, attract major investors, and set new benchmarks for valuation and growth.

Which Creatives Are We Targeting?

While the fund addresses all 16 sub-sectors of the creative economy (as defined by the United Nations Convention for Trade and Industry), we are starting with strategic focus areas based on research in 8 African countries.

For Ghana, we’re concentrating on:

• Fashion

• Film

• Music

• E-publishing & Literature

• Culinary Arts

Each of these sectors has strong cultural relevance and global potential. By zeroing in on these areas, we can create tangible success stories and build the confidence of outside investors.

Creating Africa’s Next Creative Powerhouses

Our vision for IFFAC is not just about funding; it’s about building a pipeline of globally recognized creative enterprises. By combining capital with expertise, mentorship, and infrastructure, we are laying the foundation for Africa’s creative industry to become a dominant force in global culture and commerce.

Looking Ahead

The African creative economy has the potential to be one of the continent’s most valuable exports. Through strategic investment, we’re not only creating businesses but also jobs, cultural pride, and economic transformation.

This is just the beginning. With IFFAC, we aim to make creativity a catalyst for sustainable development and inclusive growth across Africa.