Despite the effects of COVID-19, Africa’s young creative industries remain ripe for investment opportunities.
African music, film, and fashion continue to gain global popularity, with companies like Netflix and Universal Music Group expanding their presence on the continent.
Nigeria’s film industry, Nollywood, accounted for $7.2bn or 1.42 percent of Nigeria’s GDP in 2016, and South Africa’s music industry is estimated to hit $178m in revenue in 2020.
Yet in 2019, only 1.1% or $22M of total African start-up investment went to entertainment companies.
With the foundational financial and digital infrastructure to support the creative industries increasingly being put in place and Africans staying home more due to the pandemic, now is the right time for investors to double down on Africa’s creative industries to spur economic recovery.