LAGOS – Nigeria has announced the launch of a $672 million fund to support the tech and creative sectors for young investors in the country.
The fund, targeting those between the ages of 15 and 35, comes as startups in Africa’s most populous struggle to raise capital.
Concerns have been raised over the failure of US-based lender SVB Financial Group, which has supported startups in Nigeria.
The fund was launched by Vice President Yemi Osinbajo under the Digital and Creative Enterprises Programme (DCEP) in Abuja.
The African Development Bank (AfDB) will contribute $170 million, Agence Francaise de Developpement will provide $116 million, and the Islamic Development Bank (IsDB) will contribute $70 million.
The government through the Bank of Industry Nigeria will release $45 million, and the private sector has pledged $271 million.
Nigeria has the largest number of startups in Africa, mostly in tech and fintech, but they still struggle to attract funding due to the banks’ demand for collateral, which they don’t have.
The DCEP is a government initiative aimed at promoting innovation, entrepreneurship, and job creation in the digital tech and creative industries.
