Venture Capital (VC) Participation in the African Entertainment Value Chain — Emmanuel Inyada

Value Creation

There is so much value being created in the entertainment sector. On the music side, African acts from countries like Nigeria, South Africa, Kenya, Ghana, Gambia etc. are doing a lot with their unique African sound. There is a global buzz around African music and African acts which is gradually making its imprint on global culture and pop life. There is Fela’s vintage Afrobeats which has influenced a wave of modern artist like Wizkid, Davido and Grammy Award winning artist Burna Boy and his Afrofusion raising the flag for the African sound.

Entertainment Tech

There’s already massive growth in the entertainment tech space with several African tech enabled entertainment startups springing up across the continent. In our changing world, the opportunities in entertainment intersect with the opportunities in tech.

Opportunities

A lot is going to happen in the Nigerian music and entertainment industry in the next few years. New companies will spring up in entertainment tech, and existing companies will grow further and there may be some exits especially from companies that have already received VC investment. Foreign record and production companies will be looking at getting a bite of the cake. It would not be a surprise if they begin to set up shop in Nigeria and Africa, generally, in large numbers. They are already doing so in fact. Universal Music Group already has its offices in Lagos, Nigeria. With growing investment in African tech in general, correspondingly, there is room for growth, and increased investment entertainment-tech companies.

Closing

The Nigerian entertainment sector already contributes over $7 billion to Nigeria’s GDP and it is predicted to increase to about $10 billion in 2023. According to the National Bureau of Statistics (NBS) the Nigerian entertainment sector contributed about 4.5% to Nigeria’s total GDP of about $456 billion in 2019.

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