African Development Bank Invests US$170 Million to Create 6 Million Jobs in Nigeriaby Fintechnews Africa 20 March 2023
The African Development Bank has invested US$170 million in the newly-launched Investment in Digital and Creative Enterprises (iDICE) programme which aims to create 6 million new jobs for young Nigerians.
Other partners in the programme include the French government which will contribute €100 million (US$116 million) through the Agence Française de Développement and the Islamic Development Bank which is expected to provide an additional US$70 million once it receives board approval.
Meanwhile, the Nigerian government will provide US$45 million in counterpart funding through its executing agency, the Bank of Industry.
Other institutional and private sector investors are also expected to provide additional funding for the implementation of the strategic initiative.
The initiative, with investments totaling US$618 million, seeks to attract direct investments for more than 200 startups and provide non-financial services to about 450 SMEs.
The African Development Bank expects the iDICE model to be rolled out in other regional member countries through the Bank’s Youth Entrepreneurship Investment Bank initiative, which will be designed to create a financial and non-financial services ecosystem to support startups run by young Africans as well as to create jobs.
Through iDICE, around 175,000 young people, including university students, will gain direct access to technology to build creative skills, stimulate innovation, and help new businesses to flourish.
iDICE will also enhance regulatory policy frameworks such as the 2022 Startup Act, provide access to financing through the creation a DICE Fund, an independently managed venture capital fund; and mobilise over US$217 million in investment capital.
The fund will also provide technical resources to de-risk digital and creative companies at scale and sustainable manner.
Nigeria’s Vice President Yemi Osinbajo said,
“Government must provide more support for start-ups and small businesses, and investors must provide more funding.”
African Development Bank’s President Akinwumi Adesina stressed the need to leverage the huge potential of 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.”
Featured image credit: Akinwumi Adesina, President, African Development Bank: flickr