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Tag: I-DICE

  • France-Nigeria I-DICE Program to Create 65,000 Startups

    France-Nigeria I-DICE Program to Create 65,000 Startups

    The Minister for Europe and Foreign Affairs of France, Catherine Colonnade, has expressed her belief that the Investment in Digital and Creative Enterprises (I-DICE) program of the Nigerian government has the potential to create 65,000 startups within the country.

    Colonnade made this statement on Friday during the signing of an agreement between the Nigerian and French governments regarding the program.

    The bilateral agreement was signed at the Ministry of Foreign Affairs in Abuja, with Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar, and Catherine Colonnade signing on behalf of their respective countries. The agreement was also witnessed by Bosun Tijani, the Minister of Communications, who represented the Vice President of Nigeria, Kashim Shettima.

    Read also: Nigeria, AfDB Announce $672 Million I-DICE Project For Young Tech Entrepreneurs

    Enormous Potential for Job Creation

    Catherine Colonnade emphasised that the I-DICE program has the capacity to generate significant employment opportunities. Alongside the creation of 65,000 startups, the program aims to deliver 150,000 direct jobs in the technology and creative industries sectors, along with approximately 1.3 million indirect jobs. The impact of the program is expected to be extensive, reaching both emerging entrepreneurs and established industries.

    Funding and Partnerships

    The I-DICE program receives its financial support from various sources, including the French Development Agency (AFD), the African Development Bank (AfDB), the Islamic Development Bank (ISDB), and the Bank of Industry (BOI).

    The total value of the I-DICE program exceeds $600 million, with the AFD contributing 100 million euros, equivalent to approximately $116 million. The program represents a cooperative effort between the governments of France and Nigeria, as well as private sector partners and institutional investors. The Bank of Industry has been designated as the Implementing Agency for the program, responsible for coordinating its day-to-day activities.

    Minister’s Perspective on the I-DICE Program

    Minister Yusuf Tuggar explained that the I-DICE program is deeply focused on creating employment opportunities for young Nigerians and fostering innovation in the digital technology and creative industry sectors. He described the program as an initiative of the Federal Government of Nigeria, overseen by the Office of the Vice President, with the aim of promoting entrepreneurship and innovation.

    In addition to job creation, the program also intends to provide training to two million young people, empowering them to establish their entrepreneurial ecosystems and gain access to financing to launch innovative businesses and startups. These initiatives are part of a broader effort to stimulate economic growth and foster the application of technology across various sectors. The signing of the Financing Agreement between the AFD and the Federal Government signals France’s commitment to supporting startups and promoting technological advancements in Nigeria.

    Expert Concerns and Clarification

    While the I-DICE program holds significant promise, there are concerns regarding its capacity to generate 65,000 startups, as pointed out by business analyst Prof. Ndubuisi Ekekwe. In an article on Tekedia.

    He emphasised the importance of distinguishing between startups and small businesses, noting that startups are characterised by rapid growth and scalability, whereas small businesses may remain relatively stable over time. Ekekwe suggested that the I-DICE program may be more suited to creating small businesses rather than true startups. Nonetheless, the collaboration between France and Nigeria offers substantial opportunities to empower the youth and drive economic development within the region.

    The I-DICE program represents a significant step forward in promoting innovation and entrepreneurship in Nigeria. While challenges remain in achieving the ambitious startup targets, the collaboration between the two nations and the commitment to empowering young Nigerians in the digital and creative industries are essential for promoting economic growth and sustainability in the country.

  • Nigeria, AfDB Announce $672 Million I-DICE Project For Young Tech Entrepreneurs

    Nigeria, AfDB Announce $672 Million I-DICE Project For Young Tech Entrepreneurs

    A $672 million fund for the Investing in Digital and Creative Entrepreneurs (i-DICE) programme has been formally inaugurated by the Nigerian government. The fund is intended to provide young business owners in Africa’s biggest economy in the technology and creative industries with the funding they require to operate their enterprises.

    Yemi Osinbajo, the vice president of Nigeria, and Dr. Femi Adesina, the president of the African Development Bank (AfDB), jointly inaugurated i-Dice.

    Dr. Adesina emphasised that the digial economy of Africa has grown greatly as a result of the involvement of young people, stating that Nigeria, South Africa, Kenya, and Egypt are the four nations driving the majority of the expansion. 

    He said several factors, including rapid youth population growth, drove the expansion of the digital economy. He also said these digital trends hold great promise to help create massive jobs.

    According to him, “Expanding digital infrastructure by 10 percent will lead to a 2.5 percent annual growth in gross domestic product (GDP) in Africa. Furthermore, expanding internet access in Africa from the current 33 percent to 75 per cent can help create 44 million jobs, with three million jobs in online services by 2025.”

    Adesina said the programme would create 25 million new jobs by 2026, with a focus on practical and high-impact solutions.

    He said based on estimates, the digital global wealth size of Africa would expand from $217 billion in 2022 to more than $1 trillion by 2031.

    The AfDB’s president said Nigeria is already witnessing the power of digital technologies. According to him, the country currently has five out of the 11 digital companies that have reached the status of unicorn with market valuation of $1 billion.

    He outlined the companies as Jumia, Interswitch, Opay, Flutterwave and Andela, mainly in fintech.

    Adesina said Nigeria’s poor and fragmented cargo transport system is gradually transforming thanks to Kobo360, a digital logistics platform.

    Read also: AfDB launches the African Pharmaceutical Technology Foundation

    He further said despite its growth, the country is yet to fully tap into and unleash the power of its creative industry.“The I-DICE programme will help fill some of these critical gaps by supporting enterprise and skills development, access to demand-driven digital and creative skills, entrepreneurship skills, ICT enabled infrastructure as well as expanding access to finance.” Adesina said.

    Adesina On AfDB’s Partnership With Nigeria

    He also said the AfDB was pleased to partner with the Nigerian government on the $618 million I-DICE programme.“I am delighted that we have been able to mobilise additional co-financing of $217 million toward the programme. I wish to thank our partners, the Agence Francaise de Development (AFD), which is providing $100 million, and the Islamic Development Bank providing $70 million.”

    “I also thank the Bank of Industry and the Nigerian government for providing $45 million. Through the independent fund managers for I-DICE, the programme will raise an additional capital of between $131 million and $262 million,” he said.

    Dr Adesina said AfDB would soon roll out youth entrepreneurship investment banks, a new financial institution expected to build robust financial ecosystems around the businesses of young people across Africa.

    He said it is time to create youth-based wealth that would support a more inclusive Nigerian economy.

    The I-DICE programme is timely, strategic as well as transformative and will build the ecosystems to support more competitive entrepreneurs powered by digital technologies.

    Osinbajo On Nigeria’s Technology

    Nigerian Vice President Osinbajo, who formally inaugurated the programme, said Nigeria’s technology ecosystem accounted for almost 30 percent of Africa’s funded ventures with no fewer than 180 start-ups.

    Osinbajo said that the I-DICE with a total fund of $618 million was a Nigerian government initiative to promote innovation as well as entrepreneurship in the digital tech and creative industries.

    Nigerian StartUp, Aceplora To Equip Young People with Tech skills

    Increase In Employment Opportunities 

    He said that private capital was ahead of the Nigerian government’s effort and in the last few years, seen a consistent rise in venture capital investments in the technology ecosystem.

    He said a report from Disrupt Africa’s 2022 Tech Funding showed Nigeria was the best-funded country in Africa for the second year running, with a minimum of 180 start-ups.

    Osinbajo added that it had become imperative to commence a coordinated approach toward innovation on the continent, bringing together all stakeholders to coordinate efforts at scaling up investments and building programmes that support innovation.

    He urged the Nigerian government to provide more support for start-ups and small businesses while investors provide more funding.“The I-DICE Is important as it brings together the Nigerian public sector and development partners to design a programme that supports innovation across very critical pillars of policy, infrastructure, access to finance and talent,” Osinbajo said in a statement.

    He further explained that Nigeria had set up the Technology and Creativity Advisory Group that brought together technology and creative industries stakeholders; to contribute directly to policy formulation, articulation as well as the design of the technology and creative sectors of our economy.

    In October 2022, Nigeria’s President Muhammadu Buhari signed a start-up Bill which would provide a legal and institutional framework for the development of start-ups in Nigeria and provide an enabling environment for growth of start-ups.