New fund to boost East Africa’s creative businesses

An agreement signed recently with HEVA, an East African fund that invests in the fashion, digital content, art, crafts and decor value chains industries, guarantees AFD’s financial support to businesses based in Kenya and technical support to businesses based in the wider East African region.

AFD CEO Rémy Rioux said the investment will generate new jobs and enhance vibrancy in the creative sector.

“Many potential entrepreneurs in Africa are struggling to access capital, markets and business training," he said. "We support innovation and start-ups, providing mechanisms for financing creative and cultural entrepreneurship in East Africa to foster job creation in this sector."

Rioux said that the partnership with HEVA was the first creative industry investment the organisation has undertaken in Africa, and he was proud to be part of the commitment towards the Kenyan creative industry.

He added that HEVA’s work in the East African creative economy since 2013 has proven to be strongly aligned with the new AFD 2018/2022 strategy, which is intended to develop activities in the cultural and creative industry in Africa.

"This fund will invest in businesses with at least 5 permanent members of staff, and annual revenues not exceeding 50 million Kenyan shillings, which are looking to increase production capacity, enter new markets and deepen product ranges with a focus on promoting cross-border trade in the East African region," said HEVA's finance and investment manager Maureen Njuguna.

She said the investment will enable creatives to build high-value and profitable businesses thereby creating great profits and jobs which will boost the greater national and regional economy.

Since 2013, HEVA has invested in more than 20 creative businesses within the fashion, digital content, crafts and decor value chains enabling them to increase their production capacities, launch new product lines, invest in new technology and expand their distribution networks.