ImpactAlpha, October 27 — A thriving creative industry can power a robust African economy. “The creativity of young African fashion designers has forced the industry to take notice,” Annan Capital Partners’ Roberta Annan wrote in the essay series “Creativity, Culture and Capital.”
Annan launched the Impact Fund for African Creatives and aims to raise €100 million. The fund, based in Ghana, will provide €50,000 in grants, and €250,000-€2 million in venture capital funding, to small and mid-sized creative and fashion businesses in Africa. Annan’s foundation, African Fashion Foundation, is an early contributor to the fund.
Global supply chain disruptions due to COVID have put pressure on Africa’s music, film, gaming, fashion and contemporary art sectors (for context, see, “Safeguarding a creative and cultural moment: The impact of COVID-19 on Africa’s creative sectors”).
Annan is using a European fund structure called a Reserved Alternative Investment Fund to attract European investors. Lendable is using the same structure for its $100 million emerging markets fund.
Separately, Nairobi-based HEVA Fund has supported more than 40 creative businesses in East Africa with grants, investments and technical assistance. HEVA is eyeing $20 million for a long-term fund.