Africa’s creative economy is about both artistic expression and economic development.
What was once dismissed as informal side hustles by traditional financiers is now attracting billion-dollar commitments from major institutions. Africa’s creative industries generate 2 million jobs and contribute significantly to national GDPs across the continent. Yet they represent just 1.5% of the global creative economy’s USD2.3 trillion value.
The gap between potential and reality has never been clearer and more investible. Visionary organizations like ours at HEVA Fund and a new generation of investors who see what others are missing are filling this gap..
What was once dismissed as informal side hustles by traditional financiers is now attracting billion-dollar commitments from major institutions. Africa’s creative industries generate 2 million jobs and contribute significantly to national GDPs across the continent. Yet they represent just 1.5% of the global creative economy’s USD2.3 trillion value.
The gap between potential and reality has never been clearer and more investible. Visionary organizations like ours at HEVA Fund and a new generation of investors who see what others are missing are filling this gap.
Africa’s Creative Economy
The global creative industries represent one of the fastest-growing economic sectors worldwide. The sector is worth USD2.3 trillion annually and accounts for 3.1% of global GDP and 6.2% of all employment (Creative Dubai impact Report, 2024) & (UNESCO, 2022a, 2023))
Africa’s creative sector leads the world in employment density with creative industries representing 8.2% of total continental employment. This percentage beats other continents highlighting the sector’s important role in African economies.
Kenya’s creative sector contributes approximately 5% to national GDP while providing a lot of employment opportunities, particularly for youth and women. South Africa’s cultural and creative industries contributed 3% to gross value added in 2020 employing 6% of the workforce which is equivalent to nearly 1 million jobs. Egypt’s creative sectors account for 3% of GDP.
The export potential is equally impressive.
A 2021 UNESCO study focusing specifically on Africa’s film and audiovisual industry projected that with additional investment, this sector alone could generate annual revenues of USD20 billion and create over 20 million jobs. Creative goods exports from Africa increased by 4% between 2010 and 2020 demonstrating growing international demand for African creativity.
Despite this great potential, the sector remains severely under-financed.
Why Creative Work Is Still Undervalued
Traditional financial institutions operate on outdated assumptions about creative businesses.
Banks favour tangible collateral like real estate and equipment over the intellectual property and cultural assets that drive creative businesses. This bias comes from decades of viewing creative work through an informal lens treating artistic projects as hobbies rather than legitimate businesses with scalable revenue models.
The cultural dimension compounds these financial biases.
Many financiers struggle to quantify the value of creativity, unable to see beyond traditional metrics to understand how cultural products generate sustainable returns. This perception creates a vicious cycle where limited access to capital restricts business development, which reinforces perceptions of creative businesses as risky investments.
The opportunity cost of this under-valuation is huge.
Every creative business that remains a side hustle due to inadequate financing represents lost jobs and missed opportunities for cultural exports. As global demand for authentic African creativity increases, this perception gap becomes increasingly costly for the continent’s economic development.
HEVA Fund’s Approach
HEVA Fund is a huge shift in how creative businesses access capital and support.
Over our first decade, we have committed more than USD10 million and supported over 100 creative businesses across 14 African countries. Our initiatives have reached over 10,000 creatives, with deliberate focus on women and marginalized groups who face additional barriers in accessing traditional financing.
Our model at HEVA goes above and beyond capital provision.
We develop personalized loan products and comprehensive capacity-building programs that tackle the unique challenges creative entrepreneurs face. This includes cash flow management, tax support, financial modelling, strategic advisory and market access development recognizing that financial resources alone cannot overcome the complex obstacles limiting creative sector growth.
HEVA serves as a solution hub for intellectual property ownership helping creators understand and protect their rights while building sustainable business models. We help change perceptions around African creative work from informal activities to recognized, investible enterprises by combining financial support with technical assistance.
This approach positions creative businesses as legitimate assets worthy of investor attention. HEVA’s success demonstrates that with appropriate support structures, creative businesses deliver both financial returns and meaningful social impact challenging traditional assumptions about sector viability.
The Growing Appetite for African Creativity
Major financial institutions are finally recognizing the creative economy as a separate and valuable asset class.
In 2021, the African Development Bank, alongside the Islamic Development Bank and French Development Agency, invested USD618 million in digital and creative industries projecting a potential USD6.4 billion boost to Nigeria’s economy and creation of 6 million new jobs for young Nigerians.
The Afreximbank launched a USD500 million fund in 2020, doubling to USD1 billion in 2022, specifically to support creative industries including film and audiovisual sectors. This institutional commitment signals an important shift in how major lenders view creative economy potential.
Private sector engagement is equally impressive.
Angel investment networks and private equity firms like Volition Capital with their Volition Entertainment Media and Arts (VEMA) Fund are bringing substantial capital and global expertise to African creative businesses.
Why Now Is the Time to Invest
Multiple contributing factors make this the best time for creative economy investment.
Africa’s young demographics create huge domestic demand for creative content while diaspora communities worldwide seek authentic African cultural products. This dual market activity of local consumption plus global export potential provides creative businesses with diversified revenue streams that reduce investment risk.
Technological adoption across the continent enables creative businesses to reach global audiences directly avoiding traditional gatekeepers and distribution bottlenecks. Digital platforms allow smaller businesses to compete effectively while creating scalable business models that attract investor interest.
Alternative financing models are emerging that better suit creative business characteristics. Revenue-based lending, output-linked grants, credit guarantees and hybrid financing structures fit the irregular earning patterns and fast scaling needs typical of creative businesses.
The sector offers investors low correlation with traditional asset classes while delivering high social returns. Creative economy investments promote inclusive economic growth and strengthen Africa’s global cultural influence providing both financial returns and meaningful impact.
Creative Capital is Africa’s Next Frontier
Africa’s creative economy stands at an inflection point where cultural significance intersects with economic opportunity.
The sector is valuable and increasingly investible offering investor money the chance to participate in one of the continent’s most promising growth stories. At HEVA Fund, we provide proven pathways for engagement, whether through direct partnership or ecosystem collaboration.
Invest in Africa’s creativity.
Shape the continent’s future.