The CEO of the Citizen Entrepreneurial Development Agency (CEDA), Thabo Thamane, has admitted to a hesitation by funders, in particular development finance institutions (DFIs), to provide funding for the creative industry.
โI have to concede that from 10 years back, CEDA has only invested approximately P10 million in the local creative industry, which, according to me, is not sufficient,โ he said. Thamane was participating in a panel discussion on financing the African creative industry at the recent US-Africa Business Summit.
Strategic areas
He suggested the risk aversion of lenders may be the reason for this because it is often complicated to assess the value of creative works and their return on investment (ROI). Even so, he acknowledged that Botswana has focused on the creative industry as one of its strategic areas to drive economic diversification and reduce the countryโs high unemployment rate, especially among the youth. Thamane noted that the huge potential of the creative industry has resulted in the government creating regulatory frameworks that favour the industry and an enabling environment for it to thrive.
Better payment
Thamane advocated for better payment rates for creative artists in order to elevate the value of the industry and enable artists to transition into creative entrepreneurs.
Also taking part in the panel discussion were Denim Richards of Khimo Studios, female filmmaker Masego Mohwasa and songstress Mpho Sebina, who all emphasised the need for governments and decision-makers to see the creative industry as a business. โThe โbusynessโ of the entertainment sector makes it able to work with all facets and sectors of the economy. This factor alone gives it the potential employment on a large scale,โ said Richards, who is a former Hollywood actor who moved to Botswana to help create original programming for Botswana and the southern Africa region.
Mentorship
Passionate filmmaker Mohwasa, who is the Secretary of the Women in Film Botswana Guild, highlighted unfair compensation, lack of access to funding, and the general lack of mentorship in the local film sector.
Sebina, the award-winning songstress who has been able to successfully penetrate the African continent with her music, highlighted the need for artists to create wealth and benefit from their intellectual property (IP). โIt is a necessity for creatives to educate themselves on the language of the creative business if they want to monetise their craft and make money out of it,โ she asserted. Even so, Sebina emphasised the need for creatives to diversify income streams to ease the pressure of relying too much on their creative works for financial support.
A dynamic sector
The panel discussion sought to explore existing financing tools and emerging ones that stakeholders in the creative industry can leverage to grow the dynamic sector as a commodity on the African continent and abroad.
The African creative industry has experienced tremendous growth over the past decade, with its contribution to the global creative economy valued at $2.2 trillion and a labour force that has seen growth of between 12 percent and 16 percent every half-decade. According to a UNESCO report, Africaโs creative industry is now a source of employment, foreign exchange and pride for the continent, with film alone accounting for $20 billion in revenue and an additional 20 million jobs. From music, fashion, film and art, the creative industry is considered by policymakers as a growth agent and an economic multiplier in Africa.
