HEVA Fund has announced that it has set up a new fund, dubbed the East Africa Creative Business Fund, that will invest in creative businesses in East Africa. This is an additional loan facility for creative industries by the organization in addition to the existing growth fund.
The new fund has been made possible through the support of the European Commission, and Agence Française de Développement (AFD).
The fund will invest USD 380,000 (Ksh. 41 million) in creative businesses that are registered and operational in Kenya, Uganda, Rwanda, Tanzania and Ethiopia. The East Africa Creative Business Fund is a loan facility that will be made available to successful applicants through debt investments of between USD 20,000 (Ksh. 2 million) and USD 50,000 (Ksh. 5 million), given for a maximum of 4 years.
This fund is designed to provide financing for creative businesses to:
- Restructure interrupted supply chains
- Increase production capacity
- Diversify offerings
- Increase market share
- Increase integration in local and regional value chains
- Support transition to low-touch and digital capabilities; and take advantage of new opportunities.
“Together with our partners, we have designed this additional facility that will be available to creative businesses in the five countries in our region (Kenya, Tanzania, Ethiopia, Uganda and Rwanda), specifically to address some of the challenges businesses in the sector are currently experiencing. We are looking forward to providing this much needed flexible, patient and cost-effective financing, to support our sector in regaining its dynamism, through the strengthening of our supply chains, the introduction of new products and services through innovation and digitisation. We are confident that this new approach will help creative businesses to reopen, weather the shocks and find new growth possibilities and strategies.” said Wakiuru Njuguna, Partner and Investment Manager.
Creative businesses that are eligible to apply for the fund include:
- Crafts and handmade items
- Furnishings and decorative home
- Cultural tourism
- Creative and cultural education
- Cultural food and cuisine
- Cultural infrastructure (spaces, equipment, platforms etc)
- Digital media
- Film and television
- Music production and distribution
Eligible creative businesses can apply for the fund here hevafund.com/ea-fund.