Capital markets must fund creative sector, says Kwairanga

Alhaji Umaru Kwairanga, Chairman of Nigerian Exchange Group Plc, is urging African capital markets and financial institutions to broaden their investment horizons beyond traditional sectors like oil and manufacturing. He advocates for embracing the continent's rapidly expanding creative and innovative economy as a significant investment asset class.

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Given the increasing popularity of our arts, our music, and our movies, African financial institutions need to take the creative and innovation economy seriously as an asset class rather than just a cultural footnote.

"Given the increasing popularity of our arts, our music, and our movies, African financial institutions need to take the creative and innovation economy seriously as an asset class rather than just a cultural footnote," Kwairanga stated at the Africa Soft Power Summit in Nairobi. The summit aims to strengthen the links between Africa's creative industries, technology, and capital markets, focusing on converting global cultural influence into economic value.

Kwairanga pointed out that while some African artists gain international recognition, many creative sectors lack adequate monetisation structures and financing. He questioned whether artists like Tyla and Burna Boy are fully leveraging branding and copyright benefits, and if Nollywood's value chain properly rewards its contributors. He also raised concerns about replicating the success of firms like Safaricom without robust financing for technology ecosystems.

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Are artists such as Tyla, Burna Boy, or Diamond Platnumz fully exploiting the benefits derivable from branding, copyrights, ticket and concert revenues, and so forth? Is there a value chain in Nollywood or the East African movie industry that properly rewards the thousands who, in one way or another, contribute to the light that our creative artists radiate?

"As Africa’s economies become increasingly driven by innovation, digital enterprise, intellectual property, and creative talent, our role is not only to provide platforms for capital formation but also to help build the ecosystem that allows these sectors to scale sustainably," Kwairanga explained. He stressed that future African exchanges must connect with emerging creators and innovators, moving beyond traditional industries to shape the continent's next chapter.

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As Africa’s economies become increasingly driven by innovation, digital enterprise, intellectual property, and creative talent, our role is not only to provide platforms for capital formation but also to help build the ecosystem that allows these sectors to scale sustainably.