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Transforming Africa’s Cultural Economy

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In alignment with the African Union’s Agenda 2063, the Africa Creatives Alliance (ACA) has emerged as a transformative force for the continent’s cultural and creative sectors. Officially launched at the inaugural Africa Urban Forum in Ethiopia, the ACA aims to harness Africa’s immense creative potential to drive socio-economic growth and innovation. As the Founding Director, Rita Ngenzi, discuss the ACA’s roadmap and initiatives with Capital as she emphasizes the critical need for a coordinated effort to build robust Cultural and Creative Industries (CCI) ecosystems across Africa. In this in-depth interview, we explore the vision behind the ACA, its strategic pillars, and how it plans to empower young creatives while addressing existing challenges within the sector. Excerpts;

Capital: Can you elaborate on the vision behind the Africa Creatives Alliance and what inspired its formation?

Rita Ngenzi: By 2050, one in four people on the planet will be African, and the continent must create 600 million new jobs by 2030 to meet the United Nations’ Sustainable Development Goals. Currently, only about 3 million jobs are available annually for the 20 million young Africans entering the job market each year. This highlights the urgent need for innovative solutions to generate employment and reduce poverty, particularly among youth.

The opportunity lies in the creative economy, which encompasses a wide range of sectors, including creative arts and sciences such as visual arts, music, film, fashion, literature, architecture, performing arts, gaming, animation, digital media, software development, and cultural heritage industries. This economy also includes related value chains, such as marketing, tourism, trade, intellectual property, technology services, education, and infrastructure. The creative economy is projected to reach USD 985 billion by 2023, with Nigeria alone contributing USD 18 billion to GDP in 2020. Globally, cultural and creative industries (CCIs) employ over 30 million people, with economic contributions ranging from 0.5% to 7.3% of GDP and employing between 0.5% to 12.5% of the workforce.

The ACA aims to provide a coordinated, data-driven response that harnesses the power of Africa’s creative economy. While numerous interventions exist across the continent, many operate in silos without leveraging each other’s resources effectively. Therefore, the ACA focuses on integrated ecosystem collaboration to catalyze investment and enhance market systems across CCIs and their related value chains.

Our approach is built on four key pillars: Ecosystem Building and Convening, Evidence-based Advocacy & Policy Influence, Education and Capacity Building, and Investment and Infrastructure Facilitation. Through these strategic pillars, the ACA seeks to create an environment where cultural and creative industries can thrive, driving job creation, reducing poverty, and empowering Africa’s youth.

Capital: How do you see the cultural and creative industries contributing to Africa’s socio-economic transformation under Agenda 2063?

Rita Ngenzi: The vision for ‘The Africa We Want,’ as articulated by the African Union in its Agenda 2063, serves as a comprehensive framework for transforming Africa into a global powerhouse. Central to this vision is the recognition of culture’s vital role in mobilizing and unifying communities around shared ideals, as highlighted by the African Charter for African Cultural Renaissance. This charter emphasizes the importance of promoting African culture to foster the ideals of Pan-Africanism.

The formation of the ACA is crucial for empowering cultural and creative entrepreneurs to make meaningful contributions to this continent-wide agenda. Aligned with the AU Vision 2063, the ACA aims to harness the potential of Africa’s creative and cultural sectors to achieve development and integration goals.

To effectively leverage the power of these industries, it is essential to understand how cultural and creative sectors can be integrated into various programs and policies. This integration must ensure the intrinsic development of these sectors while simultaneously delivering positive outcomes in other areas of development. By raising awareness and creating synergies between CCIs and broader economic and social initiatives, the ACA strives to maximize their impact, ultimately contributing to the sustainable transformation of Africa.

Capital: What specific steps will the ACA take to bridge the gaps in the current cultural and creative industries ecosystem across Africa?

Rita Ngenzi: A key challenge facing CCIs is the fragmented nature of support systems, where hubs, incubators, and creative enterprises often operate independently, limiting access to resources, markets, and expertise. The ACA’s approach, through its Ecosystem Building and Convening pillar, is to work with existing initiatives, structures, and organizations to create a unified network. By collaborating with creative hubs, incubators, accelerators, and stakeholders, the ACA aims to strengthen the overall ecosystem, allowing creatives to share resources, collaborate, and scale their businesses across the continent.

Another critical area is creating an enabling environment through policies and regulations that support the growth of the creative sector. The ACA’s Evidence-based Advocacy & Policy Influence pillar will work to ensure that CCIs are integrated into national and regional development plans. By leveraging data and engaging policymakers, we aim to advocate for frameworks that unlock opportunities for creatives, providing them with access to the infrastructure, markets, and funding necessary to thrive.

Additionally, the ACA focuses on Education and Capacity Building, working alongside existing programs to equip creatives with the skills needed to navigate the evolving digital and global landscape.

By partnering with existing initiatives and structures, the ACA will foster a more interconnected and supportive ecosystem that bridges gaps in policy, resources, and capacity, driving sustainable growth across Africa’s creative industries.

Capital: How will collaboration with organizations like the African Union, UN-Habitat, and others enhance the effectiveness of the ACA?

Rita Ngenzi: Collaboration with organizations like the African Union, UN-Habitat, and others is crucial for the ACA to effectively align its efforts with broader continental and global development goals. The ACA’s mission directly supports Agenda 2063, which envisions “The Africa We Want”—a continent that is prosperous, integrated, and globally competitive. By working with the African Union and other partners, we ensure that the cultural and creative industries (CCIs) play a central role in realizing this vision, particularly in terms of creating jobs, fostering social cohesion, and promoting African culture on a global stage.

Additionally, the ACA’s work aligns with the Sustainable Development Goals (SDGs), particularly SDG 4 (Quality Education), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 11 (Sustainable Cities and Communities).

The AfCFTA also presents an opportunity for Africa’s creative economy by breaking down trade barriers and enabling greater market access across the continent. Through partnerships with AfCFTA-related institutions, the ACA will work to ensure that CCIs benefit from these expanded markets, allowing creatives to scale their businesses beyond borders and access new opportunities in different regions.

By collaborating with these organizations, the ACA will enhance its ability to influence policy, advocate for infrastructure development, and create an enabling environment that integrates CCIs into Africa’s broader economic and development agendas, driving long-term impact and growth across the continent.

Capital: Given that a significant portion of jobs in the creative sector is held by youth, how does the ACA plan to engage and empower young creatives?

Rita Ngenzi: We recognize that a significant portion of jobs in the creative sector is held by youth, making it imperative to actively engage and empower this demographic. Our strategy is built on several key pillars designed to provide young creatives with the resources, skills, and opportunities they need to thrive.

First, we are committed to Ecosystem Building and Convening, which involves creating a supportive network of creative hubs, incubators, educational institutions, investors, financial institutions, government institutions, development agencies etc. This interconnected ecosystem will ensure that resources, knowledge, and opportunities are effectively shared, enabling stakeholders to collaborate and innovate collectively.

Second, through Evidence-Based Advocacy and Policy Influence, the ACA aims to amplify the voices of young creatives in policy discussions. We will advocate for policies that support youth employment and entrepreneurship in the creative sector, ensuring that their needs and aspirations are reflected in national and regional development agendas. This advocacy will include pushing for policies that simplify access to funding and resources for young entrepreneurs.

Third, our focus on Education and Capacity Building is essential for equipping young creatives with the necessary skills and knowledge. The ACA will collaborate with educational and institutions and hubs to develop tailored training programs that address industry demands, from technical skills in various creative disciplines to entrepreneurship and business management. These programs will empower young individuals to turn their creative talents into sustainable careers.

Lastly, through Investment and Infrastructure Facilitation, we will work to improve access to creative-friendly investment vehicles, tools and facilities that young creatives need to build and scale sustainable enterprises.

By implementing these strategies, we hope to create a vibrant and supportive environment for young creatives. Our goal is to empower them not only to pursue their artistic passions but also to become key contributors to the economic growth and cultural richness of their communities. Engaging young creatives is not just an investment in their future; it is an investment in the future of Africa’s creative economy as a whole.

Capital: What are the main challenges currently facing the cultural and creative sectors in Africa, and how does the ACA aim to address them?

Rita Ngenzi: The cultural and creative sectors in Africa face several significant challenges that hinder their growth and potential contributions to the economy. We aim to address these challenges through targeted strategies.

1. Data Gaps and Management Challenges

One of the primary issues is the lack of coordinated and accessible data across the continent. Only eight out of fifty-four African countries participated in UNCTAD’s creative economy outlook survey in 2023, highlighting a critical gap in data collection and management. The ACA plans to tackle this by establishing a pan-African platform that will serve as a centralized repository for culture and creative industry-related data. This platform will be designed from a market-oriented and development perspective, making it a valuable resource for policymakers, investors, and practitioners. By improving data management and dissemination, we aim to empower stakeholders to make informed decisions that bridge existing ecosystem gaps.

2. Ecosystem Fragmentation

Despite the immense potential of Africa’s cultural and creative industries, the current ecosystems are often fragmented and underdeveloped. The ACA’s initial positioning study has identified key areas for focused intervention, including the need for effective policies and regulations that enable market access for cultural and creative subsectors. We will advocate for policies that support the growth of creative industries at national and regional levels, ensuring that these sectors can contribute more significantly to national GDPs.

3. Capacity Building and Professional Development

A major challenge is the insufficient capacity-building support available to professionals, freelancers, and entrepreneurs within the cultural and creative sectors. The ACA will enhance education and capacity-building initiatives by collaborating with hubs, incubators, and accelerators to provide targeted training programs. These programs will focus on critical areas such as entrepreneurship, management, and strategic partnership development. By equipping individuals with the necessary skills and knowledge, we aim to foster a more robust creative workforce capable of driving economic growth.

4. Building Trust and Investment Traction

There is often a lack of trust and traction between investors and creative entrepreneurs, which impedes large-scale investments in the sector. The ACA will work towards establishing a trusted label based on jointly set criteria to facilitate better relationships between investors and incubators. By creating this framework, we aim to streamline the investment process, enabling efficient channelling of resources to entrepreneurs in the cultural and creative industries.

5. Addressing Managerial and Administrative Needs

Managerial elements, including funding and financing, are often underdeveloped in the creative sectors. The ACA will focus on enhancing the managerial capabilities of creative entrepreneurs by providing resources and training on funding strategies, financial management, and administrative processes. This holistic approach will ensure that entrepreneurs are well-equipped to navigate the complexities of the creative economy.

Through these strategic initiatives, the ACA aims to create a more enabling environment for the cultural and creative sectors, addressing the challenges that currently impede their growth and ensuring that they can contribute meaningfully to Africa’s socio-economic transformation.

Capital: Can you share examples of best practices from other regions that the ACA plans to adopt to foster growth in Africa’s creative economy?

Rita Ngenzi: Regions like Europe have seen significant success through the establishment of creative hubs and incubators that provide essential support for emerging artists and entrepreneurs. For instance, the Creative Business Cup in Denmark.

In countries like Singapore, public-private partnerships have been instrumental in promoting the creative sector. The Infocom Media Development Authority collaborates with private companies to drive innovation and digital transformation in the creative industries. The ACA aims to foster similar collaborations across Africa, leveraging the strengths of both the public and private sectors to create a supportive ecosystem for creative entrepreneurs. Canada has implemented cultural policies that recognize the value of creative industries and provide funding, training, and resources to artists and entrepreneurs. The Canadian Council for the Arts supports various initiatives to promote cultural expression and accessibility. The United States has seen a rise in digital platforms that facilitate collaboration and innovation within the creative sectors, such as Kickstarter for funding creative projects and Behance for showcasing portfolios. These are just some examples of best practices to build on.

Capital: How will the ACA measure the success and impact of its initiatives on the cultural and creative industries in Africa?

Rita Ngenzi: We will measure the success and impact of our initiatives on the cultural and creative industries in Africa through a comprehensive framework that combines quantitative metrics, qualitative assessments, and ecosystem analysis. Key strategies include tracking job creation, economic contributions, and investment levels while gathering stakeholder feedback and documenting success stories.

Capital: What strategies will the ACA employ to ensure that the cultural and creative sectors are integrated into broader economic and development policies?

Rita Ngenzi: We will employ several strategies to ensure that the cultural and creative sectors are integrated into broader economic and development policies. First, engaging in evidence-based advocacy, utilizing data and research to demonstrate the economic value and potential of the creative industries to policymakers. By showcasing success stories and case studies, we aim to highlight the impact of cultural and creative sectors on job creation, GDP growth, and community development.

Second, we will work to build strategic partnerships with government agencies, development organizations, and private sector stakeholders to foster collaboration and alignment on policy objectives. This includes participating in national and regional policy dialogues and forums where creative industry issues can be addressed.

Lastly, a focus on capacity building for policymakers to enhance their understanding of the cultural and creative sectors and how they can contribute to national development goals. This may include workshops, seminars, and tailored training programs for government officials.

Capital: Looking ahead, what are the key milestones you hope to achieve with the ACA in the next five years?

Rita Ngenzi: Looking ahead, we hope to achieve several key milestones over the next five years that will drive job creation and foster a vibrant creative economy across the continent. Firstly, establish a robust network of bankable creative hubs and incubators, fostering collaboration and knowledge-sharing among our members to strengthen the ecosystem. Additionally, catalyze significant investment in the cultural and creative sectors while actively influencing national and regional policies to enhance the regulatory framework for these industries. We are dedicated to empowering young creatives, stimulating economic growth, and positioning the cultural and creative sectors as vital contributors to Africa’s socio-economic development.

Indian Embassy halts medical visa issuance amid concerns over fake documents

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The Indian Embassy in Ethiopia has suspended the issuance of medical visas due to a rise in applicants submitting fake documents. This troubling trend has been linked to individuals who, after receiving treatment in India, subsequently travel to other countries instead of returning to Ethiopia.

While the embassy has not provided detailed information regarding the suspension, sources indicate that there are plans to temporarily resume visa services that were recently halted. Previously, visa applicants could communicate directly with the embassy; however, a legally established agency in Bole sub-city, which facilitated these interactions, has been closed by local authorities for reasons that remain unclear.

“There are a number of agencies that have been set up illegally for the purpose of helping in issuing visas,” stated an insider. “However, only one agency is legally recognized by the embassy, located around Bole Michael, and it has been shut down by woreda authorities.”

Medical visas allow recipients to enter India for treatment and are often sought by patients from around the world who require specialized care not available in their home countries. These visas typically permit short stays that cover the duration of treatment. However, there have been instances where Ethiopian patients have failed to pay for their medical treatments after beginning care or have overstayed their visas.

While various countries issue multilateral visas and travel permits for both medical and non-medical visits, such as tourism, India has traditionally provided permits specifically for patients entering the country legally. The current suspension of medical visa issuance raises concerns about access to essential healthcare services for those in need and highlights the challenges faced by legitimate applicants due to fraudulent activities.

As discussions continue regarding the future of medical visa issuance, stakeholders are hopeful that measures will be implemented to restore trust and ensure that genuine patients can receive the necessary medical attention in India.

Shortage of medicines escalates due to regulatory issues

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Ethiopia is currently grappling with a significant shortage of medicines, which has been attributed to regulatory issues and rising prices. The country relies heavily on imports for its medical supplies, with over 90% sourced from abroad. However, persistent challenges have led to frequent shortages that are impacting healthcare delivery across the nation.

According to the Indian Embassy in Ethiopia, the country is experiencing a notable shortage of medicines due to both demand and supply constraints. “Ethiopia has the demand for medicines, but the supply is lacking because of certain regulatory issues,” stated an embassy representative.

Shri Anil Kumar, the Indian Ambassador to Ethiopia, emphasized that adopting the Indian pharmacopoeia could provide a solution. He noted that medicines manufactured according to Indian standards could be approximately 30 to 40 percent cheaper than those produced under US or EU standards. “Countries must decide based on their interests. If they choose to follow the US pharmacopoeia, they will have to purchase medicines at a higher cost due to multiple regulatory checks,” he explained.

Drug shortages are a global concern, affecting both developing and developed nations. The causes are complex and multifaceted, necessitating collaboration among various stakeholders to address the issue effectively. In response to these challenges, India has taken steps to reduce prices on major medications, asserting that these issues are temporary and can be resolved swiftly.

“We are in discussions and have reduced the prices of major medicines,” Ambassador Anil added. “Within India, we have a cap on life-saving drugs, and there are many best practices available.” He highlighted that several delegations from Ethiopia have visited India to understand these practices better.

The ambassador expressed optimism about strengthening cooperation in this area, noting that many developing countries in sub-Saharan Africa face similar challenges regarding consistent supply and access to essential health products. Factors such as inadequate infrastructure, insufficient funding, currency fluctuations, poor governance, and corruption contribute to these ongoing difficulties.

Lemi National Cement unveils ambitious expansion plans following historic $600 million greenfield investment

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Lemi National Cement, which was the first to invest a significant amount in a greenfield project and formally opened a week ago, plans to expand further in order to increase its output by double.

The facility was built with a USD 600 million joint venture (JV) investment by the leading Ethiopian industrial conglomerate East African Holding and Hong Kong-based Western International Holdings.

According to analysts, this represents the largest investment amount ever made by a single greenfield project in Ethiopia’s private sector.

Experts who look to private sector investments and foreign direct investments (FDIs) as important signs that the nation would accept more of these kinds of massive investments have described the facility that propelled National Cement to a dominant position in the market.

They said that the modern facility, which can produce 10,000 tons of clinker per day, is significantly superior to the cement plants that were established years ago and were regarded as industry leaders.

In addition to USD 600 million, the project finance is quite special. According to Batuael Buzuayehu, General Manager of Investment at East African Holding, “nearly 73 percent comes from our own equity, with the remaining amount coming from a local bank and a long-term payment credit facility from the contractor.”

For this sort of undertaking, banks typically cover 70% of the costs in reverse.

The General Manager of Investments stated, “Since we are investing with our own resources, it will give us big leverage for new upcoming projects.”

The General Manager also mentioned that 350 vehicles that would be used for cement distribution had already arrived from Djibouti with extra funding.

The whole USD 600 million investment went toward the greenfield project, with 800 million birr going for compensation to locals at Lemi.

Over the past five years, East African Holding has entered into JVs with numerous of its industrial divisions, each with the expectation that the economy will be opened up to global companies, as the government just did.

Based on the experiences of other countries, Batuael claims that local businesses have difficulties when the economy opens up to foreign competitors. As a result, “we have decided to include resources, experience, and knowledge of others in our business with the aim to be ready prior to the reform.”

“We have worked on several joint ventures in various industries, and this one with Western International is our sixth joint venture,” he clarified.

The Hong Kong company arrived with equity to acquire a stake in National Cement, “and we have chosen to work together on a significant project using the resource. We have seen the outcome already,” he told Capital.

“With an annual capacity of 5 million metric tons of cement, this project is set to revolutionize the cement industry, bridging the supply gap and fueling Ethiopia’s critical infrastructure development,” Buzuayehu Tadele, Chairman of East African Holding and National Cement, said on Saturday, September 28, when the cement mill was officially inaugurated in the presence of Prime Minister Abiy Ahmed.

Less than two years are needed for the plant to be completely operational, which is situated at a massive limestone resource location in Lemi, 130 km north of Addis Ababa in the Amhara region.

According to Batuael’s evidence, Sinoma, the industry’s worldwide titan, is also working on the project that will enable it to be completed on schedule.

“Our cement factories will collectively produce six million tons of cement annually. Lemi comes to produce five million tons, and the plant in Dire Dawa, which is 510 km east of Addis Ababa, has a capacity to produce 1.3 million tons,” he stated.

Although Ethiopia has an installed capacity of around 12 million tons of cement per year, only six million tons were produced in the last budget year.

The General Manager of Investments stated, “If you see our potential, we have doubled the actual production in the country so we can say that the price and market shall be significantly stabilized.”

He goes on to say that “to maintain the market leadership we definitely have new project” since the economy has opened up to international companies, which would lead to a jump in cement consumption.

According to the data that Capital obtained, East African Holding has made the decision to double its output at Lemi, and the necessary steps have already been taken to start the expansion.

With the majority of the infrastructures, including the 200 MW power supply line that cost USD 25 million and would support two production lines, developed for the current factory, “we have the advantage that we can erect a plant that can produce 10,000 tons of clinker per day with half of the investment spent on the previous project,” he said.

In addition, the company plans to expand its prefabricated home plant, which is presently in commission, and establish facilities for glass, gypsum, and related items at Lemi.   

In a similar vein, the firm plans to build a factory in Melka Jebdu, Dire Dawa, which will very soon be able to manufacture 6,000 tone clinkers per day, with the goal of increasing exports in the regional market.

Along with lime and PP bags, the steel manufacturing facility project will be included in the Dire Dawa.

Batuael claims that the steel plant and the cement factory project in Dire Dawa would begin construction in the coming few months.

“Achieving such a huge investment is a great success for East African Holding that would uplift its operation further,” he stated. “For the past seven years, we were not engaged in trading, which is very easy business with high profit margin.” The company oversees more than 10,000 employees. 

“On the country that faces several challenges, we are thrilled to have completed such a significant investment as a company that has been in business for the last thirty years,” he concluded.

Lemi has a potential to create direct and indirect job opportunity for more than 20,000 individuals.