Despite a booming creator economy projected to reach $17.84 billion by 2030, a significant disparity exists in access to investment for African creators. According to the ‘Africa Creator Economy Report 2.0’ by Communiqué and TM Global, a mere 4.2 percent of creators on the continent have secured major, formal funding, leaving 95 percent still waiting for substantial investment.

The Investment Disconnect

The report identifies key reasons for this disconnect. Many creators lack the formal business structure that investors seek. The survey, focused on markets like Nigeria and South Africa, reveals that content creation is often a side hustle rather than a scaled enterprise. Platform usage shows that 77 percent use Instagram as their primary platform, 56 percent use TikTok, and 42 percent use YouTube, with 76 percent utilizing multiple platforms for revenue.

Financial challenges are evident, with over half of the respondents never having received outside funding. A substantial 60 percent aren't even actively seeking funding, primarily due to feeling excluded from the investment landscape. When funding does occur, it often originates from informal sources. However, 79 percent view government grants and awards as accessible sources of financing.

Business Structure and Investor Perception

The report highlights a deficiency in the structures investors require, such as business clarity and scalability. Approximately 40 percent consider their creative work a part-time job, and 71 percent acknowledge that business strategy and management skills are crucial for attracting investments. Furthermore, 40 percent see business skills training as essential for their sustainability.

At the African Creators Summit’s Business Day panel in Lagos, Marie Lora-Mungai questioned why creators with millions of subscribers struggle to attract institutional investors. Walter Badoo of 4DX Ventures explained that creators are often perceived as talent layers rather than businesses. He emphasized that a creator becomes a business when incorporating elements like IP, systems, and infrastructure, allowing for repeatable creation, delivery, and value capture. Lumpy revenues, unclear intellectual property rights, and the absence of world-class teams and governance structures also contribute to investor hesitations.

David I. Adeleke, founder and CEO of Communiqué, noted that the African creator economy is in its early stages, with creators often bootstrapping through systems that undervalue them. He also mentioned that investors find the ecosystem culturally rich but commercially ambiguous.

Creator Perspectives

Ayodele Renner, a Nigerian paediatrician and content creator, discussed that institutional funding suits creators focused on social impact, like health education, but can limit creative license. Renner has launched ventures like Agnosis Care on Demand and The Baby Convention, leveraging his creator career for visibility. However, he emphasizes that content alone is unsustainable without diversification into areas such as books, courses, and consulting.

In Nigeria, where the survey is most represented, 55.8 percent of creators have fewer than 10,000 followers, and six in ten earn less than $100 monthly. Top earners rely on product sales at 29 percent, brand sponsorships at 28 percent, and platform payouts at 11 percent.

Fanuel Masamaki, a Tanzanian comedian, stated that creators in Tanzania face financial limitations, restricting their creativity due to resource constraints. He has considered institutional funding but has not found suitable institutions. He suggests that monetary support for logistics, campaign links, and production equipment are crucial. Masamaki believes Tanzanian creators are investment-ready, citing improved content quality and the large Swahili-speaking market.

The report highlights that micro-creators need education and mentorship, mid-tier creators require financial literacy and contracts, and top-tier creators seek capital for expansion.

Conclusion and Recommendations

The report concludes by calling for stakeholders to support the transition of creators from hobbyists to entrepreneurs. Experts like Marie suggest that creators must build financial discipline, investors must adopt frameworks for viewing creators as enterprises, and policymakers must enable policies that support job creation and intellectual property rights.