The Kenyan creative and cultural industries (CCIs) sector has received a shot in the arm following the official launch of a first of its kind $5 million investment by HEVA Fund – dubbed Ota Kopa and Ota Kopa Plus – to provide tailored financial solutions to creatives.
The new financial products, offered in partnership with four financial service providers (FSPs) and two aggregator platforms, aim to finance over 7,000 young women and men in the creative sector.
The initiative will support businesses operating within three main creative value chains:
- Fashion, garments, and accessories.
- Film, television, content creation, gaming, and audio-visual.
- Live music, theatre, and performing arts.
Creatives in these categories include content creators, photographers, filmmakers, musicians, make-up artists, game developers, fashion designers and many more.
A comprehensive list of the 300+ creative types covered under the three value chains is available on HEVA’s website.
Announcing the partnership, HEVA’s managing partner, Wakiuru Njuguna, said: “We are delighted to enter into these partnerships with Longitude Capital, Tenakata Ltd, Kenya Bankers Sacco, Lipa Later Ltd, Shop Zetu, and Wowzi to disburse a total of $5 million (approximately KES644 million) to individuals and enterprises in the cultural and creative industries.
“The goal of these partnerships is to expand the pool of capital available to the sector and ensure access to affordable, responsive financial products, as well as business advisory services.
“The creative industry-tailored Ota Kopa and Ota Kopa Plus loans position us to reach more creatives, empowering them to unlock their potential and achieve three key objectives: strengthening the country’s creative and cultural sector, generating new, dignified, and fulfilling employment opportunities, and bridging the financial gap for creative businesses.”
HEVA and its partners have implemented a deliberate and targeted strategy, aiming for 70% of the 7,000 beneficiaries to be young women, 10% to be refugees, and 5% to be people with disabilities.
Creatives can apply for any amount up to KES999,999 for Ota Kopa, and from KES1 million up to KES4,999,999 for Ota Kopa+.
“With Ota Kopa and Ota Kopa Plus, our mission is to ensure that no young women, young men, groups, or businesses operating within the three specified creative value chains named above are left behind in accessing funding,” Njuguna added.
Despite its huge potential to become a key economic driver, export earner and a massive job creator, the sector has historically faced many challenges chief of which is financing which limits the creatives’ and artists’ ability and capacity to access the tools, new media and technology they require to express themselves.
However, HEVA Fund aims to shift the narrative by providing homegrown innovative financing solutions to empower the creatives and fuel the sustainable growth of the industry not just in Kenya but also in Africa.
Speaking on behalf of the FSPs, Michael Monari of Longitude Capital said: “We know from experience that there is a tremendous need for financial support in the Creative and Cultural Industries (CCI) and are up to the task to provide the support that the creatives in our country require.
“We recognise that there will be challenges including reaching those in remote areas, but we are committed to restoring the dignity of the sector. Our goal is to challenge the biases and myths about the sector and create new narratives. Consequently, through this initiative, we aim to demonstrate that the sector can provide profitable, fulfilling and dignified livelihoods for hundreds of thousands of people.”
With over 11 years of experience in fueling Africa’s creative industries, HEVA has been a pioneer in developing innovative financial products and initiatives that cater to the unique needs of creative entrepreneurs and businesses.
The new products will strengthen HEVA’s finance mechanism portfolio which has successfully raised $42 million through effective partnerships and directly invested in over 120 creative enterprises and projects across Eastern Africa using home-grown and innovative finance models.
Additionally, HEVA has built technical capacity to over 14,000 creative practitioners and developed ground-breaking insights and knowledge documents & products that have beenreferenced by researchers, academics and public sector organizations worldwide.
This latest investment builds on HEVA’s legacy of championing sustainable growth, innovation, and financial inclusion for the sector.
