IFC, a member of the World Bank Group, on Sunday announced plans to partner with the French development finance institution Proparco, a subsidiary of the AFD Group, and Helios Sports and Entertainment Group to drive the expansion of sports and entertainment in Africa. The partnership would focus on exploring joint investment opportunities that can help […]
IFC and Partners Announce Sports and Entertainment Expansion in Africa
IFC, a member of the World Bank Group, on Sunday announced plans to partner with the French development finance institution Proparco, a subsidiary of the AFD Group, and Helios Sports and Entertainment Group to drive the expansion of sports and entertainment in Africa. The partnership would focus on exploring joint investment opportunities that can help grow economies and support jobs in the region through sectors that have the potential to bring dynamism, youth employment, and value-added exports, and that also can strengthen ancillary sectors such as tourism, real estate, creative economies, and media.
A partnership with Helios Sports and Entertainment would offer an opportunity for IFC and Proparco to jointly address a long history of limited financing in Africa’s creative sectors, including sports and entertainment, and catalyze private sector development in the region. “The African sports and entertainment are promising routes to accelerate growth and scale innovation on the continent. Africa is a key market in IFC’s creative industries strategy, targeting many verticals, such as e-commerce, arts and crafts, fashion, audiovisual content, technology, and now sports and entertainment. Joining forces with partners like Proparco and Helios will lead to scalable opportunities to transform the creative economy in Africa, encourage local talent and drive homegrown development,” said Makhtar Diop, Managing Director, IFC.
The global sports market, valued at $480.12bn in 2023, is expected to reach $629.81bn in 2028, driven by strong growth in emerging markets. According to a study by UNESCO, every $1 invested in a sporting intervention yields as much as $124 in economic value given the large ecosystem the sector supports. However, in Africa, sports represent only 0.5% of GDP compared to 2% of GDP in other parts of the world. The industry also faces inadequate financing, limited expertise, and major infrastructure gaps. Similarly, the potential for growth in Africa’s entertainment sector is substantial. Globally, the entertainment sector is projected to reach $2.9trn by 2027 from $2.1trn in 2023, driven by technological advancements and increased content consumption. According to PwC’s Global Entertainment and Media Outlook, every $1 invested in the entertainment sector generates $9 in economic value due to its expansive ecosystem, which includes production, distribution, marketing, and consumption.
“The AFD Group has been dedicating more financial and human resources to support cultural and creative industries in the African continent, industries that play a catalytic role for social cohesion and inclusive local development. By supporting private partners, such as Helios Sports and Entertainment Group, Proparco is stepping up its commitment to cultural and creative industries as well as celebrating Africa’s creativity,” said Françoise Lombard, Chief Executive Officer, Proparco.
With a young and rapidly urbanizing population eager for diverse content, the audiovisual entertainment industry could create over 20 million jobs and contribute $20bn to the continent’s combined GDP, according to UNESCO. Addressing these barriers is crucial for unlocking this potential and fostering a conducive environment for creativity and investment.
“Helios has for over two decades exclusively focused on harnessing the wealth of investment opportunities in Africa, generating both competitive returns and real socio-economic impact. The creation of the Helios Sports and Entertainment Group is a demonstration of our unwavering passion for Africa and its people and the continuation of the Helios investment strategy, creating unique investment opportunities in sports and entertainment across a broad spectrum from seeding start-ups to providing companies with growth capital and expertise, building profitable and responsible private enterprises. We are excited to partner with IFC and Proparco on our journey to develop and build the sports and entertainment ecosystem in Africa,” said Tope Lawani, Co-Founder and Managing Partner of Helios Investment Partners LLP.
Over the past 18 months, IFC has deployed more than $830m to support the creative industries across emerging markets, including in ANKA, also a Proparco investee company and an Ivorian e-commerce platform for African creators and merchants. These investments are expected to generate new jobs and economic opportunities, particularly for young people and women. On its end, the AFD Group has already committed more than $200m towards sports infrastructures and social events on the African continent. Proparco, its subsidiary dedicated to the private sector, has more recently sought to design innovative instruments to support the emergence of start-ups and young businesses contributing to this agenda, such as the Creafund guarantee programme, with the support of the European Union, to encourage investment funds to support creative industries on the continent.
author Daily News Egypt