LAGOS, March 14 (Reuters) – Nigeria launched a $618
million fund on Tuesday to support tech and creative sectors for
young investors who struggle to raise capital in Africa’s
largest economy.

The fund – targeting 15 to 35-year-olds – comes at a time
when there are concerns locally about the failure of U.S.
startup-focused lender SVB Financial Group, which has supported
startups in Nigeria.

So far only Chipper Cash, a cross border payments startup,
has said it had $1 million in SVB. Some of the biggest startups,
including e-commerce firm Jumia and Africa-focused fintech firm
Flutterwave, told Reuters they had no exposure to the bank.

Vice President Yemi Osinbajo launched the $618 million fund
under the Investment in Digital and Creative Enterprises
(iDICE) in the federal capital Abuja, the presidency said in a
statement.

African Development Bank will put in $170 million, $116
million will come from Agence Francaise de Developpement and
another $70 million from Islamic Development Bank, the
presidency said.

The government through Bank of Industry Nigeria will release
$45 million while the private sector pledged $217 million.

“iDICE is a government initiative to promote innovation and
entrepreneurship in the digital tech and creative industries and
especially targeted at job creation,” Osinbajo was quoted as
saying at the launch of the fund.

Nigeria has the largest number of startups in Africa –
mostly in tech and fintech – which have pulled funding from
overseas banks and venture capital firms.

But most startups still struggle to attract funding because
banks demand that they provide collateral, which they do not
have.
(Reporting by MacDonald Dzirutwe; Editing by Josie Kao)