Sony Group Corporation, the Japanese multinational conglomerate, has announced the launch of a new fund to support the growth of entertainment businesses in Africa. The fund, named Sony Innovation Fund: Africa, will invest in seed to early-stage startups in the gaming, music, film, and content distribution sectors.
Sony is initially allocating $10 million towards such investments, which will be managed by Sony Ventures Corporation, the subsidiary that oversees all of Sony’s venture investment activities. Sony Ventures has invested in emerging technology companies across various sectors and regions since 2016 through different funds such as the Sony Innovation Fund, Innovation Growth Fund, Sony Innovation Fund: Environment, and Sony Innovation Fund 3.
According to Toshimoto Mitomo, Executive Deputy President and CSO of Sony Group Corporation, Sony Group is a creative entertainment and technology company whose mission is to fill the world with emotion through the power of creativity and technology. “The entertainment field has been a key area of focus for Sony Innovation Fund since the beginning and will continue to be. Africa, in particular, has a vibrant community of creators and entrepreneurs looking to invent new ways to enhance entertainment experiences for audiences, and that propelled Sony to establish SIF: AF,” he said.
Sony has also concluded a collaboration agreement with the International Finance Corporation (IFC), the largest global development institution focused on the private sector, which is actively investing in emerging countries, including startups in Africa. The collaboration will leverage the strengths of both parties to support the development of the African entertainment industry.
Africa’s entertainment industry is one of the fastest-growing creative industries in the world, with huge potential for innovation and impact. According to PwC’s Global Entertainment and Media Outlook for 2022-2026, Nigeria’s entertainment and media industry is expected to rise from $4.46 billion in 2018 to $10.5 billion by 2023. Similarly, South Africa’s entertainment and media industry is projected to grow from $9.4 billion in 2018 to $14.2 billion by 2023.
The gaming, music, film, and content distribution sectors are especially promising, as they offer opportunities for digital transformation, youth empowerment, job creation, and cultural diversity. Some successful startups in these sectors include Carry1st, a mobile gaming platform; Boomplay, a music streaming service; iROKOtv, a video-on-demand platform; and Showmax, a subscription-based movie streaming service.
Sony’s investment in African entertainment startups shows its commitment to fostering next-generation technologies and startups and promoting open innovation. It also shows its recognition of the talent and potential of African creatives and entrepreneurs. Sony hopes to accelerate the growth of the African entertainment industry and contribute to the progress and development of the region by providing opportunities for collaboration with its entertainment businesses within the group.
Source: Business Day
