Mekgwe calls on banks to finance creatives
Larona Makhaiza | Sunday September 3, 2023 06:00
Mekgwe implored the banks across Africa to finance the creative industry as is the case with any other sector. She said this in an interview with Arts & Culture following her return from Zambia where she had attended the African Continental Free Trade Area (AFCFTA) Youth Symposium as a panellist. The topic for the panel discussion was ‘The Nexus Between The Creative Industry And The AFCTA In Africa’.
Mekgwe stated that lack of access to finance is the main reason why the creative industry has remained stagnant over the years. “Access to finance and the tendency by African countries to view the creative industry from a cultural side rather than a commercial lens are some of the things that hold us back. Coupled with constrained fiscal space means that many African governments have overlooked creatives in national budgets including tax and fiscal incentives,” she bemoaned.
Furthermore, she challenged commercial banks to refrain from viewing investing in the creatives as collateral but rather come up with ways to aid the problem at hand. “The banking sector is reluctant to fund creatives without traditional forms where the industry is perceived to be risky. However, this risk can be mitigated by targeted programmes and credit-guarantee schemes established by governments,” Mekgwe said. She also stated that banks could at least offer micro-credit facilities to facilitate access to finance for the sector where entrepreneurs in the creatives can go to and submit their projects for evaluation.
Meanwhile, Mekgwe lauded the symposium saying it was very fruitful. “The symposium has opened up new avenues for collaboration and investment ventures for myself and The Art Lab,” she said. She emphasised that the AFCTA agreement can also bear fruits for many creatives across the continent. “The AFCTA agreement has the potential to significantly benefit youth entrepreneurs by creating a more conducive environment for trade, investment, and collaborations,” Mekgwe explained. On other matters, she called for more participation in discussions about creative businesses and for inclusivity in policy-making platforms.
Mekgwe said she would also advocate for creative infrastructure which includes galleries, cinemas, museums, bookshops, concert halls, events programmes and many more, which she said have the potential to offer more opportunities for the industry.