The biggest obstacle to the growth of the cultural and creative economy in Africa is a lack of finances.

In developing countries, financing comes mainly from development co-operation budgets from the West, which more often than not are tied to certain preconditions.
So should Africa let the West fund its creative economy?

Industry stakeholders in Uganda say that relying on donor support is neither productive nor sustainable.

James Isabirye, a lecturer in the Department of Performing Arts, Kyambogo University in Kampala, said that because donor money often comes with strings attached, it is bad for the sector.

“Donors will put their interests first before paying attention to your needs. So donor money will not necessarily address your needs,” said Isabirye.

Stephen Rwangyezi, the executive director of the Kampala-based Ndere Troupe said that it is wrong for Africa to let the West fund its cultural development as it is Africans who best understand the things that constitute their pride and identity.

“If someone is funding our cultural development, he will promote only that which is compatible with his own interests and that leads to the risk of international cultural uniformity,” Rwangyezi argues.

Among reasons the creative economy does not easily attract investments are the risks involved.

In its Creative Economy Report 2013 Special Edition, the United Nations Educational, Scientific and Cultural Organisation (Unesco) says it is a “high risk economy,” that lacks tangible assets, and that culture is still perceived as a luxury sector making it difficult to attract investment.

“Even in developed countries, cultural enterprises find it difficult to obtain loans, advances and other services from banks because of the sector’s high risk and its lack of tangible assets that can serve as collateral,” notes Unesco.

Unesco describes the creative economy as: Literature, music, performing, arts and visual arts; other core cultural industries such as film, museums and libraries; wider cultural industries such as heritage services, publishing, sound recording, television and radio, video and computer games; while related industries are advertising, architecture, design and fashion.

Jack Sserunkuuma, an artist based in Kampala said there is a need to sensitise banks on the benefits of the creative industry so that they begin giving loans to artists.

“For example, if I have written a script for film, the banks should be able to sit down and discuss with me where the profits will accrue after the production of the film,” notes Sserunkuuma.

The band leader of Baxmba Waves, Godfrey Lubuulwa, said: “Most venues where live bands perform on a daily basis do not want to give the groups contracts, when this would act as a guarantee when taking a bank loan.”

Other setbacks

Besides funding, Unesco says that other factors blocking the growth of the creative economy in Africa include the lack of trained people and/or technical facilities, the absence of distribution networks, growing piracy levels and the limited size of local markets.

However, Unesco observes, the devolution of powers by central governments in a number of African countries has led to local authorities taking over responsibility for cultural development, and are now coming up with supportive initiatives.

“These initiatives generally build on the existing heritage or craft resources and interface with cultural tourism,” notes Unesco.
However, attitudes towards the sector remain negative.

“While the need to connect creative-economy development with that of other sectors such as hospitality, transport or trade is increasingly recognised, policy makers still resist linking these sectors, as culture is still perceived as a luxury by many,” Unesco observes.

The Unesco report acknowledges that the development of the local creative economy requires a functioning system of intellectual property rights.

“These rights regulate ownership, add value and facilitate trade in cultural goods and services, thus benefiting individual creators as well as creative communities,” notes Unesco.

In Uganda, as it is in many African countries, copyright infringement is a big problem that has prevented artists from earning royalties.

The general secretary of the Uganda Performing Rights Society, James Wasula, said: “When we presented our case during the 2012/13 Presidential Investors Round Table, President Yoweri Museveni directed the Ministry of Internal Affairs to create a police unit specifically for intellectual property,” said Wasula.

“We hope it will be functional next financial year.”