Traditional financing models are failing Namibia’s creative industry because they do not reflect how creative businesses generate income, according to the Namibia Investment and Finance Academy (NIFA), which says closer collaboration between financiers and the sector is needed to unlock investment.
NIFA Chief Executive Officer and Founder Arinze Okafor said the academy is working to better understand the creative economy’s business models so banks and other financiers can develop funding products tailored to the sector.
He said while government has identified the creative industry as a priority sector, financial institutions cannot design effective lending products without a clearer understanding of how creative businesses operate.
“Government has put forward that the creative industry is going to be an area of focus. You need to help us understand you better. We need that learning to design better products so we start delivering better solutions,” Okafor said.
He noted that access to finance remains one of the biggest barriers to growth for creative entrepreneurs, but said the industry also has a responsibility to improve its financial management, professionalism and investment readiness.
According to Okafor, government, banks and investors are prepared to support the sector, but entrepreneurs must present businesses that are structured to attract funding.
“Government can create the opportunity, banks can create the products, investors like us can provide capital, but none of those matter if we are not prepared to receive them. If you cannot tell me your story in two or three minutes, I’m already telling you no,” he said.
Okafor added that stronger financial discipline, improved customer service, effective communication and a professional online presence are critical to building investor confidence.
He also cautioned creatives against using artistic talent as an excuse for weak business practices.
“Never allow your creativity to become an excuse for poor business practice. Your invoices matter, punctuality matters, communication matters, your online presence matters because clients do not only buy creativity, they buy confidence,” he said.
