The award winning musician Mr Eazi AKA Oluwatosin Ajibade, is launching a fund that will invest in Africa’s starts of the future.
Mr. Eazi in an interviews with CNN said that the Africa music fund (AMF) is going to be worth $20 million dollars and the lead investor is 88mph, a company well known for providing capital for African businesses.
Through the AMF, the 29-year-old artist from Nigeria says he wants to create a new funding model for the music business on the continent.
The afro celebrity says one of his primary motivations for funding music is to provide financial support for artists to expand their catalog.
Many investors and financial institutions don’t understand the business of music and as a result, are unable to properly fund musicians, he says.
“Artists cannot go to banks to get money for their music because financial institutions don’t understand how to secure intellectual property. They get it for physical properties but not for music. So, because not a lot of people understand the music business, there is no finance product for musicians,” he explained.
Mr. Eazi added that funds will be given depending on the artist’s revenue and projected incomes using metrics such as streaming revenue.
The initial advance invested in an artist’s music will be paid back in instalments as the artist’s earnings start to rise, he added.