Could the creative industry be Rwanda's next cash cow?

Attempts by the government to diversify the economy beyond the traditional sectors and industries could present a growth opportunity for the Rwandan creative industry.

Monday, October 05, 2015
Timothy Akimanzi, a Kigali-based visual artist, works on a painting at Inema Art Studio in Kacyiru. Art pieces have huge market abroad. (Moses Opobo)

Attempts  by the government to diversify the economy beyond the traditional sectors and industries could present a growth opportunity for the Rwandan creative industry.

The industry whose activities have for long been seen as passion projects rather than  revenue generation activities is  causing excitement among stakeholders, saying it is the ‘next big thing’.

The potential of the sector ranges from creating job opportunities, diversifying exports and facilitating the development of other sectors and industries.

The sector’s activities include fashion and accessories, graphic design, photography and filmmaking, creative advertising and music.

In fact, a section of leading corporations have began looking for ways to use the industry’s potential to increase their relevance in a market as well as have an edge over competitors.

Tongai Maramba, the chief executive officer of Tigo Rwanda, said with the market becoming increasingly competitive, the creative industry has the potential to introduce innovations that serve clients’ needs better.

According to him, the creative industry has far much potential to impact clients, giving firms an edge over the competition. 

Maramba, who was addressing a creative industry forum in Kigali recently, cited Tigo’s experience since the firm entered the Rwandan market, saying businesses need the creative industry more and not the other way round.

He argued that activities like music and advertising that draw on drama could help firms that use them to create more awareness about their brand and woo more clients to consume their products. "There are massive opportunities where culture, creativity, and business intersect,” Maramba noted.

This realisation has jolted the government into action, and the country is looking to Sweden to help Rwandans develop the local creative sector.

The Swedish creative industry contributes about 5 per cent to the country’s Gross Domestic Product, creating over 200,000 jobs annually.

However, economists conversant with the industry say the greatest impact of the creative industry goes beyond the direct number of jobs it creates or enterprises operating in the sector to the facilitation provided to other industries.

Emma Stenström, a professor at the Stockholm School of Economics in Sweden, specialising in the relationship between business and creativity, said the Swedish creative industry has been responsible for the growth of the country’s world-renowned brands.

He said Sweden’s globally renowned brands, like H&M, a clothing line, Spotify, a music streaming company, and Sound Cloud, an online audio distribution platform, owe their growth to support from the industry.

"The true picture of the impact of the creative industry is not on the direct number of jobs created, it is how it diversifies an economy. Without the creative industry, a number of top Swedish brands could not have gotten to where they are today,” Stenström said.

Stenström said local companies and the private sector in general could replicate the Swedish model, where firms used the creative industry to grow their brands.

However, for this to happen, the industry will have to first gain acceptance among key players in the local economy and the region, the professor argued. 

Robert Nilson, the deputy director at the Swedish Ministry of Culture, advised the creative industry players to show leading corporations and industries the value they can add to their brands to gain acceptance in the market.

This is important because many stakeholders in the creative sector feel that their industry is misunderstood.

Music can earn the country a lot of foreign exchange. (Moses Opobo)

Speaking to Business Times in a recent interview Mathew Rugamba, the proprietor of House of Tayo, a fashion house, said there is need to broaden society’s scope of understanding of the creative industry among private sector leaders.

"There is a perception that the industry only involved music, industrial art and advertising. So, it is important to show its significance and impact in other areas,” Rugamba said.

The low purchasing power among Rwandans to procure products and services from the creative sector is another big challenge faced by the industry.

Stenström, however, advises sector players to concentrate on exports of popular Rwandan brands to bypass the huddle.

Already, some of the Rwandan fashion designers have been targeting foreign markets by hosting their exhibitions abroad.

Borrowing from other markets, where the industry is more relevant, the growth of the industry will also depend on the co-operation among sector stakeholders to raise its profile, also lobby, where necessary.

Joy Mboya, the executive director of Go Down Art Centre, a co-working space for artists in Nairobi, Kenya said from their experience, there is need for cohesion among stakeholders  to get adequate representation and be ‘heard’ by government.

"You should all be moving in the same direction; share knowledge and resources, and have a ‘voice’ that is not fragmented. The old and young institutions in the creative sector should have the same vision,” Mboya said.

Government take

With ambitions  of creating at least 200,000 jobs per year under the second Economic Development and Poverty Reduction Strategy (EDPRS II), increasing exports and attracting more investments, the government has warmed up to the sector and developed a policy to facilitate its growth.

The cultural policy is expected to create confidence among talented people, and reduce their vulnerability in the market so that they are able to fully exploit their potential to transform their creativity into sustainable businesses.

Emmanuel Bugingo, the Director of Sports at the Ministry of Sports and Culture, said the intervention also aimed at helping creatives to access finance, get recommendations and training, as well as provide a platform to network with other people around the world.

Rosemary Mbabazi, the Ministry of Youth and ICT permanent secretary, said government sees immense opportunities in the creative sector, including exports promotion, job-creation and enabling the growth of other industries.