In some countries like Nigeria, an artist can walk into a bank with nothing but his or her career statistics and ask for financing from a bank.
In Kenyan, on the other hand, artists are usually forced to fund their projects straight out of their pockets despite having a strong brand that can attract investors.
Digital content services provider Cellulant is, however, hoping to change all these with its new partnership with Stanbic Bank that will see artistes access bank loans from their Skiza ringtone royalties.
The deal will enable over 5000 artists signed at Celleulant ringtone platform access direct capital from Stanbic Bank for their music project initiatives, property investments and personal finances.
“The music content space has grown a lot. Unfortunately, musicians still struggle to turn their talents into a viable business,” said the co-founder Ken Njoroge who teamed up with Bolaji Akinboro in 2001 to start Celleulant.
“This agreement with Stanbic Bank is our way of showing our musicians that we are still invested in their success and that we understand the fundamentals of growing the music business in Kenya. Now is the time to invest in our musicians as the global music industry looks towards Africa for inspiration.”
The royalties earned will guarantee the loans through a monthly check-off repayment plan being managed by Cellulant, which, is under Safaricom’s Skiza umbrella.
“We acknowledge that the royalties are a source of income and are now providing products based on this that will go a long way in enabling artistes to accelerate their music careers,” said Stanbic Bank head of personal banking Silpah Owich.