Nollywood rides funding crunch to stay on screen

As Nollywood operators self-finance their projects owing to the limited access to structured funding, filmmakers are beginning to find innovative ways to overcome the constraints and connect with their audience.

One strategy for securing movie funding involves submitting films to festivals in anticipation of selection and potential investor acquisition. International film festivals like London BFI, Toronto International Film Festival and Cannes offer filmmakers lacking marketing and distribution funds a fighting chance to gain investor support.

This year’s African International Film Festival (AFRIFF) saw aspiring and emerging filmmakers submit their works for screening, with over 110 films showcased, providing those without cinema budgets opportunities to present their work to prospective investors.

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While some of these films already have scheduled cinema releases, others, made as far back as 2022, are only now being screened at AFRIFF. Many of these productions are privately funded or supported by a consortium of private investors who expect returns on their investments.

Diana Keam, a South African filmmaker, who premiered her latest project, ‘Don’t Be Late For My Funeral,’ emphasised that funding for marketing and distribution remains a significant concern across Africa. She explained that “independent filmmakers often rely on festivals to promote sub-genre films that may not fit the commercial models of traditional cinema releases.”

Successful screenings at such festivals can lead to increased visibility, awards, and potential partnerships for further marketing and distribution support. A notable example is Mami Wata by C.J. Obasi, which premiered at the 2023 Sundance Film Festival and won the Special Jury Prize for cinematography in the World Dramatic Competition. Obasi, who began his career at AFRIFF, later saw his film acquired for North American distribution by Delano’s and screened in multiple regions, including North and South America.

‘The Waiting Song’ was screened at the London International Pan African Film Festival and Cannes World Film Festival. ‘The Weekend’ has had a Nigerian cinema run and was selected for the BFI London Film Festival, Tribeca, and Scariest Horror Film Festival. ‘Freedom Way’ by Afolabi Olaekan, which was produced by Blessing Uzzi, has been showcased at the Toronto International Film Festival.

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Given the challenges in funding marketing and distribution, some filmmakers have turned to YouTube, a platform enabling creators to post content directly to subscribers. Over recent years, YouTube has become a major disruptor in entertainment, offering filmmakers who lack marketing budgets the opportunity to reach thousands of viewers. With strategic content placement, creators can earn significant revenue, with some generating up to $10,000 (approximately N17 million) for productions costing as little as N3 million.

New funding solutions

To address the funding gap, financial institutions such as Afreximbank, the Bank of Industry, and Chapel Hill Denham have introduced solutions. Ody Akhanoba, head of SME Development at Afreximbank, outlined the bank’s approach, which initially involved providing debt-linked facilities to filmmakers with solid distribution plans. Afreximbank has launched Canex Creations Inc., an equity-linked initiative to inject equity into African films, promote risk-sharing, and retain intellectual property rights on the continent.

Akhanoba highlighted the goal of shifting away from the previous model, where films were often sold to non-African streamers, resulting in a loss of long-term value for African producers. He noted that Canex Creations Inc. would significantly “boost investment in African films while ensuring that intellectual property and value remain within the continent.”

Phil Southwill, Chapel Hill Denham partner, highlighted the disparity between global corporate interest in African markets and the limited investment strategies from major funds. While international companies often have defined strategies for Africa, including Nigeria, many investment firms lack dedicated African plans.

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Southwill attributed this to a combination of limited market knowledge and risk perception. Chapel Hill Denham, he said, aims to bridge this gap by packaging African investment opportunities in familiar formats, attracting traditional investors, and unlocking greater capital flows into the continent.