Mr Eazi (real name Oluwatosin Ajibade) told CNN that the Africa Music Fund (AMF) is worth $ 20 million. The lead investor is 88 mph, a company that provides capital to African businesses.
Through the AMF, the 29-year-old Nigerian artist says he wants to create a new model for financing the music industry on the continent.
Mr. Eazi says that one of his main motivations for funding music is to provide financial support for artists to expand their catalog.
Many investors and financial institutions do not understand the music business and therefore cannot fund musicians properly, he says.
“Artists can't 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, since few people understand the world of music, there is no financial product for musicians, ”he explained.
Selected artists will receive funding based on their income and projected income, using parameters such as streaming income, Eazi told CNN.
“For artists who already have footprints in the industry, we'll just do our research. We can check how much they earn or are likely to earn from their streaming income, for example, ”he explained.
Artists will receive advance funds based on their income to develop their musical content. The initial advance invested in an artist's music will be repaid in installments as the artist's income increases, he added.