Trace TV Chairman, Olivier Louchez on the future of Africa’s music industry

The music industry is experiencing a remarkable growth worldwide, with Goldman Sachs estimating the industry's revenue to reach a staggering $131 billion by 2030. To delve deeper into the future of the music industry in Africa, Olivier Louchez, the Executive Chairman of Trace TV, sat down with CNBC Africa's Sarah Murungi to discuss the latest developments and initiatives in the African music scene. Louchez revealed that Trace TV is set to host the inaugural Trace Awards and Festival in Kigali, Rwanda, from the 20th to the 22nd of October this year, with the awards ceremony scheduled for the 21st. The choice of Kigali as the host city was inspired by the warm reception received from the Rwandan Development Board (RDB) and the entire Rwandese ecosystem, aiming to position Kigali as the cultural capital of the African continent for a few days. Louchez emphasized that the event is not only a cultural celebration but also a business opportunity, with Trace investing several million dollars to ensure the participation of top African artists and high-quality production. The event is expected to attract significant economic benefits for Kigali, showcasing the city to a global audience and creating business opportunities for local stakeholders, including venues, restaurants, and catering services. In addition to the economic impact, the event will have an educational component, with around 50 young people from Rwanda set to receive training and upskilling opportunities from seasoned professionals involved in the event's organization. Louchez highlighted the multifaceted benefits of the event, ranging from financial gains to communication advantages and human resource development, aligning with Kigali's aspirations to enhance its global soft power. Louchez also provided insights into the investment behind the event, indicating that Trace TV's cash outlay would surpass two million dollars, with an additional three to four million dollars allocated for airtime and promotional activities. The collaboration with RDB and other partners, including Rwanda Broadcasting Agency (RBA), underscores the event's broad reach and potential impact, with the award ceremony set to be broadcast across the African continent, amplifying its significance. Moreover, Louchez addressed the challenges surrounding music rights and revenue in Africa, noting that the continent currently accounts for a minimal share of the global music rights market, despite its rich musical heritage. He outlined Trace TV's efforts to work with East African governments to establish systems for collecting and distributing music rights effectively, aiming to increase Africa's share of the global music market from the current 0.7% to a more equitable 10%. By strengthening the music ecosystem and prioritizing revenue generation on the continent, Louchez emphasized the potential for African artists to benefit from increased royalties and international recognition. When discussing the top African artists generating substantial streaming revenue, Louchez highlighted Nigerian and South African artists as frontrunners in the international music scene. Songs like 'Jerusalema' and 'Calm Down' exemplify the global appeal of African music, showcasing the immense revenue-generating potential of African artists. However, Louchez emphasized that the industry is only scratching the surface of its full potential, emphasizing the need for comprehensive infrastructure and revenue streams within Africa to support and sustain the continent's music industry growth. In conclusion, Louchez expressed optimism about the trajectory of the African music industry, foreseeing a paradigm shift towards increased revenue generation and global recognition for African artists. By harnessing the collective efforts of stakeholders, governments, and industry players, the African music scene is poised to unlock its full economic and cultural value in the global arena.