Cellulant, a digital content service provider, has entered into a partnership with Stanbic Bank that will see musicians access bank loans from their Skiza ringtone royalties.
Under the agreement, artistes will access direct capital for their different music projects, including audio and video production, event sponsorships, album production, marketing and advertising.
The loan facility will also enable artistes to purchase homes, land and cars, among others. The royalties earned will guarantee the loans through a monthly check-off repayment plan, being managed by Cellulant.
Over 5,000 artistes are currently signed on Cellulant’s ringtone platform since it launched its Lipuka service in 2004, run under Safaricom’s Skiza umbrella. Lipuka allows subscribers to download their favourite ringtones whilst empowering artistes to earn royalties, paid to them by Cellulant.
“Musicians still struggle to turn their talent into viable businesses. Now is the time to invest in our musicians as the global music industry looks towards Africa for inspiration,” Cellulant CEO, Ken Njoroge, told Spice.