Unlocking Hits and Deals: The Power Moves Driving Success in the Afrobeats Music Industry

Understanding the Significance of Creative Industry Exits in African Music

For years, the spotlight on African music has largely focused on iconic figures such as Wizkid, Ayra Starr, Burna Boy, and Davido. However, the true engine driving the industry’s expansion lies within the business frameworks, partnerships, and strategic deals behind these artists. When a record label undergoes a merger, acquisition, or joint venture, it’s not merely a transaction-it represents a milestone where a music enterprise secures investment, expands its global footprint, and builds enduring value that transcends individual stardom.

These strategic exits are crucial because they unlock capital, establish lasting legacies, and create leverage for future growth. Despite this, many African creative ventures still treat music as a hobby or short-term income source rather than scalable, sustainable businesses.

The Journey of Nigerian Music Labels: From Grassroots to Global Players

• 1990s to Early 2000s: Pioneering labels like Kennis Music led the scene, though their focus was primarily on artist promotion rather than building structured enterprises.
• 2010s: The rise of artist-founded labels such as YBNL (Olamide), Starboy (Wizkid), and Spaceship (Burna Boy) marked a shift. While some flourished, many remained heavily reliant on the charisma of a single artist.
• Contemporary Era: Today, labels like Mavin Records, Chocolate City, and Native Records exemplify the transformation into well-organized companies, demonstrating that African music businesses can mature into robust corporate entities.

Spotlight on Mavin Records: A Blueprint for Structured Growth

Since its inception in 2012, Don Jazzy‘s Mavin Records has become synonymous with professionalizing Afrobeats. The label has nurtured global sensations such as Rema and Ayra Starr, setting a new standard for artist development and business acumen.

• Strategic Vision: Don Jazzy and Tega prioritized building a brand that transcended just a record label, emphasizing talent cultivation and operational excellence.
• Corporate Foundations: The label implemented robust legal structures, governance policies, and prepared for investment, with guidance from private equity partners like TPG and Kupanda, the latter playing an active role in management support.
• Global Expansion: The 2023 alliance with Universal Music Group infused capital, enhanced distribution channels, and elevated Mavin’s international profile-an exemplary case of a creative exit fueling growth.

Mavin’s journey illustrates that well-executed exits can amplify cultural influence rather than diminish it.

YBNL: Leveraging Partnerships for International Reach

Olamide’s YBNL label has been instrumental in launching stars like Fireboy DML and Asake. Instead of a full sale, YBNL opted for a strategic distribution deal with the U.S.-based Empire, enabling its artists to access global markets while preserving the label’s authentic Lagos roots.

This approach exemplifies a hybrid exit model-retaining ownership while harnessing partnerships to scale worldwide.

Chocolate City: Revitalizing a Legacy Through Global Collaboration

Home to artists such as MI, Ice Prince, and Jesse Jagz, Chocolate City was a powerhouse in the 2000s. Facing structural and managerial hurdles, the label entered a partnership with Warner Music in 2019, securing international distribution and renewed industry relevance.

This strategic move highlights how established African labels can reinvent themselves by integrating into global music networks.

Native Records: Youthful Innovation Meets Global Ambition

Emerging from the creative minds behind Native Mag and the NativeLand Festival, Native Records forged a joint venture with Def Jam in 2022. This bold step demonstrated that even culture-driven collectives can rapidly scale by aligning with major international players.

Native’s swift global partnership challenges the notion that only established “big players” can negotiate significant deals, signaling a new era for creative enterprises.

Key Takeaways for Creators and Investors

1. Prioritize Structure: Clear contracts, transparent accounting, and sound legal governance are foundational to enabling successful exits. Structure means defining roles and objectives precisely, while processes standardize operations-both essential for consistent business performance.
2. Exits Enhance Culture: Selling or partnering doesn’t equate to abandoning artistic integrity; rather, it’s a strategy to amplify cultural impact on a larger scale.
3. Operate Like a Business: Passion alone isn’t enough; labels must adopt corporate discipline to thrive sustainably.
4. Shift Investor Perspectives: Creative ventures should be viewed as scalable enterprises with growth potential, not mere vanity projects.

Context and Challenges

• In Western markets, artists and labels frequently monetize their catalogs (e.g., Justin Bieber, Dr. Dre), unlocking liquidity and preserving their artistic legacies.
• Without similar exit strategies, African labels risk stagnation, burnout, or losing intellectual property to piracy and exploitation.

Looking Ahead: The Future of Creative Exits in African Music

From Mavin’s collaboration with Universal to YBNL’s partnership with Empire, Chocolate City’s Warner deal, and Native’s Def Jam venture, African music is demonstrating that strategic exits can be powerful catalysts for expansion.

The next chapter depends on more founders and investors embracing exits not as endpoints but as springboards to build billion-dollar creative ecosystems.

By Samuel “Samo” Onyemelukwe, with AI assistance

About Samuel “Samo” Onyemelukwe

Samuel Onyemelukwe is a Nigerian-American expert in African media and entertainment, currently serving as VP of Global Business Development and Managing Director of Trace West Africa.

Connect with Samuel “Samo” Onyemelukwe on LinkedIn

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