Connect with us

News

Sustaining Small and Medium Enterprises for Nigeria’s Economic Growth

Published

on

Kindly share this post

The SMS &P team – Small and Medium Scale Businesses and Partners – is fully dedicated to supporting SMEs. The team works closely with Microsoft’s network of partners. Marius Moantsoga, SMS&P Lead for Microsoft Nigeria explains the role of SMS in the economy. He spoke to emeka okafor.

 The World Economy
  It is hardly necessary to make the point that we are in the midst of an economic downturn that has permeated markets worldwide. The issue dominates our government’s agenda and is splashed across our media. Few of us have failed to feel its impact directly. This downturn is truly a global issue and is proof—as if it were needed—that we live in a global village, where the ripples of one uncertain market can be felt across the world.

Nigeria has not been isolated from the impact of this recession. In fact, according to the 2008 African Economic Outlook published by the Organisation for Economic Cooperation and Development (OECD), Nigeria’s growth rate is expected to fall to 4% in 2009 as a result of the Organization of the Petroleum Exporting Countries’ (OPEC) quota on oil production, as well as declining foreign investment.

In recent years there has been a strong focus on making Nigeria attractive to foreign investors and international corporations with the aim of spurring economic growth through imported expertise and capital. Inevitably there is some concern now as to how this economic climate will impact these growth factors.

However, the reality is that Nigeria’s small and medium enterprises (SMEs) account for 70% of the country’s industrial jobs and some 95% of its manufacturing activity. This is according to the African Development Bank (AfDB) and the OECD. As such, while we must be mindful of ensuring Nigeria remains an attractive prospect for foreign investment, it is vital that we remain committed to the growth and success of our own SMEs.

Sustainable Foundations
SMEs are the foundation for Nigeria’s sustained economic growth. They serve as an engine of job creation and skills development. Businesses built and nurtured in Nigeria utilise our local talent—both men and women—and encourage entrepreneurship and a culture of self-reliance. They also transcend different industries, spurring economic diversification and enabling the development of rural communities.

By creating an environment where people are encouraged to pursue their entrepreneurial ambitions, we can ensure that our talented citizens remain in Nigeria.

Challenging Times
Setting up a business and fostering its growth is a challenge in any economic climate. In today’s market conditions, just getting a business off the ground, let alone seeing it survive well into the future, is a daunting challenge.

According to the FATE Foundation, a Nigerian organisation developed to promote business and entrepreneurial development among Nigeria’s youth, rapid urbanization, coupled with a shrinking economy, has created an environment in which over 70% of the recent graduates who reside in urban areas are unemployed. While many of these graduates are eager to set up their own businesses, only a few have succeeded.

And the SMEs that are already up and running are finding it difficult to secure the credit they need to sustain their businesses in the face of reduced customer demand.

The reality is that the economic crisis requires us to take decisive steps to protect the years of economic growth we experienced. It is important to ensure that the progress made in creating an environment where such businesses could be set up and succeed is not undone.

The consensus across Africa is that SMEs will play a critical role in ensuring our survival through these times. In fact, the AfDB recently extended a US$100 million line of credit to Nigeria’s Intercontinental Bank so that Nigeria’s SMEs could access the money they need to sustain their operations.

Also, the African Commission just proposed partnering with the AfDB to establish a US$3 billion African Guarantee Fund to boost the development of SMEs in Africa. In the words of the Commission, such investment will unleash the power of African entrepreneurship by enabling young people to translate their good ideas into practical plans.

Our own government has likewise implemented a number of initiatives to support the development of SMEs. One is the Small and Medium Enterprises Development Agency of Nigeria, which works to establish business support centres and provide our SMEs with enhanced access to finance and management training

Another is the Small and Medium Industries Equity Investment Scheme fund, which requires all banks in Nigeria to set aside 10 percent of their annual after-tax profit for equity investment in small and medium sized business. Such initiatives are crucial to ensuring that funds are channelled to the businesses that need them most.

Taking Advantage of Technology
Entrepreneurs can also use the technology already at their disposal to surmount some of the challenges they face. It’s a fact that technology is effectively enabling individuals to set up and run a business from their homes.

Looking Forward
Enabling the success of our local SMEs is not just about facilitating Nigeria’s immediate economic recovery or ensuring long-term sustainable growth. It is also a vital element in seeing Nigeria compete on the global economic stage. The world’s greatest success stories all began as small enterprises, and some of the world’s most powerful nations, such as the United States, have been built on the strength of an entrepreneurial culture.

Among the many SMEs already in existence in Nigeria, or the budding entrepreneurs eager to set up new enterprises, there may well be the world’s next Bill Gates or Aliko Dangote. It is to Nigeria’s benefit, particularly in these tough times, that we continue to create an environment where such businesses are nurtured.

 


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

News

AXA Mansard Empowers Female SMEs with Financial, Digital Skills

Published

on

Kindly share this post

AXA Mansard, a member of AXA has empowered 200 female Small and Medium Enterprises with financial literacy and digital business skills.

In collaboration with SME 100 Africa, the two-day training, which was held in Lagos, is part of AXA’s lined-up programmes to commemorate this year’s International Women’s Day.

Speaking, Olusesan Ogunyooye, Head of Marketing AXA Mansard, said the training was aimed to empower female SME owners with skills to improve business output and position them for the increasing economic opportunities available in an increasingly digital marketplace.

Ogunyooye noted that the move was in line with AXA Mansard’s sustainability agenda, explaining that the company was convinced that support for women through its inclusive protection programmes was pivotal to its purpose of acting for human progress by protecting what matters and its mission of moving from being a payer to a partner.

He further said that focusing on digital skills was important because the company realised the importance of digital skills to the growth of the SME sector in Nigeria and wants to ensure that women were empowered enough to be a consequential part of that growth.

“It’s almost trite to say that SMEs are the engine for economic growth, especially in developing countries like Nigeria, where over 45 million adults are business owners. What needs to be continually discussed is how Nigeria is going to unlock that potential for economic development and how much of that potential will be unlocked by women and for women.”

“For us at AXA Mansard, we are aware that digital will play a major role in unlocking these current opportunities and Nigeria’s economic future. So, to ensure that women are equally represented in unlocking these future potentials, that’s why we have collaborated with SME 100 Africa to support them in developing the required skills”.

“Our choice of digital and financial literacy skills is deliberate. We understand the power of the duo. We understand that helping these SMEs with the skills to attract more customers will be a faster means to empower them.

“We see that they have amazing products and services, but they need to understand how to attract value for themselves by attracting the right customers, and you will agree with me that virtually all customer segments are online in one way or another today.

“So, if we can empower them with digital business skills, we would have helped them with the heavy lifting of trying to find and attract customers”. Ogunyooye explained.

According to him, AXA Mansard believes that for the world to experience progress truly, there must be an equitable distribution of creation and access to opportunities for men and women. This quest for balance informed the SHE for Shield initiative, a women-centred inclusive protection programme of AXA Mansard.

SHE for Shield is a group of initiatives designed for the Nigerian woman. The goal is to see them grow, add value, and help them mitigate risks at every step.

According to the company, research has found that access to health care is one of the most important things to Nigerian women, regardless of their economic segment. They desire to be financially independent, secure, and respected in the community.

 


Kindly share this post
Continue Reading

News

IFC Invests in New 4DX Ventures Fund to Support Tech Startups in Africa

Published

on

Kindly share this post

IFC is investing $10.5 million in a new fund by 4DX Ventures, a New York-based venture capital firm focused on supporting early-stage African technology companies across a broad set of sectors, including fintech, e-commerce, edtech, climate tech, and health tech.

IFC’s investment in 4DX Ventures Fund III will come from IFC’s $225 million venture capital platform, which was launched last year to strengthen emerging VC ecosystems and invest in early-stage companies in Africa, the Middle East, Central Asia, and Pakistan.

Africa is among the regions least served by venture capital, receiving just 2% of global venture deal volume in the third quarter of 2023. Access to capital on the continent has been further exacerbated by a slowdown in global venture capital investment.

Tech ecosystems are nascent, or even nonexistent, outside of more established markets such as Egypt, Kenya, Nigeria, Senegal, and South Africa.

“IFC and 4DX Ventures share the commitment to supporting tech entrepreneurs with innovations that will help Africa leapfrog in critical areas such as climate, health care, fintech, e-commerce, and education,” said Walter Baddoo, Co-Founder and General Partner of 4DX Ventures.

“We look forward to partnering with IFC to help promising tech startups build transformative businesses and realize sustainable development impact on the continent.”

4DX’s new fund will invest in companies with tech solutions that can improve productivity, efficiency and competitiveness across Africa. The firm’s first two funds invested in companies such as Egypt-based e-commerce platform MaxAB, an IFC portfolio company; Ghana-based health tech firm mPharma; and Kenya-based B2B e-commerce platform Wasoko, formerly known as Sokowatch.

“By supporting the development of tech ecosystems in emerging markets, IFC’s venture capital platform aims to improve access to key services, boost business competitiveness, and promote job creation through digital transformation,” said Mohamed Gouled, Vice President of Industries at IFC.

“Our investment in venture funds such as 4DX Ventures will help African entrepreneurs access more financing and resources they need to scale tech innovations and bolster sustainable growth across the continent.

In addition to providing capital, IFC will work with 4DX Ventures to implement their environmental and social management system.


Kindly share this post
Continue Reading

News

Climate Action Africa Announces CAAF24

Published

on

Kindly share this post

Climate Action Africa (CAA) has announced the inaugural convening of the Climate Action Africa Forum (CAAF24). This international event brings together stakeholders from across the world who drive thought leadership insights on how to encourage collaboration, catalyse actionable solutions, and urge governments, businesses, and individuals to invest in climate-smart initiatives.

The climate-focused event was announced at last week’s Friday international press conference held at the prestigious Transcorp Hilton Abuja. This marks a significant milestone in Africa’s journey towards a sustainable future. A precursor to the upcoming Climate Action Africa Forum scheduled for June 17-19, 2024, at the Landmark Events Centre in Lagos, Nigeria, this press conference brought together leaders, experts, and stakeholders from across the globe. The gathering’s main goal was to discuss the urgent need for sustainable development plans and climate-smart investments in Africa.

Framed by the theme “Green Economies, Brighter Futures: Innovating and Investing in Africa’s Climate-Smart Development,” the international press conference became a vibrant platform for insightful discussions, strategic collaborations, and impactful engagements. It convened an esteemed gathering of leaders, experts, and stakeholders to explore solutions for Africa’s pressing environmental challenges.

The event kicked off with a welcome address by the Executive Director and Co-founder of Climate Action Africa, Grace Mbah, who having announced the commencement of event registration as April 2nd, 2024, made the call for tech-driven solutions and innovations in the fields of emissions reduction, transportation, agriculture, energy, circularity and building and construction to apply to participate in the deal room.

Providing insights to attendees on how innovative approaches and collaborative action is at the heart of CAAF24, she extended an opportunity to like minded organisations who would like to partner by hosting side events and finally, a call for volunteers from across the continent.

“It’s no news that the world stands at a critical juncture, where decisive action is imperative to mitigate the adverse impacts of climate change. Against this backdrop, CAAF24 serves as a pivotal platform for key stakeholders to engage in meaningful discourse, and forge collaborative pathways towards a greener, more sustainable future.

The essence of CAAF lies in its commitment to shaping a climate-resilient Africa through co-creation, innovation, and sustainable investment. Through this initiative, we aim to catalyse solutions that enhance the sustainability and prosperity of the continent’s natural resources, people, and economies,” Grace stated.

During the International Press Conference, distinguished speakers and thought leaders emphasised the urgent need for collective action in tackling Africa’s climate challenges.

They delved into critical topics like renewable energy, sustainable agriculture, biodiversity conservation, and climate finance, offering practical insights and inspiring initiatives.

Jummai Vandu, representing the National Council on Climate Change, expressed optimism about the initiative’s outcomes. “Today’s discussions,” she said, “underscore the urgency of our collective efforts to combat climate change. The National Council believes working together is key to driving meaningful action and creating a more sustainable future for Africa and beyond.”

With the International Press Conference complete, the stage is set for CAAF24. Stakeholders will converge to translate ideas into action, forge partnerships, and drive progress towards a climate-smart Africa.

Mrs. Taiwo Fashipe, Head of Media for the Presidential CNG Initiative (P-CNGi), echoed similar sentiments, stating: “The theme of this year’s Climate Action Africa Forum aligns with our goals, vision, and mission at the Presidential CNG Initiative.

“We look forward to using this platform to advance interest in and investment in greener and cleaner energy sources like CNG.”

Standing at a crucial juncture in Africa’s quest for sustainable development, CAAF24, convened by Climate Action Africa in partnership with the National Council on Climate Change, Channels Media Group, and Founder Institute, emerges as a beacon.

It brings together the private and public sectors, guiding the continent towards a future marked by resilience, prosperity, and environmental stewardship.

 


Kindly share this post
Continue Reading

Trending