Business

Driving Resilient Economies Through the Digitization of Small and Medium Enterprises

Published

3 years ago

February 16, 2023

Gerald Maithya

Startups Lead Microsoft Africa Transformation Office

Small and Medium Enterprises (SMEs) are a crucial part of contributing to Africa’s inclusive socio-economic growth. These businesses anchor the economies of countries and are contributing to inclusive socio-economic growth. In emerging economies, SMEs account for 40% of GDP, and generate at least 90% of new jobs.

This is even more pronounced in Africa, where more than 60% of Africa’s population is under the age of 25. SMEs account for about 80% of jobs in Africa, while the African Union Development Agency notes that up to 90% of the population in African countries such as Uganda, Ethiopia, and Kenya are employed within SMEs.

In Nigeria, SMEs account for 96% of businesses, and 84% of employment in the country, and contribute 48% of the country’s GDP, according to a PricewaterhouseCoopers report. Of these SME’s, 55% are in wholesale or retail business.

SMEs employ people, supply products and services and act as an important link in the manufacturing value chain, generating economic activity along the way. The way that many manufactured products reach consumers is through SMEs, usually through a network of small independent retail stores such as dukas and kiosks in Kenya, ojas in Nigeria, hanouts in Morocco or spaza shops in South Africa. In doing so, SMEs are the cornerstone of most economies. By enabling SMEs to grow and compete in the value chain, countries’ economies can be strengthened.

SMEs face many obstacles on the path to success

Despite the important role SMEs play in African economies, there are several challenges standing in the way of their survival and success. In fact, research indicates that up to 80% of African SMEs fail within the first five years, despite having the highest entrepreneurship rate in the world. Infrastructure and connectivity, access to business enablement tools, access to finance and digital skills are all potential stumbling blocks for SMEs.

The biggest obstacle most SMEs face is accessing finance and affordable lending. These businesses frequently lack suitable information such as a credit history, financial statements and other prerequisite data points, while the traditional credit-scoring models that many financial institutions use prejudice SMEs. Without access to working capital, SMEs are unable to invest in their business and grow. There is a need to enable tools that SMEs can utilise to collect and manage transactional data that can be used to provide valuable business insights to guide decision-making for the SME, and that can be leveraged to create financial reports.

Digitising SMEs has benefits that support economic growth

Digitisation can help businesses build a financial and transactional history that helps them access loans. This information and well-organised data can enable access and diversification of financing for SMEs in Africa. This financing in turn helps them grow their business, employ more people and contribute to their country’s economy.

Microsoft engages with international organisations such as the IFC, and local financial services institutions, to create innovative financing mechanisms for SMEs on the African continent that enable them to build a credit record and differentiated data sets that tell the story of the business rather than a pure money-in-money-out overview. This allows for a wider range of borrowing opportunities, enabling SMEs to become part of the integrated value chain and participate in the formal economy.

Business tools are an important part of the journey

To successfully complete their digitisation journey, these small and medium businesses also need connectivity and devices that are suitable for business development. Challenges around connectivity and device affordability are certainly not new to Africa. Though the issue of internet access varies considerably depending on the country in question, high cost of data is still a major hurdle for many nations across the continent. Research from the Alliance for Affordable Internet shows that just 14 out of 48 countries in Africa have access to affordable internet, with affordability defined as 1GB of mobile prepaid broadband costing two percent or less of the average monthly income.

Microsoft is working to address Africa’s connectivity issues through the Airband Initiative, which provides investment into infrastructure that drives connectivity. The initiative partners with African startups that are overcoming barriers to affordable internet access in unconnected communities by using TV white space (TVWS) and other innovative last-mile access technologies. Accelerated internet adoption is the precursor to digital enablement. Recently, Microsoft announced that it is expanding the Airband Initiative through new partnerships with local and global providers to bring internet access to 100 million Africans by the end of 2025, and working with partner Viasat, Microsoft is extending satellite connectivity to 5 million Africans.

Another sticking point is access to business hardware. The vast majority of SME owners and entrepreneurs in Africa rely on smartphones to run their businesses. However, being able to access devices such as laptops with preloaded software could help business owners to manage their business processes and reap the rewards of access to best-in-class Software as a Solution (SaaS) products more easily.

As a company, Microsoft has recognised that different SMEs have entirely different solution requirements. Microsoft differentiates itself by working with Independent Software Vendors (ISVs) and startups who build software solutions that can be used with Microsoft technologies. This allows businesses of all sizes to these solutions from the marketplace, with the benefit that when curating a business bundle, an SME can look at their specific needs and match to the software that’s in the Microsoft Marketplace.

The digitisation journey must include skills development

SME owners often have little access to business skills development opportunities. Through platforms such as the Africa Transformation Office’s SME Skilling package, Microsoft Learn, the Cloud Academy and LinkedIn Learning, SME owners can increase their business understanding to help their day-to-day business operations, build their business literacy and develop the technical understanding necessary to support their digitisation journey.

Digitisation can significantly enhance financial inclusion, most particularly for unserved and underserved enterprises such as SMEs. Creating an enabling environment for these important economically active businesses that helps them thrive and participate actively in the continent’s economies is essential for sustainable and inclusive economic growth.

Insurance

Stanbic IBTC Insurance Wins Top Honour at CRe Africa Awards 2026

Published

1 day ago

April 24, 2026

Trends Admin

L-R: Managing Director, Lasaco Assurance Plc, Ademoye Shobo; Managing Director, Continental Re, Dr. Fatai Lawal; Managing Director/Chief Executive Officer of Cornerstone Insurance Plc, Mr. Stephen Alangbo; Josephine Ogundeji; Group CEO of Continental Reinsurance Holdings, Lawrence Nazare; Blessing Ifechukwude; Chief Executive, Stanbic IBTC Insurance Limited, Mr Jide Orimolade; Henry Uche; Chief Underwriting Officer – Facultative, Continental Reinsurance, Bashir Akinsiku

Stanbic IBTC Insurance Wins Top Honour at CRe Africa Awards 2026

Stanbic IBTC Insurance Limited has emerged as the overall winner of the CRe Momentum Award at the inaugural CRe Insurance Awards for Africa 2026, announced during the Continental Reinsurance CEO Summit held in Kigali, Rwanda, on April 17, 2026.

The prestigious award recognises insurers that demonstrate consistent growth, strong financial performance, and strategic impact across Africa’s insurance industry. Stanbic IBTC Insurance was singled out for its disciplined execution, strong commercial results, and highly effective bancassurance model, which has significantly driven its life insurance growth.

Judges at the awards noted that the company’s bancassurance strategy—leveraging banking platforms to distribute insurance products—remains one of the most efficient on the continent. The firm’s ability to combine innovation, customer reach, and operational efficiency has positioned it as a leader in Nigeria’s insurance market.

Beyond its growth metrics, Stanbic IBTC Insurance has built a reputation for prompt claims settlement, sound risk management, and customer-focused service delivery, further strengthening trust among policyholders and stakeholders.

In the same CRe Momentum Award category, Cornerstone Insurance Plc (Nigeria) secured second place, while La Générale des Assurances (Benin) finished third, reflecting strong competition among leading African insurers.

Stanbic IBTC Insurance Wins Top Honour at CRe Africa Awards 2026

Auto

Jetour Nigeria consolidates as sole authorised distributor, gets global market award

Published

2 days ago

April 23, 2026

Trends Admin

Jetour Nigeria consolidates as sole authorised distributor, gets global market award

Jetour Nigeria has consolidated its position as the exclusive representative of the Jetour brand in the country following its 2022 appointment by Jetour International.

The company said the move to clarify its exclusive status came after its successful hosting of the “Jetour Experience” in Lagos, where it unveiled its nationwide dealership structure and addressed lingering market ambiguity over distribution rights.

Since securing the mandate in 2022, Jetour Nigeria has led the importation, distribution, and provision of manufacturer-backed after-sales services for the brand’s full vehicle range in the country.

Its growing influence recently earned global recognition at the 2026 Jetour Global Conference, where the firm received the “Market Share Leadership Award 2025,” underscoring its dominance in the African market.

To strengthen nationwide service delivery, the company operates through a network of seven authorised dealers — Elizade Nigeria Limited, New Era Autovehicle Services Limited, Kojo Motors, Germaine Auto Centre, R.T. Briscoe Plc, TAB Autos Limited, and Mandilas Motors.

These partners, according to the company, are the only entities authorised to sell and service Jetour vehicles in Nigeria.

Jetour Nigeria consolidates as sole authorised distributor, gets global market award

Railway

Rail transformation on Abuja–Kaduna route excites NIPR delegates

Published

3 days ago

April 22, 2026

Trends Admin

L-R: Chairman, NIPR Akwa Ibom State Chapter, Dr Manasseh Umortte; Lagos State Chairman, Dr Samuel Ayetutu; Vice Chairman, Cross River Chapter, Amb. Deborah Grace Awatte (representing Dr Austin Mboso); Edo State Chairman, Dr James Wisdom Abholimen; Bayelsa State Chairman, Dr. Ebowari Wariowei, and Dr Mohammed Kudu Abubakar, Fellow, NIPR and Chairman Planning Committee, World Public Relations Conference, holding at Kaduna State, inside the NRC coach…on Monday.

Rail transformation on Abuja–Kaduna route excites NIPR delegates

Members of the Nigerian Institute of Public Relations (NIPR) have applauded the ongoing transformation of Nigeria’s rail system, describing it as a clear sign of renewed confidence in public transport under the leadership of Dr. Kayode Opeifa at the Nigerian Railway Corporation (NRC).

The commendation came on Monday as hundreds of NIPR members travelled aboard the Abuja–Kaduna train to attend the Institute’s Annual General Meeting in Kaduna.

The journey itself became a moving testament to the rail sector’s resurgence, with fully booked coaches buzzing with networking, reunions and professional camaraderie.

Delegates from across the country, particularly from the southern states, converged on Abuja before boarding the train alongside their counterparts from the Federal Capital Territory.

For many, the decision to travel by rail was both practical and symbolic—a vote of confidence in the improving fortunes of the NRC.

Inside the coaches, the atmosphere was said to be lively. Old colleagues reconnected, new relationships were forged, and passengers commended the professionalism and efficiency of NRC staff.

Many described the experience as seamless and refreshing, noting that with the right leadership, public institutions can deliver quality service.

While praising the progress recorded so far, the NIPR members called on the Federal Government to deepen investment in rail infrastructure.

They stressed that sustained funding is critical, given the capital-intensive nature of railway operations, and expressed confidence that such investments would yield strong economic returns.

Among dignitaries on board were the Olumobi of Imobi-Ijesha, Oba Dr. Jacob Adetayo Haastrup; President of the Broadcasting Organisations of Nigeria, Chief Tony Akiotu; and media veteran, Dr. Mohammed Kudur Abubakar.

Oba Haastrup particularly commended President Bola Tinubu for appointing Opeifa as NRC Managing Director, noting that his performance within a year highlights the corporation’s potential as a driver of economic growth.

Lagos NIPR Chairman, Dr. Samuel Ayetutu, said the coordinated rail trip was also influenced by safety considerations and served as a deliberate endorsement of the NRC’s ongoing reforms.

He urged the government to extend rail connectivity to more parts of the country, providing Nigerians with reliable alternatives to road travel.

The NRC delegation to the conference was led by its Chief Public Relations Officer, Mr. Callistus Unyimadu, alongside the MD’s Special Assistant on Media and Communication, Mr. Yinka Aderibigbe.

The Kaduna conference, which runs until April 24, is expected to equip communication professionals with fresh insights and innovations in public relations practice.

It also serves as a precursor to the World Public Relations Conference scheduled to hold in Abuja later this year, where global stakeholders will converge to address emerging challenges in the profession.