Business
Driving Resilient Economies Through the Digitization of Small and Medium Enterprises
By
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.
Auto
Coscharis Motors clinches Nigeria’s Multi-Luxury Company Award as Range Rover Autobiography emerges Luxury SUV
Coscharis Motors clinches Nigeria’s Multi-Luxury Company Award as Range Rover Autobiography emerges Luxury SUV
It is a double honour for Coscharis Motors Plc, one of the subsidiaries of the respected conglomerate, Coscharis Group, as it was declared Multi-Luxury Company of the Year and one of its iconic luxury brands, Range Rover Autobiography, was adjudged the Nigeria’s Luxury SUV of the Year at the 2024 edition of the Nigeria Auto Journalists Association Awards.
The well attended event was held recently at the prestigious Oriental Hotels, Lagos.
Coscharis Motors, a household name in topnotch globally respected luxury automobile brands in Nigeria, has been the exclusive representative of the British iconic luxury brand of the Jaguar Land Rover and the German pride in the luxury segment of the BMW brand over many decades.
The company in 2023 added another new luxury brand from United Kingdom into the Nigeria market which is the Grenadier from the Ineos group in UK. The Grenadier is a brand new product globally which is equally being represented in Nigeria by Coscharis Motors as a new addition to its existing ‘House of luxury’ when it comes to automobile of repute.
The luxury SUV category was keenly contested with other tested luxury brands but the Range Rover Autobiography came tops, according to the organizers, after strong consideration of the market acceptance of the Autobiography in all ramifications.
The All New Range Rover Autobiography variant is revolutionary, reliable and a class on its own with its special appeal, style that resonates with its priority audience when it comes to luxury, class, comfort and performance.
Receiving the award on behalf of Coscharis Motors, the General Manager, Marketing and Corporate Communications, Coscharis Group, Mr. Abiona Babarinde, dedicated the award to all the Coscharis Motors customers, especially the luxury brand enthusiasts for their acceptability of all the luxury brands in the Portfolio namely the Jaguar Land Rover, BMW and the new Grenadier respectively as their preferred luxury automobile of choice.
He said, “These awards only reconfirm our expertise in delivering top notch luxury experience to our premium customers while maintaining the global standard of brand positioning to discerning customers in the ever dynamic Nigerian market.
“Representing these globally respected iconic brands over the years exclusively in Nigeria involves consistent delivering of value for money that involves the total luxury experience from the point of brand awareness to the purchase stage and the aftersales service experience to deliver the peace of mind required.”
Group Managing Director of Coscharis Motors Plc, Mr. Josiah Samuel, also dedicated the awards to the company’s ever loyal customers for their patronage and acceptance of the brands with a promise to continually create more value in the automobile industry in Nigeria.
He said, “There can’t be another best way to end the business year in 2024 than with these set of prestigious awards despite all the business challenges in the year and more importantly that the awards are coming from a very critical stakeholder / partner like the media.”
The award event attracted various stakeholders that are players in the automotive sector in Nigeria.
Auto
Leadership by example: FRSC Corps Marshal leads field operations, patrol highways
Leadership by example: FRSC Corps Marshal leads field operations, patrol highways
By Bisi Kazeem
As the year winds down and Nigerians embark on end-of-year travels, the Federal Road Safety Corps (FRSC) has intensified its efforts to curb road crashes and ensure safer highways. Leading this charge is the Corps Marshal, Shehu Mohammed, who has set a sterling example of sacrificial leadership by actively participating in frontline operations during this critical period.
The end of the year is a notoriously perilous time on Nigeria’s roads, marked by increased traffic, heightened road traffic crash risks, and a surge in reckless driving.
However, under the proactive leadership of the Corps Marshal, the FRSC rolled out an unprecedented campaign to reduce road traffic crashes and fatalities, ensuring that the festive season is marked by joy rather than tragedy.
True leadership is not defined by words but by action. The Corps Marshal exemplifies this by personally leading field operations, patrolling highways, monitoring traffic flows, and directly engaging with road users.
His visible presence has reinvigorated the morale of FRSC officers and demonstrated to the nation that leadership is about service and sacrifice.
He defied insecurity on the highways and embarked on a traffic monitoring operation from Abuja, the Federal Capital, through Kogi, Ekiti, Ondo, Owo, Ore, down to Edo and Delta.
His decision to lead from the front underscores his commitment to the FRSC’s mission of saving lives and highlights the urgent need for compliance with traffic rules and regulations.
From the beginning of the Ember Months sensitisation campaign in September, the Corps had gone ahead of time, implementing series of robust measures aimed at addressing road safety challenges during the festive season. These remedies include; increased patrols and checkpoints as additional officers and vehicles have been deployed in strategic points on highways to monitor and enforce compliance with traffic laws; organised nationwide safety campaigns targeting speed violations, drunk driving, overloading and seatbelt use.
These campaigns educate drivers on the dangers of reckless behaviours and emphasize the importance of safe driving practices.
The Corps also ensured Emergency Response Preparedness: ambulances, tow trucks, and rescue teams are on standby to ensure rapid responses to emergencies, reducing fatalities and injuries in the event of crashes.
Knowing that the task of making the highways safe is a collective action, FRSC went into the season with strengthened partnerships with key stakeholders, including the Nigeria Police Force, transport unions, traditional rulers and local communities, to foster a united front in the battle against road crashes.
The Corps Marshal’s leadership has inspired not just his officers but also the general public.
His direct involvement sends a clear message that road safety is a shared responsibility requiring the commitment of all stakeholders.
The Corps Marshal’s hands-on approach during this critical period has not only motivated the FRSC team but has also restored public confidence in the agency’s commitment to saving lives,” said a motorist who witnessed the Marshal’s activities firsthand on the Niger Bridge.
The monitoring activities carried out across major corridors suggest that the intensified efforts are yielding positive results, with a noticeable reduction in road crashes and fatalities compared to previous years.
The Corps Marshal’s example of sacrificial leadership has brought renewed vigor to the FRSC’s operations, ensuring that every life is valued and protected.
Needless to state that the FRSC Corps Marshal, Shehu Mohammed, is indeed an enigma, a force to be reckoned with and a true example of practical leadership in public service as he leads yet again by example in the fight against road crashes in Nigeria.
Taking active front-line roles, dedicating to sacrificial leadership and willingness to take bold steps to address the challenges facing Nigerian roads.
By setting the pace, he’s inspiring his team and other stakeholders to join forces in the quest for safer roads in Nigeria.
As the festive season continues, let us all join the FRSC as they call on all Nigerians to support its efforts by adhering to traffic rules, avoiding risky driving behaviours, and prioritizing safety on the roads.
Together, with the leadership of the Corps Marshal and the dedication of FRSC personnel, a safer, accident-free festive season is achievable.
The Corps Marshal’s leadership reminds us all that effective leadership requires sacrifice, action, and a deep commitment to service.
As Nigerians embark on their journeys this season, they can take comfort in knowing that the FRSC is working tirelessly to make the roads safer for everyone.
*DCM Bisi Kazeem (Rtd), fsi MNIM anipr, a public relations expert and media guru writes from Lagos, Nigeria.
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FG deploys Lanre Shittu CNG buses as airport shuttle
FG deploys Lanre Shittu CNG buses as airport shuttle
The Federal Government has commenced the deployment of Lanre Shittu Motors (LSM)-branded Compressed Natural Gas (CNG) buses in the nation’s airports for passengers shuttle.
The first batch of the CNG-powered buses has been launched at the Murtala Muhammed Airport, Lagos, at a ceremony attended by the Minister of Aviation and Aerospace Management, Festus Keyamo, and Managing Director, Federal Airports Authority of Nigeria (FAAN), Mrs Olubunmi Oluwaseun Kuku.
Speaking during the unveiling at the Lagos airport, the minister said the deployment was in line with the directive of President Bola Tinubu.
He said it was part of Nigeria’s commitment to reducing carbon emissions and meeting global climate targets.
‘’What you see here today is a fleet of CNG buses for FAAN to commence passenger movement at all our airports immediately,” the minister said.
He said the newly acquired CNG-powered LSM buses unveiled at the Lagos airport are eco-friendly with zero emission and designed with accessibility features for persons with disabilities.
The deployment, he added, was in compliance with the President’s goal of reducing reliance on traditional fossil fuels of petrol and diesel and promoting sustainable use of CNG to power vehicles in the country.
The introduction of the CNG to power automobiles is one of the Federal Government’s initiatives to ease the impact of fuel subsidy removal on the masses.
The CNG buses, according to the Managing Director of Lanre Shittu Motors, Taiwo Shittu, come in two specifications: a 31-seater for airport shuttle services and a 54-seater for mass transit city buses.
He said they had been equipped with modern amenities, including air conditioning, viewing screens, and charging stations.
With the introduction of the CNG buses, he said LSM aimed to provide a more sustainable and efficient transportation solution not only to Lagos but other parts of the country.
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