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It’s Getting Easier for SMEs to do Business in Africa and Technology is Playing Key Role

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By SoromfeUzomah, Head of Strategic Partnerships at Microsoft 4Afrika

The 2020 World Bank Doing Business report was recently released, and showsthe overall business climate in sub-Saharan Africa issteadily improving. Looking at the ease of starting and maintaining a business, the region as a whole improved one percentage point over the last year, with a few standout countries. Mauritius and Rwanda rankamong the top 20 countries globally, while Nigeria and Togo are among the top global improvers.

In the last year, countries across the region implemented73 reforms, removing certain red tapes and obstacles for SMEs. While this is positive development, sub-Saharan Africa is still classified as a weak-performing region overall, with an average ease of doing business score of 51.8 – below the global average of 63.0.

Small businesses continue to battle with challenges includingunreliable electricity, property registration, tax payment and debt management.But one trend is clear: As levels ofinternet access, technology adoption and digital innovation improve, so domany of these challenges.

The enabling power of technology

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The use of online systems for tax filing, for instance, improved the ease of doing business scores in Côte d’Ivoire, Kenya, Mauritius and Togo. Nigeria also introduced the e-payment of trade fees, reducing the time to import and export, and an online platform for registering businesses, strengthening itsranking. Globally, markets that scored the highest in the report all have widespread use of electronic platforms.

Digital platforms are able to more quickly process and streamline administrative tasks, giving SMEs back precious time and money to focus on doing, and growing, business.Removing the burden of paperwork and long queues also has an incredible motivating factor. When the Kenya Copyright Boardworked with Microsoft to develop an online, automated platform to help SMEs register intellectual property (IP), registrations increased by 100 percent. Additionally, one study found that the knock-on effect of increased IP registration is economies that are 26 percent more competitive and twice as likely to produce and export complex, knowledge-intensive products.

SMEs are eager to adopt these digital services to improve their productivity. In South Africa, The State of Small Business report found that78 percent of small businesses surveyedchoose accounting software to manage their financial records.

Foundations of access needed

But,the same report found that more than half of SMEs list internet access as their principal obstacle to adopting technology. The accessibility and success of these digital platforms depends on reliable access to electricity and the internet. In terms of connectivity, many African countries are still below the 20 percent critical mass necessary to achieve improved efficiencies and information flows for economic growth and innovation.

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To tackle this, more investments into reliable infrastructure are needed. However, while infrastructure develops,innovation can help to bridge the gap. In Nigeria, ICE Commercial Power has introduced an off-grid, solar-powered solution to connect 10,000 SMEs to electricity. The solar grids are linked to a Microsoft cloud-computing platform, which enables remote maintenance of the equipment (reducing any downtime) and lets SMEs manage and pay for their electricity use as they go. Similarly, in Kenya, Mawingu Networks has introduced Wi-Fi hotspots run on solar-powered base stations, connecting some 600 SMEs in Nanyuki to high-speed, low-cost internet.

An ecosystem for growth and development

While governments can play a leading role in building supportive business climates for SMEs, the responsibility doesn’tsit solely with them. Public and private sector organisations can collaborate on building an enabling ecosystem, where private-sector innovation and services are backed by public-sector policy to accelerate growth.

Recently, the United Kingdom took regulatory action by forming the Banking Competition Remedies Ltd, which administers funding directly to financial institutions that address SME needs. While this action was specific to the banking industry, it’s a great example of public-private collaboration to learn from.Africa’s market for digital solutions targeting SMEs is vibrant. In East Africa, Africa 118 provides directory and marketing services to SMEs, whilePopote Payments supports budgeting, expenditure tracking and accounting. In West Africa,SpacePointe helps SMEs build affordable online marketplaces and ecommerce strategies. Finally,FirstBank, Vodacom (and soon to be Jumia)haveall partnered with Microsoft to offer a discounted package of technology and educational resources to their SME customers.

While the private-sector has historically taken the lead investing in these kinds of solutions, the United Kingdom example demonstrates ways the public sector can get involved, encouraging innovation that benefits small business growth.

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The shared benefits of supporting small businesses are numerous. Governments benefit from boosted economies and job creation. Private-sector businesses attract a large and lucrative consumer base. And SMEs are able to access the resources they need to succeed. Key to this collaboration will be involving SMEs very much in the innovation and policy-making process – ensuring their needs are meaningfully heard, and met.

 

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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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NLNG, NCDMB Boost Engineering Research with Innovation Centre

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NLNG and the Nigerian Content Development and Monitoring Board (NCDMB) have commenced the construction of a research and innovation centre at Rivers State University, aimed at strengthening indigenous capacity in computer and electrical engineering.

The NLNG Research and Innovation Centre for Computer and Electrical Engineering (RICCEE), which was inaugurated yesterday, is the company’s largest Human Capital Development Institutional Strengthening project to date.

The centre is expected to provide specialised training, advanced research facilities and technological solutions for challenges in Nigeria’s energy and industrial sectors.

It will also house a professorial chair and operate as a research and development centre where industry-focused solutions, particularly for NLNG, can be developed and potentially commercialised.

Speaking at the groundbreaking ceremony, NLNG’s Managing Director and Chief Executive Officer, Adeleye Falade, described the project as a strategic investment in the country’s future and evidence of the company’s commitment to sustainable human capital development.

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Falade, who was represented by NLNG’s General Manager, External Relations and Sustainable Development, Sophia Horsfall, said the facility would improve the university’s ability to produce highly skilled professionals while ensuring that research responds to industry needs.

He said the centre would also help bridge the gap between academic knowledge and practical industry requirements by creating opportunities for researchers and professionals to work together on innovations with commercial and developmental value.

Felix Omatsola Ogbe, the Executive Secretary of NCDMB, represented by the Director, Capacity Building, Abayomi Bamidele, said the project marked an important step in advancing the Board’s Human Capital Development objectives.

According to him, the centre is part of the Board’s Institutional Strengthening Programme, which seeks to build lasting partnerships with higher institutions through infrastructure that supports teaching, research, innovation and practical skills development.

Ogbe challenged the centre to emerge as a hub for discovery, creativity and technological advancement, where students can develop innovative ideas, researchers tackle real-world problems and industry can find reliable research and development partners.

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The Vice-Chancellor of Rivers State University, Prof. Isaac Zeb-Obipi, said the project aligned with the institution’s 2026–2030 strategic plan, particularly its focus on research collaboration, innovation and entrepreneurship.

“We envisage the Centre as a world-class hub where researchers and students can develop practical solutions to engineering and technological challenges, where university-industry collaboration can flourish, and where innovative ideas can be transformed into useful products, technologies and services,” he said.

The centre will occupy about 9,336 square metres within the university and include specialised laboratories for electronics and signal processing, robotics and embedded systems, software engineering, and digital forensics and cybersecurity.

The facility will also feature solar energy provisions, energy-efficient lighting and other environmentally responsible systems designed to reduce operating costs and support reliable research activities.

RICCEE is one of NCDMB’s Institutional Strengthening Projects designed to improve learning institutions through modern infrastructure, research facilities, technical equipment and training aligned with industry needs.

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NITDA Seals Strategic Deals with Goose FL and Fireflies AI to Power $1 Trillion Digital Economy Vision

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In a significant step toward expanding Nigeria’s tech footprint on the global stage, the National Information Technology Development Agency (NITDA) has signed strategic Memoranda of Understanding (MoUs) with Canadian tech companies Goose FL and Fireflies AI.

NITDA Seals Strategic Deals with Goose FL and Fireflies AI to Power $1 Trillion Digital Economy Vision

The signings took place during the Nigeria–Canada Investment Forum and the Nigeria Investment Economic Conference in Toronto, Canada, witnessed by NITDA’s Director-General, Kashifu Inuwa Abdullahi.

The strategic partnership centers on three core pillars designed to accelerate the nation’s digital roadmap:

  • Expanding Financial Inclusion: Developing innovative technology solutions to broaden access to digital financial services and create sustainable economic opportunities for underserved communities.
  • Deploying Local AI Infrastructure: Establishing indigenous Artificial Intelligence infrastructure and services to strengthen Nigeria’s internal capacity to build, manage, and benefit from AI technologies locally.
  • Building a Stronger Digital Economy: Driving long-term economic growth through strategic global partnerships, technology transfer, innovation, and digital capacity development.

This international collaboration directly aligns with President Bola Ahmed Tinubu’s vision to grow Nigeria into a $1 trillion economy by 2030, anchored by innovation, digital technology, and human capital development.

By forging key global ties, NITDA continues to position Nigeria as a rising leader in the digital economy, ensuring that emerging tools like AI deliver real, tangible value for local citizens and businesses.

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Anambra Seeks Digital Inclusion in Rural Communities

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Anambra State Government says it is exploring partnerships with the Federal Government and other stakeholders to extend digital connectivity to underserved rural communities across the state.

The Managing Director and Chief Executive Officer of the Anambra State ICT Agency, Mr Chukwuemeka Fred Agbata, disclosed this during a virtual media engagement with journalists on Thursday.

Agbata said rural connectivity remained a major challenge because telecommunications operators were often reluctant to invest heavily in communities where network deployment might not be commercially viable.

He said the state was willing to explore opportunities to leverage Federal Government infrastructure and the Universal Service Provision Fund (USPF) to extend connectivity to underserved communities.

“We understand what digital inclusion means because we are dealing directly with these communities,” Agbata said.

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According to him, the objective is to ensure that rural residents are not excluded from the benefits of digital government and the wider digital economy simply because of where they live.

Agbata said the effort formed part of the state’s broader digital transformation agenda, which is targeting deeper digitalisation of government services and a more digitally enabled business environment by 2030.

He said the second phase of the agency’s digital transformation agenda would focus on e-governance, digital infrastructure, smart government and the use of emerging technologies to drive development.

“My core vision is that we would have digitised every single government entity in Anambra State,” he said.

The ICT boss said the digital transformation agenda would extend beyond government ministries, departments and agencies (MDAs) to businesses and residents across the state.

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He said the agency was already developing websites for government MDAs and transforming them from mere information platforms into channels for delivering government services.

“We are building websites for all the MDAs. We are also automating them to be able to carry out services and give government support and government services through their websites,” he said.

Agbata said the initiative would reduce the need for citizens to physically visit government offices to access basic services.

He said the Smart Anambra platform had already demonstrated growing demand for remote access to government services.

According to him, the platform recorded about 14,000 visits between July 9 and July 29, averaging approximately 700 visits daily, despite limited publicity.

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He said the data indicated that residents were interested in accessing government services online, including applications, permits and identification-related processes.

“What the data is already showing us is that we really need to build a system that allows people to actually get government services remotely,” Agbata said.

He explained that the objective was to allow residents to initiate processes online, complete forms remotely and only visit government offices where physical presence was eventually required.

This, he said, would reduce the time and cost citizens spend travelling to Awka or other government offices to access services.

Agbata said services in areas including hospitals, schools and other government processes were being connected to Smart Anambra.

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Anambra Targets 2030 for Digital Government

Agbata said the state’s 2030 target was to deepen the digitalisation of government services and create an environment where businesses could increasingly operate within the formal digital economy.

He said the agency was working with the Ministry of Commerce to promote the formalisation of businesses, particularly SMEs and businesses operating in major markets.

“One of the biggest challenges that we have is that SMEs are not formalised enough,” he said, adding that the agency was exploring partnerships to address the challenge.

The ICT agency boss said the transformation would be gradual because major government initiatives required the necessary approvals and resources.

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On the possibility of making Anambra completely paperless, Agbata disclosed that the State Executive Council was already operating a paperless system.

He, however, said the entire civil service might continue to operate a combination of digital and paper-based processes for some time because of the complexity of government operations.

“What might happen is a dual situation,” he said, adding that selected MDAs could be used as pilots for deeper digital transformation.

Agbata also disclosed that the Anambra State ICT Agency had commenced the deployment of a locally trained artificial intelligence (AI) system to automate its operations and explore applications in governance, revenue management and public-sector productivity.

He explained that the agency did not develop a frontier large language model from scratch because of the huge computing and financial resources required.

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Instead, he said, it adopted an open-source model, modified it and was training it for specific local use cases.

“We have started doing our own local AI system. It is an open-source system, so we didn’t build our own frontier model. We basically looked at open source and modified it, and we are training it,” Agbata said.

He said the system had already been deployed to automate the agency’s operations end-to-end.

“We have used it to automate our agency end-to-end. Everything that we do now is currently automated,” he said.

Agbata said the agency was exploring how the model could be applied across other areas of government to improve productivity, address revenue leakages and strengthen governance.

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He said the AI initiative formed a major part of what he described as the agency’s “2.0” phase following his reappointment by Gov. Chukwuma Soludo.

According to him, the second phase would build on achievements in infrastructure, capacity development, e-governance and smart government while placing greater emphasis on AI and emerging technologies.

Agbata also said the state’s free public Wi-Fi initiative remained operational, stressing that the programme was introduced before the electioneering period.

“The free Wi-Fi didn’t start as a political thing, a campaign thing. It started way before the campaigns,” he said.

He explained that the strategy was adjusted during the campaigns to enable residents to follow the governor’s activities and participate in live engagements while on the move.

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According to him, existing Wi-Fi locations, including facilities at the state Secretariat, remain operational, although occasional downtime occurs, particularly during periods of adverse weather.

“There are downtimes now and then because with the rains and all of that, these things have their uptime and their downtimes, but it is still very much available,” he said.

He disclosed that there were currently no plans to establish additional Wi-Fi locations, noting that existing sites were still providing services.

Agbata said the state would continue to develop digital skills and education programmes, including Smart Schools and other capacity-development initiatives.

He also called for stronger collaboration among government, technology companies, telecommunications operators, local technology manufacturers and other stakeholders to accelerate the state’s digital transformation.

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He cited the procurement of about 2,000 computers supplied by indigenous technology company, Zinox, as an example of the state’s engagement with local technology providers.

Agbata said the agency would remain open to partnerships capable of supporting Anambra’s technology agenda.

He said the ultimate objective was to build an Anambra where residents and businesses could increasingly interact with government digitally, while technology becomes a central driver of economic development across the state.

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