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New Mastercard Whitepaper Shows that Digitalization is Key to Unlocking SME Growth Potential in Middle East & Africa

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Small and medium enterprises (SMEs) across the Middle East and Africa (MEA) region are recognizing digitalization as essential to staying competitive in a transformed business and economic environment.

The insight is one of many in a new white paper by payments technology leader Mastercard, which explores the way small businesses are viewing digital payments, online presence and the benefits of an evolving cashless economy.

The white paper, titled ‘The Digital SME: How Are Small and Medium Enterprises in the Middle East and Africa Embracing a Digital Future?’, is an in-depth follow-on study from the data-rich Mastercard MEA SME Confidence Index 2021. This piece of research released findings about the importance of digitalization and rising confidence levels as SMEs across sectors, products, and services in the region, adapt to the new and evolving economic landscape.

It revealed that SMEs in MEA recognize faster access to revenue as the biggest benefit of a cashless economy to their business (44%). Other benefits identified include the ease of not handling or processing cash (50%) and having more convenient ways of paying suppliers and employees (50%).

Overall, 67% of MEA SMEs say e-commerce will have a positive impact on their business. A highlight from the study is that 89% of SMEs in Kenya, 81% in West Africa, particularly Nigeria, and 73% in the Ivory Coast believe the same.

The white paper also found that digitalization has progressed globally since 2018, but has seen higher traction among larger corporations and financial institutions than among SMEs.

It accelerated in 2020-21 to enable continuity of business, with the OECD estimating 70% of SMEs globally intensifying their use of digital technologies due to COVID-19 restrictions. Currently, according to the Mastercard MEA SME Confidence Index, digital payment methods used by MEA SMEs include mobile (59%), online (49%), and cards (48%).

“An empowered SME sector is a growth engine for the economic development of countries across the Middle East and Africa. But the challenges are many, chief being access to funding and digitalization which have emerged as huge needs. The Mastercard MEA SME Confidence Index found that 89% of SMEs in the region see potential in digitalizing their business which is encouraging for everyone within the digital economy,” said Gaurang Shah, Head of Products, Middle East and Africa, Mastercard.

Increasingly, SMEs are recognizing the practical benefits of digitalization in day-to-day operations, as opposed to viewing it as a long-term project for the future. There’s a solid case for this when data shows that 41% of SMEs that implemented digitalization initiatives, had stronger revenue growth in 2020 than non-adopters. Digitalization of SME operations also brings the benefit of generating data that institutions need to view an SME as a “real” business with potential and make more informed credit decisions. This helps bring small businesses into the financial mainstream.

Partnerships play a key role in the digitalization of SMEs

The white paper also found that partnerships play a key role in the digitalization of SMEs. A stable, growing, connected small business can be the key to financial inclusion for the whole community.

“As a technology company, Mastercard has leveraged the power of partnerships to deliver inclusion by providing financial, technology, product, and services support to SMEs across the world.

“Connecting businesses to one another within the ecosystem, to help them grow and prosper, is a key objective for Mastercard. For a neighborhood vendor or store, there are simple solutions to reduce the risk and cost of cash, and open up sales to more customers.

“At Mastercard, we continue to leverage our technology, insights, global expertise and partnership approach to empower every business, especially SMEs, everywhere to grow digitally, become stronger than before, and prosper in a more connected, equal, and inclusive world,” said Amnah Ajmal, Executive Vice President, Market Development, MEA, Mastercard.

MEA SMEs reclaiming confidence after COVID 19

Although challenges related to the COVID-19 pandemic remain, small businesses in MEA are reclaiming confidence. The Mastercard MEA SME Confidence Index found 74% of SMEs in the region are optimistic about future growth, guided by the potential for digitalization, better data, access to credit and upskilling.

According to the Organization for Economic Cooperation and Development (OECD), up to 70% of SMEs globally have intensified their use of digital technologies in the wake of COVID-19. However, the gaps in SME digital adoption have not been filled.

The challenges include access to infrastructure, lack of a data culture and digital awareness, and financing gaps for transformation costs, among others. Access to financing remains a key concern for SMEs worldwide, with the IFC estimating an unmet need of USD 5.2 trillion per year.

Through technology services, cyber assessments, insights, grants, digital training, mentoring platforms and knowledge initiatives, Mastercard will contribute $250 million over five years to support small businesses’ financial security globally.

As part of its goal to build a more sustainable and inclusive world, Mastercard has committed to connect 50 million small businesses, including 25 million women entrepreneurs globally, to the digital economy by 2025.

 

 


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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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Study Reveals 7% of Industrial Organizations Tackle Vulnerabilities Only When Necessary

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A study titled “Securing OT with Purpose-built Solutions” conducted by Kaspersky in collaboration with VDC Research, illuminates the shifting landscape of cybersecurity within the industrial sector.

Focusing on key industries such as energy, utilities, manufacturing and transportation, this research surveyed over 250 decision-makers to unveil vital trends and challenges faced in fortifying industrial environments against cyber threats.

A strong cybersecurity strategy begins with complete visibility into an organisation’s assets, allowing leaders to understand what assets need protection and assess the highest risk areas. In environments where IT and OT (Operational Technology) systems converge, this demands more than just a comprehensive asset inventory.

Organisations must implement a risk assessment methodology that is aligned with their operational realities – by establishing a clear asset baseline, organisations can engage in meaningful risk assessments that address both corporate risk criteria and the potential physical and cyber consequences of vulnerabilities.

Recent survey findings reveal a concerning trend: a significant number of organisations are not engaging in regular penetration testing or vulnerability assessments.

Only 27.1% of respondents perform these critical evaluations on a monthly basis, while the majority—48.4%—conduct assessments every few months. Alarmingly, 16.7% do so only once or twice a year, and 7.4% address vulnerabilities solely as needed. This inconsistent approach can leave organisations vulnerable as they navigate an increasingly complex threat landscape.

Every software platform is inherently vulnerable to bugs, insecure code, and other weaknesses that malicious actors can exploit to compromise IT environments. For industrial companies, effective patch management is therefore crucial to mitigate these risks.

However, studies reveal that many organisations encounter significant challenges in this area, often struggling to allocate the necessary time to pause operations for critical updates.

Disturbingly, many organisations patch their OT systems only every few months or even longer, significantly heightening their risk exposure. Specifically, 31.4% apply patches monthly, while 46.9% do so every few months, and 12.4% update only once or twice a year.

These challenges in maintaining effective patch management are exacerbated in OT environments, where limited device visibility, inconsistent vendor patch availability, specialised expertise requirements and regulatory compliance add layers of complexity to the cybersecurity landscape.

As IT and OT systems increasingly converge, there is a pressing need to harmonise these traditionally disparate systems, which have often relied on proprietary technologies rather than open standards.

The challenge is further intensified by the rapid proliferation of Internet of Things (IoT) devices—ranging from cameras and smart sensors for asset tracking and health monitoring to advanced climate control systems. This explosion of connected devices broadens the attack surface for industrial organisations, underscoring the urgent need for robust cybersecurity measures.

For industrial customers, Kaspersky provides a unique ecosystem that seamlessly integrates specialised OT-grade technologies, expert knowledge and invaluable expertise. Kaspersky Industrial Cybersecurity (KICS), a native XDR platform for critical infrastructure, is the cornerstone of this OT ecosystem, that offers centralised asset inventory, risk management and audit, and enables security scalability across diverse, distributed infrastructure via a single platform.

Additionally, Kaspersky recommends that industrial organisations adopt the Secure by Design ideology when deploying new OT devices or systems.

“At Kaspersky, we bring the Secure-by-Design concept to life through our Cyber Immunity approach. This means building products that are resilient by architecture — able to withstand attacks, even those exploiting unknown vulnerabilities.

Unlike traditional systems, Cyber Immune products don’t rely on constant patching or external security layers. As a result, our clients benefit from stronger protection, simplified maintenance and a lower total cost of ownership — without compromising on security,” says Dmitry Lukiyan, Head of KasperskyOS Business Unit.

With Cyber Immune products based on KasperskyOS, organisations can enhance their systems’ resilience with minimal additional cybersecurity costs, thereby reducing overall cybersecurity expenses in the long term.

 


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NITDA, NCFRMI Forge Strategic Alliance for Inclusive Digital Transformation of Displaced Nigerians

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Kashifu Inuwa, the Director General of the National Information Technology Development Agency (NITDA), has reaffirmed the agency’s commitment to advancing inclusive digital transformation, particularly among Nigeria’s displaced population.

He made this known during a strategic engagement with the leadership of the National Commission for Refugees, Migrants, and Internally Displaced Persons (NCFRMI) at NITDA’s Corporate Headquarters in Abuja.

Inuwa highlighted the productive partnership NITDA and NCFRMI have cultivated over the years through staff training and ICT support. He announced plans to “reactivate and scale up this collaboration by supplying new IT equipment and introducing customised digital literacy programmes in resettlement cities.” This initiative aligns with NITDA’s Strategic Roadmap and Action Plan (SRAP 2024–2027), which aims to achieve 70% digital literacy nationwide by 2027, a central pillar of the Federal Government’s digital economy agenda.

Outlining NITDA’s renewed efforts include several key strategies: Establishing community-based digital learning centres with shared devices; Deploying trained National Youth Service Corps (NYSC) members to deliver ICT training in resettlement camps; and Providing ICT infrastructure tailored to the unique needs of each community.

Inuwa also revealed that NITDA is partnering with an international organisation to deploy innovative tech hubs within Internally Displaced Persons (IDP) camps across the Federal Capital Territory.

He emphasised the need for a formalised workstream between both agencies to conduct joint needs assessments in resettlement cities and camps, design and deliver customised interventions for each community, and develop a scalable, replicable model for nationwide adoption. This collaboration, Inuwa reiterated, is crucial for scaling impact and reaching more Nigerians in need, aligning with President Bola Tinubu’s Renewed Hope Agenda.

Hon. Tijani Aliyu Ahmed, Federal Commissioner of NCFRMI, commended NITDA’s leadership in driving national development. He noted that Nigeria currently hosts over 6.1 million internally displaced persons due to insecurity, insurgency, and natural disasters, with over 125,000 Nigerians also seeking refuge in neighboring countries. While the Federal Government is addressing these challenges, deeper partnerships are essential to empower vulnerable populations.

Commissioner Ahmed stressed that the partnership extends beyond digital tools, aiming to restore dignity and opportunity. He added that strengthening host communities by improving access to clean water, rehabilitated schools, and healthcare services is also a goal.

Resettlement cities have already been developed in Kano, Borno, Zamfara, Katsina, and Daura, with a new site in Keffi, Nasarawa State, housing over 40 households. These centers provide homes, healthcare facilities, markets, schools, vocational training hubs, and agricultural land to empower displaced persons to rebuild their lives.

“Digital literacy is now a vital component of empowerment. With initiatives like JAMB’s shift to Computer-Based Testing, we must ensure that displaced children and youth acquire the ICT skills needed to thrive in today’s world. “We are fully committed to working with NITDA to ensure no Nigerian child is left behind.”

 


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NASRDA, Galaxy Space Firm Sign MoU on Satellite Connectivity

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National Space Research and Development Agency (NASRDA) has signed a Memorandum of Understanding (MoU)  with Galaxy Space, Chinese LEO satellite player,  to deploy direct‑to‑device (D2D) satellite services nationwide by the end of this year.

NASRDA, Galaxy Space Firm Sign MoU on Satellite Connectivity

According to media reports, Galaxy Space will integrate its LEO satellite constellation into Nigeria’s telecom grid, which will allow existing smartphones and laptops to link directly to the satellites.

The MoU also covers technology‑transfer programmes, joint R&D labs and the co‑production of a CubeSat by Nigerian engineers.

Apart from the benefit of enabling mobile coverage outside of terrestrial network range,  Dr Matthew Adepoju, director- general, NASRDA, said the deal with GalaxySpace would enable Nigeria to build up its domestic space technology sector.

“It is no longer acceptable that we must import every single device we need,” he told the News Agency of Nigera. “The time has come for us to produce our own technologies here at home.”

GalaxySpace, which designs and manufactures its own LEO satellites, currently has a test constellation of seven LEO satellites in orbit, and has said its “Mini-Spider” constellation will eventually comprise up to 1,000 satellites.

GalaxySpace said  it has also signed multi-tier partnerships in Thailand, the United Arab Emirates, Saudi Arabia, Indonesia, and Malaysia.

Last year, it also signed a deal with Hong Kong carrier PCCW Global to integrate its LEOsat connectivity with PCCW’s worldwide network, giving it access to over 3,000 cities across the Americas, Europe, Africa, the Middle East and Asia-Pacific.


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