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Report Finds Africa’s SMEs Grapple with Tech Costs, Skills Dearth

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Although small and medium enterprises (SMEs) in Africa are increasingly investing in digital technologies, their innovation journey is hindered by the high cost of technology upgrades, the lack of digital skills, and regulatory and compliance issues.

This is the key findings of a research report, titled “Levelling the SME playing field”, jointly commissioned by Vodacom Group, Vodafone Group and Safaricom.

It is the sixth research paper under the Africa.connected initiative, which aims to drive sustainable development by closing the digital divide in Africa’s key economic sectors through strategic partnerships.

The research is based on conversations with 400 SMEs across eight African countries − South Africa, Kenya, Egypt, Ethiopia, Mozambique, Tanzania, the Democratic Republic of the Congo and Lesotho − ranging in size from one to 200 employees.

The survey is run in partnership with World Wide Worx, a local research firm that focuses on trends in information technology and telecommunication.

According to the findings, digitalisation has been a game-changer for African SMEs, with the respondents highlighting the positive effect of technology on enhancing growth, efficiency, competitiveness and customer service.

Nearly 70% of surveyed SMEs invested in technology in the past 12 months to help boost growth and resilience – an indication that SMEs are embracing the positive impact of technology, reveals the survey.

While there are numerous opportunities that unlock the full potential of digitalisation for these businesses, addressing barriers − such as infrastructure, connectivity, the high cost of implementing technology, lack of adequate tech skills and developing best practice frameworks for better collaboration − remains key to business growth.

“SMEs play a pivotal role in both the global and African economy, contributing to job creation, innovation, economic growth and regional development,” says Shameel Joosub, Vodacom Group CEO.

“In fact, the World Bank reports that SMEs are responsible for more than 80% of Africa’s employment and 50% of the GDP.

“But SMEs in Africa face a number of distinct challenges, which include access to finance and markets, regulatory barriers, inadequate technology adoption and limited management capabilities. To address these stumbling blocks, strides must be made to promote financial inclusion, simplify regulation, enhance technological infrastructure and encourage innovation. The technology pieces of this puzzle – as our research shows – are incredibly important.”

When it comes to technology use and adoption, the research shows SMEs work relentlessly to secure finance to address the high costs of technology and the associated implementation. But the initial start-up costs are only the beginning of what will be required throughout their digital journey.

In the study, 58% of respondents cited the high cost of technology upgrades and renewals as key hindrances (39% in SA), with 32% citing difficulty in integrating new technologies with existing systems and regulatory confinements.

Limited internet connectivity and access affects 30% of respondents (17% in SA), while 14% grapple with lack of support and training for employees to use technology (39% in SA).

SMEs that have integrated technology into their business are increasingly making use of e-commerce platforms, social media and digital payment solutions, such as e-wallets and micro-financing services. Innovative use of data analytics tools can further help SMEs to expand their reach, access valuable data insights and streamline operations, according to the report.

Unfortunately, the workforce is often resistant to digitisation, especially those working for SMEs with strong human relationships.

The lack of digital skills and knowledge, support and training for employees and executives around the values and use of specific tools and technologies compound this issue, states the survey.

Added to this, SMEs can no longer ignore the threat of cyber security concerns, as criminal attacks or breaches do not discriminate against business size, it points out.

To reap the many benefits that technology brings, laying the right foundations is key.

“This starts with investing in training for employees, either through online resources, hiring IT consultants, or partnering with local technology firms to equip teams with the skills and knowledge needed to manage the challenges of the digital landscape.”

Regulatory and compliance issues can be a significant hurdle, so it’s vital that regulators develop effective policies rooted in a deep understanding of the myriad constraints SMEs face and implement targeted programmes that empower these small ventures to succeed.

“While these businesses might be ‘small’, their impact is significant, which is why it is essential that regulatory bodies are willing to engage in discussions with SMEs regarding compliance requirements.

“Regulators should also assist smaller firms in navigating different regulatory frameworks. This is crucial when it comes to data and its utilisation. For SMEs, much like any other business regardless of size or industry, the ability to access the right data can provide a critical competitive-edge and enable them to better fulfil customer needs,” notes the survey.


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Lawyers Drags NLS to Court for Alleged Election Fraud, Data Violation

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Two Nigerian lawyers have sued promoters of the Nigerian Law Society (NLS) over allegations of electoral fraud and unlawful use of personal data.

Lawyers Drags NLS to Court for Alleged Election Fraud, Data Violation

The legal actions follow the recent election conducted by the NLS, a breakaway association formed as an alternative to the Nigerian Bar Association (NBA), to elect its national officers.

In one of the suits, marked FHC/ABJ/05/1506/2025 and filed before the Federal High Court in Abuja, a lawyer, Timothy Tersugh Ahua, is challenging the conduct of the election and the legitimacy of the electoral process.

Ahua named several NLS promoters, including prominent lawyers, as defendants.

They include Senior Advocates, Chief Mela Audu Nunghe, Dr. Ugoji Eze, Secretary of the NLS Electoral Committee, and Chief Bolaji, Chairman of the NLS.

Others named in the suit are Ferguson Chioma Blessing, Chief Emeka Ichoku, and Tejumola Adigun.

Citing provisions of the Federal High Court Civil Procedure Rules, Ahua is asking the court to declare that the NLS electoral process violated its constitution.

He is seeking a declaration that all unopposed candidates, including himself, be declared elected, as published by Dr. Tonye Clinton Jaja, the alternate Chairman of the NLS Electoral Committee.

Ahua claims he was duly nominated for the position of Secretary General but was unjustly excluded, accusing the defendants of hand-picking candidates in breach of the rules.

He further alleged that the exclusion caused him financial loss, reputational damage, and personal hardship, urging the court to correct what he described as a grave injustice.

In a separate suit before the Federal High Court in Abeokuta, another lawyer, Oluwadare Thomas, sued Chief Mela Nunghe, a Senior Advocate of Nigeria, Dr. Ugoji Eze, the Corporate Affairs Commission (CAC), the National Information Technology Development Agency (NITDA), and the Nigerian Data Protection Commission (NDPC), over alleged violation of his data privacy rights.

Thomas is asking the court to determine whether the use and publication of his personal data by NLS election officials without his consent amounts to a breach of Section 37 of the 1999 Constitution and the Nigeria Data Protection Act, 2023.

He also wants the court to consider whether the use of the NLS name for the election, despite a CAC notice and a pending suit, constitutes contempt of court and abuse of legal process.

He is seeking several declaratory and injunctive reliefs, including a court order restraining the continued use of his personal data and an order compelling NITDA and NDPC to investigate and sanction the respondents.

Thomas is also demanding N50m in compensation for the alleged unlawful processing and exposure of his personal information.


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NASRDA Celebrates Chief Owolabi Salis on His Historic Space Mission

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The National Space Research and Development Agency (NASRDA) has congratulated Chief Owolabi Salis on his successful space flight. He becomes the first person of Nigerian birth to travel to space.

Chief Salis privately funded his space mission, demonstrating the deep interest of Nigerians to participate in scientific, exploratory, tourism and commercial space activities. His achievement highlights new opportunities for private sector engagement in space Program.

This milestone brings significant international attention to Nigeria’s space program, capabilities, while positioning the nation among countries where citizens actively participate in space activities.

In a statement signed by Dr. Felix Ale, director, Media and Corporate Communications, NASRDA, stated that chief Salis’s successful mission represents one pathway for Nigerian space participation. “His achievement complements NASRDA’s ongoing efforts to expand access to space exploration for Nigerian citizens.

“NASRDA received notification of Chief Salis’s mission through our partner organization, Space Research and Exploration Agency (SERA), prior to the flight. His success demonstrates the expanding opportunities now available to Nigerians in the space sector.

“However, it must be emphasized that the NASRDA-SERA collaborative mission, announced in June 2024, remains on course for an upcoming Blue Origin flight. This program represents a different pathway, providing opportunities for broader Nigerian participation through open competition.

“Our collaborative mission will enable Nigerian citizens to participate in astronaut selection and contribute to the development of research proposals. Eligibility extends to all Nigerian citizens aged 18 and above through transparent, merit-based selection criteria.

“Research priorities for the NASRDA-SERA mission will also be determined through public input from Nigerian citizens. This approach ensures the mission addresses national priorities identified by Nigerian citizens,” the statement added.

The application portal for the NASRDA-SERA program will open in the coming weeks. Detailed application procedures will be announced prior to the portal’s activation.

NASRDA celebrates Chief Salis’s contribution to raising awareness about space exploration opportunities for Nigerians. His private investment demonstrates the practical commitment of Nigerian citizens to advancing our national space participation.

Chief Salis’s achievement marks a defining moment for Nigeria’s space ambitions. Nigeria now has both private citizens and government programs actively pursuing space exploration, positioning the nation as an active participant in the global space   economy.

For additional information regarding NASRDA programs or the SERA collaborative mission, contact the agency’s Media and Corporate Communication Department.


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NIA Questions Legality of Reps’ Financial Probe

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The Nigerian Insurers Association has urged the House Committee on Capital Market and Institutions to respect the constitutional separation of powers as it carries out a probe on over 20 insurance firms.

In a statement on Tuesday night, the Director General/Chief Executive Officer of NIA, Mrs Bola Odukale, said the decision of NIA and the affected firms to approach the court was to seek clarity on the constitutional limits of the House Committee’s probe.

It would be recalled that the House of Representatives on Monday is investigating no fewer than 25 insurance companies operating in the country for various financial infractions spanning financial reporting, claims settlement, premium remittance, and issuance of policies.

The Chairman, House Sub-Committee on Capital Market and Institutions, Kwamoti Laori, during a meeting with the management of the insurance companies at the National Assembly Complex in Abuja, said the meeting was convened following the receipt of a petition on infractions by the insurance companies.

In the statement, Odukale said, “The Association wishes to state unequivocally that all actions taken by the NIA and the affected member companies in response to the Committee’s invitations and pronouncements were based entirely on legal advice by its Solicitors. It was on the firm instruction of legal counsel that recourse was made to the courts.

“The objective of approaching the Court is to seek judicial guidance on the legality, propriety, and constitutional limits of the Committee’s intervention in order to safeguard institutional integrity, uphold regulatory independence, and ensure that legislative oversight remains within the bounds of law.

“The Court action seeks to determine whether the current posture of the Committee reflects an exercise of legislative judgment, which, by constitutional design, is the exclusive province of statutory regulators, such as the National Insurance Commission, Securities and Exchange Commission, Nigerian Exchange, Financial Reporting Council, Nigeria Data Protection Commission, and the National Information Technology Development Agency.

“This raises serious questions about legislative overreach and an erosion of the doctrine of separation of powers, a cornerstone of Nigeria’s constitutional democracy.”

Odukale maintained that the NIA was committed to lawful and constructive engagement with all arms of government, provided that such engagement respects the autonomy of statutory regulators and the boundaries established by the Constitution.

“The NIA will continue to provide its full support to all member companies while upholding the principles of legal compliance and sector-wide integrity,” Odukale concluded.

17 of the companies that went to court were represented by their lawyer, Mr Abimbola Kayode, at the meeting with the committee.


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