Connect with us

News

What We Can Learn from Africa’s Small Business Success Stories

Published

on

By Gerald Maithya, General Manager, Microsoft Africa Transformation Office
Kindly share this post

By Gerald Maithya, General Manager, Microsoft Africa Transformation Office

Africa is often hailed as the birthplace of some of the world’s most exciting tech startups. From Cape to Cairo, small businesses across the continent have become catalysts for change, helping to drive economic prosperity and leaving their mark on local society. In fact, it’s predicted that Africa’s digital economy, fueled by hundreds of active tech hubs, could contribute nearly $180 billion to the region’s growth by the mid-decade.

Gerald Maithya, General Manager, Microsoft Africa Transformation Office –

Having produced several industry shakers in the fintech space, it’s perhaps not surprising that the continent has become a very attractive option for startup investment. According to BCG, the rate of growth in the number of African startups receiving financial backing between 2015 and 2022 was nearly six times faster than the global average. And during the first nine months of 2023 alone, these tech ventures raised around $1.4 billion.

With SMEs already accounting for up to 90 percent of businesses in Sub-Saharan Africa, much focus is placed on supporting this vital sector of the economy to reach the levels of success we’ve come to associate with Africa’s tenacious startup culture.

The question is – how do we empower the small business down the road to rise to the ranks of a Flutterwave in Nigeria or M-KOPA in Kenya?

The cloud effect

Much of the answer lies with providing these enterprises with the technology they need to drive operational efficiencies and scale their operations. Cloud technology, in the form of Microsoft Azure for example, has played an important part over the years in supporting Flutterwave’s core operations. Now as the company seeks to build on its success it is again looking to the expansion power of the cloud, building its next generation platform on Azure so that it can process high volume payments at scale, while also ensuring a seamless and secure payment experience for its clients.

Kenyan startup, M-KOPA, recently raised $250 million in debt equity. The company, which provides digital financial services to underbanked consumers, also relies heavily on the computing capacity of the cloud. In fact, its ability to process 500 payments per minute makes it possible for the startup to provide 3 million people across Africa with access to essential services such as solar power systems, digital loans, health insurance and smartphones.

Beyond fintech, small businesses are having a transformative impact on other key sectors such as healthcare. And as with Flutterwave and M-KOPA, many of these enterprises have something important in common – the backing of powerful technology.

In South Africa, Omnisient, is helping to elevate crucial decision-making across healthcare systems through a recent partnership with Altron HealthTech. The startup has created a platform that facilitates data collaboration across records and datasets and can securely match anonymised patient information in a safe environment for analysis. This allows Altron’s healthcare partners more insight into disease patterns and can improve treatments and medication efficacy. In the long term, Altron HealthTech hopes to use this information to support the healthcare industry in determining where new clinics, pharmacies and hospitals need to be built.

Another startup leaving its mark in the healthcare space, Zen Dawa, is helping to reimagine pharmaceutical operations across both rural and urban areas of East Africa by creating online access to pharmaceutical offerings as well as financing solutions for small businesses and pharmacy shops. By making use of Microsoft’s robust AI platform built on Azure, the startup is helping to contribute positively to the availability of essential medicines across East Africa.

There are still many questions to be answered, however, when it comes to drawing a larger number of the continent’s SMEs into the digital economy. Africa is still behind other regions in the world when it comes to digital infrastructure coverage, access, and quality. We are also still battling a shortage of skills and inadequate regulatory policy environments. In fact, with just 22 percent of the population online, Sub-Saharan Africa is still the world’s least connected region.

Supercharging Africa’s dynamic startup ecosystem

Addressing these issues will rely in no small part on the development of strategic alliances across both public and private sectors. These collaborations are pivotal to the development of comprehensive solutions to the multi-faceted challenges faced by small businesses in Africa. The FGN-ALAT digital Skillnovation Programme is a great example of this. A partnership between the Federal Government of Nigeria, Wema Bank, Get Funded Africa and Microsoft, the programme aims to train and equip one million micro, small and medium enterprises (MSMEs) across the country by the end of June 2024. Already 350, 000 MSMEs have been impacted.

Beyond skills, these businesses require business mentorship and access to market and finance opportunities – through effective collaboration the initiative aims to address all these needs in a holistic manner, facilitating opportunities, for example, to receive debt financing, equity investment and grants.

And by tapping into the distribution networks of multi-national corporations, the opportunity for strategic alliances to reach vast numbers of SMEs across the continent is significant. A recent partnership between Orange and Microsoft aims to accelerate the digitisation of small businesses in Africa by leveraging the telco’s formidable network to provide SMEs with access to Microsoft solutions such as Microsoft 365, Copilot, Azure, and Dynamics 365.

Similarly, the FAST Accelerator programme, which was launched together by Flapmax and Microsoft, helps startups scale rapidly and access new growth opportunities by bringing together cutting-edge technologies and business development strategies. Accelerators such as these with vast resources at their disposal are experiencing considerable success in helping startups like Zen Dawa to scale. In fact, with the support of the programme, the company now plans to dramatically extend the number of pharmacies it services from 520 to 10,000 by the end of the year.

The more Africa can produce successful collaborations such as these, the more we’ll start to see a greater number of small businesses emerge as powerful economic contributors. These strategic partnerships hold the key to unlocking immense potential across sectors, empowering entrepreneurial ventures to drive new digital solutions to long-standing challenges and creating a ripple effect that reverberates throughout the continent


Kindly share this post

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

News

RMRDC Urges Investors to Patronise Research Outputs, Embrace Domestic Resource Based Manufacturing

Published

on

Kindly share this post

The Raw Material Research and Development Council (RMRDC) is wooing Nigerian investors to patronise its research outputs by embracing domestic resource based manufacturing that would end Nigeria’s industrial dependency.

The RMRDC made at the Nigeria Manufacturing and Equipment/Nigerian Raw Materials (NME/NIRAM) Expo 2025 through its Director Agricultural and Agro Allied Raw Materials Department, Raw Material Research and Development Council (RMRDC), Dr. Sab C. Ebiriekwe, and the Managing Director of Jola Global Industries Limited, Dr. Moses Omojola, who was formerly a director with RMRDC.

They pointed out that the Nigerian manufacturing sector is relying on importation for over 75 per cent of its industrial inputs while about 80 per cent of manufacturing firms in Nigeria are owned by foreigners.

Ebiriekwe said in his presentation titled “Harnessing Local Resources: Enhancing Value Addition Through Innovation in Raw Material Sourcing” that Nigeria is grappling with industrial dependency despite being endowed with vast natural resources, adding that no country industrialises sustainably without local raw material transformation through innovation.

He said that despite the abundance of local raw materials, only 35 per cent of local manufacturers in Nigeria could rely on steady access to local raw materials.

He added that a gap exists between research outcome and practical application as “only 5.0 per cent of research outputs reach commercialisation.”

According to him, Nigeria’s failure to beneficiate and industrialise its raw material is hindering its bid for economic diversification, jobs creation and export competitiveness.

“As value of industrial raw material imported in 2023 was N2.41 trillion; share of imported manufacturing inputs are over 75 per cent and non-oil export is dominated by unprocessed raw/agro products.”

Omojola, who retired as a director with RMRDC, said during the panel session that about 80 per cent of industries in Nigeria are owned by foreigners, especially Asians.

He asked: “How come Nigerians are going into manufacturing? I have lectured in the university and have worked in RMRDC for 25 years but I told myself that it will be disservice to leave RMRDC without taking home one project. And to the glory of  God I am today a manufacturer in Ekiti State.”

According to him, manufacturing “is very stressful but more rewarding,” which is the reason Asians are coming to Nigeria? “When I ask my Asian friends why they are in Nigeria they will reply that Nigeria is good. And now that I have started manufacturing, I have known that Nigeria is good,” he said.

Omojola also challenged politicians to invest the money they have made from politics into manufacturing in order to create more jobs in the economy.

“We should be going into resource based industry. I produce vegetable oil. Today, Indonesia and Malaysia cannot bring in vegetable oil into Nigeria because our own price is cheaper than their own. Therefore, no imported vegetable oil can compete with us,” he said.

The Founder of AfricanFarmer Discovery Hub, Mr. AfricanFarmer Mogaji, said that chemical extracted from water leaf had been used to coat mugs by Oluwa Glass in Ondo State.

“That was innovation. But unfortunately, it was not scaled. In Ibadan, the shell of the cashew nut had been used in making brake pads. We can revisit these innovations at Small and Medium Enterprises (SMEs) level,” Mogaji said.

He also urged retire military generals to invest in manufacturing like their counterparts in Malaysia that funded Malaysia’s turn around.

However, the Managing Director of Spectra Industries Limited, Mr. Duro Kuteyi, said that absence of government’s policies that could protect the SMEs is one of the reasons Nigerians are not going into manufacturing.

Kuteyi said: “Unless government will come up with policy the way India is protecting its products and SMEs, it will take time for us to grow.

“I started using Nigerian raw materials to make products like natural cocoa powder that is good for diabetics, hypertension, etc. We also use soya as one of our basic raw materials.

“But as it is currently, SMEs are finding it difficult in the market place where they are competing with multinationals that are ready to kill them and kill them totally.

“A multinationals firm went to the market and offered generators to my customers to stop dealing on my products.”

The Managing Director of FACCO West Africa, Mr. Femi Adelayo, said that wealthy Nigerians should be encouraged to embrace manufacturing rather than buying houses in Dubai.

Adelayo also said that manufacturers should be supported with a holistic robust policy to ensure their survival and enable Nigeria to withstand the emerging global trade dynamics that is being characterised by punitive tariffs.

He appealed to the RMRDC to help his livestock feed manufacturing firm with raw materials that could substitute for maize and soya. He said: “We work in the feed mill industry where we produce livestock feeds. But maize and soya are major challenges. We will like RMRDC to help us to have alternative protein production.”


Kindly share this post
Continue Reading

News

Zinox Chairman Leo Stan Ekeh Donates State-of-the-Art Tech Experience Centre to Federal University Birnin Kebbi

Published

on

Kindly share this post

Federal University Birnin Kebbi (FUB) received a significant boost in its quest to produce globally competitive graduates, following the donation of a multimillion-naira Tech Experience Centre by the Leo Stan Ekeh Foundation (LSEF).

The facility, donated by Mr. Leo Stan Ekeh, Chairman of Zinox Group and Founder of LSEF, was commissioned on his behalf by the President of the Nigeria Computer Society (NCS), Dr. Muhammad Sirajo Aliyu, FNCS.

The centre is equipped with the latest Zinox computers, powered by the iPower renewable energy suite, which features high-performance solar panels and certified lithium batteries. It is also connected to a 24-hour, non-disruptive satellite internet service powered by Starlink, a service that the LSEF has committed to funding for the next five years.

According to Mr. Ekeh, the Tech Experience Centre is dedicated to the use of students and knowledge workers at FUB, with the aim of equipping them with the digital skills and resources required to compete with their peers globally and contribute meaningfully to Nigeria’s economic development.

This centre is one of several cutting-edge technology hubs donated by the Leo Stan Ekeh Foundation to tertiary institutions across Nigeria. It supports the Federal Government’s vision to upgrade the nation’s higher institutions to world-class standards.

For over 25 years, Mr. Ekeh and the Zinox Group have consistently invested in promoting digital education by donating tech laboratories and innovation hubs. In recent years, the Foundation has delivered and equipped centres at St. Augustine University, Lagos, and Imo State University and refurbished older facilities it had donated in the past. According to Mr. Ekeh, the next phase will see the Foundation extend similar interventions to secondary schools across the country.

He called on politicians, government agencies, and wealthy Nigerians to intentionally invest in the nation’s education sector, stressing that a well-educated populace is the Foundation for national development.

Mr. Ekeh expressed his appreciation to the Chairman of the University Council, the council members, Vice Chancellor Professor Muhammad Zaiyan Umar, members of the University Management, staff, and students of FUB, as well as the Honourable Minister of Education, Dr. Tunji Alausa, for their support in accommodating the LSEF’s vision.

Speaking on behalf of the university, Professor Muhammad Zaiyan Umar, Vice Chancellor of FUB, expressed deep appreciation to Mr. Ekeh and the LSEF for the generous donation.

“This Tech Experience Centre will make a remarkable difference in the academic and research output of our students and staff. We are grateful for Mr. Ekeh’s vision, generosity, and long-standing contributions to this institution and to digital education in Nigeria. This facility is more than a building with computers; it is an investment in the future of our graduates and the growth of our nation.”

Speaking on the sidelines of the commissioning, Mr. Chimezie Orisakwe, Head of Corporate Communications for the Zinox Group, highlighted Mr. Ekeh’s sustained promotion of digital learning across Nigeria — from interventions in the media sector to landmark projects with the media, Independent National Electoral Commission (INEC), the National Population Commission (NPC), and others.

He also highlighted Mr. Ekeh’s reflection on the current state of Nigeria’s education sector, warning that many institutions, both public and private, face severe funding deficits. This, he noted, raises the risk of closures, which would deprive graduates of the enduring legacy of their alma maters.

To address these challenges, the Zinox Chairman proposed that the Federal Government adopt a college system and reclassify existing universities. He recommended granting approvals for specialized professional colleges affiliated with reputable universities, similar to the Lagos University Teaching Hospital (LUTH) model with the University of Lagos.

Ekeh emphasized that the quality of an institution’s academic content now matters more than its physical size. Those passionate about establishing tertiary institutions must be focused on their core mission, be willing to invest adequately, and possess the mental and financial capacity to sustain standards.

He further urged that educational institutions be regulated even more stringently than banks, given their central role in producing the human capital that drives both the public and private sectors.

“Educational institutions are not limited liability companies that can be liquidated at will. Their true profit is not in short-term returns but in the quality of graduates they produce, men and women who can lead this nation and give back to the institutions that shaped them,” Ekeh stated.

The donation to FUB is the latest in a long list of interventions by the Zinox Group to support Nigeria’s technological advancement. Through the Leo Stan Ekeh Foundation, the Group has also funded thousands of scholarships, donated modern digital learning facilities nationwide, extended non-interest loans to budding entrepreneurs, and supported churches, hospitals, and humanitarian causes.


Kindly share this post
Continue Reading

News

No More Leaks: FIRS Slaps ₦5m Fine on Info Disclosure

Published

on

Kindly share this post

Nigeria Revenue Service (NRS) Act has introduced strict penalties for the unauthorised disclosure of confidential information and documents by its staff, with offenders facing fines of up to N5 million, imprisonment for up to three years, or both.

The NRS Act is one of four bills recently signed into law by President Bola Tinubu, alongside the Nigeria Tax (Fair Taxation) Law, the Nigeria Tax Administration Law, and the Joint Revenue Board (Establishment) Law. The regulations will take effect on January 1, 2026.

In Part VI of the NRS Act, covering miscellaneous provisions, the law designates all internal records—including institutional information, memoranda, and communications—as confidential.

“Without prejudice to the provisions of any other Act concerning data privacy or data protection, institutional information or communication, all internal information, communications, documents or memoranda of the Service are confidential,” the law states.

It further warns that, “Except as otherwise provided under this Act, any other law or any enabling agreement or arrangement or as otherwise authorised by the Executive Chairman or management of the Service, any person who discloses or attempts to disclose institutional information, communication, document or memorandum of the Service is liable on conviction to a fine not exceeding N5,000,000 or imprisonment for a term not exceeding three years or both.”

The provision applies to all officials and individuals involved in the administration of the Act. The NRS also specified that business records, tax returns, notices, assessments, and documents relating to a person’s assets, liabilities, or profits must be “treated as secret.”

Exceptions to the confidentiality rule include disclosures authorised by the service, those mandated by court order, or situations where the information is needed for the enforcement of Nigeria’s tax laws.

The development follows a February 20, 2024, warning from the federal government cautioning civil servants in ministries, departments, and agencies (MDAs) against leaking sensitive documents to the public.


Kindly share this post
Continue Reading

Trending