News
What We Can Learn from Africa’s Small Business Success Stories
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
Crime syndicates have made billions scamming victims in Asia and are now expanding their operations to Africa, Europe, South America and further, according to a United Nations report on Monday.
The UN said Chinese and Southeast Asian gangs were targeting victims through investment, cryptocurrency, romance and other scams.
According to the United Nations Office on Drugs and Crime (UNODC), cyberscams are now a sophisticated global industry, featuring sprawling compounds housing tens of thousands of mostly trafficked workers who are forced to con other people online.
“It spreads like a cancer,” said Benedikt Hofmann, UNODC Acting Regional Representative for Southeast Asia and the Pacific said. “Authorities treat it in one area, but the roots never disappear; they simply migrate.”
While the activity had largely been focused on the border areas in Myanmar, a country torn by civil war, and dubious “special economic zones” set up in Cambodia and Laos, UNODC reported networks are expanding their operations to South America, Africa, the Middle East, Europe and some Pacific islands.
“This reflects both a natural expansion as the industry grows and seeks new ways and places to do business, but also a hedging against future risks should disruption continue and intensify in Southeast Asia,” Hofmann added.
Countries in east and southeast Asia lost an estimated $37 billion (€32.5 billion) to cyber fraud in 2023, while the United States reported more than $5.6 billion (€4.9 billion) in losses the UNODC report said.
There were also raids in Cambodia, but they prompted the crime syndicates to move to “more remote locations” and border areas.
Cambodian government spokesman Pen Bona said the country is among the victims of the cyberfraud industry and is committed to fighting it.
According to Bona, the government has established an ad-hoc commission chaired by Prime Minister Hun Manet which seeks to boost law enforcement and legal tools while working with international partners and the UN.
UNODC urged the international community to act, saying it was at a “critical inflection point.”
According to the UN, staying aside would have “unprecedented consequences for Southeast Asia that reverberate globally.”
Consumer Advocacy and Empowerment Foundation (CADEF) a leading not for profit organisation in consumer rights and advocacy in Nigeria has announced a high-level Distributed Energy Resources (DER) Stakeholders’ Workshop scheduled to hold on Thursday, April 24, 2025, at The Providence Hotel, Ikeja GRA, Lagos.
Themed “Overcoming Barriers to a Sustainable Energy Transition”, the workshop aims to provide a platform for robust dialogue and action among policymakers, energy sector experts, investors, development partners, and clean energy advocates.
The Federal Government of Nigeria had in May 2015 approved the National Renewable Energy and Energy Efficiency Policy (NREEEP) as well as the National Determined Contribution (NDC), 2015, which seeks to increase the share of on-grid renewable energy in the total electricity supply from 1.3% in 2015 to 30% in 2030.
As Nigeria pursues its Vision 30:30:30 to generate 30,000MW of electricity by the year 2030, with 30% from renewable energy, CADEF with other experts in the sector will through the stakeholders workshop provide practical and scalable DER solutions, with sessions addressing access to Solar Financing and Investment Opportunities, DER integration strategies and grid resilience, policy and regulatory developments, emerging technologies and case studies.
Speaking ahead of the event, Prof. Chiso Ndukwe-Okafor, Executive Director of Consumer Advocacy and Empowerment Foundation (CADEF), stated: “This workshop is not just about dialogue, it’s about driving action. Distributed energy resources hold the key to unlocking sustainable and inclusive energy access, especially for underserved communities. Through this engagement, we aim to foster cross-sector collaboration and equip stakeholders with the tools and insights needed to scale solutions that work.”
Participants will gain first-hand insights from trailblazers in the clean energy space, while shaping policy and investment discourse on Nigeria’s energy transition. With a rapidly growing demand for reliable electricity, DER technologies such as solar mini-grids, battery storage, and hybrid systems are increasingly vital for Nigeria’s energy mix.
Lovelyn Okafor, CADEF’s Director of Programmes, emphasized the significance of the workshop: “The time is ripe to leverage distributed energy innovations to build a resilient and inclusive energy future. We are bringing together voices that matter, from grassroots change-makers to top-tier investors and government officials to spark lasting transformation.”
Consumer Advocacy and Empowerment Foundation has been at the fore, driving change in the renewable energy sector through some key innovative interventions such as the unveiling of the Distributed Energy Resources (DER) one-stop shop at der.cadefng.org in 2024, a digital platform created to revolutionize how stakeholders and businesses across the DER ecosystem perceive, access and manage energy solutions.
CADEF also announced the launch of the greenlabs programme in collaboration with Jacob’s Ladder Africa, an initiative designed to inspire, equip, and empower young Nigerians to create sustainable, climate-smart solutions that address critical environmental and socio-economic challenges.
Sessions during the workshop will include a live demonstration of the newly launched DER platform (Renew Energy Naija) at DER.CADEFNG.ORG, panel discussions on financing and incentives, public-private partnerships and international collaborations.
CADEF believes that by strengthening multi-stakeholder collaboration, Nigeria can unlock the full potential of decentralized renewable energy, boost energy access, and empower millions of underserved households and businesses.
The workshop is strictly by confirmed registration and part of CADEF’s broader commitment to advancing energy equity and sustainability through advocacy, innovation, and capacity building.
For inquiries or partnership opportunities, please contact: [email protected] | +234 (0) 7088873723
Securities and Exchange Commission (SEC) has issued a stern warning to social media influencers, bloggers, and celebrities, urging them to desist from promoting unregistered and fraudulent investment schemes. The warning was issued by the SEC’s Director-General, Dr Emomotimi Agama, in a notice released on Sunday in Abuja.
Dr Agama noted that the Commission is working in close collaboration with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other relevant government agencies to identify and prosecute those found guilty of flouting investment regulations.
Highlighting the provisions of the newly enacted Investments and Securities Act (ISA) 2025, Dr Agama said the law specifically targets the promoters of unregistered investment schemes, including individuals who use their platforms to endorse such ventures.
“The law also covers influencers and bloggers who promote fraudulent schemes, with clear penalties, including imprisonment,” he stated.
Citing the recent collapse of CBEX—a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion—Agama described the incident as a stark reminder of the dangers posed by unregulated financial platforms. CBEX allegedly promised unrealistic returns and falsely claimed international partnerships.
“The collapse of CBEX underscores the urgency of our crackdown. We are shutting down their operations, and the promoters will face the full weight of the law,” he added.
Agama reiterated the Commission’s resolve to protect investors and develop Nigeria’s capital market. He urged Nigerians to verify any investment opportunity with the SEC before committing their money, advising: “If it sounds too good to be true, it probably is.”
He also reassured the public of the SEC’s capability to detect and shut down Ponzi schemes, stating, “We have dealt with similar schemes in the past and will continue to do so, leveraging the powers of the ISA 2025 to safeguard investors.”
In a bid to strengthen regulatory oversight, the SEC has established dedicated departments tasked with monitoring market activities and conducting inspections aimed at detecting irregularities early.
“These proactive measures are designed to prevent large-scale frauds like CBEX from recurring,” Dr Agama said.
He concluded by emphasising the significance of the ISA 2025 as a critical tool in securing the Nigerian investment landscape and building a resilient and transparent financial market.
How Nigerian Banks Earned N14.26 Trillion in Interest Income in 2024
UN Says Billion-Dollar Cyberscam Industry spreading Globally
Digital Transformation Remains Africa’s Gateway to Economic Advancement – Adumike
FlashChange Partners Ruth Foundation to Empower Vulnerable Children in Alimosho with Skill Acquisition
CBN, NGX Group Defend Economic Reforms at Nasdaq
We’re Confident in the Super Eagles – Karl Toriola
FG to Harmonise Fiscal Data Across MDAs
SEC Declares War on Capital Market Fraudsters
EFCC Arrests 133 @ Ponzi Scheme Training Academy
FG, UK FCDO, and Ghana Partner to Launch Sankore
Telecom2 days agoMTN Nigeria Takes Broadband Services to the Next Level with FibreX Launch
News2 days agoSERAP Files Lawsuit Against NBC Over Ban on Eedris Abdulkareem’s Protest Song Tell Your Papa
Telecom23 hours agoDigital Transformation Remains Africa’s Gateway to Economic Advancement – Adumike
Telecom23 hours agoPAFON 2.0: Experts Discuss Pathways to Boost Financial Inclusion in Nigeria
E-Financial2 days agoFCMB Group Redefines Corporate Storytelling with The Power Of The Group TVC
General News23 hours agoEFCC Clarifies SCUML Certificate Misuse amid CBEX Ponzi Scheme Scandal
E-Financial23 hours agoCBN, NGX Group Defend Economic Reforms at Nasdaq
General News23 hours agoFlashChange Partners Ruth Foundation to Empower Vulnerable Children in Alimosho with Skill Acquisition