…Over the past year, Afreximbank has provided capacity-building and market access support to around three thousand SMEs across 34 countries
MON NOV 04 2024-theGBJournal| Woodhall Capital, a financial Services firm, has signed a $25 million loan facility with the African Export–Import Bank (Afreximbank) to provide a support vehicle for Nigerian SMEs entering export markets.
The signing ceremony took place during the inaugural Afreximbank SME Development Workshop and Stakeholder Engagement Programme, themed “Nurturing African SMEs: Bridging the Barriers to Export”, currently ongoing at the prestigious Zinnia Hall, Eko Hotels & Suites in Lagos.
While declaring the workshop—attended by over 400 stakeholders—open, the Executive Vice President of Intra-African Trade & Export Development (IAED) at Afreximbank, Kanayo Awani, noted that the event is a call for Nigerian SMEs to be champions of trade that accelerate development in Africa.
“This event, held in collaboration with Woodhall Capital, aims to develop the capacity of SMEs, the backbone of Africa’s economy. It’s not just about nurturing SMEs; we’re also looking to identify financial institutions that can better serve SMEs,” she said.
In Africa, SMEs account for 90% of business activity, and studies indicate that they also represent an average of 60% of total formal employment in developed and developing countries.
Stressing the importance of the collaboration with the financial advisory firm, Awani disclosed that around 60% of SMEs struggle with access to finance.
“SMEs in Africa still face significant obstacles to growth and prosperity, as only a small fraction venture into the export market, and even fewer have sustained long-term success. Bridging these barriers can empower SMEs to thrive on a continental and global scale. Access to affordable, appropriate finance is consistently cited as a major obstacle for SMEs.
“Over the past year, Afreximbank has provided capacity-building and market access support to around three thousand SMEs across 34 countries.”
According to Nigeria’s Minister of State for Finance, Dr. Doris Uzoka-Anite, represented by the Executive Director of MSMEs at the Bank of Industry, Alhaji Shekarau Umar, out of the 58 African countries, 39 do not have populations exceeding 39 million.
“So if, in Nigeria, we have SMEs alone totalling 39 million, it means that selecting Nigeria to launch the inaugural workshop is both deliberate and significant. We believe that Afreximbank’s interventions will enable African SMEs to overcome barriers to cross-border trade.
“I urge you all to go beyond the traditional issues SMEs face, like access to funds, and start discussing access to markets and capacity. We must understand that the funds provided to SMEs, if not accompanied by capacity-building, will be wasted,” Dr. Uzoka-Anite said.
Other notable speakers addressing stakeholders at the workshop included the Managing Director of Export Development at Afreximbank, Oluranti Doherty; the Governor of Nigeria’s apex bank, Dr. Olayemi Cardoso, represented by Director of Risk Management at the Central Bank of Nigeria, Dr. Blaise Ijebor; and the Head of SME Development at Afreximbank, Ody Akhanoba.
The US Consul General, Will Stevens, represented by the Managing Director of Trade at Prosper Africa, Daniele Jean-Pierre, and the founder of Oriki Group, Fola Olowu, also participated, discussing the African Growth and Opportunity Act (AGOA).
In addition to various presentations equipping over 400 Nigerian SMEs with tools for scaling up and succeeding in export, panel discussions addressed creating an enabling environment for sustainable growth and facilitating access to finance for African SMEs, with input from industry leaders across sectors.
Discussing the role of Woodhall Capital in enabling financial institutions, governments, and SMEs to access funding, the founder of the financial advisory firm, Mojisola Hunponu-Wusu, shared how the firm grew from a small-scale operation to a global institution with Afreximbank’s support.
“Afreximbank has been integral in taking this small company and giving us the audacity to believe an African indigenous company can go global. They have supported us with various products and the backing of our esteemed advisory board members. Woodhall Capital is living proof that a small firm, with proper training and guidance, can achieve global scale with the support of African institutions.
“This workshop demonstrates that any SME here, no matter how small, with the right mindset, can achieve success. We are here to discuss what African SMEs need to gain the right support,” she stated.
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