A financial services firm, Woodhall Capital, has signed a $25m loan facility with the African Export-Import Bank to support Nigerian Small and Medium Enterprises 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’, held in Lagos.
While declaring the workshop open, the Executive Vice President of Intra-African Trade & Export Development 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.
Awani disclosed that about 60 per cent of SMEs struggle with access to finance hence the importance of the collaboration with the financial advisory firm,
“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 and 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 3,000 SMEs across 34 countries,” Awani said.
SMEs account for 90 per cent of business activities on the African continent, and studies indicate that they also represent an average of 60 per cent of total formal employment in developed and developing 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, 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,” Uzoka-Anite said.
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, said: “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.”
GIK/APA