Microsoft aims to support 10 million small and medium-sized enterprises (SMEs) by the year 2025
Microsoft Corporation has declared its dedication to empowering ten million small and medium-sized enterprises (SMEs) by 2025. This commitment was announced by Lillian Barnard, President of Microsoft Africa, during a press conference in Lagos where a five-year strategic partnership with Flutterwave was unveiled.
Microsoft's goal is to provide SMEs with essential tools, infrastructure, and support for scaling, thereby facilitating their growth and encouraging strategic collaboration. Barnard emphasized Microsoft's commitment to accelerating economic growth in Africa through the transformative capabilities of technology, with a specific focus on enabling SMEs to access the digital financial tools and services necessary for their success.
"We are convinced that increased access to technology and innovation is the cornerstone for nurturing robust local businesses that can contribute to stronger economies, ultimately paving the way for a brighter future for all."
Moreover, she highlighted the role of fintech companies in assisting SMEs and the informal sector, which play a significant part in job creation, accounting for seven out of every ten jobs in the country and contributing around 40 percent to a nation's Gross Domestic Product.
A significant hurdle faced by SMEs and startups is their limited access to financial services and the challenge of conducting smooth transactions across various local payment methods.
Even though roughly 90 percent of transactions in Africa are still reliant on cash, as many as half of small businesses lack access to credit.
Ola Williams, the Country Manager of Microsoft Nigeria, stated, "To drive sustainable growth in Nigeria, small businesses require the capacity to actively engage in local and even global markets. This journey begins with digital financial inclusion."
Williams emphasized, "If we aim to construct a more resilient nation and, in the end, a more prosperous continent, our initial step must be to furnish these businesses with the digital financial services necessary, not only for their survival but for their prosperity."
This strategic partnership between the payment technology company and Microsoft Azure is designed to expedite payment innovation in Africa and bolster the development of small businesses throughout the continent.
Small and Medium-sized Enterprises (SMEs) continue to play a central role in Africa's advancement, employing roughly 90 percent of the population and spearheading innovative solutions to address societal challenges.
However, despite their pivotal position, SMEs encounter substantial barriers, notably restricted access to financial services and difficulties conducting frictionless transactions utilizing local payment methods. The prevalence of cash-based transactions further underscores this challenge, as approximately 90 percent of transactions still rely on cash.
Additionally, around half of small businesses face obstacles in accessing credit. These formidable hurdles underscore the pressing demand for inventive solutions to empower and elevate SMEs across Africa.
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