Woodhall Capital, a financial services firm, has recently secured a $25 million loan facility from the African Export-Import Bank (Afreximbank) to assist Nigerian small and medium enterprises (SMEs) in accessing export markets. The signing ceremony for this significant financial collaboration coincided with the inaugural Afreximbank SME Development Workshop and Stakeholder Engagement Programme held in Lagos, which focused on ‘Nurturing African SMEs: Bridging the Barriers to Export.’ The event aimed to raise awareness about the vital role of SMEs in Africa’s economic landscape and to call upon these enterprises to become key players in driving trade and economic development across the continent.
Kanayo Awani, the Executive Vice President of Intra-African Trade & Export Development at Afreximbank, emphasized the necessity of empowering Nigerian SMEs to enable them to become champions of trade. She noted the dual focus of the workshop: nurturing SMEs and engaging financial institutions to better meet the needs of these enterprises. Awani highlighted that a significant number of SMEs, approximately 60%, struggle with access to finance, limiting their potential for growth. The lack of appropriate financing options has been identified as a primary hurdle that inhibits SMEs from venturing into export markets and achieving sustained success—an issue that directly affects the economic landscape of the continent.
Furthermore, the challenges faced by SMEs in Africa were underscored by Awani’s remarks, stating that a large portion of SMEs encounters barriers that hinder their growth. She pointed out that even though small and medium enterprises constitute about 90% of business activities in Africa, only a limited number have managed to compete in international markets effectively. The importance of financial support to alleviate these obstacles was reiterated, as Afreximbank has already extended capacity-building assistance and market access opportunities to approximately 3,000 SMEs across 34 countries over the past year. This reinforces the need for comprehensive strategies that not only provide financial resources but also foster skills development within these entities.
In a related context, Nigeria’s Minister of State for Finance, Dr. Doris Uzoka-Anite, emphasized the unique position of Nigeria within the African landscape by highlighting the substantial number of SMEs operating in the country. With approximately 39 million SMEs, Nigeria’s participation in the inaugural workshop signifies the importance of this sector in fostering intra-regional trade. She urged stakeholders to go beyond traditional conversations focused solely on financial access, stressing the critical need for discussions surrounding market access and capacity-building initiatives that effectively equip SMEs for success. Uzoka-Anite’s insights reflect the prevailing sentiment that funds alone will be insufficient unless accompanied by robust support systems for training and resource management.
Mojisola Hunponu-Wusu, the founder of Woodhall Capital, shared valuable insights into the pivotal role of her firm in enabling SMEs, financial institutions, and governments to access much-needed funding. Drawing upon her own experience of growing Woodhall Capital into a global institution with the support of Afreximbank, she portrayed an inspiring narrative about the potential of indigenous African companies to thrive with the right training and guidance. Hunponu-Wusu’s emphasis on the transformative power of support from institutions like Afreximbank showcases the workshop’s purpose of encouraging SMEs to adopt a success-oriented mindset, demonstrating that even the smallest firms can reach impressive heights.
As the workshop invited discussions on the support structures necessary for nurturing SMEs, discussions about the multifaceted challenges faced by these businesses became central to the dialogue. The emphasis on the interplay between access to financial resources and the critical component of capacity-building underscored the need for comprehensive support systems. It became evident that an integrated approach, addressing both financial access and the enhancement of operational capabilities, is crucial for empowering SMEs and fostering an export-driven economy in Nigeria and across Africa.
In conclusion, the collaboration between Woodhall Capital and Afreximbank represents a notable step toward bridging the financing gap that Nigerian SMEs face in their quest to enter export markets. Through workshops, capacity-building initiatives, and an emphasis on addressing holistic challenges faced by SMEs, stakeholders are forming a united front to unlock the potential of these businesses. By equipping SMEs with the right skills and access to finances, there lies the opportunity for these entities not only to participate in the global economy but also to contribute significantly to the broader African economic landscape, paving the way for sustainable growth and development across the continent.
