As small businesses across Africa struggle to recover from COVID-related economic hits, 40 enterprises in Lagos are showing how to successfully rebound.
A nine-month initiative from Citibank Nigeria Limited (Citi) and the international non-profit organisation, TechnoServe, resulted in revenue increases for nearly 70 per cent of participating businesses, with 100 per cent now using a digital platform for business.
The project provided targeted support to these enterprises, which ranged from fashion production and retail, cybercafés, cosmetics to logistics etc by building their capacity in business branding, business growth and expansion, and digital marketing.
TechnoServe also helped the entrepreneurs improve their businesses’ resilience through tools like insurance and security services as well as access to finance resources.
“I learned how to brand my business and win the hearts of more customers, which was one of the critical areas that I struggled with,” said Temitope Ishado, owner of DGTEENS Café.
“I did not realise that implementing little actions like redesigning my logo, renovating my shop, and painting with the right colours will have such a quick positive impact in improving customer acquisition and retention.”
Improved performance for businesses like Temitope’s is critical for Nigeria’s economy, where
41 million micro-businesses and 73,000 small and medium businesses in Nigeria employ 86.3 per cent of the total workforce.
In addition to providing essential goods and services to their communities, 17% of small businesses and 12% of medium-sized enterprises are owned by women, with many a leading source of employment for youth and women workers.
However, small businesses in Nigeria are highly vulnerable to shocks such as the COVID-19 pandemic, where lockdowns devastated sales for many enterprises.
At the height of the pandemic in July 2020, a TechnoServe survey of hundreds of small business owners around the world found that roughly two-thirds reported decreased sales that past month.
The Citibank Nigeria-TechnoServe initiative sought to help Nigerian enterprises overcome COVID-related challenges and demonstrate a model that could be scaled up to support other businesses.
For instance, during COVID-19, many large businesses adopted digital tools to facilitate marketing and distribution of their products in response to COVID-19. Many smaller businesses, however, lack the capacity to do that effectively.
In addition to business training and mentoring, TechnoServe helped the Lagos entrepreneurs begin or enhance digital operations of their business.
These tools will help businesses maintain access to customers, supplies, and information despite future crises.
While nearly four out of five entrepreneurs were using digital tools at the start of the project, all of them had digital platforms by the project end.
Chinedu Wilson, owner of Vagmon E-Group and Logistics Ltd, said that her business advisor’s recommendation to open a Google for Business account transformed his marketing operations.
“It is truly amazing to experience the difference that marketing through this platform has made in my business within a short time,” she said.
“We now have a reach of one million potential customers, and a few have been converted to actual customers. We have resuscitated other social media platforms that were redundant, and we have the same digital branding across all platforms. The program delivered beyond my expectations.”
Participating enterprises also expanded local employment, with 25 per cent hiring at least one additional young person to their staff.
According to Ireti Samuel-Ogbu MD/CEO Citibank Nigeria Limited, “Citi’s efforts in tackling longstanding societal challenges remains a priority amid a global health crisis that has created economic and social upheaval.
Citi’s commitment includes investment for activities in key areas that support financial and economic inclusion which aligns with UN SDG 8 Decent Work & Economic Growth.
“Nigeria’s small and medium-sized businesses represent an enormous opportunity for economic growth and employment—if they get the right support,” said Ayokanmi Ayuba Interim Director TechnoServe in Nigeria.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
TechnoServe is a leader in harnessing the power of the private sector to help people lift themselves out of poverty. A non-profit organization founded in 1968, we work in 30 countries to build regenerative farms, businesses, and markets that increase incomes. Our vision is a sustainable world where all people in low-income communities have the opportunity to prosper.