The Nation Newspaper

Category: Small Business

  • Agri firm gets boost

    Agri firm gets boost

    An agric export firm, AgroEknor, being supported by Aruwa Capital Management, an early-stage growth equity funder, has been recognised for its efforts. DANIEL ESSIET reports.

    FOR AgroEknor, an agro startup, the good times are here.

      The firm, which started from a humble beginning as an exporter of hibiscus flower, has hit the light with  the Best Youth Exporter of The Year conferred on it by the Nigerian Export Promotion Council (NEPC).

    The Executive Director, AgroEknor International Limited, Attah Anzaku, who received the award on behalf of the company during the NEPC gala nite in Lagos, said: “This award recognises AgroEknor’s commendable effort to transform the domestic food systems for increased export earnings while providing access to increased income earnings and quality input to smallholder farmers across Nigeria.”

     The organisation invests in farmers in Kano, Katsina and Jigawa states in the form of input while also serving as off-takers after the crop has been harvested.

     Also, the firm has its processing factory in Kano where it empowers over 100 women. These women are involved in the various segments across the processing value chain of the commodity.

    Aruwa Capital Management, an early-stage growth equity firm, funding gender lens fund investment in Nigeria and Ghana, said it has made a follow-on investment into AgroEknor International.

    In November 2021, Aruwa made an initial investment into the company to accelerate growth by procuring products and exporting huge volumes of hibiscus flowers to meet the demands of clients in Asia, Europe and North America. The company has since launched its Farmers Education and Empowerment Project (FEEP), which aims to help farmers in the North upgrade their farming practices and increase their yields, while serving as a sustainable source for the company’s product.

    Chief Executive, AgroEknor, Timi Oke, said: “Aruwa’s initial investment helped us a great deal to meet and surpass our ambitions including the commencement of the construction of our fumigation chamber with a capacity to process 120 tons of cash crops weekly. With the follow-on investment, we will complete and launch our fumigation chamber, an important integrated backend infrastructure in our business which enables us process and export, globally acceptable cash crops to our clients.’’

    He said the firm has benefited from Aruwa’s portfolio enhancement support from the FEEP programme that provides top-notch sustainable agricultural training, land, access to capital and enhanced farming techniques to farmers in the North.

    The programme has helped over 2,000 AgroEknor small holder farmers and agro processors, most of which are women.

    Founder and Managing Partner, Aruwa Capital, Adesuwa Okunbo Rhodes, added: “AgroEknor’s mission is to improve sustainability and profitability of the agriculture value-chain while securing hard currency export earnings.’’

     and we are fully aligned with the company in that ambition. Since our initial investment, the company has been able to invest in its entire value chain and has demonstrated with the FEEP programme that it has the capacity to make a great impact on small-holders farmers in Northern Nigeria, while providing an avenue for sustainable sourcing of its products.

    AgroEknor is finalising its fumigation chamber which will make it one of the few companies in Nigeria with direct export to Mexico; we believe this will positively change the trajectory of the company. With this follow-on investment, we are reaffirming our belief in the company’s vision, and we are excited to continue to back a proven team as they expand their business to even greater success.”

  • A campaign for project entrepreneurship

    A campaign for project entrepreneurship

    Project entrepreneurship has become more relevant. Some individuals and organisations have embrace it and the concept has brought out innovations which have led to successes in project management. Chief Executive Officer, Undia Integrated Services Limited, Okundia Jonathan is on the campaign to share ideas to boost project management, DANIEL ESSIET reports.

    The Chief Executive Officer, Undia Integrated Services Limited, Okundia Jonathan has worked on many projects and nurtured them on good governance structure to become self-sustained over time.

    For him, the successes of projects depends on the robust project management framework, which will preserve investments and ensure that resources – people, time and money – are used strategically and align to defined business needs.

    He said organisations with the knowledge that project management was key to their business have benefited from keeping up with the evolving demands in the marketplace.

    Jonathan, who has a degree in Engineering, an MBA and a PMP Certification, has been a player in the oil and gas industry as far back as 1998 and has continued to make a mark using project management methodology.

    Explaining what his work entails, he said: “As a project management expert, my work entails integrating all aspects of a project, ensuring that right and adequate knowledge and resources are available and properly utilised, when and where needed, and above all, ensuring that the expected results are produced in a timely, cost- effective manner. As a project manager, I must be able to deliver the intended projects objectives and values to the stakeholders regardless of the prevailing variability. It requires the use of the right tools and techniques in integrating all knowledge areas appropriately from initiation, planning, executing, monitoring and controlling, and then, closing the project when the project objectives have been met structurally and functionally.”

    Giving insight into his specialisation, he stated: “We provide project management services from field development and business planning stages through operation and production, and abandonment in the oil and gas exploration and production life cycle. I have been in this business for over two decades.”

    Sharing his experience, he said it has been very challenging, yet gratifying. He had sleepless nights of brainstorming on concepts becoming a reality and providing value to clients and their stakeholders.

    On core solutions he has brought to clients, he explained: “We have revamped and retrofitted several existing oil and gas facilities onshore and offshore Niger Delta, and built new oil and gas production and processing facilities that are all operational and in production.”

  • Offering a lifeline

    Offering a lifeline

    There is a regional initiative to help small and medium enterprises in the Middle East and Africa to improve their operations. The aim is to boost entrepreneurship. DANIEL ESSIET reports.

    Small and medium-sized enterprises (SMEs) are the cornerstone of economies. Also, entrepreneurship provides a major source of new job creation, according to the International Monetary Fund(IMF).

    The African Guarantee Fund Group, through its subsidiary AGF West Africa, and the Orabank Group, has concluded a portfolio guarantee agreement for a 60billion FCFA ($100million), aimed at increasing the financing of the Orabank Group in favour of SMEs through its subsidiaries in West Africa.

    According to a statement, the agreement was signed by the AGF Group Chief Executive Officer, Jules Ngankam and Chief Executive Officer, Orabank Group, Ferdinand Ngonkemoum.

    The statement said the strengthening of the deal between the two institutions would allow Orabank Group to play a major role in the development of the economies where it operates by providing a solution to the thorny issue of access to financing for the SMEs.

    Last month, Mohammed Bin Rashid School of Government (MBRSG) in Dubai, United Arab Emirate,  in partnership with the Middle East and North Africa (MENA) chapter of the Academy of International Business (AIB),  held a  conference  to discuss how to boost  entrepreneurship and business growth.

    President of AIBMENA and Associate Professor at MBRSG, Dr. Immanuel Azaad, Moonesar, stressed  the need to  build a comprehensive economic ecosystem to bridge the gap across business communities, and rally efforts to build a more inclusive and dynamic economy. The conference featured  two sets of parallel sessions, with topics ranging from Internationalisation to SMEs, Human Resource Management, and Internationalisation among  others. 

    His words: “Diversity, and inclusion of all stakeholders is key for building a comprehensive economic ecosystem to bridge the gap across business communities, and rally efforts to build a more inclusive and dynamic economy. These are the key topics of discussion at the conference, and we hope the takeaways from the event serve as a starting point towards new solutions in the future.”  

    Next year, the conference  would be hosted by Africa Business School, Mohammed VI Polytechnic University, in RABAT, Morocco. Its  11th edition, the theme is, “Scaling Inclusive Entrepreneurship Across Borders for a Sustainable Future”.

  • How Israeli organisations are boosting startups’ capacities

    How Israeli organisations are boosting startups’ capacities

    In recent years, Israeli organisations have been involved in strengthening the capacities of startups in Africa and other continents. There has been increasing funding support for projects focused on innovation and entrepreneurship. DANIEL ESSIET reports.

    In recent years, the Israel Innovation Authority has been funding schemes aimed at attracting and placing human capital from overseas in the Israeli tech industry.  Schemes funded include retraining initiatives for the bio-convergence, foodtech, and other innovative sectors.

    Over the next two years, the Israel Innovation Authority said 2,550 people would receive training and placement in 15 dedicated schemes created to address the human capital challenges in the tech industry, with special focus on advanced technologies, the professions in the growth sectors.

      The Chief Executive, the Innovation Authority, Dror Bin, said: “The tech industry is the growth engine of the Israeli economy, even in periods of slowdown. The development and adaptation of technological platforms and dedicated training, including in ground-breaking fields such as bio-convergence, medical big data and foodtech, will prepare Israel for the evolving needs of the most innovative sectors of the industry.

    ‘’The purpose of the schemes selected by the committee is to make the world of tech even more accessible to thousands of additional employees from a variety of populations, assisted by targeted, innovative and quality training.”   They are not alone. Start-up Nation Central (SNC), a non-profit that promotes Israeli innovation, has recorded successes connecting  leaders of large corporations, large non-government organisations(NGOs) and governments to the people, companies, and  technologies in Israel that can help them address their pressing challenges.

     Few days, a delegation of United Nations ambassadors from 12 countries concluded a week visit to Israel with an introduction to Israeli innovation technology at Start-Up Nation Central.

    The presentations focused on climate and sustainability solutions by early-stage Israeli startups.

    The diplomats visited Start-Up Nation Central headquarters in Tel Aviv to learn about the strengths of the Israeli innovation ecosystem and how it is addressing the Sustainable Development Goals (SDGs) adopted by the United Nations.

     The delegation, which included ambassadors to the United Nations from Belize, Costa Rica, Georgia, Haiti, Israel, Italy, Malta, Moldova, Sierra Leone, Slovenia, Thailand, and the United States, participated in a tour hosted by Israel’s Ambassador to the UN Gilad Erdan.

     Israel’s Ambassador to the UN Gilad Erdan:  ”Through the past five days, the Ambassadors have gained a deeper understanding of the innovative spirit that is synonymous with Israel. Just as on previous delegations, bringing the Ambassadors to Start-Up Nation Central was the perfect way to conclude our time together in Israel. As the Ambassadors continue with their diplomatic responsibilities, I hope they will be Ambassadors for the wonders of Israeli innovation as well, both at the UN and in their home countries.”

    Start-Up Nation Central’s Chief Executive, Avi Hasson: “We are pleased to promote further cooperation with Ambassador Gilad Erdan and to present the extensive capabilities that Israeli technology has to offer to the world. Innovation is an engine for growth and a response to global challenges common to all of us. At Start-Up Nation Central, we are happy to promote solutions that can address challenges outlined by the United Nations’ sustainable development goals.”

     During their visit to Start-Up Nation Central, the diplomats received an in-depth overview of the Israeli innovation ecosystem by Start-Up Nation Central Chief Executive Officer, Avi Hasson, and were invited to partake in roundtable discussions with participating Israeli start-ups and Start-Up Nation Central subject experts.

     Start-Up Nation Central connects Israeli innovation to the world to help international entities solve global challenges. Immersed in the Israeli technology ecosystem, we provide a platform that nurtures business growth and generates partnerships with corporations, governments, investors, and NGOs to strengthen Israel’s economy and society.

  • AfCFTA, ITC partner on small business mapping

    AfCFTA, ITC partner on small business mapping

    THE African Continental Free Trade Area (AfCFTA) Secretariat and International Trade Centre(ITC) have announced the mapping to profile firms and the business ecosystem that supports them.

    Both organisations have also launched the AfCFTA glossary to unpack the legal Agreement for small businesses.

    The glossary, produced with input from the private sector, explains 100 AfCFTA-related technical terms to help small firms to better understand what the agreement means for them. It is available in English and will soon be interpreted in French, Arabic and Portuguese. A mobile application is also under development. This publication was developed by the AfCFTA Secretariat and ITC through the Government of Finland supported One Trade Africa Programme..

    According to Secretary-General, AfCFTA Secretariat, Wamkele Mene, “The AfCFTA glossary fills a void where knowledge material around the AfCFTA Agreement has failed to be small business-friendly thus far. I reaffirm our commitment as the Secretariat, to ensuring inclusivity in trade regarding African small businesses, particularly women and young entrepreneurs, whereby they will be able to be competitive, resilient and able to achieve their full potential.”

    The mapping is a result of thousands of ITC-led surveys and interviews with small businesses and business support organizations across the continent. It covers the characteristics, competitiveness and constraints of African firms, and the performance and interconnectedness of regional business support organizations. The intel gathered will support the sensitization, advocacy and training efforts to be done as part of the AfCFTA private sector engagement plan. Key findings include: 75 per cent of businesses in Francophone Africa have yet to hear about the AfCFTA, 32  per cent of African firms report having a business website, with women-led firms less likely to have one,and  42 per cent of African exporting firms invest heavily in research and development, compared to 24 per cent  of non-exporting firms, showing that exporting firms are more likely to innovate.

    Read Also: UN urges FG to harness AfCFTA for diversification

    ‘To unlock intra-African trade, we need data on small firms’ characteristics and the performance of business support organizations. That’s why we’re mapping Africa’s private sector. Our partnership with the AfCFTA Secretariat is all about ensuring the Agreement delivers for businesses, especially those led by women and youth’ , Executive Director, International Trade Centre, Pamela Coke-Hamilton,said.

    This joint venture between the AfCFTA Secretariat and ITC illustrates the organizations’ collective efforts to understand and address the challenges faced by small businesses on the Continent.

    AfCFTA is one of the flagship projects of Agenda 2063: The Africa We Want and entered into force on 30 May 2019. It is a high-ambition trade agreement, which aims to bring together all 55 Member States of the African Union, covering a market of more than 1.3 billion people, with a comprehensive scope that includes critical areas of Africa’s economy, such as digital trade and investment protection, amongst other areas. By eliminating barriers to trade in Africa, the objective of the AfCFTA is to significantly boost intra-African trade, particularly trade in value-added production and trade across all services sectors of Africa’s economy, at a potential of 52.3  per cent.

  • Raising hi-tech vegetable entrepreneurs

    Raising hi-tech vegetable entrepreneurs

    Team Lead, Soilless Farm lab, Samson Ogbole, grows pesticide free food. He is partnering MasterCard Foundation to raise 12,000 youths in technology-enabled vegetable production, DANIEL ESSIET reports.

    Team Lead, Soilless Farm Lab, based in Owiwi, Abeokuta,  Ogun State, Samson Ogbole, is one of Nigeria’s hydroponic farmers.

    He uses the technology to grow fruits and vegetables in nutrient-rich solutions without  soil, sun or pesticides.

    Earlier, Ogbole used hydroponic technologies to grow yams using vine seedlings. He specialises in various hydroponically-grown lettuces and other vegetables that are pesticide- and herbicide-free.

    He said hydroponics is a profitable business as it help investors to grow bigger, faster and healthier plants.

    Like other greenhouse operations, Ogbole trains people to grow vegetables and sells lettuce and other vegetables to restaurants and five-star hotels.

    Deploying hydroponics on a four-acre land, he believes, youths can make a living.

    He has produced hydroponic kits for home/flat owners to grow vegetables.

    His success has earned him the endorsement of former President  Olusegun Obasanjo.

    At the moment, Ogbole is partnering the Master Card Foundation under the Enterprise for Youths in Agriculture (EYiA) to groom 12, 000 youths who will be trained to produce exportable leafy greens and berries, including lettuce, kale, spinach, and celery without soil.

    The goal of the three–month  objective, he explained, is to improve the livelihoods of youths and women by training and creating jobs opportunities for 12,000 direct beneficiaries and 45,000 indirect beneficiaries.

    The programme will teach trainees, the basics of growing crops, farming technology, farm operations and automation and business. According to him, the beneficiaries would be taught how to incorporate artificial intelligence and machine learning into farming.

    Ogbole has secured 144 acres for the project. A cluster of 50 students will work on three plots each. The beneficiaries, he said, would have access to logistics and a storage in the farm. Each cluster, according to him, would be registered.

    His words: “All 50 students in a group have joint ownership of three- plots hydroponics farm. Each group will have the technical team (16), Agronomy team (12), Packaging/branding team (eight), logistics (six) and Account/Management team (eight).”

    He explained that students would be trained on basic greenhouse and soilless farm setup

    The students, he continued, would get a stipend during the training. The other thing is that accommodation is provided for three months.

    One thousand youths, he said, would be trained every quarter for three years.

    He said the end result is to create higher value agro businesses that would   bolster economic growth and stimulate long-term benefits, by raising women and youths entrepreneurs and helping them connect to a national value chain.

    He however, explained that the programme is for youths between 18 and 29 years.

    In line with Master Card Foundation’s Diversity & Inclusion strategy, he said the initiative will focus on addressing that specific gap by educating women entrepreneurs on the different opportunities available for them to explore within fresh produce space. He hopes the  trainees could  pilot new vertical farming start-ups that would  grow vegetables  using greenhouses.

     

  • NDE engages 2000

    NDE engages 2000

    The National Directorate of Employment (NDE) has engaged 2000 youths for training and employment under the artisans in Collaboration Construction Employment Scheme (ACCES) of the Directorate.

    The participants were drawn from the states across the Federation, Federal Capital Territory (FCT) and the national grid. Fifty participants reflecting the senatorial zones of each state were selected across the federation and the FCT, with the rest obtained from the national grid.

    Having gone through mandatory three-month training under major construction firms in the country, the graduates are to be either absorbed by the construction organisations where they were trained or empowered to be self-employed.

    NDE Director-General, Mallam Abubakar Nuhu Fikpo, said Nigeria is blessed with  heavy and light construction industries, medium and small sizes with opportunities for the unskilled and semi-skilled unemployed Nigerians to be accommodated for gainful employment.

    He explained that artisans in collaboration construction employment was a  scheme designed to equip the youths with critical skills required to earn a living in the multifaceted construction industry.

    Unemployed youths, numbering about 2000, he indicated,were recruited and attached to construction firms.

    “Generally, they learnt from technical supervision, overseeing the daily activities on sites, planning, managing and tracking the progress on  construction projects.”

    According to the Director-General, part of what the  participants would learn include the use of heavy construction equipment, skills such as fixing and maintenance of door handles, cylinders, engines, construction and installations of building frameworks including windows, walls and floors amongst others. Graduates of higher learning among them, he  said, were expected to develop high quality and cutting edge 2D and 3D arts and models from photos and real world objects, utilizing  modeling, mapping, texturing and  lighting techniques.

    “Among them, we hope to develop electricians, plumbers, glaziers, painters, insulation professionals, solar photovoltaic installers and the likes”. “NDE is synergising with firms of diverse intent and sizes including the conglomerates to fashion out jobs for the willing youths”.

     

  • Small Business: Navigating turbulent times

    Small Business: Navigating turbulent times

    Startups and small businesses weathered economic storm and showed a lot of creativity to overcome environmental problems. Despite some challenges, which raised new concerns, there were moves to address issues that hurt businesses, DANIEL ESSIET reports.

    This year, startups  in Africa recorded  one of the  highest layoffs in history, as over 119,000 employees from about 861 firms lost their jobs.

    The cheering news  is that 383 tech startups raised $2,068,709,445 between 2015 and this year, according to the Nigerian Startup Ecosystem Report 2022, by  Disrupt Africa.

    Startups attracted more investors in the year as funds raised so far are nearing $1 billion.

    For stakeholders, the Nigeria Startup Act 2022 signed by President Muhammadu Buhari on October  19, 2022, was the biggest news of the year.

    With the passage of the Act, stakeholders believe the sector  will  experienced an increased growth in the number of startups.  It  is expected to impact positively, the country’s unemployment rate of 33.3 per cent

    According to a report from Disrupt Africa, Nigerian tech startups have so far employed about 19,344 people by August.

    To expand the net of employment opportunities for young people in Lagos State, Governor Babajide Sanwo-Olu, announced a 100 per cent increment in capital subvention to Lagos State Employment Trust Fund (LSETF) to provide  support to business owners and entrepreneurs for wealth creation and to tackle unemployment.

    The governor doubled the agency’s subvention to further increase access to finance for budding entrepreneurs seeking to grow their businesses through soft loans and funding support.

    Sanwo-Olu said the incentive would further strengthen other state government’s interventions initiated towards empowering and upskilling innovative young people, while also providing support grants for established businesses.

    The Commissioner for Wealth Creation and Employment, Mrs. Yetunde Arobieke, said the government was training artisans and tradesmen and that it was part of  a bigger plan to professionalise artisans, and upgrade their skills.

    In conjunction with Lagos State Technical and Vocational Education Board (LASTVEB),  she said the government was providing skills under the 14th Ministry of Wealth Creation upskilling/capacity building for artisans and tradesmen/women, where 1,700 people would be trained.

    She added that the programme would improve the employment of artisans, through technical top-up training, occupational health and safety training, soft and business skills training, retooling with equipment, financial literacy and easier access to licensing.

    On June 6,  this year, Mr Olawale Tunde Fasanya  appointed the Director- General, Chief Executive Officer, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), by President Muhammadu Buhari.

    To ensure access to finance for MSMEs, he said agency is partnering African Centre for Global Entrepreneurial Leadership (ACGEL) to implement the Leadership Entrepreneurial Game Show (LEGS) where successful participants will be given N5million worth of grants and tools.

    The agency is also partnering the Bank of Agriculture (BOA), Jaiz Bank and Sterling Bank to implement the Matching Fund Programme for Micro and Small Enterprises towards increasing access to finance. This intervention is delivering credit, as a promotional mechanism to enhance enterprise output, competitiveness and job creation. Prospective beneficiaries can have access to loans between N2.1 million and N5 million.

    This programme had been executed in the following states: Kaduna, Oyo, Plateau, Kano, Imo and Edo as well as the Federal Capital Territory (FCT) and are set for disbursement. While enterprises in Katsina, Kogi, Nasarawa, Niger, Jigawa, Bauchi and Adamawa states have submitted their business plans and awaiting processing.  Besides this, SMEDAN empowered 90 entrepreneurs in Akwa Ibom State to engage in various vocational skills with equipment to boost the economy and reduce unemployment.

    Donor support

    Deutsche Gesellschaft fur international Zusammenarbeit (GIZ) said it is partnering with SMEDAN on developing policies to strengthen small businesses across the country. The  Cluster Coordinator, Sustainable Economic Development Cluster (SEDEC ) GIZ, Markus Wauschkuhn said the partnership is aimed at increasing employment and income of micro, small and medium enterprises in Nigeria.According to him, the project will focus on removal of constraints in the business regulatory and institutional environment for ease of business operation. GIZ ‘s goal of the partnership, he explained, included improving the framework for MSMEs finance through stakeholders dialogue, enhancing business development services to MSMEs, among others.

    To support Nigeria tackle its high youth unemployment, the Pro-Poor Growth, and Promotion of Employment (SEDIN) – a programme of GIZ is equipping secondary school pupils with entrepreneurial skills.

    SEDIN, through its Student Entrepreneurs Activities- Hub (SEA-Hub), has trained 30,000 secondary school pupils on entrepreneurial skills needed to run successful businesses in its partner states – Niger, Ogun, Edo, Lagos, and Plateau.

    The SEA-Hub training provides education, mentorship, and practical entrepreneurship experience and activities for students. It has birthed the SEA-Hub club which has been inaugurated in 342 secondary schools in FCT and 10 other states.Wauschkuhn, said SEA-Hub is targeted at inculcating basic entrepreneurship training in secondary schools to prepare students for the future. Since its launch, it has covered 64 local government Areas (LGAs) across the active states, and over 300 student graduates are running their businesses that have created a job or two.

    Also, it has impacted over 700 teachers  with many running their businesses.The programme was piloted at the federal level with 18 Federal Unity Colleges across the si geo-political zones.

    Students of the programme implemented community projects from their business proceeds as CRS projects.

    However, small businesses continued to face challenges, mostly due to structural economic failures and poor infrastructure.

    Consequently, National President, Association of Micro Entrepreneurs of Nigeria (AMEN), Prince Saviour Iche,  expressed sadness over increasing state of poverty and hardship.

    He   cried to the states and the Federal Government over the worsening business challenges that have killed up to 68 per cent of local industries.

    He decried the high cost of diesel, sold at about N750 per litre, noting that there was no hope for electricity and even where there is, the bill is usually very high.

    He urged the government to come to their aid as micro-entrepreneurs and small businesses were having lots of challenges and could no longer survive due to unfriendly policies.

    Indeed, SMEs remained resilient in the face of rising inflation. The owners of Small and Medium Enterprises (SMEs), under the auspices of the Association of Small Business Owners of Nigeria (ASBON) have stated that the performance index of Micro, Small and Medium Enterprises (MSMEs) have been depleted by prohibitive cost, energy cost, high inflationary environment, forex constraints, shortage of raw materials, dearth and scarcity of manpower resources, among others.  President, ASBON,Dr Femi Egbesola, noted that  MSMEs have shown themselves to be resilient in the face of the ongoing challenges of rising inflation.

    According to him,   rise in input prices, was a major concern for the business sector. He explained that small business owners were operating under  overarching economic conditions which had  marked impact on confidence and activity.

    As interest rates rise, he noted the burden for SMEs, casting  further doubt over their survival. He said businesses desperately need to see economic stability as the situation  painted a worrying picture of the state of affairs at many  organisations.

    Collectively, they  noted that  key business indicator  showed downwards, sounding alarm bells across all sectors.They urged the government to address the volatility in the financial and currency markets to return stability to the economy and give business some certainty to plan.

    The Nigerian Association of Small and Medium Enterprises (NASME) said over 600,000 Micro, Small and Medium Enterprises (MSMEs) were shut by their owners in the last one year, due to unfavourable business environments and other socioeconomic challenges.

    The President, Governing Council, NASME, Dr. Abdulrashid Yerima, regretted that the survival of businesses has become the most difficult situation in the country. “The major challenge bedevilling MSMEs in Nigeria is power, which has negatively affected competitiveness.”

  • UNIDO: Intensfying vocational training

    UNIDO: Intensfying vocational training

    Globalisation and the transition to digital economy are driving demand for workers with new skills and expertise. The United Nations Industrial Development Organisation (UNIDO) and others are intensifying  vocational training to boost  skills development to meet demand and help create jobs. DANIEL ESSIET reports.

    The United Nations Industrial Development Organisation (UNIDO) and other partners are committed to stimulating Southsouth and triangular cooperation as a means of accelerating Africa’s industrialisation. This will lead to greater innovation and opportunities for developing countries to learn from each other and share good practices, Managing Director, Global Partnerships and External Relations, Fatou Haidara, has said.

    At country level,  she said UNIDO is implementing projects and programmes in various areas including the energy sector, agro-industry and agribusiness, standards and quality infrastructure, micro, small and medium enterprises( MSMEs) and industrial agglomerations development, where public and private sector comes together to enhance productive capacities through investment and technology.

    Recently, Regional Director, United Nations Industrial Development Organisation (UNIDO), Nigeria, Mr Jean Bakole, announced that the organisation had provided free training for 15,000 small and medium entrepreneurs (SMEs) in Nigeria. Bakole  said  the support for the SMEs was part of UNIDO’s technical support and response which focused on industrial governance.

    He said the training was aimed at supporting the SMEs on skill acquisition to formalise their businesses, helping them on master plan development and facilitating their access to credit. He  said  SMEs represented about 96 per cent of the businesses in the country, adding that attention should be given to them since they were the foundation of industries.

    According to him, SMEs contribute 50 per cent of the GDP and have provided over 48 per cent of employment in the country.

    Last month, the National Board for Technical Education (NBTE) reported plans to partner with Morocco to promote a capacity-building approach among Nigerian youth.

    A Nigerian delegation, led by NBTE Executive Secretary Idris Bugaje, paid a visit this week to Casablanca’s Office of Vocational and Employment Promotion to learn more from Morocco.

    Bugaje noted that the Moroccan capacity-building approach is “very good,” especially for sub-tertiary training.  The executive explained that Morocco is enrolling young people aged 15 in skills for vocational training programs that last up to six years. The trainees are later exported to Europe and other countries, serving as a “huge source of foreign exchange” to the country. Rabat and Lagos expect to sign a memorandum of understanding (MoU) to “facilitate the training of lecturers and assessors in Morocco as a collaborative effort[and equip Nigerian youth with skills,” Bugaje said. The NBTE chief added that the draft MoU was presented before Nigeria’s minister of education for approval. “As soon as this is done, Nigeria and Morocco will work together to promote and equip Nigeria youths with skills,” he added.

    During an official visit to Morocco, Director General,UNIDO, Gerd Müller, met  Director General, the Office of Vocational Training and Employment Promotion (OFPPT), Loubna Tricha, to discuss the UNIDO-Morocco partnership on skills and human capital development in support of Morocco’s industrial strategy. The OFPPT is the main public vocational training operator in Morocco, working on market-driven human resources development and employability, and contributing to business sector development that supports the national economy. Müller and Tricha also discussed ways to strengthen cooperation between Morocco and UNIDO on vocational training and triangular cooperation for and with other African countries.

    Tricha noted that the OFPPT has helped nearly 7,000 young people from sub-Saharan Africa receive training in Morocco, and trains around 1,000 people each year in around thirty African countries. Müller said, “UNIDO needs the OFPPT to help implement triangular cooperation in Africa.”

  • The rise of micro multinationals

    The rise of micro multinationals

    Many years ago, only big businesses operate across nations. Not so any more. DANIEL ESSIET reports.

    The search for new markets in Africa has been dominated by big foreign multinationals. These include companies such as Bayer and Unilever. Because of their wherewithal, they are able to  expand into overseas’ markets,  taking advantage of their organisational strength.

    But small businesses are exploring new regions. Known as micro-multinationals, small businesses   have scaled operations by establishing mini-offices to explore new business opportunities. Micro-multinationals are extending their  business internationally.

    One of them is Afroganiks, a top herbal products manufacturing firm.  Its co-founder, Jeff Akaehie said the organisation operated in six African countries – Nigeria, Liberia, Sierra Leone, Ghana, Togo and Cameroun.

    Recently, it expanded its operations to The Gambia with plans to enter the South African market.

    “We entered The Gambia last week and South Africa is extending a hand to us,” Akaehie said.

    Afroganiks has launched six herbal products into the market. They are – Afroganiks wellness tea, Prostagen, Afroganiks cleanser bitters, Greenolax capsules, Cynoyvit and Free-flow.

    “We began to operate in Nigeria seven years ago and the product began to speak for itself and other African countries began to demand,” he said in Lagos.

    He said his firm was reinventing herbal medicine by subjecting plants used for its products to clinical studies and trials.

    “We have several potent herbs but people don’t know how to turn them into medicines that are well-dosed,” he said.

    Akaehie,  also a medic, noted that their products are certified by the National Agency for Food and Drug Administration and Control (NAFDAC), adding:  “Our products are affordable with good quality due to the processes we undergo in researching our products.”

    The co-founder said inflation and foreign exchange scarcity had been major issues confronting the business. He said: “Inflation has been a major issue for us. We keep increasing our prices frequently.’’

    “It has not been easy and the FX scarcity is also making getting raw materials difficult. Even when you have the money you can’t get the forex you need.”

    More products made from his herbal recipes will enter new markets, taking their health qualities to parts of Africa.

    The President, Association of  Micro Entrepreneurs of Nigeria (AMEN), Prince Saviour Iche, enjoyed the benefits of running  a micro-multinational through representatives he had in other African countries selling his products.

    He manufactured  various personal care producers  which have been   appreciated by buyers.

    Though a small business outfit based in Igando area of Lagos, he has been nimble and innovative, using agents  to  find niches and gaps in the market in Africa.  He established partnerships that resulted in export orders from neighboring countries .

    Rather than establishing fixed office premises, some small business look for agents outside of Nigeria.

    For Iche, the potential revenue stream that a neighbouring market  provides is invaluable, but he has lost several of such opportunities when after the government closed the borders between Nigeria and Benin Republic.

    According to him, the agents produce their products when they found how difficult it was to move goods from Nigeria to their countries.