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Tag: SMEs’

  • SMEs need funding, advisory services, says SEL Capital CEO

    Small and Medium Enterprises (SMEs) remain the backbone of many economies. Managing Director/CEO, SEL Capital Limited, Segun Opaleye speaks with COLLINS NWEZE on the company’s plan to raise N2 billion SME Fund, provide investment advisory services to High Net-worth Individuals (HNIs) and plan to transit to merchant bank in the next three years. He also speaks on high cost of funds, challenges in investing in power sector, the consumer market space and foreign investors’ considerations in developing economies.

    The Nigerian economy needs a lot of electricity to thrive. But many operators within the power sector always complain that they are not getting the right result from the sector. What risk do you see in funding the sector?

    The major problem in the power sector is illiquidity. When you look at the entire value chain, you have the Gas Company (Gasco), the power generation companies (Gencos), and power distribution companies (Discos) and government agencies as well. For example, you have a Genco that is supplying about 900 mega watts to the grid but getting paid half of that due to Aggregate Technical, Commercial and Collection (ATC & C) losses. So, today, no investor will want to lend to any sector that is plagued with illiquidity. For us, we are very careful and that is why we support captive power plant projects.

    With captive power plant, there is a willing buyer and a willing seller. So, you are only taking the risk of the off -taker or the buyer. If you see any power project getting funded easily, it is most likely to be a captive power plant because all the illiquidity challenges are not there. So, you really will not go wrong with such.

    As long as those challenges in the sector are not addressed, the sector will not be attractive to funding.

    There is a funding gap in consumer finance segment, which you also want to explore. What do you think has improved in that sector to enable you take such risk?

    Consumer finance is a very massive market and very risky business as you rightly pointed out. But again, you are taking the risk of the individuals. So, we find out the risk of lending to you and that will determine the rate you will get. Of course, there are some cases where the proposed borrower does not meet our risk management criteria. In that case, we cannot go forward. We developed a proprietary algorithm that enables us sieve out the people we cannot lend to.

    But if you are in lending business, you will still have some bad loans, but a good collections structure and your ability to sieve those that will not payback help reduce the non-performing loan rate. It is a tough market, but if you understand the market very well, you will do well.

    Which aspect of the financial services sector does SEL Capital Limited specialise in?

    SEL Capital Limited was incorporated to seize emerging business opportunities in the financial services sector. Our vision is to become a leading Pan-African financial institution, offering financial advisory, wealth management & investment advisory services and provision of funding solutions to individuals, Small and Medium Enterprises (SMEs).

    We also help project promoters to create bankable projects and access funding for their projects. Our aspiration is to be the gateway and catalyst for mobilising capital for growth and development across Africa.

    And that is essentially, the way we are structured. We are starting off with consumer finance, SMEs structured finance, all advisory services around project finance, corporate finance and wealth management.

    We are one-stop funding solution. We want to leverage our transactions experience working in one of the biggest financial institutions in Africa to drive business growth, which we believe is the required catalyst for growth and development in any economy.

    Regarding funding for SMEs, are there special approach you are deploying to achieve your vision within that segment of the market?

    One of the major challenges facing SMEs is that a lot of times, the business is not in a position where one can go to sleep as a lender or a potential equity investor. What we usually do for them is to start them off with the advisory services, helping them to understand exactly how the business should be structured for easy access to capital.

    So, we take so much time in guiding them through what is required to run a proper business. We try as much as possible to help them create a structure that clear the usual doubts about SMEs.

    Although everybody talks about providing support to SMEs, the question is are you really giving them the solutions that set them apart from the pack? First and foremost, you have to get them to the point where the structure supports transparency, good governance and sustainable business. That is what we are doing:  guiding them through the process and helping them to fund and grow their businesses.

    You also talked about the High Net Worth Individuals (HNIs). What advisory support are you providing to this group of people?

    We provide investment advisory services to them. We all know that HNIs understand some of the market dynamics.Based on our experience, we provide them with the requisite insights that will help them in making better investment decisions and spotting compelling investment opportunities.

    We see that you are expanding. This should be your second outlet and headquarters?

    Yes. We started out last year from Parkview Estate Ikoyi, Lagos. We believe we needed a bigger space, a befitting corporate head office and that was what informed this head office in Victoria Island, Lagos. This has been in the works for the past six months. Now, it is ready, and so we are ready for more business.

    With the opening of your head office, are you likely to lend more to deepen your market penetration? What will you be doing better?

    The whole idea is to increase our clientele base across all our touch points, be it our physical locations and e-channels (SEL Mobile App and Web Access).

    We have also in the short period, been very instrumental in capital raising for clients’ projects in key growth sectors of the economy. For instance, we just concluded a $12 million capital raising for a captive power plant project for a client.

    We are also lending to businesses and individuals as well as helping SMEs to meet their funding requirements. We are helping SMEs to establish Letters of Credit (LCs), fund their Purchasing Orders (POs) and support their treasury management needs.

    On the wealth management side, we have a few new products and at the appropriate time, we will let you know about some of these products as soon we get the regulatory approvals.

    Can you tell us about your financial inclusion project and how you are exploring opportunities in the retail market space?

    As part of our financial inclusion strategic drive, we are planning to float a N2 billion SME Fund. We are starting with tranche one of N1 billion which is expected to close within the third quarter of this year.

    Can you give us overview of your growth trajectory?

    Our plan as an institution is to move from this initial phase, and in the next three years, translate to a merchant bank. So, some of the things we are doing today are geared towards ensuring that we can easily move into the merchant banking space, which is our end game. We believe that with the support of our customers and other key stakeholders, we are on track to achieving this goal.

    While, we acknowledge it is a tough order, but if you see what we have done in the last one year, everything is geared towards that goal and we are poised to achieving it.

    Are there special plans you have to deepen your operations in the oil and gas sector?

    I will not sit here and say that we can compete with the big players in that market.  We define what we can do based on our understanding of the market. So, our goal is to support every SME business across sectors. Like I said earlier, we are also planning to become a merchant bank where we can take on the bigger players within that market.

    What do you think gives you an edge over your competitors given the highly competitive environment you are playing in?

    For us, the business model is very clear. You really cannot support customers if you do not know their business. We do not intend to play in a sector we do not understand. Remember what I said earlier concerning the SMEs space. You can lend to anybody. But the question is are you creating value for your customers? Value creation is the only way to create emotional connection with your customer.

    In our own case, what we do first is to create value through our advisory services. The same thing goes with our other lines of business.  We work with them, give them the best by understanding their needs and being able to provide the solution that meets their specific needs as demonstrated in the example I gave you concerning the power plant. It is all about providing solutions. If you do not provide solutions to their issues, there is no way you can keep them.

    What are you doing for start-ups?

    The fact is most of the start-ups are SMEs. According to the International Finance Corporation (IFC) nine out of 10 new jobs worldwide are created by small businesses. Therefore, for an economy to develop, such economy must develop the SMEs space.  At SEL Capital, we help business owners to create a sustainable business and make their business more bankable.

    If we understand what you are doing as a business, then the question is, is it in a sustainable/ bankable state that equity investors or lenders will be comfortable to fund the business? So, we guide you through the process to ensure you get the needed support.

    For someone that is not yet your customer, what will the SEL Mobile App do for such a person?

    If you download the SEL Mobile App from Google Play Store,  it asks you whether you want a loan, you have  a business idea that you are seeking capital for, or you want to  invest with us,  or you want to take a personal loan as a consumer. So, it allows you to do your Know Your Customer (KYC) and of course, you are up.

    Many SMEs have complained about the high cost of loans. How are you addressing that, and do you think they can get better lending rates?

    Let me take you back to the commercial banks today. In commercial banks today, as a non-prime borrower, you will probably get loans at 20 per cent plus. The question has always been, why have we not achieved single digit lending rate?

    The truth is that the same customer that wants you to do a single digit lending is the same person that will bring funds to you and be asking for 20 per cent. And remember, financial institution’s role is purely intermediation.

    The good news is there are government initiatives and policies geared towards supporting SMEs.

    Why is it difficult to bring down the Monetary Policy Rate (MPR) to the level where the funds will be cheap to achieve lower lending rates? 

    It is not as if the Central Bank of Nigeria is not mindful of the need to have a lower lending rate. But the reality is that we are a nation that depends on a lot of Foreign Direct Investments (FDIs) and Foreign Portfolio Investment (FPIs). And one of the things you can do to encourage these investors is high yield.

    Some of them understand the problems in developing nations. There is a premium they require for the foreign investors to find your economy attractive. If you keep the rates low and you do not get what you need to reflate the economy, it is big problem.

    There must be strategic direction and plans and at the minimum, it is a three to five-year plan. It is not a knee-jerk response, otherwise you will kill a lot of things.

    You see, with the Investors’ and Exporters (I&E) Forex Window, a lot of money is coming in. So, the question we should be asking ourselves is where have we been all this while that we did not think through that?

    And we need consistent policy, and continuity to be able to do things. There are economic plans that you do not truncate even if a new government in place. It must be independent of politics.

    And that is how we can achieve this type of thing. I know the economic managers are looking at it, but it will not happen overnight. Clearly, we need the right economic team in place, and a framework that ensures that economic policies are not truncated due to change  of  government.

  • AfDB approves $15m equity fund for SMEs

    The Board of Directors of the African Development Bank has approved a $15 million equity investment in Verod Capital Growth Fund III, a private equity fund that will make investments in high growth middle market companies in Anglophone West Africa including Nigeria, Ghana, Liberia, Sierra Leone and the Gambia.

    The Fund’s investments will be in companies in consumer driven sectors including light industrials, fast moving consumer goods, education, financial services and agro processing. The ticket size for each investment will be between $ 5 million and $20 million.

    “The Fund will help accelerate investments in small and medium scale enterprises (SMEs) in the West African region. This is key to job and wealth creation, knowledge transfer and scaling up of local businesses,” said Abdu Mukhtar, the African Development Bank’s Director of Industrial and Trade Development. He also added: “The Fund will provide an important vehicle to growing SMEs in Africa, which are a key pillar to the continent’s industrialization drive”.

    The Fund Manager, Verod Capital Partners, is an experienced indigenous private equity firm with extensive knowledge of the Anglophone West Africa market. It also possesses a strong record of accomplishment in SME investments. Since 2008, Verod Capital Partners has invested in 16 SME companies in the region.

  • Stock market opens new listing opportunities for SMEs, start-ups

    Nigerian capital market authorities have created a new platform for listing of newly established companies and small and medium enterprises (SMEs). The new window allows SMEs and new companies, otherwise known as start-ups, to list their shares and raise capital through the  stock market.

    SMEs and start-ups account for more than 90 per cent of businesses in Nigeria and provide about 85 per cent of employment, according to various national and international data.

    The framework for the operation of the new listing platform at the Nigerian Stock Exchange (NSE), to be known as growth board, was approved by Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC).

    The growth board will be the fourth board at the NSE. There are three existing listing boards at the Exchange, including premium board-for large-cap companies that meet additional requirements on dedicated corporate governance assessment, main board- the general board for all companies that meet the specific stringent listing rules and alternative securities market (ASeM), which provides listing for quotable companies that cannot meet or sustain listing requirements for the main board.

    The framework, obtained at the weekend by The Nation, creates two segments on the growth board for start-ups, micro and small companies and medium-sized companies. Start-ups and small companies are denoted by market capitalisation of between N50million and N500million while medium-sized enterprises are companies with market capitalisation of between N500million and N4billion.

    Start-up and small companies are expected to be listed on the first segment, known as entry segment, while medium-sized companies will be listed on the second segment, known as standard segment.

    For any company to be listed on the growth board, it must be a duly incorporated public limited liability company with at least two years of operations, audited financial statements in line with the International Financial Reporting Standards (IFRS) and must have grown its revenue by a minimum of 20 per cent cumulatively in its last two years of operations.

    Also, all companies to be listed on the growth board must undertake that their promoters or directors shall retain a minimum of 50 per cent of their shares for a minimum period of 12 months from date of their listing, and that the directors or promoters shall not directly or indirectly sell or offer to sell such securities during that 12-month period.

    The framework meanwhile provides alternative requirements for listing for each segment. Under the entry segment, a new business may be considered for listing if it can provide evidence of investment in it by a core investor or a strong technical partner that has a minimum of two years’ operating track record, or a majority shareholder, who is either a High Net Worth Individual (HNI) or is a director of a listed company. Under Nigerian rules, HNI is an individual with net worth of more than N100 million.

    Besides, companies heading for the entry segment must have market capitalisation of not less than N50 million, a minimum of 10 per cent of its shares available or to be available to minority retail investors and at least 25 shareholders.

    Under the standard segment, a new business may be considered for listing if it can provide evidence of a core investor or a strong technical partner who has a minimum of four years operating track record, or a majority shareholder who is a HNI. The company must also have a minimum market capitalisation of N500million, at least 15 per cent of its shares must be held or will be held by minority retail shareholders and it must have a minimum of 51 shareholders.

    The NSE stated that it aims to use the growth board for greater global visibility for eligible Nigerian entities and foreign companies in order to engender global capital flows.

    The new board is designed to support SMEs’ growth as part of the strategic initiatives by the stock market to enhance its traditional roles as catalyst for economic growth and development.

  • ‘Opportunities exist for SMEs in renewable energy sector’

    Dr. Sunny Akpoyibo is President/Chief Executive, Asteven Group, a solar-energy solution company with branch networks in England, Germany, China, Cameroon, Sierra Leone, Rwanda, Kenya with ongoing expansion in Uganda, DRC and Burkina Faso respectively. Akpoyibo an entrepreneur who also sits on several boards including Renewable Energy Academy (ASREA), the foremost academy offering hands-on skills on sustainable energy and allied studies in Africa, in this interview with Yetunde Oladeinde speaks on the opportunities for small and medium scale enterprises in renewable energy and allied sector. Excerpts:

    What are some of the achievements of your organisation?

    The greatest achievement is that we are able to build capacity amongst youths and women. We are able to create access to clean energy among those in the rural areas and the urban centres. We are also able to create access to finance because clean energy needs access to finance. Those are the major activities and over the years we have been able to innovate. One of such innovations is the one-child, one-reading light project. And the second one is the National Green Campus Initiative that says Nigerian students shouldn’t be using kerosene lanterns. The other is the innovation for us to be able to design a-pay-as you-go Solar system that everybody can use, just like when you are buying your kerosene in order to eradicate the hazard posed from the other type of energy sources.

    How long have you been doing this?

    Our company was established in 2010 and it has been a very interesting journey for us.

    What are some of the challenges experienced doing this?

    The challenges come from the environment and I must also say that the awareness created has also created a number of new challenges such as access to finance. Some of the lessons learnt over the years are that we have to do more and create awareness to achieve the set goals.

    What inspired you to go into the sector?

    The environment is going bad especially in Africa and it is actually affecting our overall development. It is worsened by the fact that many do not have access to energy to pursue the opportunities available to them. All our textile mills and other industries have gone down because there is no energy. Imagine a young woman trying to guard against poverty going into hairdressing but she is out of business because there is no energy. The young man who is a barber also needs energy but it isn’t available when they need it.

    We need it for our national grid and even in the rural areas. So, for me that is one of the things that inspired me. As a people, if we have to get out of poverty, we need to provide alternative sources of energy particularly; the sun which a lot of us say is too harsh these days. Interestingly, the sun is a huge source of revenue for us and it can be put into productive use in different ways.

    What are some of the changes that you would like to see in the energy sector?

    We want more people to have an awareness of the opportunities and potentials in the sector. We also want more people to embrace alternative energy sources and there are a lot of potentials in the sector for women and young people.

    Where do you see your company in the next five or 10 years?

    In the next five or 10 years, we are already going global. We should be in all African countries and Nigerian homes especially the rural areas and have access to all our products.

    Tell us about your Academy? What are some of the things that you have done?

    Our Academy is unique and we have been able to train more than 800 students free. There are so many opportunities and potentials in the sector for young people who have passion to make a difference in the society. The academy therefore focuses on taking them through a basic knowledge about Alternative sources of energy as well as how to maintain the knowledge acquired. We also create a business model for them because of sustainability.

    The fact that we train them free is inspiring and the fact that they also know about our products. So, they are usually the ones advocating for this and they are known as the Green Ambassadors. In the process, they work passionately and actually create opportunities to our major clients and reach out to the people especially in the grassroots.

    The Academy is the first of its kind in sub-Sahara Africa, built and structured to support the rapidly developing markets for renewable energy and energy efficient industry. We have installed over 20 megawatts of renewable energy in Nigeria and it translates into carbon emission reduction of 20744tCO2eq per year in Nigeria. In spite of these huge efforts, it is unacceptable that about 60 percent of Nigerians still do not have access to modern forms of energy. It is also worrisome that about 94 percent of the population with access depends hugely on fossil fuel generators, kerosene and wood fuel.

    Renewable Energy holds the key to changing this dependence. Since the adoption of the Paris Agreement on climate change in 2015, the world is travelling in this direction.

    What were you doing before setting up the company?

    That is a very good one. I have always been in the industry and before this I trained in Energy and specialised in Facility Engineering. I later moved to energy conservation and then looked out for the alternative energy that has better conservation. So, I have been doing the same thing in different ways and getting better.

    What advice do you have for Nigerians about the sector?

    I will tell them that getting out of poverty is the only way we should we should go in Nigeria and to help us do that effectively, Renewable energy is a key factor. It will definitely help a lot of individuals and businesses to get out of poverty and succeed in what they do.

    Why is green energy a better option?

    We have to make use of energy that is safe and green energy provides this alternative. A story of a grandma that touches the heart comes to mind here. The daughter was to go to a party and her two children said they wanted to go to grandma instead of staying with the house help. So, they brought them to grandma and she was so happy. The daughter said grandma, you have to lock the doors and whenever they take the light make sure you put on the generator and she said no problem. After all, I am the one who took care of you till you grew up, she told her daughter. The daughter left and of course NEPA took the light. She said let me just put on the candle for a few hours for the children to go to bed. The children being what they are, one of them a twelve year old woke up and wanted to go and urinate. She went to where the candle was, lit up the candle and put it on the rug afterwards. Then the candle burned off and killed an 80-year-old-woman and two grandchildren. Is that not pathetic?

  • Expert urges govt to create favourable conditions for SMEs to thrive

    An entrepreneurial skill development expert, Mr Joshua Adesoji, has urged the three tiers of government to create favourable conditions for Small and Medium Enterprises (SMEs) to thrive.

    Adesoji, who is with Vine Logic Solutions Limited, told the News Agency of Nigeria (NAN) on Saturday in Enugu that the SMEs held the key to solving the serious unemployment challenges being faced by the country.

    The expert, who however lauded the efforts of both Federal and state governments on unemployment, said that the magnitude and growing number of the unemployed, made it necessary for the fight against unemployment to be that of “every Nigerian’’.

    He noted that the three tiers of government had to stop the issues of multiple taxation, frivolous taxation as well as taxation without business growth considerations.

    “With how it is today on self-job creation, you wonder whether governments through its actions and inaction are encouraging Nigerians not to go into start-ups or even expand their present SMEs businesses due to multiple taxation and frivolous taxation and payments.

    READ ALSO: Stimulating SMEs, manufacturing through proper funding

    “Another, is the lack of adequate power supply to run businesses especially grassroots businesses and start-ups.

    “Even, where electricity appear to be relative available, small businesses are further retarded with over billing.

    “Where on earth can a barber or hair salon shop operator pay between N10,000 and N16,000  per month for electricity consumption for just a shop,’’ he said.

    According to him, we cannot create jobs or eradicate unemployment when the businesses and SMEs in our immediate localities or environment cannot employ more hands and mop-up idle hands in our localities.

    Adesoji said: “There is a need for the three tiers of government to look more on the side of SMEs growth for employment generation rather than closing or retarding the growth through harsh taxes, social service charges such as electricity over billing.

    “Why it seems that in every Asian country, individuals, families and small groups owns production outfits is due to the tax holidays and relatively small energy charge on cottage industries that employs tenths of people within localities,’’ he noted.

    The expert said such could be replicated in the country, adding: “I have noticed the can-do-spirit in most Nigerians and I have personally found out that Nigerians are never lazy people both physically and mentally’.”

    “Government must put the right conditions, if possible translates such conditions into law, to encourage everybody into production of goods or service at every level and unemployment will disappear in a matter of years,’’ he added.

  • AfDB approves $15m equity fund for SMEs

    The Board of Directors of the African Development Bank has approved a $15 million equity investment in Verod Capital Growth Fund III, a private equity fund that will make investments in high growth middle market companies in Anglophone West Africa including Nigeria, Ghana, Liberia, Sierra Leone and the Gambia.

    The Fund’s investments will be in companies in consumer-driven sectors including light industrials, fast-moving consumer goods, education, financial services and agro-processing. The ticket size for each investment will be between $ 5 million and $20 million.

    “The Fund will help accelerate investments in small and medium scale enterprises (SMEs) in the West African region. This is key to job and wealth creation, knowledge transfer and scaling up of local businesses,” said Abdu Mukhtar, the African Development Bank’s Director of Industrial and Trade Development. He also added: “The Fund will provide an important vehicle to growing SMEs in Africa, which are a key pillar to the continent’s industrialization drive”.

    Read also: AfDB mechanism for third review this year

    The Fund Manager, Verod Capital Partners, is an experienced indigenous private equity firm with extensive knowledge of the Anglophone West Africa market. It also possesses a strong record of accomplishment in SME investments. Since 2008, Verod Capital Partners has invested in 16 SME companies in the region.

  • SMEs ‘are catalysts for growth’

    Supporting entrepreneurs ensures a thriving business environment and economic growth. Lagos entrepreneur Blessing Ola Saint is opening a campaign for more entrepreneurs to explore e-commerce opportunities to make money and do business, DANIEL ESSIET reports.

    FOR the President, Insight Lite International Company, Blessing Ola Saint,  Small and Medium Enterprises (SMEs) are the catalysts for achieving growth and development.

    Speaking at a seminar held at NG Hub,Yaba, Lagos, he maintained that the  e-commerce industry could fast-track growth.

    Saint, an entrepreneur, said his mission is to build a poverty-free Africa by raising one million digital entrepreneurs in each African country starting from Nigeria.

    He hopes to achieve this through digital skills empowerment and entrepreneurship training.

    He said the increase in e-commerce offerings has, in turn, given consumers more information, variety and price comparison options, as well as the convenience of shopping from anywhere at any time.

    He said there was the need for entrepreneurs to turn toe-commerce and e-platforms as the preferred method for reaching clients.

    In an era where technology drives growth and progress and information is key, Saint maintained that businesses that do not participate in e-commerce could be shut out of a critical part of the marketplace.

    He said adopting ecommerce may become a necessity to survive, especially for SMEs.

    According to him, e-commerce represents a fundamental change in the way that trade is conducted, and offers entrepreneurs up a new, more efficient way to connect producers and merchants directly to customers around the country, bridging the gap between demand and supply.

    He explained that entrepreneurs and SMEs could enhance their offerings through partnerships with established e-commerce service providers, negating the need to set up their own online store.

    As more consumers switch to buying online, Saint said it was critical for entrepreneurs to improve their online capabilities to respond to changing consumer preferences.

    According to him, platforms, such as Jumia have opened up a new, more efficient way for entrepreneurs to connect  customers, bridging the gap between demand and supply.

    He said platforms, such as Jumia, assist entrepreneurs with a combination of   warehousing and transportation facilities with value added services to serve the local market.

    Participants at the event heard how e-commerce also creates opportunities in trade.

    Despite the growth of e-commerce on the internet, digital literacy remains highly fragmented and affordable broadband is far from available. A major challenge is insufficient internet connectivity in the rural areas.

    Online-payment systems remain unavailable and SMEs often lack the skills needed to engage in e-commerce.

     

  • Bank holds advisory seminar for SMEs

    Union Bank has held a series of business seminars for Small and Medium scale Enterprises (SMEs) as part of its support for businesses. The seminars held in seven locations across the country including Aba, Lagos, Anambra, Kano, Kaduna, Abuja and Oyo.

    The sessions, themed: ‘Managing a successful small Business’, were designed to provide practical information and guidance on how to address typical challenges small businesses face in Nigeria.

    The workshops included modules on sales and marketing, governance, succession planning and capacity building. Attendees were also equipped with relevant digital marketing and accounting skills to enable them compete favourably in the marketplace.

    The Head of Retail Segments, Paul Aseme, highlighted the role of SMEs in boosting a nation’s economy. “Union Bank has been known for its contribution to the growth of Nigerian businesses. Recognising the role of SMEs in driving Nigeria’s economic growth, these seminars were organised to equip business owners with the knowledge and skills they require to establish a strong foundation for their business, widen their exposure and expand their business connections,” he said.

    Participants thanked the Bank for the training, saying it would boost their businesses and the SME sector as a whole.

    Union Bank’s SME support scheme also includes the provision of access to market, a conducive banking climate for investment and, easy access to finance for working capital through loan products that include non-collateral loans. The bank’s commitment to SMEs earned it the ‘Best Bank to Support Nigeria’s Small and Medium Scale Enterprises’ award at the 2016 BusinessDay Annual Banking Awards.

  • Chamber, Facebook train over 50 SMEs

    The Nigerian-American Chamber of Commerce (NACC), in collaboration with Facebook and Digivate 360, has trained over 50 Small and Medium Enterprises (SMEs) on growing their businesses by leveraging the digital media.

    The training, which was held in Lagos, drew participants from various sectors of the SME value chain.

    NACC Communications Executive Ebuka Ugochukwu said the training became imperative because SMEs are the backbone of the economic growth.

    “We have come to understand that SMEs are the backbone of any economy. We do expect that as these businesses grow, they will be able to contribute more to the economy and leverage the connections and opportunities that we provide them to scale up,” he said.

    Ugochukwu recalled that when Facebook Founder Mark Zuckerberg visited Nigeria in 2016, one of his objectives was to try to see how Facebook could empower SMEs in the country.

    According to him, that objective resonated with the Chamber’s commitment to empowering businesses with digital skills to grow, manage their brand and increase revenue.

    Ugochukwu said NACC stands out as a pillar of the relationship between the United States of America and Nigeria, while also supporting bilateral commercial relations between Nigeria and the United States

    “We organise other trainings and events, one of which is a monthly breakfast meeting, where participants are exposed to networking and creating new business connections for the growth of their enterprises,” he added.

    NACC has continued to facilitate business-to-business relationships and advanced economic cooperation between Nigeria and the United States through the promotion of business and services that improve trade relations and prosperity of both nations.

    The Chamber is also committed to providing programs and services that improve economic prosperity and sustainability of businesses in the country.

     

     

  • SMEDAN, 21 firms attend China SMEs fair

    The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and 21 Nigerian Small and Medium Enterprises (SMEs) participated at the 15th edition of the China International Small and Medium Enterprises Fair (CISMEF) held in China.

    In one of the meetings with organisers of the fair, SMEDAN Director-General, Dikko Radda requested for areas of collaboration which includes, cluster development, capacity building, technology transfer , banking and trade partnership beyond the fair.

    Responding, the Deputy Director General Bureau of CISMEF) Hei Zuoxian commended the Nigerian delegation and promised to look at all the request made by the SMEDAN boss. On the issue of collaboration, he said if time permits he will facilitate a meeting between SMEDAN and its Guangdong Province counterpart.

    A major activity during the Fair was the SMEs Cross-Matchmaking Forum aimed at offering opportunities to connect Chinese SMEs with overseas customers, and increase their presence in the global market. Nigerian’s participation came within the framework of strengthening areas of comparative advantage in various fields and also synergies to enhance competitiveness back home.

    The Nigerian delegation also visited the Africa Guangdong Business Association; AGBA is a veritable platform for Guangdong enterprises to successfully work with African SMEs both in Africa and in China.

    The president of AGBA Thu Layi welcomed the delegation and re-affirmed his readiness to work with Nigeria; he said they have four major areas of interests which includes investment, financing, talent training and laws & regulations surrounding export and imports.

    Earlier the Chairman SMEDAN Governing Board Otunba Femi Pedro stated that SMEDAN wishes to collaborate and synergize with Guangdong SMEs especially in the area of technology transfer and ICT through the Africa Guangdong Business Association (AGBA) window for the promotion of the MSME sub-sector in Nigeria.

    In his remark, The Managing Director of Sino-African Investment Consultancy Company, Tracy Huo informed the delegation that the “China-Africa Economic & Cultural (CAEC) will be hosting Nigeria in April during their China-Africa Economic & Cultural Week scheduled for April, 2019 in Guangzhou.

    She also said they are working on a three year plan to promote Nigerian culture, products, training of artisans and marketing research working with relevant banks and SMEDAN.

    The SMEDAN Board Chairman accepted their proposal and promised all hands will be on deck for a beautiful outing. The Director General Dr Dikko Radda also added that Nigeria SMEs and officials will like to take advantage of the African Business School, Research and growing of talents training.

    Radda noted that the participation of Nigerian SMEs at the fair would have a great impact on the economy of the nation, adding the SMEs that attended the fair were able to identify new markets and modern technology to improve their production. He said the SMEs were also able to discover new investments and business opportunities.