Woodhall Capital, a financial services organization, has secured a $25 million facility from the African Export-Import Bank (Afreximbank) with the objective of supporting small and medium-sized enterprises (SMEs) in Nigeria.
This agreement was finalized during the inaugural Afreximbank SME development workshop and stakeholder engagement program held in Lagos, as announced in an official statement on Saturday.
In the context of fostering SME growth, the primary objective of this event, as highlighted by Anayo Awani, the Executive Vice President for Intra-African Trade and Export Development at Afreximbank, is to identify and collaborate with financial institutions capable of providing substantial support to these enterprises.
“This event, held in collaboration with Woodhall Capital, aims to develop the capacity of SMEs, the backbone of Africa’s economy,” Awani said.
“It’s not just about nurturing SMEs; we’re also looking to identify financial institutions that can better serve SMEs.
“In Africa, SMEs account for 90 per cent of business activity, and studies indicate that they also represent an average of 60 per cent of total formal employment in developed and developing countries.”
Awani highlighted that one of the significant challenges encountered by African SMEs is the lack of affordable and suitable financing. She mentioned that Afreximbank is actively engaged in efforts to bridge this gap.
“SMEs in Africa still face significant obstacles to growth and prosperity, as only a small fraction venture into the export market, and even fewer have sustained long-term success,” Awani said.
“Bridging these barriers can empower SMEs to thrive on a continental and global scale. Access to affordable, appropriate finance is consistently cited as a major obstacle for SMEs.
“Over the past year, Afreximbank has provided capacity-building and market access support to around 3,000 SMEs across 34 countries.”
Doris Uzoka-Anite, the minister of state for finance, was also present at the event, represented by Shekaru Umar, the executive director of MSMEs at the Bank of Industry. She emphasized that the initiative should be supported by capacity-building efforts, given that Nigeria is home to 39 million SMEs.
“So if, in Nigeria, we have SMEs alone totalling 39 million, it means that selecting Nigeria to launch the inaugural workshop is both deliberate and significant,” Uzoka-Anite said.
“We believe that Afreximbank’s interventions will enable African SMEs to overcome barriers to cross-border trade.
“I urge you all to go beyond the traditional issues SMEs face, like access to funds, and start discussing access to markets and capacity.
“We must understand that the funds provided to SMEs, if not accompanied by capacity-building, will be wasted.”
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| L-R: Rasheed Olaoluwa, chairman, advisory board, Woodhall Capital; Mojisola Hunponu-Wusu, founder, Woodhall Capital; Oluranti Doherty, managing director, export development, Afreximbank; and Kanayo Awani, the executive vice-president, intra-African trade & export development (IAED), Afreximbank, at the signing of $25 million loan facility between Woodhall Capital and Afreximbank to provide a support vehicle for Nigerian SMEs entering export markets in Lagos recently |
Mojisola Hunponu-Wusu, the founder of Woodhall Capital, commended Afreximbank for its significant contributions, highlighting how the bank's assistance has enabled them to achieve a presence on the global stage.
It was highlighted that Woodhall Capital exemplifies how a small enterprise, with adequate training and support, can achieve international recognition through the backing of African institutions.
Hunponu-Wusu noted that the workshop illustrates that any small or medium-sized enterprise (SME) can succeed with the right approach and determination.
On October 28, Afreximbank announced that it facilitated transactions totaling $540 million during the 2024 Creative Africa Nexus Weekend (CANEX WKND) in Algiers, Algeria.
Among the agreements was a €245 million global facility for New World Television (NWTV) aimed at assisting in the acquisition of broadcasting rights for sports across 24 African nations.