![[Column] Soromfe Uzomah: Tech making it easier for SMEs to do business in Africa](Images/Key Persons/Soromfe Uzomah-Microsoft 4Afrika.jpg)
[Column] Soromfe Uzomah: Tech making it easier for SMEs to do business in Africa
Last year’s World Bank Doing Business report indicate the overall business climate in sub-Saharan Africa is steadily improving. Looking at the ease of starting and maintaining a business, Mauritius and Rwanda rank among the top 20 countries globally, while Nigeria and Togo are among the top global improvers.
In the last year, countries across the region implemented 73 reforms, removing certain red tapes and obstacles for SMEs. While this is positive development, sub-Saharan Africa still remains a weak-performing region overall, with an average ease of doing business score of 51.8 – below the global average of 63.0.
Small businesses continue to battle with unreliable electricity, registering property, paying taxes and managing debt. But one trend is clear: As internet access, technology adoption and digital innovation improves, so do many of these challenges.
Technology the enabler
The use of online systems for tax filing, for instance, improved business climates in Côte d’Ivoire, Kenya, Mauritius and Togo. Nigeria also introduced the e-payment of trade fees, reducing the time to import and export, and an online platform for registering businesses. Globally, markets that scored the highest in the report all have widespread use of electronic platforms.
By digitizing and automating administrative services, SMEs are able to go to market faster and operate more efficiently, getting precious time and money back to focus on doing business. Removing the burden of paperwork and long queues also has an incredible motivating factor. When the Kenya Copyright Board worked with Microsoft to develop an online platform to help SMEs register intellectual property, registrations increased by 100 percent. And the knock-on effect of protecting IP is economies that are 26 percent more competitive and twice as likely to produce and export complex, knowledge-intensive products.
Microsoft has spent many years helping to bring digital services to SMEs. In fact, we often say that our cloud offering was developed with the SME in mind – enabling them to set up shop and expand to new markets quickly, saving money by only paying for what they need.
Foundations of access needed
The success of electronic platforms, however, depends on reliable access to electricity and the internet. Many African countries are still below the 20 percent critical mass necessary to achieve improved efficiencies and information flows for economic growth and innovation. In South Africa, more than half of SMEs list internet access as their principal obstacle to adopting technology.
Investments into more stable infrastructure are needed. But while infrastructure catches up, private-sector innovation can help to bridge the gap. In Nigeria, Microsoft, through its 4Afrika Initiative, has partnered with ICE Commercial Power to develop an off-grid, solar-powered solution to connect 10,000 SMEs to electricity. The solar grids are also linked to our cloud-computing platform, which enables remote maintenance of the equipment (reducing any downtime) and lets SMEs manage and pay for their electricity use as they go.
An ecosystem for growth and development
While governments play a leading role in building supportive business climates, the responsibility doesn’t, and shouldn’t, sit solely with them. Public and private sector organisations can collaborate on building an enabling ecosystem, where private-sector innovation is backed by public-sector policy to accelerate growth.
This is work Microsoft is actively engaged in. Through our Policy Innovation Centres in Kenya and South Africa, we’re working with governments on incubating and fast-tracking digital policy. And through our start-up programmes, we’ve invested in organisations including Africa 118, who provide online directory and marketing services to SMEs. SpacePointe, who we first met at DEMO Africa, also helps SMEs build affordable online marketplaces and ecommerce strategies. Finally, FirstBank, Vodacom (and soon Jumia) have partnered with Microsoft to offer a discounted package of technology and educational resources to their SME customers.
The shared benefits of supporting SMEs are numerous. Governments benefit from boosted economies and job creation. Private-sector businesses attract a large and lucrative consumer base. And SMEs are able to access the resources they need to succeed.
Soromfe Uzomah is the Head of Strategic Partnerships at Microsoft 4Afrika
