The Startups Lead, Microsoft Africa Transformation Office, Gerald Maithya, says despite the important role SMEs play in African economies, there are several challenges standing in the way of their survival and success.
In an article, Maithya said research indicates that up to 80 percent of African SMEs fail within the first five years, despite having the highest entrepreneurship rate in the world.
He said infrastructure and connectivity, access to business enablement tools, access to finance and digital skills are all potential stumbling blocks for SMEs.
“Microsoft engages with international organisations such as the IFC, and local financial services institutions, to create innovative financing mechanisms for SMEs on the African continent that enable them to build a credit record and differentiated data sets that tell the story of the business rather than a pure money-in-money-out overview.
He said Microsoft is working to address Africa’s connectivity issues through the Airband Initiative, which provides investment into infrastructure that drives connectivity, and by extension help to boost growth of Small and Medium Enterprises.
The initiative partners with African startups that are overcoming barriers to affordable internet access in unconnected communities by using TV white space (TVWS) and other innovative last-mile access technologies.
Recently, Microsoft announced that it is expanding the Airband Initiative through new partnerships with local and global providers to bring internet access to 100 million Africans by the end of 2025, and working with partner Viasat, Microsoft is extending satellite connectivity to 5 million Africans.
