As small businesses across Africa struggle to recover from COVID-related economic headwinds, 40 enterprises in Lagos are showing how to successfully rebound.
A nine-month initiative from Citibank Nigeria Limited and TechnoServe, an international non-profit organisation, resulted in revenue increases for nearly 70 percent of participating businesses, with 100 percent now using a digital platform for business, according to a statement.
It said the project provided targeted support to these enterprises, ranging from fashion production and retail, cybercafés, and cosmetics to logistics, by building their capacity in business branding, business growth and expansion, and digital marketing.
TechnoServe also helped the entrepreneurs improve their businesses’ resilience through tools like insurance and security services as well as access to finance resources, the statement said.
Read also: How Citi facilitated $222bn sustainable finance globally
“I learned how to brand my business and win the hearts of more customers, which was one of the critical areas that I struggled with. I did not realise that implementing little actions like redesigning my logo, renovating my shop, and painting with the right colours will have such a quick positive impact in improving customer acquisition and retention,” Temitope Ishado, owner of DGTEENS Café, said.
Improved performance for businesses like Temitope’s is critical for Nigeria’s economy, where 41 million micro-businesses and 73,000 small and medium businesses in Nigeria employ 86.3 percent of the total workforce.
The statement noted that at the height of the pandemic in July 2020, a TechnoServe survey of hundreds of small business owners around the world found that roughly two-thirds reported decreased sales that month.
The Citibank Nigeria-TechnoServe initiative sought to help Nigerian enterprises overcome COVID-related challenges and demonstrate a model that could be scaled up to support other businesses.
“For instance, during COVID-19, many large businesses adopted digital tools to facilitate marketing and distribution of their products in response to COVID-19. Many smaller businesses, however, lack the capacity to do that effectively,” the statement said.
It said in addition to business training and mentoring, TechnoServe helped the Lagos entrepreneurs begin or enhance digital operations of their business.
It said the tools would help businesses maintain access to customers, supplies, and information despite future crises.
While nearly four out of five entrepreneurs were using digital tools at the start of the project, all of them had digital platforms by the project end, the statement added.
Chinedu Wilson, owner of Vagmon E-Group and Logistics Ltd, said her business advisor’s recommendation to open a Google for Business account transformed his marketing operations.
He said: “It is truly amazing to experience the difference that marketing through this platform has made in my business within a short time. We now have a reach of one million potential customers, and a few have been converted to actual customers.
“We have resuscitated other social media platforms that were redundant, and we have the same digital branding across all platforms. The programme delivered beyond my expectations.”
Participating enterprises also expanded local employment, with 25 percent hiring at least one additional young person to their staff, according to the statement.
Ireti Samuel-Ogbu MD/CEO of Citibank Nigeria Limited, said Citi’s efforts in tackling longstanding societal challenges remained a priority amid a global health crisis that had created economic and social upheaval.
“Citi’s commitment includes investment for activities in key areas that support financial and economic inclusion which aligns with the United Nation Sustainable Development Goals 8, Decent Work & Economic Growth,” she said.
“Nigeria’s small and medium-sized businesses represent an enormous opportunity for economic growth and employment — if they get the right support,” said Ayokanmi Ayuba, interim director at TechnoServe in Nigeria.
“Citibank Nigeria’s leadership in helping them maximise their potential is key to the COVID recovery. TechnoServe is proud to apply its business expertise to providing these entrepreneurs with the skills and connections to grow their businesses and support local economic development for years to come.”
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
