Firm secures $25m Afreximbank loan to support Nigerian SMEs

Woodhall Capital, a financial services firm, has secured a $25 million facility from the African Export-Import Bank (Afreximbank) to support small and medium enterprises ( SMEs) in Nigerian.

The deal, according to a statement on Saturday, was signed during the inaugural Afreximbank SME development workshop and stakeholder engagement programme in Lagos.

Kanayo Awani, the executive vice-president for intra-African trade and export development at Afreximbank, said the goal of the event is to nurture SMEs and identify financial institutions that can better support them.

“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.”

On the challenges faced by African SMEs, Awani said affordable and appropriate financing is often cited as a major obstacle, noting that Afreximbank is working to close the 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.”

Also speaking at the event, Doris Uzoka-Anite, the minister of state for finance, represented by Shekaru Umar, executive director of MSMEs at the Bank of Industry, said the initiative must be accompanied by capacity-building as Nigeria has 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.”

Acknowledging Afreximbank’s efforts, Mojisola Hunponu-Wusu, founder of Woodhall Capital, shared how the bank’s support has helped them reach the global stage.

The founder said Woodhall Capital is proof that a small firm, with proper training and guidance, can achieve global scale with the support of African institutions.

Hunponu-Wusu said the workshop demonstrates that any SME, no matter how small, can achieve success with the right mindset.

On October 28, Afreximbank said it facilitated deals worth $540 million during the 2024 Creative Africa Nexus Weekend (CANEX WKND) held in Algiers, Algeria.

Part of the agreements, according to Afreximbank, was a €245 million global facility for New World Television (NWTV) to support its acquisition of broadcasting rights for sports across 24 African countries.