Microsoft and M-PESA Africa Collaborate to Build Digital Skills Among African SMEs
Microsoft is teaming up with M-PESA Africa to bolster its Capability Development Academy with the strategic alliance granting M-PESA Africa access to the Microsoft Community Platform and SME Skilling Programs, with a shared mission to enhance capacity development and digital transformation for Micro, Small, and Medium Enterprises (MSMEs) in multiple African markets.
The Microsoft Community and Training platform will be instrumental in digitising skilling efforts while harnessing the power of community engagement to equip MSMEs with essential skills that will enable them to construct robust business models, manage finances effectively, and provide exceptional customer service.
The African SMEs Opportunity
Africa, which has the youngest working population globally, holds the potential to fuel the next generation of the workforce. However, seizing this opportunity hinges on addressing the widening skills gap. In light of this, Small and Medium Enterprises contribute to Africa’s inclusive socio-economic growth as they serve as the economic backbone of nations and have the potential to promote inclusive socio-economic development. In emerging economies, SMEs account for 40% of GDP and generate at least 90% of new jobs. Despite the highest entrepreneurship rate in the world, research indicates that up to 80% of African SMEs fail within the first five years. MSMEs face various hurdles, including limited access to business tools, financial resources, and digital skills.
Microsoft’s Commitment to Closing Africa’s Digital Skills Gap
Through its Africa Transformation Office, Microsoft is dedicated to equipping MSMEs with the tools they need to expand their market access, contributing to overall economic growth. The company aims to digitally empower 10 million African SMEs by providing relevant business apps and readily available skilling content.
Microsoft’s skilling programs, offered through M-PESA business solutions, will empower MSMEs to acquire essential financial management skills. These skills encompass basic accounting, financial planning, and cash flow management, significantly enhancing their ability to access formal financial services such as bank accounts, financial loans, and business insurance. Furthermore, embracing digital tools facilitates access to digital payment systems, which can streamline operations and reduce the costs associated with manual transactions. The skilling programs will also cultivate the entrepreneurial skills necessary for starting and expanding a thriving business.
The ultimate aim of this program is to enhance the livelihoods of MSME entrepreneurs and their communities. It also seeks to create opportunities for these small businesses to compete globally. The MSME upskilling initiative’s core is reducing inequalities and empowering vulnerable groups, aligning with the United Nations’ Sustainable Development Goal 10. This program will be rolled out in several M-PESA Africa markets, including Kenya, Lesotho, Mozambique, the Democratic Republic of Congo, and Tanzania.
Sitoyo Lopokoiyit, Managing Director of M-PESA Africa, emphasised the significance of this collaboration, stating, “Micro, Small, and Medium businesses are the backbone of African economies, and therefore empowering them to succeed creates an even larger impact for their communities due to their outsized economic contribution.”
Gerald Maithya, Managing Director of the Africa Transformation Office at Microsoft, highlighted the transformative potential of digitisation in fostering economic growth, particularly for underserved enterprises like MSMEs. He stated, “We are proud to be at the forefront of driving MSME development and financial inclusion in Africa, and we look forward to seeing the positive impact of our partnership with M-PESA Africa across the continent.”