Microsoft, through its Africa Transformation Office, has partnered with M-PESA Africa to address the digital skills gap among Micro, Small, and Medium Enterprises (MSMEs) in Africa. This collaboration is set to revolutionize the landscape for MSMEs across the continent, providing them with the necessary tools to thrive in the digital age.
Microsoft will support M-PESA Africa’s Capability Development Academy by granting access to the Microsoft Community Platform and SME Skilling Programs. These initiatives are designed to enhance capacity building and digitization efforts, enabling MSMEs to develop robust business models, manage finances efficiently, and deliver exceptional customer service. Through the Microsoft Community and Training platform, M-PESA Africa will leverage these resources to equip MSMEs with vital digital skills.
M-PESA connects over 60 million customers and 900,000 businesses across eight countries. Processing more than 91 million transactions and over $1 billion in value daily, M-PESA plays a pivotal role in the region’s financial ecosystem. However, the success of MSMEs is crucial for sustainable economic growth in Africa.
Small and Medium Enterprises contribute significantly to emerging economies, accounting for 40% of GDP and generating at least 90% of new jobs. Despite this, up to 80% of African SMEs fail within their first five years, primarily due to challenges related to digital skills, access to finance, and business enablement tools.
Microsoft’s commitment to addressing the digital skills gap is reflected in its partnership with M-PESA Africa. The company plans to digitally enable 10 million SMEs in Africa through relevant business applications and readily available skilling content. These programs will empower MSMEs with essential financial management skills, including basic accounting, financial planning, and cash flow management. By improving their financial literacy, MSMEs are better positioned to access formal financial services such as bank accounts, loans, and business insurance.
Moreover, adopting digital tools not only streamlines their operations but also provides access to digital payment systems, saving time and reducing costs associated with manual transactions. Microsoft’s skilling programs will also focus on nurturing entrepreneurial skills, essential for starting and growing successful businesses.
At the core of this initiative is the goal to enhance the livelihoods of MSME entrepreneurs and their communities. By reducing inequalities and empowering vulnerable groups, Microsoft and M-PESA Africa align their efforts with the United Nations’ Sustainable Development Goal 10.
The impact of this collaboration will be felt across several M-PESA Africa markets, including Kenya, Lesotho, Mozambique, the Democratic Republic of Congo, and Tanzania. Sitoyo Lopokoiyit, Managing Director of M-PESA Africa, expressed his excitement about the partnership, highlighting the significance of empowering MSMEs: “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, emphasized the importance of an enabling environment for MSMEs: “Digitization can significantly enhance financial inclusion, particularly for unserved and underserved enterprises such as MSMEs. We are proud to be at the forefront of driving MSME development and financial inclusion in Africa.”