Woodhall Capital Secures $25m Afreximbank Facility To Enhance SMEs In Nigeria

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

According to a recent statement, this landmark deal was signed during the inaugural Afreximbank SME development workshop and stakeholder engagement programme held in Lagos.

Mr. Kanayo Awani, the Executive Vice-President for Intra-African Trade and Export Development at Afreximbank, highlighted the purpose of the event, emphasising its commitment to nurturing SMEs and collaborating with financial institutions that are equipped to support them effectively.

“This event, held in collaboration with Woodhall Capital, aims to develop the capacity of SMEs, the backbone of Africa’s economy,” said Mr. Awani.

He stated: “It is not just about nurturing SMEs; we are also looking to identify financial institutions that can better serve SMEs. In Africa, SMEs account for 90 percent of business activity, and studies indicate that they represent an average of 60 per cent of total formal employment in both developed and developing countries.”

Addressing the major challenges faced by African SMEs, Mr. Awani pointed out that access to affordable and appropriate financing remains a significant barrier. He stressed Afreximbank’s commitment to bridging this 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,” Mr. Awani noted. “Bridging these barriers can empower SMEs to thrive on a continental and global scale.”

Over the past year, Afreximbank has provided capacity-building and market access support to approximately 3,000 SMEs across 34 African countries.

Mrs. Doris Uzoka-Anite, Honourable Minister of State for Finance, represented by Mr. Shekaru Umar, Executive Director of MSMEs at the Bank of Industry, highlighted the importance of capacity-building alongside funding.

“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,” Mrs. Uzoka-Anite stated.

“We must understand that the funds provided to SMEs, if not accompanied by capacity-building, will be wasted.”

Mrs. Mojisola Hunponu-Wusu, the founder of Woodhall Capital, acknowledged Afreximbank’s crucial role in their growth and success on the global stage. “Woodhall Capital is proof that a small firm, with proper training and guidance, can achieve global scale with the support of African institutions,” Mrs. Hunponu-Wusu said, stating that the workshop exemplifies that any SME can achieve success with the right mindset.

In a related achievement, Afreximbank announced that during the 2024 Creative Africa Nexus Weekend (CANEX WKND) in Algiers, Algeria, it facilitated deals totalling $540 million. This included a €245 million global facility for New World Television (NWTV) to support its acquisition of broadcasting rights for sports across 24 African countries.

The strategic moves by Afreximbank and its partners signal a significant step towards empowering SMEs across Africa, fostering sustainable economic growth, and expanding access to both regional and global markets.