Sahara Group Foundation, the social impact vehicle of energy conglomerate, Sahara Group, has signed a Memorandum of Understanding (MOU) with the Nigeria Philanthropy Office (NPO) to facilitate impactful philanthropic and investment support for Micro Small and Medium Enterprises (MSMEs) in targeted sectors of the economy.
The MoU represents another milestone for Sahara Group Foundation in furtherance of its commitment to promoting access to energy and sustainable societies.
The Director, Governance and Sustainability Sahara Group, Ejiro Gray said the partnership with the Nigeria Philanthropy Office will reinforce the critical role of entrepreneurship in the quest for sustainable development in Nigeria and become a template for “giving wings to the entrepreneurial spirit of the African Youth.”
The Chairperson of the Nigeria Philanthropic Office under the VP’s office, Ms Thelma Ekiyor said the MOU and subsequent implementation of strategic projects would serve as a catalyst for significant job creation opportunities within the sectors to be supported.
“This partnership aims to orchestrate high-level catalytic philanthropic and impact investing support for MSMEs operating in targeted sectors including Fashion, Furniture Manufacturing, Agro- Processing, and Renewal Energy with significant potential for job creation,” she said.
According to a report by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), MSMEs form a significant part of Nigeria’s economy by contributing about 48 percent of the national GDP, yet simultaneously face major challenges such as low access to finance, inability to secure loans from banks due to stringent collateral requirements and high interest rates. MSMEs in Nigeria also suffer from inadequate infrastructure, inconsistent power supply and high operating costs.
Head, Programs, Sahara Group Foundation, Chidilim Menakaya said the partnership seeks to provide prospects for “repositioning and transforming MSMEs” through activities such as training, mentoring, and networking opportunities for entrepreneurs.
Menakaya further emphasised that the Sahara Group Foundation through various programs provided platforms for fostering sustainable growth for MSMEs, particularly in the aspect of seed funding, finance, strategy, branding and scaling advisory and opportunities for many startups.
She said, “Through our extrapreneurship strategy, pan-African initiatives such as the Sahara MAD Challenge (formerly named Sahara Impact Fund) and the Making a Difference Around Africa initiative, we are creating essential platforms for driving sustainable MSME growth across the value chain to enable young entrepreneurs and startups thrive and contribute meaningfully to socio-economic development.”