81298719-Support for the digital transformation of MSMEs in Nigeria through an ecosystem development approach

The Digital Transformation Center Nigeria (DTC Nigeria) is a project commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) and jointly funded by the European Union (EU) (Multi-Donor Action (MDA)), implemented by Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ) GmbH. The specific objective of the project (BMZ financed part) is to improve the capacity of the Nigerian Economy to utilise digital innovations for growth. The specific objective of the MDA is to improve the digital innovation ecosystem in Nigeria and to support the digital transformation of Micro, Small & Medium Enterprises (MSMEs). The political partner is the Nigerian Federal Ministry of Budget and National Planning. The DTC works with the National Information Technology Development Agency (NITDA), as a lead technical partner to improve the capacities of the innovation ecosystem for the growth of the digital economy in Nigeria in the following areas - policy implementation, performance improvement of organisations and networks, service providers of the digital economy, scalable digital solutions, and digital skills. The immediate target groups of the project are start-ups and (innovative) MSMEs working in conventional sectors, women and youth.). MSMEs account for about 96% of businesses in Nigeria and are responsible for 75% of national employment. MSMEs contributed 43.31% of Nigeria's GDP, according to a 2022 survey conducted by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in collaboration with the National Bureau of Statistics. Yet, Nigeria ranked only 118th out of 132 economies in the 2021 Global Innovation Index. Most MSMEs are lagging, behind the digital transformation andmany, particularly outside of the capital, do not have access to the (digital) innovation ecosystem. The project seeks to support the improvement of the digital innovation ecosystem by (i) creating a business environment for the technological transformation of non-ICT MSMEs in SDG and development-related sectors, (ii) improving the innovation support ecosystem, (iii) fostering partnerships, and developing and implementing digital solutions and (iv) access to digital and entrepreneurial skills. The project will achieve its objectives through the following outputs: - Output 1, Policy & Cooperation - Improved innovation-friendly conditions for the digital economy are promoted by building capacities of key political institutions to: make evidence-based policies and implement them with the participation of ecosystem stakeholders at federal and state level, build capacities on new trends in the digital innovation ecosystem, and enable cooperation and dialogue between national and international actors from the policy and innovation ecosystem. - Output 2, Digital Innovation Ecosystem Support - Improved service offerings from Innovation support organisations (ISO) for the digital transformation of non-tech MSMEs are promoted by: supporting the establishment of DIHs. In addition, existing ISOs are strengthened to provide services to start-up and innovative MSMEs to validate existing digital solutions and to MSMEs in non-ICT sectors to foster their digital transformation. - Output 3, Digital Innovation & Entrepreneurship - New and validated innovative solutions are produced and deployed for use by: developing programmes that allow MSMEs within a structured process to deploy digital solutions. By fostering strategic innovation partnerships between local research as well as higher education institutions, start-ups, innovative SMEs, and other actors in the innovation ecosystem, validated solutions will be further developed and made accessible for use in MSMEs. - Output 4, Digital & Entrepreneurial Skills for Women & Youth - Digital and entrepreneurial skills are developed among youth and women by: harmonising existing digital and entrepreneurial skills programmes of innovation support organisations, public and private training