Small businesses represent 90 percent of all companies and account for nearly 70 percent of both jobs and GDP worldwide.¹ With such a large footprint, they are an integral part of our global economy and can’t be overlooked. By partnering with leading non-profits and investment funds, Visa Foundation empowers small businesses and entrepreneurs with access to capital, digital tools, and financial skills to grow and thrive. In Africa, our partnership with Aruwa Capital shines a light on the transformative power of strategic capital allocation and innovative technology.
Enabling access to capital
Africa's informal economy is vast, dynamic and deeply entrepreneurial; it is a multi-trillion-dollar market built primarily by small businesses.² Across Nigeria and much of the continent, women stand at the forefront of this economy — estimated at a $15 trillion value that remains largely untapped — yet they often face immense hurdles in growing their ventures. Determined to create an environment that unlocks this economic potential, Adesuwa Rhodes founded Aruwa Capital Management, an impact-focused fund that taps into the potential of entrepreneurs, in particular women entrepreneurs, to ensure they can thrive.
In alignment with our mission of supporting entrepreneurs and local economies, Visa Foundation became the first institutional investor in Aruwa Capital in 2022, enabling them to raise an additional $17 million for African small businesses. Since then, they have invested in more than 10 companies, strengthening the African economy through innovative technology and ensuring more entrepreneurs are part of the formal economy. With an impressive reach of 120,000 entrepreneurs, OmniRetail was a standout performer, making Aruwa Capital’s investment decision clear.
Invest in technology, uplift entrepreneurs
OmniRetail is helping solve some of the challenges African entrepreneurs often deal with: unreliable suppliers, inefficient resourcing and limited access to digital infrastructure. Its B2B distribution platform helps reduce inefficiencies and increase profitability for small businesses by streamlining inventory ordering, improving supply chain reliability and providing access to essential financial tools. Within one to two years, entrepreneurs using OmniRetail’s services have experienced substantial growth, seeing up to eight times increase in income. For Elizabeth Ifeyinwa, affectionately known as Mama Chinaza, OmniRetail’s platform transformed her business.
For years, restocking her shop meant early morning trips to the markets on Lagos Island, navigating traffic, dealing with inconsistent suppliers and leaving her school-age children at home alone. Things changed when she discovered OmniBiz. The OmniRetail platform led to tangible business improvements: purchasing inventory in bulk, reducing restocking frequency and taking advantage of supplier discounts, all of which improved her margins and allowed her to serve more customers consistently. Empowered by this efficiency, Mama Chinaza is considering setting up a second shop and becoming a distributor.
Visa Foundation is committed to supporting the growth and resilience of underserved small businesses including women-owned small businesses. By relying on the power of partnership to help amplify innovative solutions, we are creating a ripple effect that helps uplift entrepreneurs and enables them to thrive.
Visit Visa Foundation’s website to learn more.