Africa’s leading provider of data centre and cloud computing services, Business Connexion (BCX) Group, has declared expensive technology is the major reason why small and medium-sized enterprises (SMEs) in Nigeria are still categorised in the informal sector.
John Jenkins, the group’s executive director, was speaking at an event marking the official launch of BCX’s cloud computing services in Lagos.
“One of the challenges SMEs face is technology and it is so expensive for them as individual companies to create a formal structure of payroll for proper accounting system, so the cost of doing that is inhibitive.
“Often SMEs keep themselves out of the formal environment because they have to invest,” Jenkins said.
He believes however that respite has arrived for Nigerian companies in the shape of the company’s cloud computing services.
Jenkins added: “With the introduction of the cloud computing services, Nigeria’s SMEs will benefit from local IT Services offering at a reduced operating costs, increased flexibility and rapid provisioning times.
“The small enterprise should understand that there is more value than cost, we give cost effective mechanism for small and medium enterprises to get into the formal sector and also offer their customers some advantage, an advantage which should have been difficult if they were in an informal environment.”
Benjamin Mophatlane, BCX Group’s Chief Executive, noted the growth in Nigeria’s economy over the past ten years and stressed the need for the country’s companies to make use of the company’s locally based data centre and cloud services.
“Nigeria’s economy has shown robust growth over the past decade and we have noted that key drivers of growth lie squarely in the telecommunications, construction, tourism, manufacturing, mining, agriculture and wholesale and retail trade, all areas in which our business provides ICT solutions.”
