Africa’s First Public Sector Grading System
CRA Global Development partnered with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to design and implement Africa's first public sector MSME grading system, an initiative poised to revolutionize how MSMEs access funding and business opportunities in Nigeria. This comprehensive project, spanning conceptualization to implementation, involved creating a fully functional grading system, complete with IT infrastructure, grading methodologies, and operational frameworks. CRA currently serves as the Chief Grading Officer for SMEDAN, overseeing the pilot phase and ensuring the grading system's effectiveness in achieving its objectives.
The project began with targeted capacity-building efforts, both in South Africa and Nigeria, to upskill SMEDAN’s leadership and affiliated stakeholders, including the Federal Ministry of Industry, Trade, and Investment, the Central Bank of Nigeria, and various SME-focused entities. CRA conducted extensive internal research on Nigeria’s MSME sector to establish a solid foundation for the project and provide insights into the sector's economic contributions and challenges.
A critical milestone was the completion of a pre-feasibility study to determine whether the grading system should be managed by the public or private sector. Through stakeholder engagements and in-depth analysis, CRA successfully demonstrated the feasibility and advantages of a public sector-led model. This was followed by a comprehensive feasibility study covering financial, strategic, operational, and legal dimensions. The study incorporated feedback from over 500 stakeholders, including major financial institutions, non-financial companies, and MSMEs, and its findings were disseminated through roadshows and stakeholder events across Nigeria.
A key innovation of the project was the development of a mobile app that serves as a knowledge hub and showcases the grading system’s functionality. The app, available on Google Play, has been downloaded by over 1,000 users and includes features such as a rating finder, lending intermediary, and business-to-business marketplace. It has been instrumental in building momentum and providing a tangible demonstration of the grading system's potential.
CRA designed and delivered the entire grading system, including IT frameworks, grading methodologies for various enterprise categories (micro, small, medium, nano, and startups), and an operational blueprint. The financial model developed as part of the feasibility study provides a scalable and sustainable pathway for implementation. Additionally, CRA crafted a five-year strategic plan, governance structures, and legal frameworks to guide the system's long-term success.
As the project moves into the pilot phase, CRA continues to provide hands-on oversight as the Chief Grading Officer for SMEDAN. The grading system is now being tested with select MSMEs, offering actionable insights and recommendations to improve access to funding, enhance operational efficiency, and unlock new business opportunities. This project represents a significant step forward for public sector innovation in Nigeria, setting a precedent for scaling the grading model to other African nations and emerging markets.