How this multi-million dollar fund aims to support Africa's small businesses

by Trust Matsilele 0

African small and medium-sized enterprises (SMEs) are battling to secure funding that will see their businesses growing to become global giants. In Nigeria and Ghana, GroFin has brought some relief to start-ups and SMEs through a 100 million US dollar fund.

Guido Boysen, Chief Investment Officer, GroFin, told CNBC Africa that there was significant interest in SMEs business funding as banks were reluctant to fund SMEs.

GroFin is a pioneering development financier specialising in financing and supporting small and growing businesses in Africa and the Middle East.

“The interest has been great; we have been actively investing in nine African countries including Nigeria and Ghana,” he added.

Boysen said the fund offers additional product and service to SMEs who need funding to grow their businesses.

GroFin’s fund is complementing initiative but the Central Bank of Nigeria that has taken strides to encourage lending to the real sector with the development of SME development funds.

The company focuses on companies with a promising growth strategy, that are credible and have a track record of success. The company is currently in South Africa, Zambia, Nigeria, Ghana, Uganda, Tanzania, Kenya, Rwanda, Egypt, Iraq, Jordan and Oman.

“Our focus is on entrepreneurs who want to grow their businesses especially those with medium to long-term plans. We also help entrepreneurs refine and develop their business plans and once we are comfortable we fund them all the way,” added Boysen.

“What distinguish us from banks is that we assist with business support which allows us to better support entrepreneurs. We also consider start-ups as we are focused in all stages of businesses. We look for entrepreneurs with good reputation.”

Boysen also said his company assists SMEs with access to global markets.

“International markets demand quality and businesses to comply with local laws. [This is where we also bring our skills] as we help businesses to formalise so they meet demands of different markets.”