US$100 Million Grofin SGB Fund Supporting SMEs in Africa
The Fund has initial commitments of US$100 million, which is expected to grow to US$150 million in two years, making it one of the largest funds specifically targeting small and growing businesses. * This Fund is a follow-on to the US$170 million GroFin Africa Fund that is fully invested * The GroFin Small and Growing Businesses (SGB) Fund aims to support over 9,800 under-served entrepreneurs and help create 47,000 sustainable jobs across Africa over the next 10 years. * The Fund has attracted investment from a range of development funders and investors including Shell Foundation (an independent charity), KfW Development Bank (KfW), the Dutch Good Growth Fund (DGGF) and Norfund. * The GroFin SGB Fund seeks to provide business development assistance and finance to small and growing businesses that are currently under-served in Africa.
Kampala, Uganda – Wednesday 23 September 2015 marked the official launch of the GroFin Small and Growing Businesses (SGB) Fund in Africa that aims to catalyse sustainable job creation through supporting small and growing businesses in Ghana, Nigeria, Uganda, Zambia, Kenya, South Africa, Rwanda, Tanzania and Egypt. The GroFin SGB Fund seeks to provide an integrated solution of patient risk capital and end-to-end business support for SGBs. Each year the Fund aims to support up to 100 entrepreneurs, with an estimated average loan size of US$ 350,000. Over the next 10 years the Fund will target the creation of 47,000 sustainable jobs. The Fund’s tiered capital structure is a distinguishing feature that enables a range of social and commercial investors to join the Fund post its launch. The fund is an uncapped and unlimited-life fund, and GroFin aims to initially grow the dedicated SGB Fund to US$150 million.
Typically, SGBs and entrepreneurs in Africa lack the vital resources they need to succeed: access to flexible patient capital; access to business skills and training; and linkages to the supply chains of larger organisations.
