Firm Sets Aside N22.4 Billion For SMEs in Africa

Chris Agabi

About N22.4 billion ($160 million) has been set aside by GroFin to finance small and medium scale enterprises (SMEs) in Africa and Nigerian SMEs are to benefit substantially from the funds. Grofin a multi-national company specialising in SME finance and development launched the GroFin Africa Fund (GAF) intended to assist local SMEs in Lagos. Other beneficiaries include Tanzania, Kenya, Uganda, Rwanda, Ghana, Nigeria and South Africa.

Grofin headquartered in Mauritius has presence in eight (8) African countries and Oman and its funds are aimed at developing capacity among African small businesses, said Guido Boysen, Grofin Chief Investment Officer. He said: “We are excited about the Nigerian SME sector and we want to show the world that SMEs financing particularly in Africa is a viable business.” He said that SMEs financing propels SMEs to a level they can begin to draw large funds from banks. He also said, they provide funds where microfinance banks cannot provide and grow businesses to a level they can access huge funds from commercial banks. On how to access the funds, he explained that what is critical is the business’s owners demonstrating that they have defined business plans and the willingness to grow a business. He said collateral security may not be mandatory.

source: dailytrust.com