SME development financier Grofin has announced the launch of the GroFin Small and Growing Businesses (SGB) Fund designed to catalyse sustainable job creation through supporting small and growing businesses in Ghana, Nigeria, Uganda, Zambia, Kenya, South Africa, Rwanda, Tanzania, and Egypt.
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 Fund was created by Grofin in conjunction with Shell Foundation, German Development Bank KfW, Norfund and the Dutch government through the Dutch Good Growth Fund (DGGF)
It is expected that the fund’s support will expand to include three more African countries over the next two years.
The GroFin SGB Fund seeks to address the different market barriers faced by African entrepreneurs with an integrated solution of patient growth finance, tailored business support, and access to markets.
Based on the viability of an entrepreneur’s business and growth plans, and not the availability of collateral, entrepreneurs will be able to access loans ranging from US$100,000 to US$1.5 million for a period between two and six years.
