Startups and SMEs in Nigeria can access a $6 million fund arranged by the Bank of Industry (BoI) as investment commitment. The BoI said the money could be accessed through the Venture Capital Fund being raised by Grow Africa Equity Partners Limited.
Disrupt Africa reported that the Venture Capital Fund aims to provide equity capital, as well as strategic and operational support to early stage and fast growing businesses involved in the technology, consumer goods and services, and agriculture sectors. Furthermore, Grow Africa is hoping to raise US$60 million for the Fund.
“Nigerian businesses cannot be built on debt alone. It has long been part of the bank’s vision to find ways to provide sorely needed equity capital and business advice to promising Nigerian businesses. Our partnership with Grow Africa is one of the avenues for realising this vision and we remain committed to the pursuit of our core mandate of providing long-term financial support to small, medium and large companies and projects in Nigeria’s key sectors,” said Rasheed Olaoluwa, managing director of the Bank of Industry.
According to Olaoluwa, the bank’s US$6 million investment commitment was inspired by the track record of Grow Africa’s partners, the developmental impact of their existing portfolio, and their strong pipeline for potential new investments.
“Over the past 10 years I have provided capital and advice that have helped several businesses grow from ideas into multi billion Naira industrial leaders. Through this partnership, I hope to see many more entrepreneurs realise their dreams of creating leading companies and delivering massive value to Nigeria,” said Adedotun Sulaiman, chairman of Grow Africa Equity Partners Limited.
