Finance company injects USD63m for SMEs in Africa
Grofin, an African business development and finance company, now boasts USD 323m after a recent injection of USD 63m into its fund for small and medium scale enterprises.
In a move aimed at bolstering its operations in Sub Sahara Africa, the company has appointed Emmanuel Elisante to head its business in Tanzania.
“We plan to invest part of these funds into more businesses across East Africa,” the firm’s spokesperson, Amy Heydenrych forecasted.
In a press statement issued by the company in Dar es Salaam yesterday, the company stated that the East African region is the first to benefit from the company’s many operations. At the moment it has bases in 13 offices across 10 countries, in East Africa; including Tanzania, Kenya and Uganda.
In Tanzania, the release stated, efforts are being strengthened with the appointment of a new managing director and the strategic relocation of its offices.
The firm aims at assisting budding and growing small and medium-sized enterprises which find themselves under funded and in need of what Chief executive officer for middle East and North Africa, Mohamed Toki called the, “…missing middle…” where they lack the collateral required for traditional secured lending yet they are too small for private equity and too large for micro-financing. To overcome this borderline financial assistance qualification crisis, GROFIN provides solutions in form of liquid capital ranging from between USD 50,000 and USD 1.5m.
“Entrepreneurs and businesses in this sector are insufficiently serviced and only but a few capable partners offering the combination of risk finance, experienced business support, and market linkages required to succeed,” the executive officer explained.
More than financing, according to their website, GROFIN offers, access to tailored finance solutions, expert business support and guidance at whatever stage of development a business maybe at. Expounding on their service, the site associates their success to the relation they build with clients and planning.
Treating each business as a unique entity, they focus on a business’s long-term potential for success, making it easier for SMEs to access financial and business support. Underscoring the importance of development and structural planning to coincide with financing, the newly appointed Elisante, emphasized that, his years of experience in multiple African markets within a range of sectors, his firm, has learnt that “…businesses require more than just finance if they are to succeed.”
GROFIN has offices in Nigeria, Ghana and South Africa and seeks to expand its reach across the continent and beyond. It is currently eyeing a new location in Zambia and also intends to launch new offices in Jordan in addition to a regional office serving the United Arab Emirates.
Under its wing are seven well performing funds, GroFin Africa Fund, Aspire Nigeria Fund, Intilaqaah Enterprise Fund, GroFin East Africa Fund, Bank Co-Investment, East Africa, and Empowerment Through Energy Fund.