$100m Fund For SMEs In Nigeria, Others

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A$100 million small and growing businesses (SGB) to support entrepreneurship is opened for business owners to access.

First of its kind, uncapped and unlimited-life fund, SGB Fund was launched by GroFin, a pioneering development financier specialising in financing and supporting small and growing businesses (SGBs) across Africa and the Middle East.

A statement said the fund focuses on small businesses that are grossly underserved by other funds or financiers.

According to the release, between 80 and 100 investments are made yearly at an average deal size of $100,000 to $1.5 million in local currency.

The fund typically provides finance in forms of medium term loans.

To qualify, the release said the business owner must operate in Nigeria, Ghana, Senegal, Ivory Coast, Egypt, South Africa, Kenya, Tanzania, Rwanda and Uganda.

Other criteria, according to the statement, were that the business has a turnover of less than $15 million and assets less than $6 million and require financing between $100,000 and $1.5 million.

It said small businesses can access the fund through GroFin locations in Nigeria, Ghana, Senegal, Ivory Coast, Egypt, South Africa, Kenya, Tanzania, Rwanda and Uganda.

Investors in the fund include Shell Foundation, KfW, Dutch Good Growth Fund, Norfund, and GroFin.

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