GroFin launches fund to support growth of small, growing businesses in Africa

GroFin Small and Growing Businesses (SGB) Fund in Africa was launched Wednesday.

The program aims to catalyze sustainable job creation through supporting small and growing businesses in Ghana, Nigeria, Uganda, Zambia, Kenya, South Africa, Rwanda, Tanzania and Egypt.

The fund was co-created by GroFin, an SME development finance organization and Shell Foundation, an independent charity, based on their 11-year track record of providing vital support to under-served SGBs in Africa and the Middle East, together with the German development bank KFW, a seasoned founder of structured funds.

Active partners of the project include the Norwegian Investment Fund for Developing Countries, Norfund, and the Dutch government through the Dutch Good Growth Fund (DGGF).

The GroFin SGB Fund seeks to overcome 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 $100,000 to $1.5 million.