September 23rd, 2015 marked the official launch of the GroFin Small and Growing Businesses (SGB) Fund that 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 has initial commitments of $100 million. Fund commitments are expected to grow to reach $150 million within two years, making the Fund one of the largest funds specifically targeting small and growing businesses in Africa. This Fund is a follow-on to the $170 million GroFin Africa Fund that is fully invested.
The Fund was co-created by GroFin, a pioneering SME development finance organization and:
• The German development bank KfW, a seasoned founder of structured funds
• The Norwegian Investment Fund for Developing Countries (Norfund)
• Dutch Good Growth Fund (DGGF)
• The Shell Foundation
Over the next two years, GroFin plans to expand the Fund’s coverage to small and growing businesses in three more African countries.
The GroFin SGB Fund seeks to address some of the market barriers faced by entrepreneurs in Africa, 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 for a period of two to six years.