By Silvia Nyambura
Small and Medium Enterprises (SMEs) in Uganda will now be able to access affordable financing for business growth much more easily. This follows the launch of the US$ 100 million GroFin Small and Growing Businesses (SGB) fund in Kampala today. GroFin is an international development finance organization with roots in South Africa. The GroFin fund is Co-created by Shell Foundation (an independent charity), the German development bank KfW, the Norwegian Investment Fund for Developing Countries, Norfund and the Dutch government through the Dutch Good Growth Fund (DGGF).
The Fund seeks to address the 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 can access loans ranging from US$100,000 to US$ 1.5 million for a period between two and six years.
Speaking at the launch event GroFin CEO Jurie Willemse said, “This is a clear demonstration of the high levels of interest that investors have for smaller investments in Africa that deliver both quantifiable investment and development returns. The confidence shown in the GroFin team and our unique business model that integrates risk finance with business development assistance to develop entrepreneurs, local business and employment at scale is heartening.
