Grofin, a multi-national specialist, finance and development company, is set to officially launch a funding pool worth $160 million to assist Small and Medium-sized Enterprises (SMEs) in Rwanda today at the Serena Hotel.
The fund will be officially launched by Trade and Industries Minister Monique Nsanzabaganwa at a media business breakfast meeting scheduled today morning.
A statement from Grofin said that the fund provides alternative funding for higher risk underserved market of start-up and growing SMEs that cannot get loans from commercial banks because they lack risk-financing or the required security, and track record.
The award of the GroFin support fund will be based on the viability of the entrepreneurs and their businesses.
GroFin offers funds between Rwf30 million and Rwf570 million for individual SMEs in Rwanda.
The SMEs selected are the ones which are unable to enter or expand the market because of lack of business skills, absence of collateral and high level of perceived risk by financial institutions.
GroFin is a multi-country business development company that is committed to the successful development of SMEs to create sustainable wealth, employment, and economic growth.
The statement also said that Grofin Africa Fund was established in 2008 and has $160 million available to finance up to 500 SMEs in seven African countries, including Rwanda, Uganda, Tanzania, Kenya, Ghana, Nigeria and South Africa.
Mr. Eric Rwigamba the General Manger of GroFin Rwanda said, “the problem is not a shortage of Entrepreneurs in Africa and Rwanda in particular but giving these people appropriate finance and business development support to start or grow sustainable businesses”.
The company also provides hands-on financial and business support services through monitoring and guidance on management issues of the businesses they finance to make them regionally and globally competitive.
Guido Boysen, the chief investment officer says, “Apart from providing risk-free finance, there is a lot we do to aid the success of our investee companies by providing hands-on business development assistance. We can only add this value because we maintain a presence locally, on the ground.”
Grofin Africa Fund is financed by several global investors, including the African Development Bank (AfDB), Capital for Development (CDC), International Finance Corporation (IFC), and the Netherlands Development Finance Company (FMO), the Norwegian Investment Fund for Developing Countries, Shell Foundation, and GroFin Investment Holdings.