GroFin East Africa Fund

August 19, 2005 — 09:51 am

For-profit equity funds supporting SME development seem to be in the news lately. The GroFin East Africa Fund provides $22M in SME financing, supported by business mentoring programs. From the GroFin web site:

"As in other developing regions, many East African SMEs are unable to enter the market largely because of a lack of business skills, absence of collateral and high level of perceived risk by financial institutions. The GroFin East Africa SME finance facility was established to service these needs by offering financial and business support services to SMEs within the target regions countries of Uganda, Kenya and Tanzania."

I'm curious to see which SME's GroFin selects to receive funds, and what the return on investment will be 1, 2, or 5 years out. Stay tuned.

(Timbuktu Chronicles has more, as well)

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Rob Katz

Portfolio Associate

Acumen Fund

New York City

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Joshua C Opiyo

on May 29, 2006

WONDERFUL IDEA !!!

 Thank you for giving a Kenyan Company a chance of doing business!!!!

Joshua Ateka

on Aug 28, 2006

This is a great idea. I am

This is a great idea. I am happy to know about Grofin.

I have a keen intest in SMEs aa an aspiring entrepreneur.

Ateka

Daniel

on Sep 3, 2006

great working

This is great work and I encourage more investors to come in to kenya to set up funds targeted to SME. They are the only saviour of our people not donations or loans from Bretton wood institutions.

The state of unemployment and poverty will only be driven by such initiatives.

Regards
Daniel

Erick O N

on Aug 22, 2007

Poverty

Poverty is an homegrown enterprise, its more to do with the state of mind than it is with resources, give a poor man 1 million today, do you think he will be a better man a year down the line. I bet he will be dead, why, 1 million will be overwhelming and due to seismic activities, will lead to his early grave.

We need a homegrown solution to our problems in Africa.
Training and reorientation of focus.

So what we need more than anything else, is a trained state of mind.....

Stephen Kiarie

on Feb 22, 2008

GroFin

Hello, i have been having my business idea since 2003, however i have been unable to start it because of various constrains among them , lack of an appropriate financier for this idea

I am going to try GroFin, and see its actualisation. I have read about them and they look ideal

Orlando James Kamuye

on Mar 5, 2009

GroFin

I am simply elated, av tried funds from conventional banking institutions, but I end up being underfunded, now t'seems my time to take the leap is now, and GroFin shall facilitate that!!

Gaitano Lichuma

on Mar 11, 2009

Grofin

Hi Grofin,I was told about yourselves by afriend that you fund SMES.I have a business idea which i believe if i get finance and proper guidence its viable.I need guidance from you people on how to convert this idea into an action.What is the procedure??

Ogut Michael Olweny

on Apr 11, 2009

TO PAY YOU VISIT AND FIND MORE

THANKS FOR YOUR EXISTENCE. I WILL COME TO YOUR NAIROBI OFFICE TO FIND MORE INFORMATION HOW I COULD ACCESS THE ASSISTANCE. THANKS

MIKE, NAIROBI KENYA.

Mathias Mwambona

on Jun 3, 2009

Looking for a financier

I own a high tech company with high skilled labour but I dont have equipments/tools to help run my business in a productive way. How can I know the operating condition to be elligible for a support from your firm. I am in Dar es Salaam Tanzania where is your office located here in Tanzania

GATOBU R.

on Jun 10, 2009

GROFIN -OUR SAVIOUR.

I AM INTERESTED IN ACEESSING GROFIN FINANCES. PLEASE LET ME KNOW HOW, AS I AM A ENTRPRENEUR IN BUSINESS.THANKS

philip

on Jul 21, 2009

seed capital

We are a local Ngo based in nyeri working with affiliate groups in Nyeri north,nyeri south and kieni districts.We train groups on rural based financial management through group methodology.
So far we have over 30 affiliate groups that are active and fully in the system.
I would like to know whether we can access funds from your organization?

Inderpreet Chawla

on Jul 22, 2009

Capital + Skills Investment

Dear Rob:

Thanks for starting this post on GroFin.

Its incredible to read the comments of so many budding entrepreneurs who are glad to have "discovered" GroFin.

As part of my previous work for launching a SME financing workstream for UNEP's Finance Initiative, I researched GroFin and invited them to participate in a workshop on scaling innovative financing models for sustainable SMEs in Africa.
(BTW: Acumen Fund was also invited and included as case study in the follow-up workshop report)

The most interesting thing about their model is that they not only provide finance but also invest significant resources in training and mentoring the entrepreneur. So in essence, its a combination of capital and skills investment that they do and it really works wonders.

I think Acumen is similar in that sense, particularly through its fellows program.

But after having interacted with GroFin's team attending the workshop, I felt one factor that truly contributes towards successful implementation of their model is that most of their team is from Africa, and brings immense knowledge about the local business context as well as the "cultural intelligence". The latter one is particularly important if they get so engaged with the entrepreneur they invest in.

Now trying to start my own company, I can vouch from first-hand experience how important such hand-holding can be for a 1st generation entrepreneur.

Those are my two cents.

BTW, I'm impressed with the quality of information exchange and up-keep of this website. Well done and keep it up!

All the best,
Inderpreet Chawla

Inderpreet Chawla

on Jul 22, 2009

Capital + Skills Investment

Oh .. and regarding your question on which SMEs...

As far as I know, they are sector agnostic but have a leaning towards infrastructure themed projects... particularly energy. And they generally offer growth capital.

Inderpreet

John Nganga

on Aug 21, 2009

providing reliable stockfeed as purstures dwindle

I have been in the business of retailing stock feed from big name companies and always run up my customers complaining of declining standards. Lately they prefer my local mix of the ingridients than bother with the big name lablles. I think it is time i launched my own brand in the market. I have a prime plot at Ruiru on which to build the factory and several experienced people in animal feed production whom I can take in. Finances though is a major problem. Would my idea qualify for funding?

jeremiah omabere

on Oct 5, 2009

capital financer

we have skills and manpower but lack capital.we are out to produce cheap but quality animal feeds ,from locally available raw materials.

Development through Enterprise