GroFin East Africa Fund (GEAF) has increased Small and Medium Enterprises’ (SMEs) job creation by 55 percent with a total turnover also increasing by 50 percent, according to latest portfolio results.

The fund, which has benefited 50 East African SMEs so far, was established in 2006 with the support of Shell Foundation and other investors who include CDC, FMO, Skoll Foundation and Syngenta Foundation and managed by GroFin.

It provides a combination of finance and business development assistance to SMEs in Kenya, Tanzania, Rwanda and Uganda.

"Both of these figures are immensely important in countries that need both formal employment and wealth creation to become independent, value-adding economies that are not reliant on aid,” Jurie Willemse, Managing Director of GroFin said in a press statement.

The statement says that African SMEs often lack access to capital and the support to further business development and as a result, innovation in this sector is stunted while the continent misses out on a considerable contributor to economic development.

Willemse said: "The ideal scenario for any country is to create a strong base of SMEs that functions as a major employer.”

"As illustrated by many European countries, the target for a healthy, successful economy is to have 70 – 80 percent of citizens employed by SMEs. Addressing this priority for job creation therefore begins with the creation and support of sustainable SMEs.”

The GEAF is GroFin’s fourth fund for Africa, focussing on making risk finance and business development assistance available to entrepreneurs. To date, GEAF has committed $20 million to its selected enterprises.

In August, GroFin announced the final closing of the GroFin Africa Fund at $170 million against a target of $150 million.

This will be invested in approximately 500 companies in the seven African countries the venture capital fund operates in, over a period of five years, making it the largest growth finance fund to date globally.

GroFin said it illustrates the rich potential Africa holds for new investment and job creation.

GroFin is a multi-national specialist SME finance and development company offering an innovative combination of risk capital and business development assistance to viable enterprises.

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