Multi-national company funding SMEs development

However PSF is sceptical about GroFin’s contribution towards SME development in Rwanda GroFin, a multi-national finance company is funding the development of Small and Medium Enterprises (SMEs) in Rwanda. The support is through a scheme known as ‘growth finance’. It is offered in the form of access capital and advisory services to credible and viable SMEs, who are unable to attract capital. Eric Rwigamba, the General Manager of GroFin-Rwanda explained that this is because such SMEs do not have the necessary track record or collateral to access finance from the banking sector. “They may also be too small for private equity and their finance requirements are beyond microfinance institutions,” he continued. Rwigamba also added that this is bridged by the GroFin complete business solution, which increases the probability of success and profitability for SME businesses, thus encouraging sustainable economic growth and job creation. Since the support decision is based on a quality business plan yet many present proposals, Rwigamba explained that GroFin assists client develop proposals into implementable business plans. Since 2007 when GroFin started operating in Rwanda, several investment projects have been offered support worth Rwf2 billion ($3.5 million). The financial support ranges between $50,000 (Rwf28 million) to $1 million (Rwf566 million). The company also has support worth $52,238 million (Rwf29.6 billion) to 146 businesses in eight countries in Africa. This has maintained 2,603 jobs and created more 1,732 jobs. It has also assisted in developing entrepreneurial skills and knowledge. However the Director of Entrepreneurship and Business Growth in the Private Sector Federation (PSF), Antoine Rutayisire Manzi, was sceptical about GroFin’s contribution towards SME development in Rwanda. “We (PSF) have not met with GroFin to asses their contribution towards our members’ development,” he explained. Meanwhile, GroFin recently joined forces with CDC, the UK’s development finance institution, and the Shell Foundation to highlight the potential of the ‘growth finance’ initiative. The Managing Director of GroFin, Jurie Willemse said; “With the partnerships of CDC and Shell Foundation, GroFin remains committed to development SMEs by assisting them maximise their profit, create job opportunities and sustain wealth.” Chris West, Director of the Shell Foundation said; “The problem is not a shortage of entrepreneurs in Africa; it has been to give these people the necessary investment and support to help their business grow.” Ends

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Multi-national company funding SMEs development