GROFIN INTENSIFIES SME FUNDING

Posted on: www.dailyguideghana.com

By William Yaw Owusu 

Friday, June 3, 2016

GroFin, an influential financial services institution that supports vibrant Small and Medium Enterprises (SMEs), says it is committed to building the capacity of many entrepreneurs to create wealth and boost economic growth.

It said the unique combination of appropriate finance and hands-on business support is helping the private sector to remain in business and create employment.

Speaking on the sidelines of the 6^th African Banking and Finance Conference in Accra, Gwen Abiola-Oloke, GroFin’s Regional Investment Director for West Africa said, “Our proven model helps unserved and underserved entrepreneurs gain access to both the money and the expertise that they need to succeed.”

She said that “we have been able to transform the failure rate of SMEs from the World Bank estimated 70-90 percent to a GroFin success rate of 80 percent, ensuring sustainable SMEs that not only survive but grow.”

She said Africa should not underestimate the effort to pursue financial inclusion since it has become the mainstay of many advanced economies.

Mrs. Abiola-Oloke said efforts toward financial inclusion should always be seen in areas such as credit, savings, insurance and payments, adding that it should also come with convenient, affordability, suitability and client protection.

“Globally, Africa lags behind other developing regions in financial inclusion. Financial inclusion is critical to achieving poverty alleviation, sustainable economic growth and social cohesion,” adding that “such wide gaps in financial inclusion impede inclusive growth in Africa, a situation already exacerbated by an excessive reliance on natural resources for growth.”

GroFin’s Regional Investment Director for West Africa said, “An individual approach to financial inclusion at a household level may fall short of the needs of a continent, which is already in the midst of growth pangs, and clearly needs a broader solution to address an ever-widening gap.”

She also said that GroFin is partnering development finance institutions and private sector investors with socio-economic goals to improve livelihoods across Sub-Saharan Africa and other parts of the world.

Samuel Sedegah, Investment Executive of GroFin Ghana, said that impact investors in the private sector actively involved in Africa and applying local expertise can evaluate entrepreneurs and ensure that credit is channeled to the right businesses.

He said impact investors with local expertise who work closely with DFIs can create a multiplier effect in the financial inclusion journey in Africa.