The first close investors in the fund included African Development Bank, CDC, FMO, Shell Foundation, International Finance Corporation and GroFin. The GAF was still open to additional investors, it stated.
The fund was looking to make risk capital investments of between R750 000 and R7,5-million in seven countries, including namely Nigeria, Ghana, Kenya, Tanzania, Rwanda, Uganda and South Africa.
The new pan-African fund would be targeting growth finance opportunities in all sectors such as consumer goods, services, logistics/transportation, private education, tourism, manufacturing and agri-business. Mauritius based GroFin Managers has GroFin teams based in offices in Lagos, Accra, Nairobi, Dar es Salaam, Kigali, Kampala, Pretoria and Durban.
“We are very excited about the opportunities this fund creates. The economic, political and social reforms coupled with several years of high growth that have taken place across many African economies make it a very attractive growth finance environment,” said GroFin Managers MD Jurie Willemse.
The GroFin Africa Fund was building on the risk capital and business development platform established by GroFin in Africa through the GroFin East Africa Fund, a R195-million fund invested in growth finance enterprises throughout East Africa, the Aspire Nigeria Fund, a R230-million fund investing in Nigeria and the Empowerment through Energy Fund, a R50-million pilot fund fully invested in South Africa. GroFin also manages R140-million of bank co-investment commitments in East Africa.