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Business News of Monday, 11 February 2013

Source: Daily Guide

Grofin grows more SMEs

Grofin Ghana Limited is promoting the growth of more Small and Medium Scale Enterprises (SMEs) through a special means to address the major challenge of entrepreneurs in Ghana.

Since 2011, a total amount of GH¢30 million has been disbursed to 35 companies while 10 more companies are expected to receive support soon.

The company, which a pioneering SME development financier that supports entrepreneurs and businesses owners, aims to facilitate the creation of jobs to reduce unemployment rate and drive socio-economic empowerment.

Guido Boysen, Chief Executive Officer (CEO) of Grofin Africa, who travelled to Accra officially to met journalists to share the company’s vision and achievement since it started its operations in Ghana about half a decade ago, said this year GH¢10 million had been set aside for the companies core business.

He said the model the company uses to support SME provides integrated solutions that address the core challenge that SMEs face which is mainly access to appropriate financing and support.

Grofin, he said, supports locally-owned and managed businesses across all sectors with an investment of between $50,000 and $1.500 000, an equivalent of GH¢100,000 and 3,000000 spread across a repayment period of four to six years depending on the needs of the business.

The funds could be used for starting, growing or purchasing a business.

Over 35 beneficiaries in Ghana during the period used their financial support to invest in property, grow new product lines, purchase equipment and vehicles, among others.

“We support businesses to be profitable,” said Mr. Boyson.

“We are supported by development finance organizations that are interested in enterprises development and we know that by assisting these SMEs, we will help create jobs and improve the socioeconomic well-being of people.”

He added that “we have only scratched the face of opportunities as there more.”

“Our experience in Ghana has so far been good, people have dreams and there are opportunities,” said Mr. Boyson, who expressed satisfaction with the level of enterprises in the country.

Samuel Sedegah, General Manager of Grofin Ghana, on his part, added that the number of businesses that would receive support would hit 60 by December, this year.

On challenges, he noted that it was difficult to get entrepreneurs to move from enterprises level to a company, adding “they think they will pay more taxes. It is difficult to convince them that they need to grow.”