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GroFin Ghana honored at 14th Ghana-Africa Business Awards

GroFin won its second Gold Award in the Financial Services (SME Development) category Ghana-Africa Business Awards. GroFin has been operating in Ghana since 2010 and previously received the same award in 2015.

GroFin received both awards in recognition of its outstanding contribution to the development of Ghana, within the context of the New Partnership for Africa’s Development (NEPAD). GroFin has invested over $30 million (USD) in 66 small and medium-sized businesses in the country. This investment allowed these businesses to sustain 3,224 jobs and to create 411 new direct jobs.  The Ghana-Africa Business Awards, now in their 14th year, are organised under the auspices of the Ghanaian Ministry of Foreign Affairs and Regional Integration.

Samuel Sedegah, Investment Executive at GroFin Ghana, says the company is honored by this acknowledgment of its efforts to develop small and medium-sized businesses in the country.

“SMEs are a key driver of job creation and economic growth in developing economies, and already contribute over 70% of Ghana’s GDP. However, the potential of many of these businesses remains constrained by a lack of access to finance.”

Indeed, according to the latest World Bank Enterprise Survey, 49% of Ghanaian firms cite access to finance as their greatest obstacle. Sedegah explains that GroFin not only provides entrepreneurs with appropriate financing, but also with continuous business support to grow, and ensure their success.

“SMEs are prone to very high failure rates. GroFin helps entrepreneurs to overcome this by offering a combination of finance and expert advice and business support that improves their ability to manage the complexity of a growing business.”

GroFin’s 2015 Ghana-Africa Business Awards was also in the GOLD category, after the organizer’s held consultations with the Ghana Export Promotion Center, Ghana Investment Promotion Center, Ghana Free Zones Board and Ghana Tourism Authority.

About GroFin

GroFin is a pioneering private development financial institution specialising in financing and supporting small and growing businesses (SGBs) across Africa and the Middle East. We combine medium term loan capital and specialised business support to grow SGBs in emerging markets. By successfully combining medium term loans and specialised business support delivered through our local offices, we have invested in over 700 SMEs and sustained over 88,150 jobs across a wide spectrum of business activities within the 15 countries in Africa and Middle East that we operate in. GroFin has its headquarters located in Mauritius.

Media enquiries: Samuel Sedegah, [email protected]

Firm Foundation Ghana–GroFin Client and School of Choice

Firm Foundation Ghana has become the school of choice for parents in the catchment area and is consistently the top performing school in the Ga West area for the Basic Education Certificate Examination (BECE). An average of 25% of students that obtain their BECE at Firm Foundation continue their education through tertiary institutions.

The school’s student population had grown dramatically from an initial intake of 358 students in 2008 to 1,095 students in 2009. By the start of the school year in 2010, the student population had risen to 1,625, putting significant pressure on the school system and parents.

Selorm Abotsi is an example of a Grade 5 learner at Firm Foundation. Many of her school mates have had to endure a transport route that included a 30-minute walk from homefollowed by a 1-hour bus ride leaving them exhausted before they attended a single class. Rapid growth in the Ga West region was stretching the Firm Foundation facilities and the lack of transport infrastructure was limiting students’ capacity to learn due to the fatigue of the morning commute. These challenges led entrepreneur Michael Boakye Yiadom to seek the finance needed to extend the school’s facilities and provide transport to their students.

In 2011, Firm Foundation approached GroFin for funding to accelerate their facility expansions so that they could accommodate the demand for places from new students.Three buses were also purchased to overcome the transportation problems from remote areas. A loan of US$ 1.1M was used to pay off a bank loanpurchase the busescomplete a laboratorybuild a classroom block, a girl’s dormitory and provide seed capital for a secondary school. Besides the financial support, GroFin provided business support services, completely revamping the school management software and assisting to streamline operations. The innovative payment scheme has created an opportunity for parents to match their school fee payments with their income cycle thus helping to reduce bad debts and give access to private education to a greater number of families.

“Our partnership with GroFin has enabled us to reach new areas with quality education and open doors of opportunity for the next generation.” Michael Boakye Yiadom.

Since GroFin’s investment, the student population has increased by over 30%, growing from 1,625 students to 2,130 and the number of staff employed from 85 to 128. Revenues have risen from 700,000 to 1.2 million Ghanaian Cedi.

“Our relationship with GroFin has been very good. Without them, we wouldn’t have come this far,” says Mr. William Klormegah, the accountant of Firm Foundation Montessori Academy.