The GroFin Africa fund has agreed to invest its newly realised $125m in risk capital investments and other business support to five African countries, Jurie Willemse, head of the Mauritius-based GroFin Managers has announced.
According to the head manager, the economic, political and social reforms together with the several years of high growth that has taken place across many African economies has made the investment feasible.
The fund will however, aim at growth finance opportunities in all sectors like manufacturing and agro business, consumer goods services, logistics, transport and private education.
According to reports, seven countries including Uganda, Ghana, Kenya, Nigeria, Rwanda, Tanzania and South Africa will enjoy investment ranging from $100,000 to $1m. The firm expects to raise $160m by November.
GroFin specialises in putting together the much-needed risk finance with business development support and this helps fill a void between micro-finance and private equity as very few financiers target the emerging growth finance asset class.