GroFin East Africa FundThe GroFin East Africa Fund (GEAF) is a private equity fund investing in East Africa. GEAF was established in 2006 with Shell Foundation as main sponsor and BIO, CDC, FMO and Triodos Stichting as investors. SIFEM has committed USD 3.0 million on behalf of SECO. GEAF has also secured USD 15.0 million in co-investment agreements with three local banks, the DFCU Group in Uganda, the Commercial Bank of Africa in Kenya and the Eurafrican Bank in Tanzania.
GEAF’s investment strategy is to serve small and medium enterprise (SME) business development and finance needs in Kenya, Tanzania, Rwanda and Uganda. GEAF makes start-up, early-stage and growth finance investments of USD 50,000 - 1.0 million into viable small businesses with long-term sustainability. The Fund uses self-liquidating instruments (loans combined with royalty based incentive fees), and also takes minority equity positions. Loan collateral is limited to enterprise assets and entrepreneur personal surety-ship, and most investments lack formal collateral. GroFin has developed a unique approach of integrating business development into fund management. Significant Business Development Assistance is injected into enterprises prior to and throughout investment to develop financeable business plans, guide business plan implementation and provide other business development support, thus reducing failure rates, lowering financial risk and increasing portfolio returns.
GEAF is managed by South Africa headquartered GroFin Group, a multi-country business development and finance company specializing in the lower end of SMEs. GroFin has a strong on-the-ground presence in each country of operation via local offices, and focuses heavily on training and building local personnel. GEAF is headquartered in Nairobi, Kenya, with additional offices in Uganda, Tanzania and Rwanda.